OpenAI Raises Alarm Over Chinese Competitors Using Its Technology

Fri Jul 18 2025 11:47:13 GMT+0300 (Eastern European Summer Time)
OpenAI Raises Alarm Over Chinese Competitors Using Its Technology

OpenAI's recent complaints highlight concerns over intellectual property as its technology appears to fuel competitor advancements in the AI sector, notably from China.


The emergence of DeepSeek, a Chinese AI application with abilities resembling ChatGPT, has prompted OpenAI to express concerns over its proprietary technology being potentially copied. Experts are questioning the legitimacy of DeepSeek's claims regarding cost-effective training and its implications on security and ethics have drawn scrutiny from U.S. officials.

OpenAI, the developer of the widely recognized chatbot ChatGPT, has voiced serious concerns that its work is being leveraged by rival companies, particularly from China, to quickly advance their own artificial intelligence applications. This warning comes on the heels of the debut of DeepSeek, a new Chinese app that reportedly delivers performance on par with ChatGPT but at a significantly lower cost.

Microsoft, a key investor in OpenAI, is reportedly investigating whether data from OpenAI has been misappropriated and utilized unlawfully by competitors. The company, along with DeepSeek, has yet to comment on these claims. David Sacks, the newly appointed "AI and crypto czar" at the White House, supported OpenAI's assertion, indicating that existing models from OpenAI may have been distilled to facilitate DeepSeek's advancements.

"There’s substantial evidence that what DeepSeek did here is they distilled the knowledge out of OpenAI's models," Mr. Sacks remarked during a Fox News interview. He further suggested that prominent U.S. AI corporations might soon undertake measures to prevent the technique of distillation, which could hinder these imitation models.

In a formal response, OpenAI indicated that there have been consistent attempts by Chinese entities and others to distill its AI models. They emphasized the importance of collaborating with the U.S. government to safeguard their advanced models in the future.

Concerns about DeepSeek's claims of training efficiency are echoed by Naomi Haefner, an assistant professor at the University of St. Gallen. She stated, “It is unclear whether DeepSeek really trained its models from scratch,” adding that OpenAI's allegations of data misappropriation would contradict any assertions of low-cost training. Insights from Crystal van Oosterom, an AI Venture Partner at OpenOcean, also indicated that DeepSeek may have built its technology on research from major global institutions.

Beyond intellectual property disputes, U.S. officials are examining the national security ramifications associated with DeepSeek's rise, with White House press secretary Karoline Leavitt indicating that the National Security Council is assessing these implications.

In addition to governmental concerns, the U.S. Navy has reportedly restricted its personnel from using DeepSeek due to potential ethical and security risks. The organization has issued an internal memo cautioning against the app's use, citing unspecified concerns regarding its origins.

Cybersecurity specialists continue to advise users to proceed cautiously with DeepSeek, noting that the app collects extensive personal data stored on servers located in China. In retaliation to ongoing cyber attacks, DeepSeek has announced a temporary halt on new registrations, warning users of possible service interruptions as a result of "large-scale malicious attacks" targeting its software.

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