Newzvia

Artificial Intelligence | OpenAI Accuses China's DeepSeek of 'Stealing' US AI Models

Pankaj Mukherjee, Senior Technology Correspondent

Pankaj Mukherjee

Senior Technology Correspondent · AI, startups & MeitY policy

4 min read

Quick summary

OpenAI has accused its Chinese rival, DeepSeek, of using sophisticated "distillation techniques" to extract results from leading US AI models to train its R1 chatbot, labelling it an attempt to "free-ride" on American innovation. This development underscores growing geopolitical tensions in the rapidly evolving global artificial intelligence landscape, particularly as India prepares to host its first global AI summit.

OpenAI Accuses China's DeepSeek of 'Stealing' US AI Models

OpenAI accused its Chinese competitor, DeepSeek, on , of employing "distillation techniques" to leverage US artificial intelligence (AI) models for its upcoming R1 chatbot, highlighting global intellectual property concerns in the fiercely competitive AI development sector.

What Happened: Key Details

OpenAI issued a warning to US lawmakers, specifically the US House of Representatives Select Committee on China, stating that DeepSeek is utilizing sophisticated methods to extract results from leading American AI models. This process, referred to as 'distillation techniques', involves training a smaller AI model (the 'student') to replicate the performance of a larger, more complex model (the 'teacher') by learning from its outputs, effectively transferring knowledge. According to a memo reviewed by Bloomberg News, these techniques allow DeepSeek to train its next-generation R1 chatbot by gleaning capabilities developed by US laboratories. OpenAI also stated that it detected "new, obfuscated methods" designed to evade its defenses against misuse of its models' output.

Official Position / Company Statement

OpenAI described DeepSeek's actions as an effort to "free-ride" on the advanced capabilities developed by US AI labs. This highlights the company's concern over intellectual property and fair competition in the fast-paced AI industry. OpenAI began privately raising concerns about the practice shortly after the R1 model's release last year, initiating a probe with its partner Microsoft Corp. to determine if DeepSeek had obtained data in an unauthorized manner.

Context and Background

This development comes amidst heightened global discussions on AI governance, ethics, and intellectual property. The broader landscape sees nations grappling with the implications of rapid AI advancement. Just recently, the United Nations General Assembly overwhelmingly voted to establish a 40-member global scientific panel to assess the impacts and risks of artificial intelligence. The United States, however, strongly opposed this move, calling it a "significant overreach of the UN's mandate and competence".

Concurrently, India is set to host its first-ever Global AI Summit in the Global South, the India-AI Impact Summit 2026, in New Delhi from . This summit will bring together top world leaders and ministerial delegations from over 45 countries to deliberate on responsible and inclusive AI. These global events underscore the increasing focus on international cooperation and competition in the AI domain, making discussions around technology transfer, intellectual property, and ethical AI development critical for all stakeholders, including Indian firms and policymakers, as they seek to shape a future where AI serves inclusive human development.

Key Takeaways

  • OpenAI accused China's DeepSeek on , of using "distillation techniques" to train its R1 chatbot by leveraging US AI models.
  • OpenAI views DeepSeek's actions as "free-riding" on American AI innovation and has warned US lawmakers about the practice.
  • The accusation highlights ongoing concerns about intellectual property and fair competition in the global AI sector.
  • This incident provides a critical backdrop for international discussions on AI governance, including the upcoming India-AI Impact Summit 2026 in New Delhi.

People Also Ask

What are AI "distillation techniques"?
AI distillation techniques involve training a smaller, 'student' model to mimic the performance of a larger, more complex 'teacher' model. This is often achieved by having the student model learn from the teacher model's outputs rather than its internal structure, efficiently transferring knowledge and capabilities.

Why is OpenAI accusing DeepSeek of "free-riding"?
OpenAI claims DeepSeek is using these distillation methods to extract results from advanced US AI models. This practice allows DeepSeek to train its own R1 chatbot using capabilities developed through significant investment by US labs, which OpenAI describes as "free-riding" on their innovation.

What is the significance of this accusation for AI development?
This accusation underscores the escalating competition and intellectual property concerns in the global AI industry. It highlights the challenges of protecting proprietary AI research and models in a rapidly advancing technological landscape, potentially impacting international collaboration and regulatory frameworks.

How does this relate to India's role in AI?
While the direct accusation involves US and Chinese companies, it provides critical context for global AI policy. India is set to host its first global AI summit from , where such issues of responsible development, ethics, and international cooperation in AI will be key discussion points for Indian and global stakeholders.

Newzvia·29 Sept 2026

EU AI Act Gets Real: New Rules for High-Risk Systems

The European Union just released specific rules for its AI Act. These 'implementing acts' detail how 'high-risk' AI must be checked, a crucial step for Indian firms.
Read article
Newzvia·26 Sept 2026

EU Nears AI Act Enforcement for High-Risk Tech

The European Union has moved closer to enforcing its world-first AI Act, reaching a preliminary agreement on how to manage high-risk AI applications. This development sets a global benchmark and could impact how Indian tech firms develop and deploy AI, especially if they operate with European clients.
Read article
Newzvia·24 Sept 2026

Google's Gemini Ultra 2.0 Arrives: More Power, Real Questions

Google today launched Gemini Ultra 2.0, its latest powerful AI model, claiming better talks and complex reasoning. But how much will this global leap help India's tech scene and everyday users?
Read article
Newzvia·21 Sept 2026

Google's Gemini Ultra 2.0: Less AI Hallucination, Or Just Hype?

Google DeepMind just launched Gemini Ultra 2.0, a new AI model promising better reasoning and fewer errors across text, images, and video. But as always, we need to see how these big claims stack up for Indian users and developers.
Read article
Newzvia·19 Sept 2026

EU Clarifies AI Act Rules for Businesses

The European Commission has released detailed guidelines for its AI Act, explaining how companies must check their high-risk AI systems. This move could impact Indian tech firms working with European clients.
Read article
Newzvia·17 Sept 2026

EU Finalizes AI Act Rules for High-Risk Systems

Europe's landmark AI Act moved closer to full effect , with final rules approved for 'high-risk' AI systems. This means clear steps for companies, including Indian firms, to follow if they want to use AI in sensitive areas there.
Read article

More from categories

Business

View all

Technology

View all

Sports

View all