DeepSeek AI controversy

OpenAI Concerned Over Chinese Rivals Leveraging Its AI Models

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DeepSeek Sparks Alarm in AI Leadership

OpenAI, the developer of ChatGPT, alleges that competitors, including Chinese companies, are using its research to fuel their AI advancements. DeepSeek, a newly launched Chinese app, can reportedly match ChatGPT’s performance at much lower costs. This sudden development threatens the dominance of US-based AI leaders like OpenAI.

Microsoft, a key OpenAI investor, is investigating potential unauthorized use of OpenAI’s data, according to Bloomberg. US officials, including AI and crypto advisor David Sacks, have expressed concerns over this issue. In a Fox News interview, Sacks claimed DeepSeek likely used “knowledge distillation” to enhance its models by extracting insights from OpenAI’s technology.

“There’s significant evidence suggesting DeepSeek distilled knowledge from OpenAI’s models,” Sacks stated. He also warned that leading US AI firms would soon implement stricter measures to prevent such practices.

To protect its AI leadership, the US has introduced regulations limiting China’s access to advanced chips and steering investments towards American firms. At his Senate confirmation hearing, Howard Lutnick, Trump’s Commerce Secretary nominee, emphasized the need for tougher policies. “Our current export controls, without tariffs, are like a whack-a-mole game,” Lutnick warned.

OpenAI reiterated concerns in a formal statement, stressing the importance of collaborating with the US government to safeguard cutting-edge AI models.

Ethical and Security Risks Surround DeepSeek

Experts question whether DeepSeek truly developed its AI from scratch. Naomi Haefner, a technology management professor at the University of St. Gallen, doubts claims about DeepSeek’s low-cost model training. “If DeepSeek used misappropriated data from OpenAI, its cost-efficiency claims are deceptive,” Haefner explained. She noted that further investigation is needed to verify these claims.

Crystal van Oosterom, an AI venture partner at OpenOcean, acknowledged that DeepSeek has likely built upon publicly available research from major US and European institutions. However, she highlighted that many US firms have faced similar intellectual property complaints in the past.

National security concerns also accompany DeepSeek’s rise. White House press secretary Karoline Leavitt confirmed that the National Security Council is examining potential risks. She cited President Trump’s warning that DeepSeek’s emergence serves as a wake-up call for the US tech industry.

The US Navy has reportedly banned its personnel from using DeepSeek’s apps due to security and ethical issues. CNBC reports that the Navy sent a staff-wide email cautioning against the app, citing concerns over its data collection practices and Chinese-based servers.

Meanwhile, DeepSeek claims to have faced cyberattacks. On Monday, the company announced temporary registration limits due to “large-scale malicious attacks” on its platform. A banner on its website informs users that service disruptions may continue.

Data security experts urge caution when using DeepSeek, warning that it collects extensive personal information. The debate over DeepSeek’s practices continues to intensify, with both security and ethical implications under global scrutiny.