OpenAI has raised concerns about Chinese companies attempting to access US AI technologies to enhance their models. In a statement released on Tuesday, OpenAI highlighted the critical need to protect its intellectual property and the most advanced capabilities in its AI systems. The company emphasised that it has put in place countermeasures to safeguard its innovations and is working closely with the US government to protect the technology from being exploited by competitors and adversaries.
These comments come in response to the White House’s ongoing review of national security risks posed by Chinese AI companies, particularly the rapidly growing startup DeepSeek. The US government has been looking into potential threats as China increasingly seeks to advance its AI capabilities. David Sacks, the White House’s AI and crypto czar, explained that Chinese firms are using an AI technique called “distillation,” which allows them to extract knowledge from leading US AI models, further raising concerns about intellectual property theft.
OpenAI’s statement underscores the challenges and security risks that arise as AI becomes a critical technology with broad applications, from national defence to economic competitiveness. The company’s efforts to protect its proprietary AI models are part of a broader push by the US to ensure that its technological edge is not compromised by foreign competitors who might attempt to bypass intellectual property protections. The situation highlights the increasing geopolitical tension surrounding AI development, especially as China continues to make significant strides in the field.
Liang Wenfeng, the 39-year-old founder of DeepSeek, has rapidly become a central figure in China’s AI ambitions. Previously maintaining a low profile, he gained national attention after being invited to a closed-door symposium with Premier Li Qiang. His company has made waves by developing an open-source AI model that rivals the capabilities of industry leaders while operating at a fraction of the cost.
Unlike many Chinese tech firms that focus on commercial applications, DeepSeek has prioritised fundamental AI research. Liang argues that China must shift from imitation to original innovation to bridge the gap with the United States. His decision to open-source DeepSeek’s models aligns with his belief that collaboration and transparency will accelerate AI development, much like Silicon Valley’s early approach.
Liang’s background in finance and engineering has shaped his strategic vision. After co-founding a successful quantitative hedge fund, he pivoted to AI, founding DeepSeek in 2023. His leadership has attracted top talent from China’s elite universities, drawn by the challenge of developing artificial general intelligence. As DeepSeek gains global recognition, it signals China’s intent to play a leading role in the future of AI.
Italy’s data protection authority, the Garante, has ordered the Chinese AI startup DeepSeek to block its chatbot in the country, citing insufficient responses to queries about its privacy policy. The watchdog had requested detailed information on data collection practices, sources, purposes, and storage, particularly concerning whether user data is stored in China. DeepSeek’s failure to adequately address these concerns prompted the Garante to impose an immediate ban and launch an investigation.
DeepSeek had removed its AI assistant from Italian app stores earlier this week but claimed it was not subject to local regulation. Agostino Ghiglia, a member of the Garante’s board, stated that the company’s stance worsened its position. Italian users who had already downloaded the app still reported access to the chatbot, while the web version remains operational. The Garante emphasised that European citizens must have clear consent and data protection guarantees, especially regarding servers located in China.
The Garante’s action highlights growing scrutiny of AI platforms in Europe, with data regulators in Ireland and France also questioning DeepSeek’s privacy practices. Italy‘s proactive approach has drawn attention; the country temporarily banned ChatGPT in 2023 over similar concerns. DeepSeek has positioned its AI as a cost-effective alternative to US models, surpassing ChatGPT as the top-rated app on Apple’s US App Store. However, its refusal to cooperate with European regulators may jeopardise its expansion.
Chinese AI startup DeepSeek has announced that its Janus-Pro-7B model has surpassed competitors, including OpenAI’s DALL-E 3 and Stability AI’s Stable Diffusion, in benchmark rankings for text-to-image generation. This achievement solidifies DeepSeek’s reputation as a key player in the rapidly evolving AI market.
According to a technical report, the Janus-Pro model builds upon its predecessor by incorporating enhanced training processes, higher-quality data, and advanced scaling, resulting in improved stability and more detailed image outputs. The company credited the inclusion of 72 million high-quality synthetic images, combined with real-world data, for the model’s superior performance.
This success follows the launch of DeepSeek’s new AI assistant based on the DeepSeek-V3 model, which has become the top-rated free app in the US Apple App Store. The news sent shockwaves through the tech industry, leading to declines in shares of companies like Nvidia and Oracle, as investors reassessed the competitive dynamics in AI development.
OpenAI and Stability AI have yet to comment on the claims. DeepSeek’s achievements highlight the growing influence of Chinese firms in cutting-edge AI innovation, setting the stage for heightened competition in the global tech market.
The launch of DeepSeek’s cost-efficient AI model has sent shockwaves through Australian tech markets, with shares in AI-related companies experiencing steep declines. Investors are increasingly worried that the Chinese startup’s affordable technology could undermine the dominance of established players in the sector.
Among the biggest losers were AI software firm Appen, which saw its stock drop by 3.3%, and chipmaker Brainchip, which lost 10.3%. The technology sub-index fell by 1%, with major data centre operators also taking a hit. Analysts expressed concerns that DeepSeek’s success might reduce demand for AI infrastructure, which had driven heavy investments in Australian data centres.
DeepSeek’s AI assistant, launched last week, has already outpaced US competitor ChatGPT in downloads on Apple’s App Store. This rapid rise has sent ripples through the global tech sector, contributing to Nvidia’s record $592.7 billion market loss.
As Australian investors reassess their exposure to AI stocks, market strategists predict a shift towards safer sectors such as healthcare and consumer staples, after DeepSeek’s disruptive impact.
