China investigates DeepSeek and Moonshot over alleged data leaks to Anthropic
The probe comes days before Trump and Xi are due to meet in Washington to discuss AI, trade and rare earths
Published
Chinese regulators have opened an investigation into DeepSeek and Moonshot over whether the two artificial intelligence companies leaked user data to Anthropic, the U.S. AI firm.
The inquiry is examining the companies' handling and routing of data, though the extent of any leak has not been established.
The timing puts the probe just ahead of a planned meeting between Trump and Xi in Washington on September 24, where trade, rare earths and artificial intelligence are on the agenda. Trump is also expected to decide this week on a broader US-China AI deal.
The investigation complicates the diplomatic groundwork that Treasury and trade officials have been laying in recent weeks toward cooperation on AI governance. If the data-routing allegations hold up, they could harden the U.S. position on AI export controls heading into the summit, making the kind of commercial AI collaboration some traders are pricing in less likely, and the episode is bearish for tech stocks exposed to China AI upside.