The company is pursuing “countermeasures to protect” its intellectual property amid Chinese rival DeepSeek’s rapid growth
OpenAI, the creator of ChatGPT, has vowed to combat the potential use of its intellectual property following the launch of its Chinese rival DeepSeek. The US government suspects that the new startup could have “distilled” data from the American company to build its product, according to White House AI advisor David Sacks.
Earlier this month, DeepSeek unveiled an open-source AI model designated R1, which its creators said had outperformed leading products from US developers on some industry benchmarks. The launch has led to a decline in the stock prices of major US tech companies, erasing almost $1 trillion in market value.
In a Tuesday interview with Fox News, Sacks claimed there was “substantial evidence” that DeepSeek had “distilled the knowledge out of OpenAI’s models.” He assessed R1 capabilities as comparable to those of OpenAI’s 01 model, released about four months prior.
Knowledge distillation is a method involving an AI student model using feedback from a teacher model to improve itself. In some cases, it may violate the terms of use. Developers have imposed limits on data traffic and other restrictions to counteract such practices. Sacks suggested that US companies will be introducing stronger barriers to eliminate “copycat models” in the near future.
Responding to Sacks’ remarks, OpenAI said it was aware that some Chinese and non-Chinese companies are distilling American models. The company is actively pursuing “countermeasures to protect our [Intellectual Property].” “We are working closely with the US government to best protect the most capable models from efforts by adversaries and competitors to take US technology,” the statement added.
According to Bloomberg, OpenAI and its primary investor, Microsoft, are investigating DeepSeek for potential violations. Software developers are normally required to pay license fees to use OpenAI technology in their own applications, the news agency explained. The report cited sources “familiar with the matter” who spoke on condition of anonymity.
White House Press Secretary Karoline Leavitt called DeepSeek’s launch a “wake-up call to the American AI industry” during a regular media briefing on Tuesday. The administration of Donald Trump has designated AI development as one of its priorities. Last week, the president announced Stargate, an initiative to build data centers across the US to serve as the backbone of future AI projects, with an investment target of up to $500 billion.
