There is growing concern that the artificial intelligence platform DeepSeek may have stolen from US technology companies, after media reports said Microsoft and OpenAI were investigating the possibility that the China-based company had illegally obtained data for use on its AI platform.
David Sacks, the White House's AI and crypto tsar, suggested during a Tuesday interview with Fox News that DeepSeek could have stolen intellectual property.
“It's possible – there's a technique in AI called distillation when one model learns from another model,” Mr Sacks said.
“AI can do this by asking millions of questions and they can essentially mimic the reasoning process from the parent model and suck the model from the parent model … there's substantial evidence that what DeepSeek did is they distilled the knowledge out of OpenAI's models and I don't think they're very happy about it.”
In a statement to The National, an OpenAI spokesperson touched briefly about concerns surrounding DeepSeek.
“We know that groups in the PRC are actively working to use methods, including what’s known as distillation, to try to replicate advanced US AI models," the spokesperson said.
"We are aware of and reviewing indications that DeepSeek may have inappropriately distilled our models, and will share information as we know more. We take aggressive, proactive countermeasures to protect our technology and will continue working closely with the U.S. government to protect the most capable models being built here.”
OpenAI also explained to The National that while there are concerns regarding DeepSeek's methods, the "inappropriate distillation" does not expose AI model weights and that the technique is not considered to be a security breach of user data.
The accusations of theft from OpenAI are likely raise eyebrows in various circles, especially since the well-funded technology company has itself been accused of illegally scraping for content to train its large language models. At least eight news organisations have sued OpenAI since the launch of its ChatGPT product in 2022. OpenAI has denied the allegations.
The DeepSeek accusations are the latest example of how intense the geopolitical AI race has become amid an increasingly strained relationship between the US and China.
Late on Monday, as DeepSeek was rising to the top of mobile app store download charts, US President Donald Trump said that the China-made app's popularity should be a “wake-up call” for US industries, and suggested that the American technology sector should be “laser-focused on competing to win”.
Also on Monday, in a post on X which was largely seen as a response to the attention received by DeepSeek, Microsoft's chief executive Satya Nadella spoke of the potential for AI to become increasingly efficient.
“Jevons paradox strikes again,” he wrote, referring to the economic concept of technological advancement.
“As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can't get enough of.”
Few products in the AI space have made such a significant impact in a short period of time as DeepSeek.
Released on January 20, the AI platform claims to do more at a lower cost.
It is also believed to use significantly less powerful graphics processing unites – and therefore consume less energy – potentially leaving companies like GPU designer Nvidia vulnerable, along with energy providers who have anticipated a major boom from AI energy demand.
Downloads of DeepSeek, which according to AppBrain have surpassed two million in seven days, prompted concern on Wall Street that the AI economy model could be vulnerable as a result of DeepSeek's efficiency.
Many stocks tanked as investors became skittish.
But despite its popularity, there is still debate surrounding the claims made by DeepSeek.
Some have suggested that the potential breakthroughs of the AI platform may be superficially promoted as a response to US export policies that have limited the exports of GPUs necessary to build out AI infrastructures.
“The controls we put on semiconductors and semiconductor equipment have all been about impeding the PRC’s [People's Republic of China] ability to build the large language models that can threaten the US and its allies from a national security perspective,” said Alan Estevez, former undersecretary of commerce for industry and security, during an event at the Centre for Strategic and International Studies just prior president Joe Biden's departure from the White House.
DeepSeek has not responded to The National's requests to comment on this story.
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
