Microsoft Corp and OpenAI are investigating whether data output from OpenAI’s technology was obtained in an unauthorized manner by a group linked to Chinese artificial intelligence (AI) start-up DeepSeek (深度求索), according to people familiar with the matter.
Microsoft’s security researchers in the fall observed people they believe might be linked to DeepSeek exfiltrating a large amount of data using the OpenAI application programming interface (API), the people said. Software developers can pay for a license to use the API to integrate OpenAI’s proprietary AI models into their own applications.
Microsoft, an OpenAI technology partner and its largest investor, notified OpenAI of the activity, the people said.
Photo: Bloomberg
Such activity could violate OpenAI’s terms of service or could indicate the group acted to remove OpenAI’s restrictions on how much data they could obtain, the people said.
DeepSeek earlier this month released a new open-source AI model called R1 that can mimic the way humans reason, upending a market dominated by OpenAI and US rivals such as Google and Meta Platforms Inc.
The Chinese upstart said R1 rivaled or outperformed leading US developers’ products on a range of industry benchmarks, including for mathematical tasks and general knowledge — and was built for a fraction of the cost.
US President Donald Trump’s AI czar David Sacks said on Tuesday that there was “substantial evidence” that DeepSeek leaned on the output of OpenAI’s models to help develop its own technology.
In an interview with Fox News, Sacks described a technique called distillation whereby one AI model uses the outputs of another for training purposes to develop similar capabilities.
“There’s substantial evidence that what DeepSeek did here is they distilled knowledge out of OpenAI models and I don’t think OpenAI is very happy about this,” Sacks said, without detailing the evidence.
In a statement responding to Sacks’ comments, OpenAI did not directly address his comments about DeepSeek.
“We know PRC based companies — and others — are constantly trying to distill the models of leading US AI companies,” an OpenAI spokesperson said in the statement, referring to the People’s Republic of China. “As the leading builder of AI, we engage in countermeasures to protect our IP, including a careful process for which frontier capabilities to include in released models, and believe as we go forward that it is critically important that 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.”
Taiwan’s foreign exchange reserves fell below the US$600 billion mark at the end of last month, with the central bank reporting a total of US$596.89 billion — a decline of US$8.6 billion from February — ending a three-month streak of increases. The central bank attributed the drop to a combination of factors such as outflows by foreign institutional investors, currency fluctuations and its own market interventions. “The large-scale outflows disrupted the balance of supply and demand in the foreign exchange market, prompting the central bank to intervene repeatedly by selling US dollars to stabilize the local currency,” Department of Foreign
Intel Corp is joining Elon Musk’s long-shot effort to develop semiconductors for Tesla Inc, Space Exploration Technologies Corp and xAI, marking a surprising twist in the chipmaker’s comeback bid. Intel would help the Terafab project “refactor” the technology in a chip factory, the company said on Tuesday in a post on X, Musk’s social media platform. That is a stage in the development process that typically helps make chips more powerful or reliable. The chipmaker’s shares jumped 4.2 percent to US$52.91 in New York trading on Tuesday. The Terafab project is a grand plan by Musk to eventually manufacture his own chips for
Taiwan Power Co (Taipower, 台電) yesterday said it plans to resume operations at two coal-fired power generators for three months to boost security of electricity supply as liquefied natural gas (LNG) supply risks are running high due to the Middle East conflict. The two coal-fired power generators are at Mailiao Power Plant in Yunlin County’s Mailiao Township (麥寮). The plant, operated by Formosa Plastics Group (台塑集團), supplied electricity to Taipower’s power grid until the end of last year. Taipower’s decision came about one month after Minister of Economic Affairs Kung Ming-hsin (龔明鑫) on March 10 said that the nation had no imminent
Some robotaxi passengers were left stranded in the middle of fast-moving traffic in a major Chinese city after their driverless vehicles stopped running, according to police and media reports on Wednesday. A preliminary investigation indicates more than 100 robotaxis came to a halt because of a “system malfunction,” police in the city of Wuhan said in a statement, without elaborating. No injuries were reported. One passenger told Chinese media that their robotaxi stopped after turning a corner. An instruction on a screen read: “Driving system malfunction. Staff are expected to arrive in 5 minutes.” After no one showed up, the passenger pushed