Digital business models

French privacy watchdog to investigate DeepSeek AI over data concerns

France‘s data protection authority, the CNIL, announced it will question DeepSeek to better understand how the Chinese company’s AI system operates and assess potential privacy risks for users. The move comes as European regulators intensify scrutiny of AI, following concerns raised by Italy and Ireland over DeepSeek’s handling of personal data.

DeepSeek recently gained international attention after revealing its latest AI model, DeepSeek-V3, was trained using less than $6 million worth of Nvidia H800 computing power. European authorities have been particularly vigilant about data protection, with the EU’s General Data Protection Regulation (GDPR) setting stringent standards for privacy. Under GDPR, violations can result in fines of up to 4% of a company’s global turnover.

The CNIL’s investigation follows a broader European push to regulate AI technology, with new rules imposing strict transparency obligations on high-risk AI systems. Other countries, such as Italy and Ireland, have also launched inquiries into DeepSeek, reflecting growing concerns over AI’s implications for data privacy across the continent.

DeepSeek: Speeding up the planet or levelling with ChatGPT?

Although the company’s name somewhat overlaps with Google DeepMind, which was launched earlier, the new player in the market has sparked a leap in attention and public interest, becoming one of the biggest AI surprises on the planet upon its launch.

DeepSeek, a company headquartered in China, enjoys significant popularity primarily because its most sought-after features keep pace with giants like OpenAI and Google, as well as due to notable stock market changes that are far from negligible.

In the following points, we will explore these factors and what the future holds for this young company, particularly in the context of the dynamics between China and the US.

How did it start? Origins of DeepSeek

DeepSeek is an AI company from China based in Hangzhou, Zhejiang, founded by entrepreneur and businessman Liang Wenfeng. The company develops open-source LLMs and is owned by a Chinese hedge fund, High-Flyer.

It all started back in 2015 when Liang Wenfeng cofounded High-Flyer. At first, it was a startup, but in 2019, it grew into a hedge fund focused on developing and using AI trading algorithms. For the first two years, they used AI only for trading.

In 2023, High-Flyer founded a startup called DeepSeek, and Liang Wenfeng was appointed CEO. Two years later, on 10 January 2025, DeepSeek announced the release of its first free-to-use chatbot app. The app surpassed its main competitor, ChatGPT, as the most downloaded free app in the US in just 17 days, causing an unprecedented stir on the market.

Unprecedented impact on the market

Few missed the launch of the DeepSeek model, which is why the stock market felt the impact, and so did some of the biggest giants.

For instance, the value of Nvidia shares dropped by as much as 18%. Similar declines were experienced by giants like OpenAI, Google, and other AI companies focused on small and medium-sized enterprises.

On top of this, there is justified concern among investors, who could quickly shift their focus and redirect their investments. However, this could lead to an even more significant drop in the shares of the largest companies.

Open-source approach

DeepSeek embraces an open-source philosophy, making its AI algorithms, models, and training details freely accessible to the public. The company stated that it is committed to transparency and fosters collaboration among developers and researchers worldwide. They also advocate for a more inclusive and innovative AI ecosystem.

Their strategy has the potential to reshape the AI landscape, as it empowers individuals and organisations to contribute to the evolution of AI technology. DeepSeek’s initiative highlights the importance of open collaboration in driving progress and solving complex challenges in the tech industry.

DeepSeek quickly secured the information after being alerted.

With the growing demand for ethical and transparent AI development, DeepSeek’s open-source model sets a precedent for the industry. The company paves the way for a future where AI breakthroughs are driven by collective effort rather than proprietary control.

Cheaper AI model that shook the market

By being cheaper than the competition, DeepSeek has opened the doors of the AI market to many other companies that do not have as much financial power. As dr Jovan Kurbalija, executive director of Diplo, says in his blog post titled ‘How David outwits Goliath in the age of AI?‘, ‘the age of David challenging Goliath has arrived in AI’.

