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Final week, Chinese language startup DeepSeek despatched shockwaves within the AI neighborhood with its frugal but extremely performant open-source launch, DeepSeek-R1. The mannequin makes use of pure reinforcement studying (RL) to match OpenAI’s o1 on a spread of benchmarks, difficult the longstanding notion that solely large-scale coaching with highly effective chips can result in high-performing AI.
Nonetheless, with the blockbuster launch, many have additionally began pondering the implications of the Chinese language mannequin, together with the potential for DeepSeek transmitting private person knowledge to China.
The issues began with the corporate’s privateness coverage. Quickly, the difficulty snowballed, with OpenAI technical employees member Steven Heidel not directly suggesting that People like to “give away their knowledge” to the Chinese language Communist Celebration to get free stuff.

The allegations are important from a safety standpoint, however the truth is that DeepSeek can solely retailer knowledge on Chinese language servers when the fashions are used by way of the corporate’s personal ChatGPT-like service.
If the open-source mannequin is hosted regionally or orchestrated by way of GPUs within the U.S., the info doesn’t go to China.
Issues about DeepSeek’s privateness coverage
In its privateness coverage, which was additionally unavailable for a few hours, DeepSeek notes that the corporate collects info in several methods, together with when customers join its providers or use them. This implies every thing from account setup info — names, emails, numbers and passwords — to utilization knowledge corresponding to textual content or audio enter prompts, uploaded information, suggestions and broader chat historical past goes to the corporate.

However, that’s not all. The coverage additional states that the data collected shall be saved in safe servers situated within the Individuals’s Republic of China and could also be shared with legislation enforcement companies, public authorities and others for causes corresponding to serving to examine unlawful actions or simply complying with relevant legislation, authorized course of or authorities requests.
The latter is vital as China’s knowledge safety legal guidelines enable the federal government to grab knowledge from any server within the nation with minimal pretext.
With such a spread of data on Chinese language servers, a myriad of issues might be triggered, together with profiling people and organizations, leakage of delicate enterprise knowledge, and even cyber surveillance campaigns.
The catch
Whereas the coverage can simply elevate safety and privateness alarms (because it already has for a lot of), you will need to observe that it applies solely to DeepSeek’s personal providers — apps, web sites and software program — utilizing the R1 mannequin within the cloud.
You probably have signed up for the DeepSeek Chat web site or are utilizing the DeepSeek AI assistant in your Android or iOS gadget, there’s a very good probability that your gadget knowledge, private info and prompts to date have been despatched to and saved in China.
The corporate has not shared its stance on the matter, however provided that the iOS DeepSeek app has been trending as #1, even forward of ChatGPT, it’s truthful to say that many individuals could have already signed up for the assistant to check out its capabilities — and shared their knowledge at some degree within the course of.
The Android app of the service has additionally scored over one million downloads.
DeepSeek-R1 is open-source itself
As for the core DeepSeek-R1 mannequin, there’s no query of information transmission.
R1 is absolutely open-source, which suggests groups can run it regionally for his or her focused use case by way of open-source implementation instruments like Ollama. This ensures the mannequin does its job successfully whereas maintaining knowledge restricted to the machine itself. In keeping with Emad Mostaque, former founder and CEO of Stability AI, the R1-distill-Qwen-32B mannequin can run easily on the brand new Macs with 16GB of vRAM.
As a substitute, groups may also use GPU clusters from third-party orchestrators to coach, fine-tune and deploy the mannequin — with out knowledge transmission dangers. One in every of these is Hyperbolic Labs, which permits customers to lease a GPU to host R1. The corporate additionally permits inference by way of a secured API.

That stated, in case one’s trying simply to speak with DeepSeek-R1 to resolve a specific reasoning downside, one of the simplest ways to go proper now could be with Perplexity. The corporate has simply added R1 to its mannequin selector, permitting customers to do deep net analysis with chain-of-thought reasoning.
In keeping with Aravind Srinivas, the CEO of Perplexity, the corporate has enabled this use case for its prospects by internet hosting the mannequin in knowledge heart servers situated within the U.S. and Europe.

Lengthy story quick: your knowledge is protected so long as it’s going to a regionally hosted model of DeepSeek-R1, whether or not it’s in your machine or a GPU cluster someplace within the West.
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