Microsoft and OpenAI are currently investigating a potential data breach involving Chinese AI startup DeepSeek, with reports suggesting that individuals linked to the company may have improperly accessed sensitive data from OpenAI’s systems.
According to Bloomberg, Microsoft’s security team first detected unusual activity in the fall of last year. It was suspected that those linked to DeepSeek had exploited OpenAI’s API to extract large amounts of data. The API, which is available to licensed developers, enables them to integrate OpenAI’s advanced AI models into their own applications. As a major investor in OpenAI, Microsoft promptly alerted the company about the breach, which may have violated OpenAI’s terms of service or even attempted to bypass data access restrictions.
This investigation coincides with the rising prominence of DeepSeek in the AI industry, particularly after it launched its open-source model, R1, which the company claims rivals or surpasses US-based AI products, including those from OpenAI, Google, and Meta. DeepSeek has asserted that R1 outperforms competitors in areas such as mathematics and general knowledge while being significantly more affordable to develop.
In a Fox News interview, David Sacks, President Trump’s “AI czar,” stated that there is considerable evidence suggesting that DeepSeek utilized knowledge derived from OpenAI’s models to develop its own AI technology. This controversial move has sparked concerns within the tech industry, with some arguing that it poses a direct challenge to the dominance of US-based AI companies.
This incident has also had a significant impact on the stock market, with AI-related tech stocks plummeting and erasing nearly $1 trillion in market value. The situation continues to evolve as Microsoft, OpenAI, and other key stakeholders work to address the breach and its implications for both cybersecurity and the competitive landscape in AI development.
