OpenAI Raises Alarm Over Chinese AI Competitors Utilizing Its Innovations

Sat Jul 05 2025 09:23:47 GMT+0300 (Eastern European Summer Time)
OpenAI Raises Alarm Over Chinese AI Competitors Utilizing Its Innovations

Amidst growing competition in the AI sector, OpenAI expresses concerns about rivals capitalizing on its groundbreaking technology, notably the emergence of China's DeepSeek application.


OpenAI has alerted that Chinese competitors, particularly the new app DeepSeek, may be leveraging its advancements in AI technology to develop their own tools. This raises significant concerns regarding data security, intellectual property rights, and potential national security implications as U.S. officials take a closer look.

OpenAI, the developer behind ChatGPT, has expressed alarm over the rapid progress of competitors, particularly from China, utilizing its work to enhance their own artificial intelligence (AI) applications. This outcry comes in light of DeepSeek, a newly launched Chinese platform that reportedly mimics the capabilities of ChatGPT at a significantly lower cost.

Reports have surfaced that Microsoft, a key investor in OpenAI, is investigating potential unauthorized use of OpenAI's data by DeepSeek. The controversy escalates as David Sacks, the newly appointed White House AI and crypto czar, remarked on Fox News that DeepSeek appears to have engaged in a practice known as knowledge distillation—taking insights from OpenAI's models to improve its performance.

OpenAI has highlighted the ongoing challenges posed by both Chinese firms and others attempting to extract knowledge from leading U.S. AI companies, underscoring the need for collaboration with U.S. government officials to safeguard advanced AI models.

Questions have arisen regarding DeepSeek's claims of cost-effective model training, with experts urging scrutiny over whether the application genuinely trained its AI from the ground up or leveraged vast amounts of data, potentially misappropriated from OpenAI.

As the narrative unfolds, security and ethical issues gain traction among U.S. policymakers. White House press secretary Karoline Leavitt stated that the National Security Council is actively assessing the national security ramifications tied to DeepSeek's rise.

The U.S. Navy has reportedly prohibited personnel from utilizing DeepSeek due to concerns about its origins and ethical implications. Experts caution users about the personal data collected by the app, which is stored on servers located in China. Meanwhile, DeepSeek has claimed to face cyber attacks, recently limiting user registrations as it deals with these challenges.

As the AI landscape evolves, the battle over intellectual property and innovations intensifies, suggesting that the future of tech competition may hinge on how leading firms protect their advancements.

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