For individuals, this means monthly costs are reduced by 30% to 50%, which can be, and often is, the biggest incentive for users looking to save.

The privileges once enjoyed by those with greater financial resources are now available to those who want to advance their small and medium-sized businesses.

Cyber threats and challenges faced by DeepSeek

Shortly after its launch, DeepSeek faced a significant setback when it was revealed that an error had exposed sensitive information to the public.

This raised alarms for many, especially as the immense popularity led to the AI Assistant being removed from the AppStore more times than OpenAI’s offering, and a large amount of data became accessible.

Experts have expressed concerns that others may have accessed the leaked data. The company has not yet commented on the incident, while the system’s vulnerability provides a foundation for hacking groups to exploit.

DeepSeek for the top spot, ChatGPT defends the throne

The AI race is heating up as DeepSeek challenges industry leader ChatGPT, aiming to claim the top spot in AI. With its open-source approach, DeepSeek is rapidly gaining attention by publicly making its models and training methods available, fostering innovation and collaboration across the AI community.

The race was further spiced up by DeepSeek’s claim that it built an AI model on par with OpenAI’s ChatGPT for under $6 million (£4.8 million). In comparison, Microsoft, OpenAI’s main partner, plans to invest around $80 billion in AI infrastructure this year.

OpenAI’s ChatGPT search tool faces risks of manipulation via hidden content, leading to biased or harmful outputs.

As DeepSeek pushes forward with its transparent and accessible model, the battle for AI supremacy intensifies. Whether openness will outmatch ChatGPT’s established presence remains to be seen, but one thing is sure—the AI landscape is evolving faster than ever.

Why is DeepSeek gaining popularity in 2025?

DeepSeek has emerged as a major player in AI by embracing an open-source philosophy, making its models and training data freely available to developers. This transparency has fueled rapid innovation, allowing researchers and businesses to build upon its technology and contribute to advancements in AI.

Unlike closed systems controlled by major tech giants, DeepSeek’s approach promotes accessibility and collaboration, attracting a growing community of AI enthusiasts. Its cost-effective development, reportedly achieving results comparable to top-tier models with significantly lower investment, has also drawn attention.

As the demand for more open and adaptable AI solutions rises, DeepSeek’s commitment to shared knowledge positions it as a strong contender in the industry. Whether this strategy will redefine the AI landscape remains to be seen, but its growing influence in 2025 is undeniable.

DeepSeek in the future: Development, features, and strategies

Now that it has experienced ‘overnight success,’ the Chinese company aims to push DeepSeek to the top and position it among the most powerful AI firms in the world.

Users can definitely expect many advanced features that will fuel a fierce battle with giants like DeepMind and ChatGPT.

Strategically, DeepSeek will attempt to break into the American market and offer more financially accessible solutions, forcing the key players to make significant cuts.

DeepSeek is undoubtedly a real hit in the market, but it remains to be seen whether price is the only measure of its success.

Whether it will make a leap in its own technology and completely outpace the competition or remain shoulder to shoulder with the giants—or even falter—will be revealed in the near future.

One thing is sure: the Chinese company has seriously shaken up the market, which will need considerable time to recover.

Vodafone achieves world first satellite video call

Vodafone has achieved a world first by making a video call via satellite using a standard smartphone, marking a significant breakthrough in mobile technology. The call, made from the remote Welsh mountains where there was no network signal, was received by CEO Margherita Della Valle. Vodafone used AST SpaceMobile’s BlueBird satellites, which provide speeds of up to 120 megabits per second, to enable the video call, which included voice, text, and data transmission.

This satellite technology is part of Vodafone’s broader plan to expand satellite connectivity across Europe by 2026. The company aims to offer users a full mobile experience, including video calls, even in areas where traditional network coverage is unavailable. Vodafone is also an investor in AST SpaceMobile, alongside major companies like AT&T, Verizon, and Google.

The race to deploy satellite services is heating up, with competitors like Apple, T-Mobile, and SpaceX already working on satellite-based connectivity. Apple’s iPhones, starting from the iPhone 14, offer satellite texting for emergency services and location sharing. Other companies are testing similar services, with plans for voice and data connectivity in the future.

