OpenAI, the creator of ChatGPT, claims to have evidence that Chinese AI startup DeepSeek used its technology to develop a competing artificial intelligence model. The company alleges that DeepSeek used a technique known as “distillation,” which helps smaller AI models learn from larger ones.
A source close to OpenAI told Financial Times, “The problem is when someone takes our technology and uses it to build their own product.”
DeepSeek, founded by mathematician Liang Wenfeng, has recently gained attention for its AI model, R1. Despite operating with a smaller budget, R1 has demonstrated performance comparable to leading AI models from the U.S. This has raised concerns about how DeepSeek achieved such results. For more updates check our Youtube channel.
OpenAI has not disclosed specific evidence of wrongdoing, but it has previously investigated and blocked accounts suspected of belonging to DeepSeek. The company claims these accounts were misusing OpenAI’s tools in ways that violated its policies.
Intellectual property theft has been a long-standing issue between China and the U.S., particularly in industries like AI, biotechnology, and advanced manufacturing. The U.S. Navy has already banned the use of DeepSeek’s products over fears that the Chinese government could exploit sensitive data.
DeepSeek’s rise has also impacted financial markets. When news of its success spread, Nvidia’s stock dropped by 17%, erasing $589 billion in value. Investors worried that companies like DeepSeek might no longer need expensive AI hardware. However, Nvidia’s stock rebounded by 9% the following day as tech stocks recovered.
Meanwhile, OpenAI is taking steps to protect its intellectual property. The company is working closely with U.S. authorities to prevent foreign entities from exploiting its AI technology. It has also stated that it remains committed to innovation while safeguarding its research.
DeepSeek has not publicly responded to OpenAI’s claims. The situation has sparked discussions in the tech industry about the challenges of protecting AI models while ensuring fair competition.
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