In the world of artificial intelligence, high-profile scandals are occurring more and more often. This time, Chinese chatbot DeepSeek has found itself at the epicenter of an international scandal. South Korea's data protection regulator accused it of passing on user information to ByteDance, the company that owns TikTok.
South Korea's data protection regulator accused DeepSeek of passing on user information to ByteDance, the company that owns TikTok.
What happened?
According to South Korea's Yonhap news agency, the regulator confirmed that DeepSeek had passed data to ByteDance. This has caused serious concern, as the country has previously banned the app's downloads temporarily due to data leak risks. More than a million users had installed DeepSeek before it was blocked.
Although the regulator has confirmed the transfer, details about the nature and extent of the information transferred are not yet available. The Korean government is already demanding an explanation from DeepSeek. In response, the startup said it recognizes the gaps in compliance with local data protection laws and is willing to cooperate.
DeepSeek at the center of international bans
The Chinese chatbot has already made it to the undesirable list in several countries. Specifically, DeepSeek has been banned from being used on government devices in the US, Australia and Taiwan. Italy has gone even further and blocked the app completely.
This isn't the first time Chinese tech companies have faced bans over suspected collaboration with the Chinese government. Previously, a similar fate befell TikTok, which is banned in several states in the U.S.
Artificial intelligence that has shaken up the market
DeepSeek is an ambitious Chinese startup that claims to be a leader in artificial intelligence. Its flagship DeepSeek-R1 is positioned to be more efficient than ChatGPT and is capable of running on expensive Nvidia chips with minimal effort.
Thanks to this, DeepSeek has skyrocketed in popularity, with the app breaking into the top free downloads of the Apple Store in the US, UK and China. But this success has caused both excitement and alarm. Analysts are wondering how the Chinese company was able to catch up so quickly with its American competitors.
Market panic: Nvidia shares fall 17%
DeepSeek not only became a sensation, it caused a financial storm. On Jan. 27, Nasdaq 100 futures collapsed 2.5%, the S&P 500 fell 1.4%, and Nvidia shares plunged 17%. Investors fear Chinese developments could shake the leadership of Western tech giants.
What's next?
The scandal surrounding DeepSeek is only gaining momentum. Will this be another step towards a global techno-cold war between China and the West? Will DeepSeek be able to convince the world of its transparency? One thing is for sure: artificial intelligence is no longer just a technology - it's a battleground for data, power and the future.