Skip to content
Submit incident
AII-1002-63887
AllegedThe record is a lawsuit, complaint or accusation that has not been decided.Supporting sources are pending verification.

OpenAI and Microsoft investigate DeepSeek model theft allegations; Italy blocks app

Microsoft and OpenAI reportedly are investigating whether DeepSeek, a Chinese AI startup, extracted data from OpenAI's API without authorization to develop its technology using knowledge distillation. Italy has blocked DeepSeek's app over data privacy concerns, and White House AI official David Sacks stated there is substantial evidence of the alleged misuse.

29 January 2025 Β· DeepSeek Β· Intellectual property and appropriation
29 January 2025
AII-1002-63887
Quick facts
Category
Intellectual property and appropriation
Country
China
Date
29 January 2025
Drafted by
Raidu Incident Detection

What happened

Microsoft and OpenAI are investigating whether DeepSeek, a Chinese AI startup, extracted data from OpenAI's API without authorization to develop its technology. According to people familiar with the matter, DeepSeek allegedly obtained a large amount of data using OpenAI's API interface, which would have violated the service terms.

David Sacks, the White House AI and crypto czar, stated there is 'substantial evidence' that DeepSeek used knowledge distillation from OpenAI's models to develop its own technology. OpenAI stated that Chinese companies and others are 'constantly trying to distill the models from leading U.S. AI companies.'

Italy blocked DeepSeek's app over data privacy concerns.

Reported impact

DeepSeek's emergence as a low-cost AI application has reportedly undermined the status of OpenAI and other U.S. companies as world leaders in AI, as it can reportedly emulate ChatGPT's performance at a fraction of the cost.

Index analysis

Knowledge distillation involves transferring knowledge from a large, complex model to a smaller, more economical model that requires fewer resources and can run on less powerful equipment.

Governance controls

OpenAI stated that as it advances, it is vital to work closely with the U.S. government to better protect its most capable models.

Classification

Category
Intellectual property and appropriation
Industry
Consumer services
Country
China
Harm status
Actual harm
Intent
Unknown
Timing
Unknown
Harm types
Economic or property
Harmed
Business
Failure modes
Model theft
AI systems
ChatGPT, DeepSeek

Sources and evidence

Sources not yet published

This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.

How sources are verifiedSuggest a source for this incident