OpenAI’s rival DeepSeek faces regulatory scrutiny in Italy over data protection concerns while gaining popularity in the U.S. market.
Key developments: Italy’s data protection authority, the Garante, has requested detailed information from Chinese AI company DeepSeek about its data collection and storage practices.
- The regulator has given DeepSeek and its affiliated companies 20 days to provide information about what personal data they collect, their data sources, intended purposes, and legal basis
- A crucial question centers on whether DeepSeek stores user data in China
- This marks one of the first regulatory actions targeting the Chinese AI startup
Market impact: DeepSeek’s rising popularity has created ripples in both the tech industry and financial markets.
- The company’s free AI assistant has surpassed OpenAI’s ChatGPT in rankings on Apple’s App Store in the United States
- DeepSeek positions itself as a cost-effective alternative to U.S.-based competitors
- The company’s rapid rise triggered a tech stock selloff on Monday
Regulatory landscape: The Italian regulator’s action reflects growing scrutiny of AI companies in Europe and beyond.
- The Garante has established itself as one of Europe’s most proactive regulators in AI oversight
- In 2023, the authority temporarily banned ChatGPT in Italy over potential violations of EU privacy regulations
- The White House has also taken notice, with officials examining potential national security implications of DeepSeek’s app
Looking ahead: The regulatory investigation into DeepSeek highlights the increasing tension between rapid AI advancement and data privacy concerns, particularly when involving companies from different regulatory jurisdictions. The outcome could set important precedents for how international AI companies operate in European markets.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...