The global AI race has taken a dramatic turn as OpenAI, the creator of ChatGPT, accuses Chinese tech rivals of stealing its cutting-edge AI technology. The company claims that competitors, including China’s rapidly emerging DeepSeek, are using its models to accelerate their own artificial intelligence breakthroughs—and at a fraction of the cost.
The stunning rise of DeepSeek has sent shockwaves through the U.S. tech industry, with experts questioning how China managed to close the AI gap so quickly despite heavy American trade restrictions on advanced chips. The revelation has now triggered a national security review by U.S. officials, raising concerns that America’s dominance in AI could be slipping away.
Adding fuel to the fire, Microsoft—OpenAI’s biggest investor—is now investigating whether OpenAI’s data has been illegally accessed. Bloomberg first reported that the tech giant is looking into unauthorised use of OpenAI’s models, potentially uncovering a case of AI espionage that could redefine the industry.
White House “AI and crypto czar” David Sacks also weighed in, alleging that DeepSeek may have extracted knowledge from OpenAI’s models through a process called “knowledge distillation.” If true, this would mean China has effectively bypassed years of research and billions of dollars in AI investment by reverse-engineering U.S. breakthroughs.
DeepSeek’s meteoric rise has already triggered security concerns. The U.S. Navy reportedly banned its personnel from using DeepSeek’s AI apps, citing potential risks linked to data collection and foreign surveillance. An internal email warned that the app’s origin and usage pose “serious security and ethical concerns”.
Read also: DeepSeek a wake-up call for US tech firms, Trump says
Meanwhile, OpenAI is calling for urgent action, warning that China is constantly trying to extract knowledge from U.S. AI companies. The company emphasized the need for closer collaboration with the U.S. government to safeguard its AI technology from foreign exploitation.
In a bizarre twist, DeepSeek itself is claiming to be a victim, alleging that it has been under “large-scale malicious cyberattacks” in recent weeks. The company says it was forced to limit new registrations due to ongoing security threats.
Despite China’s advancements, AI experts argue that the U.S. still holds the upper hand, thanks to its dominance in the semiconductor industry. However, DeepSeek’s rapid progress has raised major questions: How did it develop such a powerful model so fast? And is China poised to take the AI crown from the U.S.?
As tensions escalate, one thing is clear—the AI battle between the U.S. and China has just entered a dangerous new phase.
