ChatGPT Maker Suspects China’s Dirt Cheap DeepSeek AI Models Were Built Using OpenAI Data — and the Irony Is Not Lost on the Internet

OpenAI has voiced concerns that China's DeepSeek AI models, known for their remarkably low cost, may have been developed using data from OpenAI. This suspicion followed Nvidia's significant market value loss, prompting Donald Trump to label DeepSeek a wake-up call for the U.S. tech sector. The DeepSeek model's emergence triggered a sharp decline in AI-related stocks, with Nvidia experiencing the most dramatic fall. Microsoft, Meta, Alphabet, and Dell Technologies also saw substantial losses.

DeepSeek claims its R1 model, built upon the open-source DeepSeek-V3, offers a significantly cheaper alternative to Western AI models, requiring less computing power and reportedly costing only $6 million to train. While this claim has been disputed, it has raised questions about the billions invested by American tech companies in AI, impacting investor confidence. DeepSeek's app also rapidly climbed the U.S. download charts, fueled by discussions about its effectiveness.

Bloomberg reported that OpenAI and Microsoft are investigating whether DeepSeek utilized OpenAI's API to integrate OpenAI's AI models into its own. OpenAI acknowledged that Chinese companies frequently attempt to leverage data from leading U.S. AI companies, a practice considered a violation of OpenAI's terms of service. OpenAI stated it employs countermeasures to protect its intellectual property and is collaborating with the U.S. government to safeguard its technology.

David Sacks, President Trump's AI czar, suggested evidence indicates DeepSeek used a technique called distillation to extract knowledge from OpenAI models. He anticipates leading AI companies will implement measures to prevent such practices.

The situation highlights a degree of irony, given OpenAI's own history. OpenAI has been accused of using copyrighted material in the creation of ChatGPT, a point emphasized by Ed Zitron, who highlighted the hypocrisy of OpenAI's response to DeepSeek's actions.

In January 2024, OpenAI admitted that creating AI tools like ChatGPT without copyrighted material is practically impossible, a point further emphasized in a submission to the UK's House of Lords. This stance follows lawsuits from the New York Times and 17 authors alleging unlawful use of their work. OpenAI maintains that its training methods constitute "fair use." The complexities surrounding copyright and AI training are further underscored by a 2018 U.S. Copyright Office ruling that AI-generated art is not copyrightable.