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OpenAI calls DeepSeek ‘state-controlled,’ calls for bans on ‘PRC-produced’ models | TechCrunch

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In a new policy proposal, OpenAI describes Chinese AI lab DeepSeek as “state-subsidized” and “state-controlled,” and recommends that the U.S. government consider banning models from the outfit and similar People’s Republic of China (PRC)-supported operations.

The proposal, a submission for the Trump Administration’s “AI Action Plan” initiative, claims that DeepSeek’s models, including its R1 “reasoning” model, are insecure because DeepSeek faces requirements under Chinese law to comply with demands for user data. Banning the use of “PRC-produced” models in all countries considered “Tier 1” under the Biden Administration’s export rules would prevent privacy and “security risks,” OpenAI says, including the “risk of IP theft.”

It’s unclear whether OpenAI’s references to “models” are meant to refer to DeepSeek’s API, the lab’s open models, or both. DeepSeek’s open models don’t contain mechanisms that would allow the Chinese government to siphon user data; companies including Microsoft, Perplexity, and Amazon host them on their infrastructure.

OpenAI has previously accused DeepSeek, which rose to prominence earlier this year, of “distilling” knowledge from OpenAI’s models against its terms of service. But OpenAI’s new allegations — that DeepSeek is supported by the PRC and under its command — are an escalation of the company’s campaign against the Chinese lab.

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There isn’t a clear link between the Chinese government and DeepSeek, a spin-off from a quantitative hedge fund called High-Flyer. However, the PRC has taken an increased interest in DeepSeek in recent months. Several weeks ago, DeepSeek founder Liang Wenfeng met with Chinese leader Xi Jinping.

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