China Investigates DeepSeek and Moonshot Over Alleged Data Leaks to Anthropic

China's internet regulator, the Cyberspace Administration of China (CAC), has opened an investigation into AI developers DeepSeek and Moonshot AI following allegations that the two companies routed sensitive user data to Anthropic through the Claude model, according to reporting by The Information and Quartz. The probe is said to include questioning of staff at both firms, marking a rare regulatory action against two of China's most prominent AI startups. The allegation originated with Anthropic, which claimed that DeepSeek and Moonshot had been channeling sensitive user data through its Claude system. The CAC has not publicly detailed the scope of the investigation or named specific individuals questioned. Neither DeepSeek, Moonshot, nor Anthropic has issued a full public response to the reported probe. The case sits at the intersection of China's tightening data-security regime and the global AI industry's reliance on cross-border model access.

Global Impact

Economic: The probe could slow commercial adoption of DeepSeek and Moonshot models and chill foreign investment into Chinese AI startups, while benefiting domestic competitors with cleaner compliance records. Political: It reinforces Beijing's narrative of data sovereignty and could complicate US-China tech negotiations if Anthropic's role is framed as foreign interference.