The explosive rise of Chinese AI start-up DeepSeek has not only shaken global financial markets but also raised critical questions about intellectual property, data privacy, and ethical AI development. Amid allegations that DeepSeek may have exploited ChatGPT’s data—using techniques such as “distillation” to replicate functionalities of OpenAI’s leading models—many are wondering: Has DeepSeek Been Using ChatGPT Data Without Permission? In this article, we dive deep into the controversy, analyze the evidence, and explore the broader implications for AI trust and technology governance.
Table of Contents
Introduction
DeepSeek burst onto the scene with a bang, offering an AI chatbot that promises performance comparable to ChatGPT but at a fraction of the training cost. While its low-cost model and aggressive marketing have impressed some investors, they have also sparked serious allegations that DeepSeek may have repurposed ChatGPT’s data without proper authorization. Critics argue that if these claims are proven true, the ripple effects could undermine trust in AI systems and have far‐reaching legal, economic, and geopolitical consequences.
In this post, we examine:
- The background and technology behind DeepSeek and ChatGPT.
- Allegations and evidence regarding unauthorized data use.
- The role of “distillation” in AI training.
- Intellectual property, copyright, and fair use debates.
- Security, privacy, and regulatory concerns.
- Global industry and governmental reactions.
By the end, you’ll have a detailed understanding of why many experts are questioning the ethical boundaries of AI development and what it could mean for the future of technological innovation.
DeepSeek and ChatGPT: A Brief Overview
What Is DeepSeek?
DeepSeek is a Chinese AI start-up that has rapidly gained attention by launching a chatbot model—referred to as DeepSeek-R1—that claims to rival the performance of leading AI systems such as ChatGPT. Remarkably, the company asserts that its latest model was trained on a budget of just a few million dollars, in stark contrast to the billions spent by US companies to develop their advanced models. DeepSeek’s approach has been lauded for its efficiency but has also raised eyebrows over its data sourcing and training methods.
ChatGPT’s Legacy
Developed by OpenAI, ChatGPT is one of the world’s most recognized AI language models, renowned for its ability to generate human-like text and assist with tasks ranging from writing and research to coding and problem solving. Its success has not only redefined conversational AI but also set a high standard for what consumers and businesses expect from AI tools. OpenAI’s extensive data collection, proprietary training techniques, and strict terms of service have become the benchmark against which other models are measured.
With the question “Has DeepSeek Been Using ChatGPT’s Data” circulating widely, many are comparing the two approaches and wondering whether DeepSeek’s low-cost success might have come at the expense of violating intellectual property rights.
Allegations: Has DeepSeek Been Using ChatGPT Data Without Permission?
The Distillation Debate
Central to the controversy is the allegation that DeepSeek may have used a technique known as distillation to “harvest” knowledge from ChatGPT’s outputs. Distillation is a method in which a smaller “student” model is trained using the outputs of a larger “teacher” model. While this approach is commonly used in AI research to make models more efficient, OpenAI’s terms of service specifically prohibit using its API outputs to build competing models.
Several reports, including those from major outlets like the Associated Press and The Verge, suggest that there is evidence—allegedly obtained by Microsoft’s security teams—that DeepSeek’s team may have engaged in such practices. According to these sources, accounts linked to DeepSeek were found to be repeatedly extracting large volumes of data via OpenAI’s API. U.S. officials, including Trump’s top AI adviser, have even hinted that this behavior might amount to intellectual property theft.
Key Testimonies and Evidence
- Industry Whispers: Top advisers and former defense officials have pointed to instances where the DeepSeek chatbot “claimed” to be ChatGPT, or even referenced OpenAI’s internal policies. This behavior has fueled suspicions that DeepSeek’s model might be replicating aspects of ChatGPT’s data and architecture.
- Legal Countermeasures: OpenAI has publicly stated that its teams are investigating these activities and are prepared to take legal action. The company emphasizes that while distillation is a well-known technique, using it in violation of service agreements is unacceptable. Microsoft, a close partner of OpenAI, is also actively monitoring the situation and has reportedly blocked accounts believed to be linked to DeepSeek (nypost.com).
