OpenAI, the creator of ChatGPT, has raised concerns that competitors, particularly in China, are leveraging its technology to accelerate the development of their own artificial intelligence (AI) applications. This comes amid the rapid rise of DeepSeek, a Chinese AI tool that reportedly matches ChatGPT’s capabilities at a significantly lower cost, challenging the dominance of U.S.-based firms like OpenAI in the global AI landscape.
Microsoft, a major investor in OpenAI, is investigating whether proprietary data from the company was used without authorization, according to Bloomberg.
David Sacks, the White House’s newly appointed AI and crypto policy lead, echoed OpenAI’s allegations during a Fox News interview. He suggested that DeepSeek might have employed “knowledge distillation,” a process where a smaller AI model learns from a larger one, potentially utilizing OpenAI’s technology to enhance its performance. Sacks emphasized that U.S. companies are likely to implement measures to prevent such practices, which could hinder the progress of “copycat” models. OpenAI released a statement accusing Chinese firms of persistently attempting to replicate the models of leading U.S. AI companies and stressed the need for collaboration with the U.S. government to safeguard advanced AI systems.
Questions have arisen about the authenticity of DeepSeek’s development process. Naomi Haefner, a technology management professor at the University of St. Gallen, noted that if DeepSeek relied on OpenAI’s data, its claims of cost-efficient training could be misleading. Crystal van Oosterom, an AI expert at OpenOcean, acknowledged that DeepSeek likely built on publicly available research from Western institutions but highlighted the broader debate over intellectual property in AI, where U.S. firms themselves have faced criticism for using others’ data.
U.S. officials are examining potential national security risks tied to DeepSeek. White House press secretary Karoline Leavitt stated that the National Security Council is assessing the implications, reiterating President Donald Trump’s warning that DeepSeek should serve as a wake-up call for American tech competitiveness. The U.S. Navy has reportedly banned personnel from using DeepSeek’s apps, citing security and ethical concerns related to data storage in China. Cybersecurity experts have cautioned users about the app’s data collection practices.
DeepSeek, meanwhile, claims it has faced multiple cyberattacks, leading to temporary registration limits. A banner on its website acknowledges disruptions due to “large-scale malicious attacks,” while China’s state-affiliated media outlet Yuyuan Tantian reported escalating cyber threats against the company. As tensions over AI innovation and security intensify, the situation underscores global competition and the ethical complexities surrounding intellectual property in the tech industry.