British astronaut Tim Peake, who attended the launch of Vodafone’s space-to-land gateway, hailed the ability to connect via satellite as an ‘incredible breakthrough.’ Peake, who spent six months aboard the International Space Station, highlighted the importance of staying connected while in remote environments and expressed interest in future space missions.

Irish regulator wants answers from DeepSeek on data practices

Ireland’s Data Protection Commission (DPC) has asked Chinese AI company DeepSeek to clarify how it processes the personal data of Irish users. The request comes as part of ongoing efforts to ensure compliance with European data protection laws.

Unlike major US tech firms that base their EU operations in Ireland, DeepSeek has not designated the country as its European headquarters. This means the company does not fall under the same oversight framework as other large technology firms, prompting the regulator to seek direct answers on its data handling practices.

The DPC’s inquiry highlights the increasing scrutiny of foreign tech companies operating in Europe, especially those dealing with sensitive user information. As concerns over privacy and data security continue to grow, regulators are expected to tighten enforcement to ensure adherence to strict EU data protection laws.

Nvidia shares bounce back after rough week

Shares of Nvidia rose in Europe on Wednesday, signalling a potential recovery after a sharp decline earlier in the week. The company, a key player in the AI sector, saw its Frankfurt-listed shares increase by 2%, following an 8.9% gain on Wall Street the previous day. This bounce came after a steep drop in Nvidia’s market value on Monday, triggered by the emergence of China’s DeepSeek AI tool, which posed a challenge to established players like OpenAI’s ChatGPT.

The decline in Nvidia’s stock earlier in the week saw the company lose nearly $600 billion in market value, marking the largest single-day loss in history for any company. However, markets showed signs of stabilising on Wednesday, bolstered by a surge in shares of ASML, the Dutch company that manufactures tools for chip production. ASML’s 11% jump helped lift European tech stocks, with chipmakers BE Semiconductor and ASM International also posting solid gains.

Investors seemed to regain confidence, with some believing that DeepSeek’s advancements might not disrupt the broader AI market. According to market strategist Chris Weston, the innovation from DeepSeek could even generate new demand for Nvidia’s GPUs, which are critical for AI applications. Meanwhile, Microsoft and OpenAI are investigating whether DeepSeek improperly used data from ChatGPT’s technology.

As markets remain volatile, investors are now looking ahead to earnings reports from major tech giants like Nvidia, Apple, and Microsoft, which could provide more clarity on the sector’s outlook. Despite ongoing uncertainties, the overall sentiment in the tech sector appeared more positive by midweek.

ASML exceeds expectations with surge in AI demand

ASML, the leading maker of computer chip equipment, reported impressive fourth-quarter bookings of 7.09 billion euros ($7.39 billion), significantly surpassing analyst expectations. The surge in orders was driven by the increasing demand for advanced chip production tools fueled by the boom in AI. Following the announcement, ASML’s stock rose 11% to 722 euros, signalling investor optimism despite recent market volatility.

Analysts had expected bookings to total around 3.99 billion euros, up from 2.63 billion euros in the previous quarter. ASML’s CEO, Christophe Fouquet, emphasised that AI growth is a key driver for the industry, with major companies like TSMC, ASML’s largest customer, benefiting from the rise in AI chip demand. The company reported a net income of 2.7 billion euros on sales of 9.3 billion euros for the quarter, surpassing expectations.

Despite the positive results, analysts caution that the long-term impact of DeepSeek’s AI model—released this week and requiring less computing power than competitors—remains uncertain. Some fear it could affect the large investments tech giants make in AI chips. However, ASML’s strong quarterly performance and its 2025 sales forecast, ranging from 30-35 billion euros, suggest continued growth, particularly from companies like TSMC and SK Hynix.

