Italy’s data protection authority, the Garante, has launched an investigation into Chinese AI model DeepSeek over its use of personal data. The regulator is seeking details on the types of data collected, its sources, purposes, legal basis, and whether the information is stored in China. DeepSeek and its affiliates have been given 20 days to respond, marking one of the first regulatory challenges faced by the startup.
The inquiry comes as DeepSeek gains global attention, recently overtaking OpenAI’s ChatGPT as the top app on Apple’s United States App Store. The Chinese firm positions itself as a low-cost competitor to United States AI models, a claim that has drawn scrutiny from governments and markets alike. In the United States, White House officials have expressed concerns over the app’s potential national security implications.
Italy‘s Garante is known for its assertive stance on AI regulation, having briefly banned ChatGPT in 2023 over alleged EU privacy violations. The investigation into DeepSeek underscores the growing global focus on the privacy and security risks posed by emerging AI technologies.
French prosecutors have launched a new investigation into Binance, marking the second time authorities have scrutinised the crypto exchange. The probe includes allegations of drug trafficking, money laundering, and tax evasion, with possible additional charges yet to be disclosed. This follows an earlier inquiry in 2023 over suspected financial crimes linked to the platform.
Regulators worldwide have tightened their grip on cryptocurrency firms after the collapse of FTX and other high-profile failures. Binance has faced mounting legal challenges, including a record $4.3 billion settlement with US authorities. Despite leadership changes, including the resignation of founder Changpeng Zhao, the company remains under regulatory pressure.
As Binance navigates legal battles across multiple jurisdictions, its future in key markets remains uncertain. The latest investigation in France adds to the exchange’s ongoing struggles, reinforcing the global crackdown on crypto platforms accused of financial misconduct.
OpenAI has raised concerns about Chinese companies attempting to access US AI technologies to enhance their models. In a statement released on Tuesday, OpenAI highlighted the critical need to protect its intellectual property and the most advanced capabilities in its AI systems. The company emphasised that it has put in place countermeasures to safeguard its innovations and is working closely with the US government to protect the technology from being exploited by competitors and adversaries.
These comments come in response to the White House’s ongoing review of national security risks posed by Chinese AI companies, particularly the rapidly growing startup DeepSeek. The US government has been looking into potential threats as China increasingly seeks to advance its AI capabilities. David Sacks, the White House’s AI and crypto czar, explained that Chinese firms are using an AI technique called “distillation,” which allows them to extract knowledge from leading US AI models, further raising concerns about intellectual property theft.
OpenAI’s statement underscores the challenges and security risks that arise as AI becomes a critical technology with broad applications, from national defence to economic competitiveness. The company’s efforts to protect its proprietary AI models are part of a broader push by the US to ensure that its technological edge is not compromised by foreign competitors who might attempt to bypass intellectual property protections. The situation highlights the increasing geopolitical tension surrounding AI development, especially as China continues to make significant strides in the field.
South Sudan has lifted a temporary ban on Facebook and TikTok, imposed following the spread of graphic videos allegedly showing the killings of South Sudanese nationals in Sudan. The National Communications Authority confirmed on 27 January that the disturbing content, which had sparked violent protests and retaliatory killings across South Sudan, has been removed from the platforms.
The videos, which documented ethnically targeted attacks in Sudan’s El Gezira state, had led to widespread outrage. Rights groups blamed the Sudanese army and its allies for the violence, while the army denounced the incidents as isolated violations. South Sudanese authorities urged for a balanced approach to addressing online incitement while protecting the public’s rights.
The unrest highlights the volatile relationship between social media and violence in the region. Authorities continue to call for action to address the root causes of such content while promoting accountability and safety.
Smiths Group, the British engineering firm known for its baggage-screening and explosive detection equipment, is addressing a cybersecurity breach involving unauthorised access to its systems. The company confirmed on Tuesday that it had isolated the affected systems as soon as the incident was detected.
Efforts are underway with cybersecurity experts to recover impacted systems and assess the broader implications of the breach. Smiths Group assured it is adhering to all regulatory requirements and promised to provide updates as necessary.
The incident, disclosed in the morning, sent the company’s shares down by as much as 2.3% in early trading. No further details have been provided about the breach or its potential consequences.
The treasurer of Australia, Jim Chalmers, has urged caution regarding the use of the Chinese AI model DeepSeek, citing potential risks associated with the technology. Speaking at a news conference on Monday, Chalmers emphasised that the government is closely monitoring the situation and continuously receiving advice on its implications.
