An emerging dispute in the artificial intelligence sector has intensified after U.S.-based OpenAI told American lawmakers that Chinese startup DeepSeek has been attempting to replicate advanced AI systems developed by U.S. companies, according to a memo reviewed by Reuters.
The memo, sent to the U.S. House Select Committee on Strategic Competition between the U.S. and the Chinese Communist Party, alleges that accounts linked to DeepSeek employees tried to bypass safeguards designed to prevent unauthorized access to proprietary AI models. OpenAI claimed these efforts included routing activity through disguised third-party networks to mask the origin of the requests and extract model outputs.
OpenAI, led by Chief Executive Sam Altman, described the activity as an attempt to “free-ride” on technological advances made by leading American AI laboratories. The company said it had detected programmatic methods designed to gather responses from its systems for use in a process known as distillation, a technique in which a more advanced model evaluates and effectively transfers its knowledge to a newer system.
DeepSeek and its parent company High-Flyer did not immediately respond to requests for comment on the allegations. The Chinese firm, headquartered in Hangzhou, drew global attention last year after releasing AI models that analysts said rivaled some of the most capable Western systems, unsettling markets and intensifying concerns in Washington over China’s ability to narrow the technological gap despite export controls and restrictions.
OpenAI also warned that some Chinese large language model developers may be accelerating deployment by reducing safety-related steps, a claim likely to deepen policy debates in both countries over AI governance and national security. The company said it has taken steps to remove users suspected of attempting to extract data for competitive model training.
The developments highlight the growing strategic importance of artificial intelligence as a focal point of U.S.–China competition, with industry leaders in Silicon Valley increasingly viewing AI innovation not only as a commercial race but also as a matter of geopolitical influence and technological sovereignty.
