The Netherlands' privacy watchdog (AP) on Friday said it will launch an investigation into Chinese artificial intelligence firm DeepSeek's data collection practices and urged Dutch users to use caution with the company's software.

The watchdog blocked access to DeepSeek after the companies that provide the DeepSeek chatbot service allegedly failed to provide it with information about the personal data collected.

The start-up had become a key player in the “Chinese Large-Model Technology Avengers Team” that would counter US AI dominance, said another. China’s delight, however, spelled pain for several giant US technology companies as investors questioned whether DeepSeek’s breakthrough undermined the case for their colossal spending on AI infrastructure.

The Chinese tech company DeepSeek is causing major waves in the AI industry - what are they doing that’s making everyone rethink AI’s future?

News from China upset U.S. markets this week and disrupted the frenzy that had built up around artificial intelligence.