Rapid Advances by Chinese AI Developers
OpenAI, the company behind ChatGPT, has accused rivals, including Chinese firms, of exploiting its work to develop AI tools. DeepSeek, a new Chinese app, has made significant advancements, reportedly emulating ChatGPT at a fraction of the cost. This rapid development has raised concerns about unauthorized use of OpenAI’s data.
Bloomberg reported that Microsoft, a major OpenAI investor, is investigating whether OpenAI’s data has been misused. David Sacks, White House AI and crypto czar, echoed OpenAI’s concerns, suggesting DeepSeek may have employed knowledge distillation. This technique extracts information from OpenAI’s models to improve their own.
“There is strong evidence that DeepSeek distilled knowledge from OpenAI’s models,” Sacks said on Fox News. He predicts US AI firms will implement measures to prevent further distillation, potentially slowing down copycat models.
To protect its technological edge, the US has imposed export controls restricting China’s access to advanced chips and investments. At his confirmation hearing, Commerce Secretary nominee Howard Lutnick emphasized the need for stricter US action to protect AI companies from intellectual property theft.
OpenAI stated that Chinese and other firms frequently try to distill leading US AI models. It emphasized the importance of collaborating with the US government to safeguard advanced AI models.
Ethical and Security Implications
Naomi Haefner, assistant professor of technology management at the University of St. Gallen, questioned DeepSeek’s claims about cost-efficient model training. “It’s unclear whether DeepSeek trained its models from scratch,” she said. OpenAI suspects DeepSeek misused large amounts of its data, casting doubt on its low-cost claims.
Crystal van Oosterom, AI Venture Partner at OpenOcean, noted that DeepSeek built on publicly available research from US and European institutions. However, determining whether this constitutes intellectual property violations is complex, especially in AI, where US companies also face similar accusations.
White House press secretary Karoline Leavitt highlighted the national security implications of DeepSeek’s rise. The National Security Council is investigating the potential risks. President Trump has warned that DeepSeek should serve as a wake-up call for the US tech industry.
The US Navy has banned its personnel from using DeepSeek’s apps, citing security and ethical concerns. CNBC reported that the Navy issued warnings about the app’s data collection and storage practices in China. Data safety experts have advised caution, given the app’s potential to gather sensitive user data.
Meanwhile, DeepSeek reported being targeted by cyberattacks, leading to temporary registration limits. The company acknowledged large-scale malicious attacks and displayed warnings on its website about possible delays in registration.
OpenAI’s push for protection highlights the challenges of balancing innovation, security, and intellectual property in the rapidly evolving AI landscape.
