Controversy Erupts as OpenAI Accuses Chinese Startup DeepSeek of Intellectual Property Theft

Fri Jul 18 2025 13:01:28 GMT+0300 (Eastern European Summer Time)
Controversy Erupts as OpenAI Accuses Chinese Startup DeepSeek of Intellectual Property Theft

OpenAI raises alarm over alleged appropriation of its AI technology by the Chinese app DeepSeek, sparking concerns over national security and intellectual property rights.


The emergence of DeepSeek, a Chinese AI app mimicking ChatGPT's functionalities, has raised significant concerns at OpenAI and among US officials. While allegations of knowledge distillation and potential misappropriation of data loom, the potential national security implications highlight a pivotal moment for AI technology regulation.



In a striking revelation that could alter the landscape of artificial intelligence, OpenAI, the creator of ChatGPT, has voiced serious concerns over the use of its proprietary technology by competitors, particularly from China. The emergence of DeepSeek, a rapidly gaining Chinese application that appears to offer services equivalent to ChatGPT at significantly reduced costs, has drawn scrutiny and accusations of intellectual property infringement.

Reports suggest that Microsoft, a significant investor in OpenAI, is probing whether private data may have been employed inappropriately by DeepSeek. Adding to the controversy, David Sacks, the new White House "AI and crypto czar," expressed worries on national television regarding DeepSeek’s advancements, suggesting they may have employed a technique known as knowledge distillation to enhance their models.

In a statement, OpenAI indicated that foreign companies, particularly from China, persistently attempt to distill insights from US-based AI models. The organization emphasizes the need for collaborative efforts with the US government to safeguard its advanced AI technologies against such practices.

Commentators from academic and venture capital backgrounds have raised doubts over DeepSeek's claims of developing its models inexpensively. Naomi Haefner, from the University of St. Gallen, questioned whether DeepSeek genuinely trained its models independently, suggesting that the purported cost-effectiveness might be misleading if they drew heavily on OpenAI’s proprietary data.

Security concerns also loom large, as US officials evaluate the potential threats posed by DeepSeek. White House press secretary Karoline Leavitt confirmed that the National Security Council is investigating the implications of this new competition. The US Navy has reportedly prohibited its personnel from using DeepSeek, citing ethical and security-related issues, a move that underscores the gravity of the situation.

Concerns over user data privacy have also surfaced, following warnings from experts about the extensive data collection practices of DeepSeek, which stores information on servers located in China. The app recently reported a bout of cyber-attacks, prompting it to restrict new registrations amidst ongoing malicious attacks.

As the AI industry stands at a crossroads where international competition and ethical considerations intertwine, the potential repercussions of DeepSeek’s rise are yet to be fully realized. Continued vigilance regarding intellectual property rights and cybersecurity will be paramount as the field evolves.

MORE ON THEME

Thu, 17 Jul 2025 12:32:01 GMT

**Taiwan Conducts Major Civil Defense Drills Amid Growing Tensions with China**

Thu, 17 Jul 2025 12:32:01 GMT
Thu, 17 Jul 2025 10:36:25 GMT

Samsung’s Lee Jae-yong Cleared of Charges, Marks New Era for Tech Giant

Thu, 17 Jul 2025 10:36:25 GMT
Thu, 17 Jul 2025 06:38:12 GMT

**The Rising Role of US Space Force in Global Defense Systems**

Thu, 17 Jul 2025 06:38:12 GMT
Thu, 17 Jul 2025 04:15:39 GMT

### China's Naval Ambitions Surge in the Pacific

Thu, 17 Jul 2025 04:15:39 GMT
Wed, 16 Jul 2025 19:35:53 GMT

**Canada Implements Tariffs to Protect Domestic Steel Industry from Chinese Imports**

Wed, 16 Jul 2025 19:35:53 GMT
Wed, 16 Jul 2025 17:57:02 GMT

Guardians of the Cosmos: Inside the US Space Force's Mission to Counter Global Threats

Wed, 16 Jul 2025 17:57:02 GMT
Wed, 16 Jul 2025 09:14:57 GMT

# Rising Tensions: Europe Reinstates Border Checks Amid Migration Crisis

Wed, 16 Jul 2025 09:14:57 GMT
Wed, 16 Jul 2025 07:36:34 GMT

**Trump Initiates Investigation into Brazil's Trade Policies Amid Tensions**

Wed, 16 Jul 2025 07:36:34 GMT
Wed, 16 Jul 2025 04:38:39 GMT

China's Economic Resilience Amidst Tariffs: A Surprising Growth Story

Wed, 16 Jul 2025 04:38:39 GMT
Tue, 15 Jul 2025 21:27:49 GMT

China's Economic Resilience: Growth Amidst Tariff Challenges

Tue, 15 Jul 2025 21:27:49 GMT
Tue, 15 Jul 2025 15:06:11 GMT

**China Imposes Strict Export Controls on Electric Vehicle Battery Technologies**

Tue, 15 Jul 2025 15:06:11 GMT
Tue, 15 Jul 2025 10:18:31 GMT

China’s Economy Grows Against a Backdrop of Trade Tensions with U.S.**

Tue, 15 Jul 2025 10:18:31 GMT
Tue, 15 Jul 2025 06:54:32 GMT

Australian PM Navigates Tensions During Diplomatic Visit to China

Tue, 15 Jul 2025 06:54:32 GMT
Tue, 15 Jul 2025 03:29:33 GMT

China's Economic Growth Faces Turbulence Amid Trade Strife

Tue, 15 Jul 2025 03:29:33 GMT
Tue, 15 Jul 2025 00:45:51 GMT

Trump's New Approach to Ukraine: Weapons and Tariffs But With Uncertain Outcomes

Tue, 15 Jul 2025 00:45:51 GMT
Mon, 14 Jul 2025 23:31:21 GMT

**Musk's Grok Secures $200 Million Defense Contract Amid Controversy**

Mon, 14 Jul 2025 23:31:21 GMT
Mon, 14 Jul 2025 22:53:21 GMT

Grok Secures $200 Million Pentagon Deal Amid Controversy

Mon, 14 Jul 2025 22:53:21 GMT
Mon, 14 Jul 2025 15:28:37 GMT

Swissx Launches SoilBooster Initiative Amid Growing Soil-Carbon Market

Mon, 14 Jul 2025 15:28:37 GMT
Mon, 14 Jul 2025 05:13:57 GMT

The Global Ripple Effect: U.S. Higher Education Under Political Pressure

Mon, 14 Jul 2025 05:13:57 GMT
Sun, 13 Jul 2025 21:09:58 GMT

The Global Brain Drain: How U.S. Politics is Shaping the Future of Science

Sun, 13 Jul 2025 21:09:58 GMT

Follow us

© 2024 SwissX REDD UK ltd. All Rights Reserved.