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DeepSeek’s AI restricted by ‘hundreds’ of companies within days

Jan 30, 2025 - financialpost.com
DeepSeek, a Chinese AI startup, is facing restrictions from hundreds of companies and government agencies worldwide due to concerns about potential data leaks to the Chinese government and weak privacy safeguards. Cybersecurity firms like Armis Inc. and Netskope Inc. report that a significant number of their clients are blocking access to DeepSeek's services. The company's privacy policy states that it collects and stores user data on servers in China, which has raised alarms about data security and privacy. Cyber researchers discovered a publicly accessible database containing internal data, which DeepSeek secured after being notified.

The situation has prompted scrutiny from various international data protection authorities, including those in Ireland, Italy, and the UK, who are investigating DeepSeek's data handling practices. U.S. officials have also expressed concerns, citing Chinese national security laws that could compel companies to assist in intelligence-gathering activities. Despite these concerns, DeepSeek's low prices continue to attract developers, posing a competitive threat to companies like OpenAI. Cybersecurity experts warn that DeepSeek's AI services may lack sufficient guardrails, potentially enabling cybercriminals to exploit the technology for malicious purposes.

Key takeaways:

  • DeepSeek, a Chinese AI startup, is facing restrictions from hundreds of companies and government agencies due to concerns about data privacy and potential leaks to the Chinese government.
  • Cybersecurity firms like Armis Inc. and Netskope Inc. report that a significant percentage of their clients are blocking access to DeepSeek's services.
  • DeepSeek's privacy policy states that it collects and stores user data in China, raising concerns about compliance with international privacy regulations.
  • Cybersecurity experts warn that DeepSeek's AI services may lack sufficient safeguards, potentially enabling cybercriminals to exploit the technology for malicious purposes.
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