OpenAI says it has uncovered evidence that Chinese AI startup DeepSeek used its proprietary models to train a competing open-source model, potentially violating the company’s terms of service.
The discovery centers around a technique called “distillation,” where developers use outputs from larger AI models to train smaller ones. The practice is common in AI development, but OpenAI claims DeepSeek crossed a line by using it to build a rival model.
“The issue is when you take it out of the platform and are doing it to create your own model for your own purposes,” a source close to OpenAI told the Financial Times.
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