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DeepSeek AI: GDPR, privacy, security and contractual risks; data in China, censorship, market impact, ESG and adoption strategy for corporate legal teams

Published on: 25 February 2025

Published by a LexisNexis TMT expert
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Article summary

What is the Deepseek AI model?

DeepSeek AI is a cutting-edge artificial intelligence system built by DeepSeek, a company based in China. The organisation’s mission centres on stretching the limits of AI to deliver tools that empower enterprises and elevate human capability, while keeping advanced AI accessible, ethical and meaningful. Established in 2023, DeepSeek rose swiftly through the AI ranks by releasing free, open-source language models. Most recently it unveiled two high-end models: V3, aimed at broad use cases such as chat-style applications, and R1, tailored for reasoning-heavy work, including programming and maths challenges. R1 has drawn notable media interest by offering cost-conscious AI performance when set against leading US counterparts.

Why is it having a big impact on technology markets around the world?

DeepSeek AI is reshaping global tech markets largely through its cost efficiency. Reports suggest the company trained its system for around US$6m using 2,000 Nvidia H800 GPUs, a stark contrast to GPT-4’s estimated US$80–100m. That difference has rippled through financial markets, with heavyweight tech shares, including Nvidia, sliding at the end of January 2025. The reaction reflects investor unease about possible shifts in the AI industry’s competitive landscape...

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