- Market Impact: DeepSeek’s unexpectedly low training costs have had a seismic effect on tech stocks. For example, Nvidia’s stock experienced a historic drop—attributed in part to fears that DeepSeek’s breakthrough might have been achieved by leveraging stolen intellectual property (apnews.com).
Understanding Distillation: Technique or Theft?
How Distillation Works
In AI development, distillation involves training a smaller model by “learning” from the outputs generated by a larger, pre-trained model. This process can dramatically reduce computational requirements and speed up development. While distillation itself is a legitimate technique, it becomes controversial when the outputs of a proprietary model are used without authorization.
DeepSeek has openly described using distillation techniques in its research papers. However, critics argue that—if these techniques were applied to data obtained from ChatGPT without permission—it would represent a clear violation of OpenAI’s terms of service. Such an action could be seen as an attempt to undercut the significant investments made by US companies in developing advanced AI models.
The Legal and Ethical Line
One of the pivotal legal questions revolves around whether using publicly available outputs constitutes copyright infringement or if it falls under fair use. Copyright law traditionally protects human-created content, and there is ongoing debate over whether AI-generated outputs are similarly protected. OpenAI maintains that even if the content itself might not be protected by copyright, the method of extracting and reusing its model’s outputs for a competing product breaches contractual agreements.
This legal grey area means that while distillation is a standard practice in AI research, its unauthorized use—especially when it involves circumventing terms of service—can be grounds for legal action. Critics say that DeepSeek’s actions, if proven, could not only set a dangerous precedent for intellectual property rights in AI but also shake the trust that users place in these emerging technologies.
Intellectual Property and Copyright Implications
OpenAI’s Terms of Service
OpenAI’s terms explicitly state that users are forbidden from using its API to create a competing product. By allegedly employing distillation on its ChatGPT outputs, DeepSeek may have crossed a clear line. The allegations have prompted discussions about whether such actions constitute “intellectual property theft” or are simply part of the natural evolution of AI development.
Copyright vs. Fair Use
A critical aspect of the debate is whether AI-generated text is copyrightable. Traditionally, copyright protects works created by humans; however, AI outputs occupy a murky area. Even if copyright law does not apply directly, there is a contractual dimension—where users agree not to misuse the data provided by OpenAI. If DeepSeek did indeed use ChatGPT’s data against these agreed terms, it would be a breach of contract, regardless of copyright considerations.
Industry Reactions
Investors and tech experts have been quick to note that DeepSeek’s success—marked by its low training costs and rapid market impact—could only be possible if it was able to leverage existing, proprietary models. Some insiders even suggest that the Chinese start-up’s impressive performance might be more attributable to “data borrowing” than to groundbreaking independent research. This has only deepened the calls for stringent measures to protect AI intellectual property and enforce fair competition standards.
Security, Privacy, and Data Governance Concerns
Data Collection Practices
Beyond the intellectual property issues, DeepSeek has also been scrutinized for its data collection and privacy policies. Reports indicate that DeepSeek may be collecting vast amounts of user data—including chat histories, IP addresses, and even keystroke patterns—without clear user consent. Critics point out that when this data is processed on servers in China, it falls under Chinese laws, which may not provide the same level of privacy protection as those in the U.S. or Europe.
Cybersecurity Risks
In addition to privacy concerns, cybersecurity experts have warned that DeepSeek’s platform could be vulnerable to data breaches and malicious attacks. Recent studies by security firms have highlighted issues such as:
- Unencrypted data transmissions, which make it easier for attackers to intercept sensitive information.
- Hard-coded encryption keys and outdated algorithms, which further compromise data security.
