DeepSeek, a Chinese AI startup, has recently become the center of significant controversy due to its AI model, DeepSeek R1, which has disrupted the global AI market

 DeepSeek, a Chinese AI startup, has recently become the center of significant controversy due to its AI model, DeepSeek R1, which has disrupted the global AI market. The model's performance rivaled that of industry leaders like OpenAI's GPT-4, leading to substantial volatility in AI stocks. For instance, Nvidia's stock experienced a 17% drop, wiping out nearly $600 billion in market value. citeturn0search10

Beyond market disruption, DeepSeek has faced scrutiny over privacy and security concerns. In South Korea, the Personal Information Protection Commission suspended new downloads of DeepSeek's chatbot apps, citing non-compliance with local data protection laws and potential data transfers to China. citeturn0news28 Similarly, in Italy, the app was removed from app stores due to privacy issues, with authorities questioning the origins and handling of user data. citeturn0search1

Additionally, reports have emerged suggesting that DeepSeek's AI model may have been trained using outputs from OpenAI's ChatGPT, raising concerns about intellectual property rights and potential unauthorized use of proprietary data. citeturn0search35

These controversies highlight the complex interplay between technological innovation, market dynamics, and regulatory oversight in the rapidly evolving AI industry.

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