January 29, 2025:
Microsoft Investigates DeepSeeks OpenAI API Misuse - Microsoft is investigating Chinese company DeepSeek for allegedly using OpenAI's API to train its own AI models, potentially violating OpenAI's terms of service. These terms prohibit using API output to develop competing models and disallow automated data extraction. DeepSeek may have used distillation techniques to extract OpenAI’s model knowledge and bypassed rate limits to gather data at scale.
As OpenAI's major shareholder, Microsoft has notified OpenAI of these activities, which could result in significant legal consequences.