These vulnerabilities have prompted bans on DeepSeek by several organizations and even governments. For instance, major U.S. defense and government agencies have prohibited the use of DeepSeek on official devices due to national security risks (
Global Regulatory Reactions
DeepSeek’s data practices have not gone unnoticed internationally. Countries like Italy and Australia have taken a cautious stance, with regulatory bodies either blocking access to the app or issuing warnings about its potential risks. These actions underscore the growing global consensus that AI platforms must adhere to robust data protection standards—especially when they operate across borders and involve sensitive personal information.
Impact on the AI Industry and Financial Markets
Market Shocks and Investor Fears
The revelation that DeepSeek might have achieved its breakthrough by potentially misusing ChatGPT’s data has sent shockwaves through the tech and financial sectors. For example, concerns over the method used to train DeepSeek’s model were partially responsible for a historic drop in Nvidia’s stock, as investors feared that the new model would disrupt established market leaders by drastically lowering training costs (
Competitive Dynamics
The allegations against DeepSeek also highlight the intense competitive pressures in the AI industry. As companies rush to develop more powerful, efficient, and cost-effective models, the temptation to cut corners or repurpose existing technology becomes ever greater. While innovation is essential, industry leaders warn that unauthorized data use not only harms individual companies but can erode overall trust in AI technologies—a trust that is fundamental for widespread adoption.
Geopolitical Ramifications
The dispute over whether DeepSeek has been using ChatGPT’s data without permission is not just a corporate or legal issue; it also has significant geopolitical dimensions. U.S. officials have expressed concern that such practices could enable Chinese companies to leapfrog American technological advancements, thereby shifting the global balance of power in critical industries such as defense and cybersecurity. These tensions have already led to calls for tighter export controls on advanced chips and more robust international agreements on intellectual property in the tech sector.
Why the Debate Matters for AI Trust
Eroding Confidence
At its core, the controversy raises a fundamental question: Can we trust AI when its development might involve unethical or unauthorized data practices? Trust is a critical ingredient for the successful integration of AI in everyday life—whether it’s in healthcare, finance, education, or government. If users begin to doubt that AI tools have been developed fairly and transparently, their willingness to adopt these technologies could diminish drastically.
The Need for Ethical Standards
The DeepSeek case underscores the urgent need for clear, enforceable ethical standards in AI development. This includes:
- Transparent disclosure of training data sources.
- Clear guidelines on what constitutes acceptable use of publicly available data.
- Robust legal frameworks that balance innovation with the protection of intellectual property and personal privacy.
By holding companies accountable for how they source and use data, policymakers and industry leaders can help ensure that technological progress does not come at the expense of trust and fairness.
Moving Toward a Fair AI Ecosystem
Ultimately, the controversy over “Has DeepSeek Been Using ChatGPT’s Data” serves as a wake-up call for the entire AI ecosystem. It highlights that the race to innovate must be accompanied by a commitment to ethical practices and legal compliance. Only then can we build AI systems that are not only powerful and cost-effective but also trustworthy and beneficial for society as a whole.
Conclusion
The allegations that DeepSeek may have used ChatGPT’s data without permission—if proven true—could shatter the foundation of trust upon which the AI industry is built. From the legal battles over unauthorized distillation techniques to growing concerns about data privacy and national security, the DeepSeek controversy is a multifaceted issue that calls for immediate attention from industry leaders, regulators, and policymakers.
As we watch the competitive dynamics of AI development evolve, one thing remains clear: the future of AI depends not only on technical breakthroughs but also on the ethical and legal frameworks that guide them. Ensuring that companies respect intellectual property rights and maintain robust data protection practices is essential to sustaining public trust and fostering innovation.
For now, the debate over “Has DeepSeek Been Using ChatGPT’s Data” continues, and its outcome will likely have long-lasting implications for the global AI landscape. In an era where AI technology is increasingly intertwined with our daily lives, protecting user trust is not just a legal necessity—it’s a moral imperative.
He is a passionate blogger and tech-savvy guy who loves to discover the stuff related to technology and social media. Currently, he is pursuing his graduation from the University of Lahore.