French Privacy Watchdog CNIL to Investigate DeepSeek's AI System

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On Fri, 31 Jan, 8:08 AM UTC

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France's data protection authority, CNIL, announces plans to question Chinese AI startup DeepSeek about its AI system's operations and potential privacy risks, following the company's claim of cost-effective AI model training.

French Watchdog CNIL to Investigate DeepSeek's AI System

France's data protection authority, CNIL (Commission Nationale de l'Informatique et des Libertés), has announced its intention to question DeepSeek, a Chinese AI startup, regarding the functionality of its AI system and potential privacy risks for users 12. This move comes in the wake of DeepSeek's recent claim that it trained its DeepSeek-V3 model for less than $6 million using Nvidia H800 chips, which garnered significant attention in the AI community.

DeepSeek's Cost-Effective AI Training

DeepSeek attracted global attention last month when it published a paper detailing the training of its DeepSeek-V3 model. The company claimed that the process required less than $6 million worth of computing power from Nvidia H800 chips 12. This assertion has raised eyebrows in the industry, prompting closer scrutiny from regulatory bodies.

CNIL's Investigative Approach

A spokesperson for CNIL stated, "The CNIL's AI department is currently analysing this tool. In order to better understand how this AI system works and the risks in terms of data protection, the CNIL will question the company that offers the DeepSeek chatbot" 12. This proactive stance aligns with CNIL's reputation as one of the most active privacy watchdogs in Europe, known for imposing fines on tech giants like Google and Meta Platforms.

European Data Protection Concerns

The investigation into DeepSeek is not isolated to France. Italy's data protection authority has also sought answers from the company regarding its use of personal data. Similarly, Ireland's Data Protection Commission has requested information about data processing related to Irish users 12. These actions reflect Europe's stringent approach to data protection, embodied in the General Data Protection Regulation (GDPR).

GDPR and AI Regulations in Europe

The GDPR is widely regarded as one of the most comprehensive and stringent data privacy laws globally. Violations can result in fines of up to 4% of a company's total global turnover 12. Additionally, the European Union recently agreed on landmark rules for AI systems, imposing strict transparency obligations on high-risk AI systems and lighter requirements for general-purpose AI models. Fines for violating these new AI regulations can range from 7.5 million euros (or 1.5% of turnover) to 35 million euros (or 7% of global turnover), depending on the nature of the violation 12.

Implications for AI Development and Privacy

This investigation highlights the growing tension between rapid AI advancement and data protection concerns. As companies like DeepSeek push the boundaries of AI capabilities and cost-effectiveness, regulatory bodies are increasingly vigilant about potential privacy risks. The outcome of CNIL's inquiry could have significant implications for AI development practices and international data protection standards, particularly for companies operating in or serving European users.

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