OpenAI Raises Concerns Over Chinese Competitor's Rapid Growth Utilizing Its Techniques**

Sun Jul 13 2025 15:25:49 GMT+0300 (Eastern European Summer Time)
OpenAI Raises Concerns Over Chinese Competitor's Rapid Growth Utilizing Its Techniques**

OpenAI's complaints regarding the use of its AI developments by Chinese firm DeepSeek highlight the growing competition in the artificial intelligence sector.**


As OpenAI expresses alarm over DeepSeek's swift rise in emulating ChatGPT's capabilities, the situation raises questions about intellectual property rights and cybersecurity implications in the AI landscape.**

OpenAI, the organization behind ChatGPT, has voiced strong concerns that its technologies are being leveraged by rival companies in China to expedite their own artificial intelligence advancements. This issue gained prominence recently with the arrival of DeepSeek, a Chinese app that reportedly matches ChatGPT’s performance at a significantly lower cost. Bloomberg has disclosed that Microsoft, a significant investor in OpenAI, is probing whether its proprietary data has been utilized improperly.

David Sacks, the newly appointed White House "AI and crypto czar," echoed OpenAI's sentiments during a Fox News appearance, suggesting that DeepSeek's success may derive from a process known as knowledge distillation, where insights are extracted from existing models to enhance new products. He believes that not only will American AI firms take measures to prevent such practices, but it will also slow the emergence of similar models from competitors.

In a statement, OpenAI highlighted its concerns regarding both Chinese companies and others who are continuously trying to utilize the models of leading U.S. AI organizations. They emphasized the importance of collaborating with the U.S. government to safeguard advanced models in the future.

The credibility of DeepSeek's claims about its cost-effective model development came under scrutiny, particularly from experts like Naomi Haefner, an assistant professor of technology management at the University of St. Gallen. She expressed skepticism about whether DeepSeek developed its models completely independently. OpenAI suggests that if DeepSeek did misuse their data, then their claims about cost-efficient training might be misleading.

Further complicating the situation, security experts have raised alarms regarding the ethical implications and potential security risks associated with DeepSeek, especially given its data’s storage locations within China. White House press secretary Karoline Leavitt confirmed that national security implications are being examined following the Navy's decision to prohibit its personnel from using DeepSeek apps due to similar concerns.

DeepSeek has furthermore reported experiencing significant cyber attacks, which they cite as a reason to temporarily limit user registrations. This development signals ongoing tensions and challenges within the AI sector, particularly regarding the preservation of intellectual property and user data security as the global AI competition intensifies.

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