Ripple CTO David Schwartz responds to a pro-XRP lawyer’s concerns about DeepSeek AI’s security and privacy policies.
David Schwartz, the Chief Technology Officer of Ripple, responds to a pro-XRP lawyer’s concerns regarding the security of the Chinese tech startup DeepSeek AI. This is particularly noteworthy in light of the growing scrutiny of Chinese AI startups by the United States, which has exposed many privacy concerns regarding the platform. Additionally, the security aspects of DeepSeek have been of concern in numerous other countries, including Australia.
DeepSeek AI is being scrutinized for potential security vulnerabilities
The broader financial market has experienced a widespread selloff due to the increasing prominence of DeepSeek AI, which has recently made headlines. It is important to note that tech equities like NVIDIA and others have experienced significant selling pressure. Additionally, it captivated the attention of experts, such as Ripple CTO David Schwartz and pro-XRP counsel Jeremy Hogan.
Nevertheless, recent reports indicate that the Chinese AI startup has become a source of increasing concern for US authorities. The potential hazards of the Chinese AI firm are currently being assessed by national security officials, as confirmed by the White House. According to reports, the US Navy has already prohibited its personnel from utilizing DeepSeek’s applications, citing ethical and security concerns.
Meanwhile, the White House press secretary Karoline Leavitt stated in a BBC report that the National Security Council is investigating the matter. She also observed that former President Donald Trump referred to DeepSeek’s breakthrough as a “wake-up call” for the US tech sector. DeepSeek’s efficacy was recently praised by OpenAI’s Sam Altman, prompting scrutiny.
As a pro-XRP lawyer raises concerns, the Ripple CTO responds
Ripple CTO David Schwartz recently expressed his opinion on the matter. At the same time, Jeremy Hogan, a pro-XRP lawyer, recently addressed X to draw attention to the concerning aspects of DeepSeek’s privacy policy. He advised users that the platform captures significant personal data and shares it without explicit restrictions.
Hogan stated, “I have reviewed DeepSeek’s Privacy Policy to alleviate your burden.” The privacy policy of DeepSeek is as follows: You are not granted any privacy. “None.” He also stated that all user data is stored in China, a country with privacy laws that differ considerably from those in the United States and Europe. His remarks indicate that users should exercise caution when engaging with the AI model, particularly when dealing with sensitive subjects.
David Schwarz Offers His Opinion
In response to Hogan’s post, Ripple CTO David Schwartz issued a sardonic remark. He shared an image and commented, “They are not as detrimental as the terms of beta.webmaster.com were in the past.”
David Schwartz’s response minimized the gravity of DeepSeek’s privacy policies. However, he acknowledged that dubious terms of service are not uncommon in the technology sector. Nevertheless, his statement did not negate Hogan’s and regulatory bodies’ more extensive concerns.
This is particularly noteworthy because DeepSeek’s AI innovation has already affected the US market. According to reports, the advanced model has caused fluctuations in key tech stocks, which has alarmed US investors. Nevertheless, the stock price of NVIDIA has rebounded from the 17% decline observed on Monday.
In the interim, OpenAI and other prominent US firms have accused Chinese AI companies of employing knowledge distillation techniques to replicate their models. David Sacks, the White House’s AI and crypto advisor, underscored that American tech leaders must prioritize preventing such practices in the months ahead.