Texas Attorney General Ken Paxton has launched an investigation into DeepSeek, the upstart Chinese artificial intelligence company that rocked Wall Street last month, alleging it violates his state’s data privacy laws.
The Republican AG said DeepSeek’s “blatant allegiance to the Chinese Communist Party (CCP)” is extremely concerning, as it “appears to be no more than a proxy for the CCP to undermine American AI dominance and steal the data of our citizens.”
The controversial company is subject to Chinese laws, which mandate cooperation with government intelligence agencies and potentially compromise users’ private data, Paxton said, adding that he has notified DeepSeek that it is in violation of the Texas Data Privacy and Security Act.