Chinese AI Firms Fall on Report of DeepSeek, Moonshot Probe

Chinese AI model developers' shares fell after The Information reported that Chinese regulators opened a probe into DeepSeek and Moonshot AI over data security concerns, following Anthropic PBC's accusations that the two startups routed sensitive data through its Claude models. Z.AI Co. shares dropped as much as 7.4% and MiniMax Group Inc. fell as much as 6.3% in Hong Kong, while Alibaba Group Holding Ltd., developer of the Qwen model, slid 4.2%, and Xiaomi Corp. and Tencent Holdings Ltd. each fell about 2.5%. Gavekal Capital portfolio manager Leonid Mironov said investors are "afraid" Beijing may heighten scrutiny of the industry as the scope of regulation remains unclear.

Bloomberg -- Shares of Chinese AI model developers fell after a report that the country's regulators have opened a probe into startups DeepSeek and Moonshot AI over data security concerns. Most Read from Bloomberg Z.AI Co. and MiniMax Group Inc.'s shares declined as much as 7.4% and 6.3% in Hong Kong, respectively, after the Information report. The US tech news outlet's report added that the probe began after Anthropic PBC's accusations that DeepSeek and Moonshot AI had been routing sensitive data through its Claude models. Alibaba Group Holding Ltd., which develops the Qwen model, also slid 4.2% following the report. The development adds to investor concerns that Chinese artificial intelligence firms may face intensified scrutiny amid growing debate over AI safety. Expectations are mounting that President Donald Trump and his Chinese counterpart Xi Jinping will seek an agreement on the AI industry at their upcoming summit. Investors are "afraid" that Beijing may heighten scrutiny of the industry, said Leonid Mironov, portfolio manager at Gavekal Capital. Sentiment has weakened as the scope of regulation remains unclear and may risk slowing China's AI model development, he added. Other technology companies with their own AI model also declined, with Xiaomi Corp. and Tencent Holdings Ltd. each falling about 2.5%. Most Read from Bloomberg Businessweek ©2026 Bloomberg L.P.