Microsoft and OpenAI are investigating whether DeepSeek, a Chinese AI startup, improperly accessed OpenAI’s proprietary data via its API. Microsoft security researchers detected suspicious activity last fall, raising concerns that DeepSeek may have circumvented usage restrictions.
DeepSeek recently released its R1 AI model, claiming it rivals top U.S. developers at a fraction of the cost. The news triggered a sell-off in tech stocks linked to AI, erasing nearly $1 trillion in market value. David Sacks, President Trump’s AI czar, accused DeepSeek of using “distillation” to replicate OpenAI’s models.
OpenAI and Microsoft are reviewing evidence and have pledged further updates on the case.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].