DeepSeek Under Investigation for OpenAI IP Misuse and API Violations
Microsoft and OpenAI investigated whether Chinese AI startup DeepSeek misused OpenAI's API and technology to develop competing models. OpenAI reported finding evidence of unauthorized data use and terms of service violations, including accounts previously blocked for distillation purposes.
What happened
Microsoft and OpenAI investigated whether DeepSeek obtained data from OpenAI's technology without authorization. Microsoft security researchers observed what they believed to be a group potentially connected to DeepSeek exfiltrating large quantities of data using OpenAI's API, which developers can license to incorporate OpenAI's AI models into their applications.
OpenAI found evidence suggesting DeepSeek secretly used data created by OpenAI's technology to enhance its own AI models, potentially violating OpenAI's terms of service. OpenAI and Microsoft had previously investigated accounts linked to DeepSeek last year after suspecting they used OpenAI's API for distillation purposes, resulting in blocked access due to terms of service violations.
Reported impact
The potential threat to American companies' AI dominance led to declines in technology stocks connected to AI, including Microsoft, Nvidia, Oracle, and Alphabet, with a combined market value loss of approximately one trillion dollars on a recent Monday.
Index analysis
The issue centers on a process known as 'distillation,' where developers take outputs from larger AI models and use them to train smaller ones. OpenAI stated that DeepSeek exceeded boundaries by using this method to create a competing model.
Governance controls
OpenAI's terms of service clearly state that users are not permitted to 'copy' any of its services or use outputs to create models that compete with OpenAI.
Classification
Sources and evidence
Sources not yet published
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