Microsoft and OpenAI investigate data theft by DeepSeek, a Chinese AI startup. According to a Bloomberg report, Microsoft noticed suspicious activity in late 2024. This activity showed potential unauthorized extraction of data from OpenAI’s models using its API.
The API allows developers to integrate OpenAI’s AI models into their own applications through a paid license. As OpenAI’s largest investor and technology partner, Microsoft flagged the activity to OpenAI. If confirmed, this could violate OpenAI’s terms of service and potentially bypass data usage restrictions.
Concerns Raised by the US Government
David Sacks, President Donald Trump’s AI czar, raised concerns on Fox News. He said, “Microsoft and OpenAI investigate data theft from DeepSeek. There’s evidence suggesting that DeepSeek used OpenAI’s models to create their own AI tech.”
Sacks referred to a method called AI distillation. This technique uses outputs from one AI model to train another. DeepSeek likely used this to replicate OpenAI’s capabilities.
OpenAI Acknowledges Risks
OpenAI responded to the growing concerns, though they did not comment directly on DeepSeek. They acknowledged the risks posed by competitors, saying, “Microsoft and OpenAI investigate data theft from Chinese companies like DeepSeek and others. These companies are always trying to distill models from leading US AI developers.”
The company emphasized its measures to protect its intellectual property. They have implemented selective restrictions on releasing the most advanced AI capabilities.
“We are working closely with the US government to ensure our AI models stay protected,” OpenAI added.
DeepSeek’s Impact on the Market
DeepSeek, a fast-growing Chinese AI company, launched its AI model, DeepSeek-R1. This open-source model is claimed to rival or surpass US-developed models, including OpenAI’s.
The company asserts that DeepSeek-R1 was built at a much lower cost than similar AI models. This has sparked concern in Silicon Valley over potential intellectual property theft.
Global Reactions and Market Fallout
DeepSeek’s rise has caused shockwaves in global tech markets. Microsoft, Nvidia, Oracle, and Alphabet lost nearly $1 trillion in market value due to these developments. The investigation into DeepSeek’s actions shows the increasing US-China tensions in AI development.
As the US tightens export restrictions on AI technology, Chinese firms like DeepSeek continue to innovate. This may shift the balance of AI leadership globally.
