Did DeepSeek Steal Data from OpenAI?

Microsoft (Nasdaq: MSFT) and OpenAI are investigating suspected unauthorized harvesting of artificial intelligence data by Chinese rival DeepSeek.

The probe follows DeepSeek’s surprise announcement of its R1 AI system, which the company claims achieves top-tier performance at minimal cost. The news rattled Wall Street, triggering a massive sell-off in tech stocks that erased $1 trillion in market value.

Internal security teams at Microsoft flagged suspicious patterns last fall when they discovered unusual access to OpenAI’s programming interface. Sources close to the investigation say multiple accounts linked to DeepSeek may have circumvented usage limits to collect extensive data.

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

David Sacks, who’s overseeing AI policy under the Trump administration, points to evidence suggesting DeepSeek employed distillation — a controversial practice where new AI systems are built by studying the responses of existing ones.

“There’s substantial evidence that what DeepSeek did here is they distilled knowledge out of OpenAI models and I don’t think OpenAI is very happy about this,” he told Fox News on Tuesday.

“We know PRC based companies — and others — are constantly trying to distill the models of leading US AI companies,” an OpenAI spokesperson said, adding that the company works closely with the US government to protect advanced AI capabilities.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

8 Mining Stocks Our Viewers Asked Us to Review | Sept 14th-18th

Canada Is Finally Fast-Tracking New Mines | John Passalacqua – First Phosphate

Gold & Silver Just Added $2 Billion to This Project | Aya Gold – Bourmadine PEA

Recommended

Mercado Minerals Signs LOI for La Franca, Adding 750 Metres of Undrilled Vein at Zamora

Goliath Hits Visible Gold In Bonanza Zone Step-Outs, Drills 9.12 g/t Gold Equivalent Over 11.27 Metres

Related News

The Hypocrisy Saga: Elon Musk Vs. OpenAI

OpenAI has hit back at Elon Musk’s lawsuit by releasing a series of emails showing...

Friday, March 8, 2024, 10:14:00 AM

Is The Till Empty at OpenAI? $10B Amazon Talks Add Fresh Runway

Near-term liquidity of OpenAI is put into question tied to a $30-billion tranche led by...

Saturday, December 20, 2025, 01:38:00 PM

DeepSeek’s Claims On Infra Costs Might Actually Be Way Bigger

Recent investigations into Chinese AI firm DeepSeek have raised significant questions about the company’s public...

Friday, February 7, 2025, 09:44:33 AM

No, ChatGPT Won’t Take Your Job — Not Yet — But Here’s How People Think It Will Change The World

Barely a fortnight into being released into the wild, ChatGPT, the “human-like” AI language model...

Monday, December 12, 2022, 08:45:00 AM

OpenAI’s ChatGPT Reportedly In Talks For Tender Offer Putting Firm At $29 Billion Valuation

OpenAI, the research lab behind the ubiquitous ChatGPT chatbot, is in talks to sell current...

Friday, January 6, 2023, 11:55:00 AM