Microsoft and OpenAI are investigating whether an organization linked to the Chinese AI lab DeepSeek stole data from OpenAI, Bloomberg reports, citing its sources.
According to Bloomberg, Microsoft security experts noticed in the fall that individuals possibly connected to DeepSeek were making unusually large data requests through OpenAI’s API. OpenAI provides access to its API for third-party developers to integrate AI models into their applications. As OpenAI’s biggest investor and technology partner, Microsoft alerted the company about this activity. If confirmed, it could indicate a violation of OpenAI’s terms of service or an attempt to bypass data limits imposed on users.
DeepSeek’s AI Model and Market Impact
DeepSeek previously introduced an AI model called R1, designed to imitate human thinking. This release challenged the dominance of OpenAI and other U.S. companies like Google and Meta. The project’s creators claim their model can rival or even surpass leading American AI systems, with significantly lower training costs. This development raised concerns about U.S. leadership in the AI industry.
On January 27, the market capitalization of major U.S. tech firms, including Microsoft, Nvidia, Oracle, and Alphabet, dropped by nearly $1 trillion, reminds NIXSOLUTIONS. This decline reflects growing uncertainty over AI advancements outside the U.S. and the competitive threats they pose.
Concerns Over AI Model Distillation
On January 28, David Sacks, AI advisor to U.S. President Donald Trump, stated that there is “significant evidence” that OpenAI’s models were used in DeepSeek’s development. He referred to the distillation method, which allows one AI model to learn from another by replicating its capabilities.
“We know that companies from China—and others—are constantly attempting to distill the models of leading American AI firms,” OpenAI said in a statement. The company emphasized its commitment to protecting intellectual property and working closely with the U.S. government to prevent unauthorized use of its technology.
As the investigation continues, the implications for AI security and intellectual property remain significant. We’ll keep you updated on further developments.