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China regulator investigates DeepSeek and Moonshot over alleged data leaks to Anthropic

The Cyberspace Administration of China (CAC) has opened an investigation into two domestic AI startups, DeepSeek and Moonshot AI, after Anthropic alleged that the firms were routing sensitive user data to its systems. The regulator's probe focuses on possible breaches of data protection rules.

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Key points

  • China's Cyberspace Administration is probing DeepSeek and Moonshot AI for alleged routing of sensitive user data to Anthropic.
  • Anthropic claimed the two firms leaked user data, prompting the regulator’s investigation.
  • The regulator has questioned employees of both companies as part of the inquiry.

The CAC reportedly questioned employees from both companies as part of the inquiry. Neither DeepSeek nor Moonshot AI have publicly responded, and Anthropic's claim has not been independently verified. The investigation highlights growing scrutiny of data handling practices among AI developers operating in China.

China’s cybersecurity law requires firms to store and process personal information within the country and to obtain user consent before sharing data abroad. If the investigation finds violations, the companies could face fines, restrictions on product releases, or tighter oversight. The episode comes as Chinese AI firms seek to expand globally, making compliance with both domestic and international privacy standards increasingly critical.

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The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.

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