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OpenAI Warns of Chinese Firms Copying US AI Tech

OpenAI has accused Chinese companies of replicating its AI models through a process called distillation.

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OpenAI Warns of Chinese Firms Copying US AI Tech

Washington, DC: OpenAI has raised concerns about Chinese companies attempting to replicate its AI models, using methods that violate intellectual property protections. This warning follows the rapid rise of DeepSeek, a Chinese AI startup that has developed a chatbot rivaling ChatGPT at a significantly lower cost.

How DeepSeek Sparked Controversy

DeepSeek’s advanced chatbot has ignited accusations that it may have reverse-engineered capabilities from leading US AI technologies. The startup’s success has fueled fears on Wall Street and drawn attention from policymakers.

OpenAI’s Claims: AI Distillation and IP Theft

OpenAI alleges that its competitors, particularly in China, are using distillation, a technique where smaller models learn by mimicking larger ones. This approach allows developers to replicate AI behavior without directly accessing the original training data.

“We know China-based companies—and others—are constantly trying to distill the models of leading US AI companies,” an OpenAI spokesperson told AFP.

The company emphasized the need for stronger collaboration with the US government to protect advanced AI models from foreign adversaries.

US Government Reacts

David Sacks, the Trump administration’s AI czar, told Fox News there was substantial evidence that DeepSeek had extracted knowledge from OpenAI’s models. He called for stricter measures to safeguard US AI technology.

A Hypocritical Stance?

Interestingly, OpenAI itself faces multiple accusations of intellectual property violations, particularly regarding the use of copyrighted material in training its models.

Lutz Finger, a senior visiting lecturer at Cornell University, pointed out the irony:

“Distillation violates most terms of service, yet big tech is now calling it out. Copyrighted materials helped train ChatGPT, which now helps DeepSeek. Knowledge is free and hard to protect.”

The Bigger Picture: AI Security & Global Competition

  • The AI rivalry between the US and China is intensifying, with security concerns growing.
  • Intellectual property protection in AI remains a gray area, as training data sources are difficult to regulate.
  • The US government is likely to tighten AI security policies in response to these concerns.

With AI development accelerating globally, the debate over ownership, ethics, and fair competition in AI is only beginning.