The maker of ChatGPT, OpenAI, has accused its rivals, including some in China, of leveraging its work to accelerate the development of their own artificial intelligence tools. The emergence of DeepSeek, a Chinese app that mimics ChatGPT performance at a fraction of the cost, has heightened these concerns. 

Microsoft, a major OpenAI investor, is reportedly investigating whether its data was used without authorization by DeepSeek. The BBC contacted Microsoft and DeepSeek for comment. 

David Sacks, recently appointed “AI and crypto czar” at the White House, suggested in an interview with Fox News that DeepSeek may have employed a process known as knowledge distillation using OpenAI models.

“There is substantial evidence that what DeepSeek did here was distill knowledge from OpenAI models,” Sacks stated. 

In a statement, OpenAI said that Chinese and other companies “constantly attempt to distill models from leading U.S. artificial intelligence firms.” Knowledge distillation transfers the expertise of a large, complex model to a smaller, more resource-efficient one, capable of running on less powerful devices. 

ChatGPT vs. China: expert opinion

Experts like Naomi Haefner from the University of St. Gallen noted that distillation may challenge the notion that DeepSeek developed its product at minimal cost.

U.S. officials are also assessing national security implications, according to White House Press Secretary Karoline Leavitt, echoing earlier warnings from President Donald Trump. 

Recently, the U.S. Navy banned personnel from using DeepSeek over “potential ethical and security concerns.” The app’s training methods remain unclear, raising doubts whether the reported low costs are genuine or result from improper use of OpenAI data. 

Crystal van Oosterom, AI Venture partner at OpenOcean, noted that DeepSeek clearly relies on research from U.S. and European institutions, though the legality of “building on” others’ work in artificial intelligence remains complex. 

This conflict highlights the intensifying international competition in artificial intelligence, as companies like OpenAI seek to safeguard innovations while governments evaluate ethical, financial, and national security risks.