ASML’s largest market was the US in the fourth quarter, accounting for 28% of sales, closely followed by China. However, the company anticipates that sales in China will decline, partly due to export restrictions on chip equipment imposed by the US and Dutch governments for national security reasons.

Italy demands answers from Chinese AI firm DeepSeek on data use

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.

Alibaba launches AI model to rival DeepSeek

Alibaba launched a new version of its Qwen 2.5 AI model on Wednesday, claiming it outperforms competitors like DeepSeek-V3, GPT-4, and Llama-3.1-405B. The release, timed on the first day of the Lunar New Year when most Chinese workers are on holiday, highlights the growing pressure from DeepSeek’s rapid rise in the AI sector. The Chinese tech giant’s announcement emphasised that Qwen 2.5-Max delivers better performance across various AI benchmarks compared to some of the top models from OpenAI and Meta.

DeepSeek’s recent success, particularly after its January releases of the DeepSeek-V3 and R1 models, has shaken the AI market, including both international competitors and Chinese firms. The company’s low development and usage costs have raised concerns about the sustainability of large AI investments from US tech giants. The competition within China has intensified, with Alibaba’s Qwen 2.5-Max release and ByteDance’s update to its AI model shortly after DeepSeek’s R1 release, signalling a rapid response to the new market dynamics.

DeepSeek’s previous model, V2, had already disrupted the market last year, triggering a price war with Chinese firms slashing prices on AI models. Alibaba and other major tech companies, including Baidu and Tencent, had to follow suit, offering significantly cheaper options. Despite this, DeepSeek’s founder, Liang Wenfeng, has expressed that his company is focused on achieving Artificial General Intelligence (AGI) rather than competing on price, contrasting DeepSeek’s agile, research-driven approach with the more structured and costly operations of larger tech firms.

As the battle for AI supremacy intensifies, the emergence of DeepSeek, with its lean team of researchers, continues to challenge China’s tech giants, who may find themselves under pressure to innovate faster and more efficiently to keep up with the rapidly evolving AI landscape.

Apple iPhones included in Starlink satellite trial

Apple’s iPhone devices are now eligible to test SpaceX’s Starlink’s direct-to-cell service, which offers satellite-based coverage, according to T-Mobile. The trial, which started after receiving approval from the Federal Communications Commission (FCC) in November, currently provides “text via satellite” capabilities, with plans to add voice and data features in the future.

Initially, only select Android smartphones were eligible for the test, but T-Mobile has expanded compatibility to include iPhones running the latest iOS 18.3 software update. The partnership between Apple, SpaceX, and T-Mobile has been kept under wraps, with the companies working together to integrate Starlink support into Apple’s devices.

The FCC’s approval last year also allowed Starlink’s direct-to-cell service to assist in providing coverage in areas like North Carolina, which were severely impacted by Hurricane Helene. While Apple and SpaceX did not comment outside business hours, the initiative marks a significant step in expanding satellite coverage for mobile users.

Cred becomes first fintech to offer access to India’s digital currency

Indian fintech platform Cred, backed by Tiger Global and Peak XV, has become the first payment firm to offer access to India’s central bank digital currency (CBDC), the company announced on Tuesday. The Reserve Bank of India (RBI) began piloting the e-rupee, a digital equivalent to cash, in December 2022, initially limiting access to banks. In April 2024, the RBI expanded eligibility to payment firms, paving the way for wider adoption.

Cred’s e-rupee wallet will initially be available to select users, with YES Bank facilitating the issuance of digital currency tokens. Cred’s founder, Kunal Shah, said the initiative aims to streamline e-rupee transactions and promote adoption among India’s most creditworthy individuals. The company joins a competitive landscape, as major firms like Google Pay, PhonePe, Amazon Pay, and MobiKwik have also sought participation in the pilot.

While the e-rupee saw an initial surge in usage, adoption rates have since slowed, reflecting the challenges central banks face in popularising digital currencies globally. Cred’s involvement marks a significant milestone in advancing the accessibility and usability of India’s digital currency.

Diplo chatbot can make mistakes. Consider checking important information.