US officials are evaluating the potential national security risks posed by the Chinese AI app DeepSeek. White House press secretary Karoline Leavitt confirmed the National Security Council is leading the review, highlighting concerns about American AI dominance. White House AI and crypto adviser David Sacks suggested intellectual property theft might have played a role in DeepSeek’s development.
Global technology stocks faced a sell-off over fears that DeepSeek’s low-cost AI model could challenge major US firms like OpenAI and Google. Sacks explained that DeepSeek may have used a technique called distillation, allowing one AI model to learn from another. He warned that American AI companies would likely implement measures to block such practices.
Donald Trump argued that DeepSeek’s rise should push US firms to intensify their AI efforts. While acknowledging China’s progress, he maintained that American companies remain leaders in innovation. He suggested that more affordable AI solutions could benefit the industry without sacrificing technological advances.
Washington continues to restrict AI chip exports to China, aiming to slow its technological advancements. The Commerce Department, under Trump’s nominee Howard Lutnick, is set to play a key role in enforcing these limitations.
Chinese AI startup DeepSeek has shaken the global AI industry with its low-cost, high-performance models, sparking mixed reactions among leading US developers. Its flagship AI assistant recently surpassed OpenAI’s ChatGPT as the most downloaded app on Apple’s US App Store. DeepSeek achieved this using Nvidia’s H800 chips, training its model for under $6 million—an astonishing contrast to the billions spent annually by US tech giants.
While some American AI experts acknowledged DeepSeek’s achievements, many remain unconvinced. OpenAI’s CEO, Sam Altman, praised the R1 model for its cost-effectiveness, but analysts noted that the $6 million figure only reflects the final training phase, with total development costs likely exceeding $1 billion. Nvidia viewed DeepSeek’s success as evidence of growing demand for its AI chips, despite US export controls aimed at slowing China’s progress.
US-based firms like Snowflake have already added DeepSeek models to their AI offerings, citing overwhelming customer interest. However, concerns about China‘s involvement in AI technology persist. DeepSeek’s decision to release its models as open source has drawn applause from industry leaders, highlighting a shift toward more accessible AI development.
With China’s advancements narrowing the gap in AI innovation, competition between US and Chinese firms intensifies. DeepSeek’s rapid rise is forcing industry players to rethink their strategies, while questions about scalability and long-term sustainability remain unanswered.
US President Donald Trump revealed on Monday that Microsoft is in discussions to acquire TikTok, expressing a desire for a bidding war over the popular app. While Microsoft declined to comment, TikTok and its Chinese parent company, ByteDance, did not immediately respond to media inquiries. TikTok, which has around 170 million US users, faced a brief shutdown just before a law that could force ByteDance to sell the app or face a ban took effect in January.
Trump mentioned last week that he was in talks with various parties regarding TikTok’s future, promising a decision within 30 days. The president also indicated that he would be open to Elon Musk acquiring TikTok, although the Tesla CEO has yet to comment. In addition to Microsoft, AI startup Perplexity AI proposed merging with TikTok, suggesting a potential deal where the US government could hold up to half of the new company.
This marks the second time Microsoft has been involved in potential talks to acquire TikTok. Back in 2020, Microsoft emerged as a frontrunner in buying the app, but those discussions eventually collapsed. Microsoft CEO Satya Nadella later described the situation as “the strangest thing” he had ever worked on, noting how the deal abruptly disappeared after the Trump administration pushed for a divestment.
AI-powered study rooms are revolutionising online education in China by offering personalised, tech-driven learning experiences. These spaces cater to students aged 8 to 18, using advanced software to provide interactive lessons and real-time feedback. The AI systems analyse mistakes, adjust course materials, and generate detailed progress reports for parents, who can track their child’s improvement remotely. By leveraging technology, these study rooms aim to make education more engaging and tailored to individual learning needs.
These AI rooms are marketed as self-study spaces rather than traditional tutoring centres, allowing them to navigate China’s strict private tutoring regulations by framing their services as facility rentals or membership plans. This creative positioning allows them to operate within a regulatory grey area, avoiding restrictions on off-campus tutoring for students in grades one through nine. Membership fees range from 1,000 to 3,000 yuan monthly, making them a more affordable long-term alternative to expensive one-on-one tutoring sessions.
Despite their growing popularity, education experts remain sceptical of their educational value. Critics argue that many of these systems lack proper AI functionality, relying instead on preloaded prompts and automated responses. Furthermore, there are concerns that their heavy emphasis on drilling questions to improve test scores may neglect critical thinking and deeper comprehension. However, proponents believe these AI-powered study rooms represent an essential step toward integrating technology into education and expanding access to personalised learning.
Discussions surrounding TikTok’s ownership and future in the US are intensifying, with President Trump indicating a decision could come within 30 days. Speaking aboard Air Force One, he confirmed conversations with multiple parties interested in acquiring the app. Trump emphasised substantial interest in TikTok, which boasts 170 million American users.
The White House is reportedly pursuing a plan involving Oracle and external investors to address national security concerns. The proposal under consideration would allow ByteDance, TikTok’s China-based parent company, to retain a minority stake, while Oracle would oversee data management and software updates. These arrangements aim to allay fears of Chinese government interference.
Oracle’s involvement builds on its existing role in hosting TikTok’s US user data. However, Trump clarified he had not directly discussed the matter with Oracle’s Larry Ellison. Reports suggest ByteDance’s US investors, including Susquehanna International Group and Sequoia Capital, may also participate in the deal.
The situation remains fluid, with details of the potential agreement subject to change. While Trump has suggested US ownership in a joint venture, finalising a deal will require balancing Congressional scrutiny, national security considerations, and free speech concerns raised by TikTok’s advocates.
