Ripple's Chief Technology Officer David Schwartz responded to lawyer Jeremy Hogan's concerns about DeepSeek AI's security and privacy policies, who supports XRP. DeepSeek AI is facing intense scrutiny in the U.S. due to its data collection practices, which have even attracted the attention of multiple countries, including Australia. The White House and the National Security Council are evaluating the potential risks posed by DeepSeek AI, and the U.S. Navy has restricted its personnel from using the application. Schwartz sarcastically addressed Hogan's concerns, although he acknowledged that unusual terms of service are not uncommon in the tech industry. DeepSeek AI's breakthroughs have impacted the U.S. market, leading to volatility in major tech stocks.

MAG7.SSI

HIGHLIGHTS Pro-XRP lawyer raises alarm over DeepSeek's data collection practices. Ripple CTO David Schwartz downplays DeepSeek's privacy policy concerns. DeepSeek AI faces scrutiny over security and privacy concerns in the US. Ripple CTO David Schwartz reacts as a pro-XRP lawyer raises concerns over the Chinese tech startup, DeepSeek AI's security. Notably, this comes amid increasing scrutiny of the Chinese AI startup from the US, which has revealed a flurry of privacy concerns regarding the platform. Besides, several other nations like Australia have also raised concerns over the security aspects of DeepSeek. DeepSeek AI Faces Scrutiny Over Security Risks DeepSeek AI has recently made headlines, with its rising popularity has caused a widespread selloff in the broader financial market. Notably, the tech stocks like NVIDIA and others have faced massive selling pressure. Besides, it also attracted the experts' attention, including pro-XRP lawyer Jeremy Hogan and Ripple CTO David Schwartz. However, recent reports suggest that the Chinese AI startup has become a growing concern among US authorities. The White House recently confirmed that national security officials are evaluating the potential risks posed by the Chinese AI firm. Reports suggest that the US Navy has already restricted its personnel from using DeepSeek's applications, citing ethical and security issues. Meanwhile, according to a BBC report, White House press secretary Karoline Leavitt stated that the National Security Council is looking into the matter. She also noted that former President Donald Trump described DeepSeek's breakthrough as a "wake-up call" for the US tech sector. The scrutiny comes as OpenAI's Sam Altman also lauded DeepSeek's efficacy recently. Ripple CTO Reacts As Pro-XRP Lawyer Raises Concern Recently, Ripple CTO David Schwartz weighed in as pro-XRP lawyer Jeremy Hogan recently took to X to highlight alarming details in DeepSeek’s privacy policy. He cautioned users that the platform collects extensive personal data and shares it without clear restrictions. Hogan wrote, "I read DeepSeek’s Privacy Policy so you don’t have to. The DeepSeek privacy policy is: You don't have any privacy. None." He added that all user data is stored in China, where privacy laws are significantly different from those in the US and Europe. His comments suggest that users should be mindful of their interactions with the AI model, especially regarding sensitive topics. David Schwarz Weighs In Ripple CTO David Schwartz responded to Hogan’s post with a sarcastic remark. He shared an image and commented, "They’re not as bad as the terms for beta.webmaster.com used to be." David Schwartz’s reaction downplayed the severity of DeepSeek’s privacy policies but acknowledged that questionable terms of service are not uncommon in the tech space. His remark, however, did not dismiss the broader concerns raised by Hogan and regulatory bodies. Notably, this comes as DeepSeek’s AI breakthrough already impacted US markets. Reports suggest that its advanced model has rattled US investors, causing fluctuations in major tech stocks. However, NVIDIA stock price has recovered from its 17% dip noted on Monday. Meanwhile, OpenAI and other top US firms have accused Chinese AI companies of using knowledge distillation techniques to replicate their models. David Sacks, the White House’s AI and crypto advisor, emphasized that preventing such practices would be a key focus for American tech leaders in the coming months.

Ripple's Chief Technology Officer Responds to DeepSeek AI Security Concerns