DeepSeek, a cost-efficient AI model released by China, has raised global concerns, particularly over its ability to challenge the dominance of US AI developers. Its debut caused significant market turbulence, with shares of AI chip leader Nvidia plunging by 17% on Monday before making a partial recovery.
The United States has also voiced concerns, announcing an investigation into the national security implications of DeepSeek. The scrutiny highlights growing geopolitical tensions around the advancement and control of AI technologies.
Italy’s data protection authority, the Garante, has ordered the Chinese AI startup DeepSeek to block its chatbot in the country, citing insufficient responses to queries about its privacy policy. The watchdog had requested detailed information on data collection practices, sources, purposes, and storage, particularly concerning whether user data is stored in China. DeepSeek’s failure to adequately address these concerns prompted the Garante to impose an immediate ban and launch an investigation.
DeepSeek had removed its AI assistant from Italian app stores earlier this week but claimed it was not subject to local regulation. Agostino Ghiglia, a member of the Garante’s board, stated that the company’s stance worsened its position. Italian users who had already downloaded the app still reported access to the chatbot, while the web version remains operational. The Garante emphasised that European citizens must have clear consent and data protection guarantees, especially regarding servers located in China.
The Garante’s action highlights growing scrutiny of AI platforms in Europe, with data regulators in Ireland and France also questioning DeepSeek’s privacy practices. Italy‘s proactive approach has drawn attention; the country temporarily banned ChatGPT in 2023 over similar concerns. DeepSeek has positioned its AI as a cost-effective alternative to US models, surpassing ChatGPT as the top-rated app on Apple’s US App Store. However, its refusal to cooperate with European regulators may jeopardise its expansion.
The launch of the TRUMP meme coin has drawn massive attention, reaching a $72 billion market cap in just two days. The excitement has also unleashed a wave of fraudulent activity, with over 6,800 fake tokens and 91 malicious decentralised applications (dApps) flooding the market, according to blockchain forensic firm Blockaid.
Scammers capitalised on the hype surrounding TRUMP, creating counterfeit tokens and applications designed to mimic the original coin. The surge in fake assets, particularly on networks like Solana and Ethereum, has made it increasingly difficult for investors to distinguish legitimate tokens from malicious ones. The scheme extended to tokens referencing Trump family members, further complicating the situation.
Blockaid has worked to shield users from these threats, blocking hundreds of interactions with fake assets since the TRUMP token’s release. While cryptocurrency’s decentralised nature empowers users, it also provides opportunities for bad actors, underscoring the ongoing need for vigilance and robust scam prevention efforts.
Following the failure of tech companies, the uranium market, which is crucial for developing power-intensive AI technologies through nuclear energy, experienced price fluctuations. The spot price of uranium dropped $3.90 per pound, settling at $67.30 per pound by Tuesday, marking a weekly decline of $6.55. Despite the price decrease, the market saw substantial activity, with 21 recorded transactions amounting to 1.8 million pounds of uranium oxide in the past week. This indicates potential emerging demand, especially from power utilities seeking prices below $70 per pound.
BMO Capital Markets analyst George Heppel maintains an optimistic long-term outlook for uranium demand, highlighting ongoing nuclear reactor constructions in China as a driving force. This growth expectation is underscored by improving economics in the carry trade, which might sustain or even boost uranium prices despite recent declines. Interestingly, as uranium prices dipped, major uranium companies like Cameco, Kazatomprom, and NexGen Energy experienced stock gains on Tuesday, signalling investor confidence in the sector’s future.
The report captures a complex financial landscape where tech stocks exhibit temporary volatility while the uranium market remains robust. Despite immediate setbacks in tech, there is a potential recovery path, and the promising outlook for uranium reflects its indispensable role in advancing AI technologies. This dual narrative of short-term market challenges and optimistic long-term growth prospects offers valuable insights into the interplay between evolving technological demands and foundational energy resources.
Italian cybersecurity startup Exein has signed an agreement with Taiwan’s MediaTek to embed its security technology into the chipmaker’s Genio platform. The partnership will provide advanced security features for billions of chips used in mobile, home, automotive, and healthcare industries worldwide.
Exein expects its technology to be implemented in over 3 billion devices as a result of the deal. The partnership, valued at more than 5 million euros, is projected to double in worth by 2028. The company views MediaTek as a key strategic partner and sees this collaboration as a step towards expanding into automotive and robotics sectors globally.
Italy has been striving to foster a stronger tech startup ecosystem, and this agreement marks a significant milestone. Exein previously raised $15 million in Series B funding and counts major companies like Daikin, Seco, and Kontron among its clients.
