South Korea's Personal Information Protection Commission (PIPC) has accused DeepSeek, a Chinese AI startup, of sharing user data with ByteDance, TikTok's parent company.
The PIPC confirmed that it had discovered a link between DeepSeek and ByteDance, although it has yet to evaluate the amount of data transferred. This development comes after South Korea decided to remove DeepSeek from Apple and Google app stores due to data security concerns. Despite the removal, existing users can still access the AI chatbot via their web browser.
DeepSeek, a generative AI model, has gained significant attention, competing with OpenAI's ChatGPT. Its unexpected rise shook the AI industry, especially after claims about it being trained at a significantly lower cost than its Western rivals. However, concerns over the application's data practices have prompted other nations, including Australia and Taiwan, to prohibit it from government devices.
The incident resurfaces long-held concerns about Chinese tech businesses' compliance with China's National Intelligence Law, which opponents claim authorizes authorities to gather user data from domestic enterprises. ByteDance, headquartered in Beijing, is denying these allegations, insisting that its global investors and operational structures ensure data privacy compliance.
In February, the U.S. cybersecurity firm Security Scorecard said that DeepSeek's Android app made "multiple direct references to ByteDance-owned services." The firm observed that user activity and device metadata were most likely being sent to ByteDance's servers. It also identified traffic directed to domains associated with Chinese state-owned entities, raising considerable worries about national security implications.
While DeepSeek adhered to the South Korean regulator, it admitted shortcomings in aligning with the country's privacy rules. The PIPC has urged users to be cautious when using the chatbot, warning against entering sensitive personal information.
The latest allegations add to ongoing tensions surrounding Chinese tech firms, mainly TikTok. The United States has long debated potential limitations, citing concerns about data sharing with the Chinese government. India took a more drastic step by permanently banning the app in 2020, citing national security concerns.
DeepSeek's status remains uncertain as worldwide governments consider the consequences of AI-driven data privacy.