Chinese AI developers DeepSeek, Moonshot AI shares fall amid probe

DeepSeek: DeepSeek is a Hangzhou-based Chinese AI lab focused on developing frontier open-weight language models and related AI systems. The company has been advancing its model lineup with recent releases emphasizing efficiency and multimodal capabilities. It is currently the subject of a regulatory probe by China's Cyberspace Administration into data security practices involving potential routing of user interactions to foreign AI models. Moonshot AI: Moonshot AI is a Beijing-based artificial intelligence company known for its Kimi series of chatbots and large-scale open-weight models. It has positioned itself as a key player in China's AI sector through advancements in long-context processing and agentic features. The firm faces an ongoing investigation by Chinese regulators over data security concerns stemming from allegations of routing sensitive user data to external models like those from Anthropic. Regulation: China's Cyberspace Administration has opened inquiries into AI startups regarding the handling and potential cross-border transfer of user data through interactions with foreign AI systems. Market Reaction: Reports of the probes prompted declines in shares of multiple Chinese AI model developers listed in Hong Kong.