Italy’s Data Protection Authority has banned the Chinese AI platform DeepSeek, ordering the company to limit its processing of Italian users’ data immediately. The move comes after DeepSeek responded unsatisfactorily to inquiries about data sharing and GDPR compliance. This ban is not the first time a popular AI has faced trouble in Italy, with ChatGPT previously being banned over privacy issues.
DeepSeek, founded by Liang Wenfeng, operates independently but is funded by Wenfeng’s quantitative hedge fund. The company has released models that can compete directly with those offered by major tech firms like OpenAI and Google. However, its steep price cut sparked a price war, catching the US and broader AI community off guard.
The Italian ban highlights the increasing willingness of regulators to clamp down on AI tools that may mishandle data. Some Italians have already found ways to circumvent the ban using virtual private networks. DeepSeek’s future in Italy and possibly elsewhere in Europe hangs in the balance, with its story potentially shaping how regulators approach cutting-edge AI developments.
The outcome could serve as a blueprint for balancing innovation with robust data governance. Emerging players must decide whether they can meet evolving data protection mandates, as bans are quickly becoming reality. This move underscores that regulators are catching up faster than ever, and emerging players must adapt to ensure compliance.
Source: https://www.forbes.com/sites/nizangpackin/2025/01/31/a-deep-see-on-deepseek-how-italys-ban-might-shape-ai-oversight