OpenAI Raises Alarm on Chinese Competitors Leveraging Its AI Innovations

Wed Jun 18 2025 04:24:36 GMT+0300 (Eastern European Summer Time)
OpenAI Raises Alarm on Chinese Competitors Leveraging Its AI Innovations

Concerns mount over intellectual property theft as DeepSeek disrupts AI landscape.


OpenAI has expressed serious concerns regarding the unauthorized use of its AI technology by competitors, particularly the Chinese app DeepSeek, which is reportedly emulating ChatGPT's capabilities at a significantly reduced cost.

OpenAI, known for its flagship product ChatGPT, has taken a firm stance against what it describes as unauthorized use of its technologies by rival companies, particularly those based in China. The emergence of DeepSeek—a Chinese application claimed to mimic ChatGPT at a fraction of the cost—has set the stage for a growing debate about intellectual property rights in the burgeoning AI sector.

Reports indicate that Microsoft, a significant investor in OpenAI, is probing whether its proprietary data has been misappropriated for the development of DeepSeek. David Sacks, the newly appointed "AI and crypto czar" at the White House, suggested that DeepSeek may have engaged in a process called knowledge distillation, effectively repurposing OpenAI's models to improve its own product. He predicted that U.S. AI firms would take steps to safeguard their technologies against such practices.

OpenAI has underscored the importance of collaborating with the U.S. government to protect its models from "constant" attempts at distillation by Chinese and other companies. The legitimacy of DeepSeek’s claims regarding low-cost training methodologies is under scrutiny; experts like Naomi Haefner propose that without verification of their model training procedures, doubts persist about the integrity of those claims.

This concern is echoed by the U.S. Navy, which has reportedly prohibited its personnel from using DeepSeek due to concerns over security and potential ethical issues surrounding the application's operations and underlying model. National security experts, including White House officials, are also evaluating the implications of DeepSeek's rise in the competitive AI landscape.

Adding to the controversy, DeepSeek has recently faced cyber attacks, prompting it to limit user registrations as a precautionary measure. The company has publicly stated that it is grappling with "large-scale malicious attacks" on its platform.

As the debate continues, analysts are wary of how the evolving dynamics between U.S. and Chinese AI technologies might shift the global center of power in this vital sector, underscoring the need for robust measures to protect intellectual property rights and ensure ethical technology use.

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