OpenAI vs. DeepSeek sparks heated debate

by Oskar Engman and William Eitrem

Published:

Artificial Intelligence. Photo.

A major controversy is unfolding in the AI industry after OpenAI’s recent claim that it has evidence proving Chinese AI startup DeepSeek has harvested large amounts of data from OpenAI’s models, violating its terms of service. The controversy centers on “distillation,” a technique where a smaller AI model is trained using outputs from a larger one. This technique has the potential to significantly reduce both cost and latency, as smaller models are usually more efficient. 

Media Reactions: Divided Opinions

Discussions in the media have been intense, with professionals debating ethics, legality, and AI security. Some argue this threatens proprietary AI development, while others point out the irony—OpenAI itself is facing criticism and lawsuits for training its models on copyrighted materials without permission. 

What This Means for AI Regulation

This dispute highlights the growing challenges in protecting AI innovations. With increasing AI competition between the U.S. and China, concerns are rising over how to enforce proprietary rights in AI development. The case underscores the urgent need for clear enforcement mechanisms in the AI industry. Although copyright infringement may be hard to enforce, clear and specific contractual provisions in the terms of service may prove to be a more efficient option.

Do you have any questions?