OpenAI said on Wednesday that Chinese AI startup DeepSeek's open-source models may have "inappropriately" based its work on the output of OpenAI's models, an OpenAI spokesperson told Axios. Why it matters: China's DeepSeek has taken the AI industry by storm with its R1 reasoning model that competes with OpenAI's o1,

David Sacks said there's evidence that DeepSeek 'distilled' knowledge from OpenAI's models, a process that Sacks equated to theft.

DeepSeek caused a market tsunami on Monday as investors digested the news that its new R1 model appeared to perform well despite being trained with less sophisticated chips, somet