Written by Alex Salvatore, Mobile Gen AI Expert with 10+ years in
iOS development. Last updated: February 2026
Chinese AI models like Kimi AI aren’t automatically banned under
GDPR—only direct API calls to Chinese servers are problematic. Kimi K2.5
and DeepSeek are open source, which means you can use them legally in
Europe through EU-hosted providers or self-hosting. Here are three
GDPR-compliant options with real pricing.
The Real GDPR Problem
with Chinese AI
The common assumption is wrong. “Chinese model = GDPR violation” is
overly simplistic.
What’s actually prohibited: – Direct API calls to
Moonshot (China-hosted) – Data transfers to Chinese servers without
adequate safeguards – Using services that store data in China
What’s allowed: – Open-source models hosted in the
EU – Self-hosted instances on European infrastructure – Third-party
providers with EU data residency
Recent Regulatory Actions
| Country | Action | Date |
|---|---|---|
| Italy | Banned DeepSeek (direct API) | January 30, 2025 |
| France | CNIL investigation ongoing | 2025 |
| Belgium | Under investigation | 2025 |
The bans target direct Chinese API access, not the open-source models
themselves.
Option 1: Kimi K2
via Nebius (Simplest Solution)
Nebius is a Dutch company hosting Kimi K2 on
European infrastructure. Your data never touches Chinese servers.
Nebius Pricing
| Metric | Cost |
|---|---|
| Input (cached) | $0.15/M tokens |
| Input (uncached) | $0.60/M tokens |
| Output | $2.50/M tokens |
| Context window | 131K tokens |
GDPR Advantages
- Dutch company – EU jurisdiction
- European infrastructure – Data stays in EU
- No CLOUD Act – Unlike US providers
- Configurable data residency – Choose your
region
Cost for 1,000 tasks/month: ~$1.85
Option 2: Self-Host
DeepSeek R1 Distill 70B
DeepSeek R1 is open source. The 70B distilled version offers
excellent performance-to-cost ratio for high-volume applications.
Hardware Requirements
| Configuration | VRAM | Notes |
|---|---|---|
| 2x NVIDIA A100 80GB | ~140GB FP16 | Full precision |
| 1x A100 80GB | ~70GB INT4 | Quantized |
GCP europe-west9 (Paris)
Pricing
| Instance Type | Hourly Cost | Monthly Cost |
|---|---|---|
| On-demand | ~$5-6/hour | ~$3,600/month |
| Spot VMs (70% discount) | ~$1.50/hour | ~$1,100/month |
Performance: ~25 tokens/second
Break-even point: Self-hosting becomes
cost-effective at ~50,000 requests/month.
Recommended Stack
# vLLM deployment on GCP Paris
vLLM + DeepSeek-R1-Distill-Llama-70B
Instance: a2-ultragpu-2g (2x A100 80GB)
Region: europe-west9 (Paris)
Spot VMs for cost optimization
Option 3: Self-Host
Mistral Small 24B
Lighter and more accessible for smaller operations.
Hardware Requirements
| Configuration | VRAM |
|---|---|
| 1x NVIDIA A100 80GB | ~55GB BF16 |
| 2x L40S | ~55GB total |
GCP Paris Pricing
| Instance Type | Hourly Cost | Monthly Cost |
|---|---|---|
| On-demand A100 80GB | ~$3/hour | ~$2,200/month |
| Spot VMs | ~$1/hour | ~$730/month |
Performance: ~40-50 tokens/second
Complete Cost Comparison
| Solution | Input $/M | Output $/M | Self-host/month | GDPR Status |
|---|---|---|---|---|
| Kimi K2 API (Moonshot) | $0.60 | $2.50 | – | Not compliant (China) |
| Kimi K2 via Nebius | $0.15-0.60 | $2.50 | – | Compliant (Netherlands) |
| DeepSeek R1 70B self-host | – | – | $1,100 (spot) | Compliant |
| Mistral Small 3.1 API | $0.10 | $0.30 | – | Compliant (France) |
| Mistral Small 24B self-host | – | – | $730 (spot) | Compliant |
Cost Per
1,000 Tasks (1K input, 500 output tokens each)
- Mistral API: $0.25
- Kimi via Nebius: $1.85
- Self-host: $730-1,100 fixed monthly
(volume-dependent ROI)
Recommendations by Volume
Low Volume (<10K
requests/month)
Use Mistral API. At $0.25 per 1,000 tasks, it’s
unbeatable for cost and simplicity. French company, EU-hosted, fully
compliant.
Medium Volume + Kimi
Requirement
Use Nebius. Same Kimi model, GDPR-compliant Dutch
infrastructure. No changes to your code beyond the API endpoint.
High Volume (>50K
requests/month)
Self-host on GCP Paris. DeepSeek R1 70B or Mistral
Small 24B with Spot VMs. Fixed monthly cost becomes more economical than
per-token pricing.
Key Takeaways
- Chinese models aren’t banned – Only direct API
calls to China are problematic - Open source = options – Kimi K2.5 and DeepSeek can
be legally hosted in Europe - Nebius is the easy path – Same Kimi model, Dutch
infrastructure, API-compatible - Self-hosting at scale – Becomes cost-effective
above 50K requests/month - Mistral for simplicity – French, cheap, and fully
compliant
Frequently Asked Questions
Is Kimi AI legal to use in
Europe?
It depends on how you use it. Direct API calls to Moonshot (the
Chinese company behind Kimi) violate GDPR because data is processed in
China. However, using Kimi K2.5 through EU-hosted providers like Nebius
or self-hosting is fully compliant.
What’s the
difference between Kimi and DeepSeek?
Both are Chinese open-source LLMs with strong performance. Kimi K2.5
(by Moonshot AI) has a 131K context window and excels at multilingual
tasks. DeepSeek R1 is known for reasoning capabilities. Both can be
hosted in the EU for GDPR compliance.
Why did Italy ban DeepSeek?
Italy’s data protection authority banned direct access to DeepSeek’s
API because it involves data transfers to China without adequate GDPR
safeguards. The ban doesn’t apply to self-hosted instances or EU-based
hosting providers running the open-source model.
Is self-hosting
worth it for small applications?
Generally no. At less than 50,000 requests per month, API services
like Mistral ($0.25/1K tasks) or Nebius are more cost-effective.
Self-hosting requires infrastructure management, and the fixed monthly
cost only makes sense at scale.
How
does Nebius achieve GDPR compliance with a Chinese model?
Nebius is a Dutch company running Kimi K2.5 on European
infrastructure. The model weights are open source—Nebius simply runs
them on EU servers. Your data never leaves European jurisdiction,
satisfying GDPR requirements.
Sources: – Nebius Token Factory
Pricing – DeepSeek
R1 GPU Requirements – GCP GPU
Pricing – DeepSeek
Italy Ban – Euronews
Questions about integrating GDPR-compliant LLMs into your apps?
I’m a mobile Gen AI expert with multiple apps on the App Store. Try IndieScout
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