Openai has submitted a policy proposal to the US government to ban AI models developed by PRC-related entities. The company has picked out China’s AI lab Deepseek, labeling it as “national management,” raising concerns about security risks and potential intellectual property theft.
Openai’s attempt to kill the competition?
This proposal sparked debate on protectionism, global equity in AI development, and the ethical implications of using intellectual property in AI training. Openai urged the US government to consider banning AI models from PRC-backed entities. The move has sparked debates on protectionism, intellectual property, and global equity in AI development.
“In advancing democratic AI, America is competing with CCP, which has decided to become a global leader by 2030. As such, the recent release of Deepseek’s R1 model is highly noteworthy.
What are Openai’s suggestions?
The 15-page proposal was part of the White House’s public appeal on the AI Action Plan. The company claims that Deepseek’s model, including the “inference” model for R1, is vulnerable to privacy and security risks. concern? Deepseek operates under Chinese law and is forced to share user data with the government. Openai believes that banning “PRC-produced” models in countries classified as “Tier 1” under current export regulations will help reduce these risks and prevent intellectual property theft.
“And because DeepSeek is simultaneously national subsidies, state management, and freely available, the cost of users is privacy and security. DeepSake is used to comply with user data requests in the face of requirements under Chinese law and train systems suitable for use of CCP. Their model also makes it more willing to generate how-tos for illegal and harmful activities such as identity fraud and intellectual property theft.
But the proposal didn’t stop there. Openai has raised concerns about China’s “free access to data” and warned that the US could lose AI races without fair use. The company also criticized the surge in 781 state-level AI bills introduced this year, claiming that these could curb US innovation and undermine the US’s position on China’s AI ambitions.
Openai is pushing more than just limits. The proposal also advocates for increased investment in infrastructure, copyright reform and greater access to government datasets for AI development.
Discussion of closed and open source
One aspect that fueled criticism was Openai’s closed-source approach. Openai maintains its own model, but is actively seeking restrictions on open source models like Deepseek. This contrast has not been noticed. Critics argue that Openai is trying to curb competition by labeling its rivals as security threats, while its own closed stance faces backlash to limit transparency and innovation.
In contrast, Deepseek offers an open source model, allowing wide access to developers and researchers. The irony of Openai’s position raised questions about whether the promotion of regulatory measures was motivated by genuine security concerns and desire to eliminate competition.
Deepseek’s growing influence
Deepseek is not just an AI model, it made headlines in January after Deepseek surpassed ChatGpt on the App Store and sent ShockWaves through high-tech stock. The talk around Deepseek began in December after the V3 model surpassed top US AI models, including Meta’s Llama 3.1, Openai’s GPT-4O, and Alibaba’s Qwen 2.5 on third-party benchmarks.
Some speculate that Openai’s aggressive stance comes from fear of being kicked out by slimmer, faster, faster competitors. Deepseek operates with just 160 employees compared to Openai’s over 2,000 employees, and it has made great strides.
Deep seek deepen the cleft
Openai previously denounced DeepSeek of “distilling” knowledge from the model, violating the terms of use. However, labeling DeepSeek as backed by PRC is a noticeable escalation.
What’s not entirely clear is whether Openai targets Deepseek’s API, open models, or both. Deepseek’s open model does not include a mechanism by which the Chinese government can extract user data. In fact, companies like Microsoft, Perplexity, Amazon and others host these models on their infrastructure.
Deepseek pushes back
Deepshek’s relationship with the Chinese government is ambiguous. The company started as a spinoff from High-Flyer, a quantitative hedge fund. There is no harsh evidence to link Deepseek directly to the Chinese government, but its founder Liang Wenfeng met with Chinese leader Xi Jinping a few weeks ago.
Wenfeng is speaking out about Deepseek’s independence, moving the company away from China’s big technology and VC money. He argues that the lab is lean, mission-focused and not driven by commercial pressure.
“The founder is wealthy and dedicated enough to keep it lean in the Navy seal style to pursue AGI.”
Wenfeng emphasized that the company is focusing on AI breakthroughs rather than monetization.
“We are in the early stages of the revolution. Companies need to focus on breakthroughs instead of monetization.”
Why is it important?
Openai’s call to ban China’s open source AI models like Deepseek is because it continues to defend its own closed source approach. Critics pointed out the irony. It advocates regulatory exemptions while promoting restrictions on open source rivals.
The move raises broader questions about the balance between global competition, intellectual property rights, and the national security and open innovation. With the $500 billion Stargate project and increasing influence in Washington, Openai not only shapes the future of AI development, but also the rules governing it;
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