Microsoft and OpenAI Investigate Potential Breach of AI System

Microsoft and OpenAI are investigating a potential breach of the AI firm’s system by a group allegedly linked to Chinese AI startup DeepSeek.

Suspicious Data Extraction Activity Detected

According to Bloomberg, the investigation stems from suspicious data extraction activity detected in late 2024 via OpenAI’s application programming interface (API), sparking broader concerns over international AI competition.

Microsoft Identifies Incident and Informs OpenAI

Microsoft, OpenAI’s largest financial backer, first identified the large-scale data extraction and informed the ChatGPT maker of the incident. Sources believe the activity may have violated OpenAI’s terms of service, or that the group may have exploited loopholes to bypass restrictions limiting how much data they could collect.

DeepSeek’s Rise to Prominence

DeepSeek has quickly risen to prominence in the competitive AI landscape, particularly with the release of its latest model, R-1, on 20 January.

R-1: A Rival to ChatGPT

Billed as a rival to OpenAI’s ChatGPT in performance but developed at a significantly lower cost, R-1 has shaken up the tech industry. Its release triggered a sharp decline in tech and AI stocks that wiped billions from US markets in a single week.

Industry Expert Weighs In

David Sacks, a prominent figure in the Intelligent Automation Conference, has been speaking at various events, including BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Related Tags

• AI
• Artificial Intelligence
• Data
• DeepSeek
• Distillation
• Microsoft
• OpenAI
• Security
• Training