The artificial intelligence (AI) sector is increasingly becoming a battleground for intellectual property disputes, with OpenAI and Microsoft now probing possible unauthorised access to OpenAI’s technology.
The investigation, reported by Bloomberg, focuses on whether data was extracted from OpenAI’s application programming interface (API) by a group linked to Chinese startup DeepSeek.
The API is central to OpenAI’s business model, providing paid access to its AI models for software developers and enterprises.
Microsoft, OpenAI’s largest investor, first detected the irregular activity in the fall and alerted OpenAI, as per the report.
The situation underscores growing security risks in AI development and raises questions about how the US can safeguard its technological leadership amid increasing global competition.
DeepSeek’s emergence as a strong AI contender, particularly after its free AI assistant surpassed ChatGPT in Apple’s App Store rankings in the US, has already caused disruptions in the market.
Now, the allegations of unauthorised data use have intensified concerns over intellectual property protection and the broader implications for AI regulation and competition.
Rising competition, data security risks, and US-China tensions
The rise of Chinese AI startups like DeepSeek has intensified scrutiny over technology security, particularly as US lawmakers and regulators focus on restricting AI-related exports to China.
DeepSeek has positioned itself as a low-cost alternative to major US AI firms, making its rapid growth and alleged data access even more concerning for US industry leaders.
Microsoft’s detection of large-scale data exfiltration suggests a possible attempt to gain an unfair advantage in AI development.
If proven, this could further strain relations between the US and China, already tense due to AI-related trade restrictions.
The White House’s AI and crypto policy head, David Sacks, indicated in a Fox News interview that DeepSeek may have engaged in illicit knowledge transfer, suggesting that US-developed AI models could be at risk.
The US has implemented measures to curb China’s access to advanced AI chips and technology, but the ability of Chinese firms to potentially extract valuable AI data through APIs presents a new challenge.
In response to Sacks’ comments, OpenAI did not directly address the specific mention of DeepSeek.
However, the company highlighted ongoing concerns regarding efforts by companies, including those based in the People’s Republic of China, to replicate the models of leading U.S. AI firms.
An OpenAI spokesperson emphasized the organization’s proactive measures to safeguard intellectual property, including a thorough process to determine which advanced capabilities are included in released models.
AI market impact and regulatory scrutiny
The ongoing investigation has already had immediate market consequences. DeepSeek’s rapid rise has contributed to volatility in tech stocks, with investors wary of the competitive and security implications.
If OpenAI and Microsoft confirm unauthorised data access, the case could prompt further regulatory intervention from both US and Chinese authorities.
The broader AI industry faces increasing scrutiny over data security, intellectual property rights, and geopolitical risks.
With the US government keen to maintain its leadership in AI, companies like OpenAI and Microsoft are likely to work more closely with regulators to safeguard sensitive technology.
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