DeepSeek sent the tech industry and financial markets spiraling this month with the release of its supposedly low-cost AI model called R1. But the Financial Times reported today that OpenAI has evidence a group linked to DeepSeek may have violated its terms of service preventing users from taking “output to develop models that compete with OpenAI.”

OpenAI claims that Chinese startups are persistently trying to copy the technology of American AI companies. Aligned with that, OpenAI says it and partner Microsoft have been banning accounts suspected of “distilling” its models.

The American company OpenAI has accused the Chinese startup DeepSeek of using its proprietary AI models. According to reports by the British newspaper "Financial Times" on Wednesday, these models were allegedly used to train the artificial intelligence developed by the Chinese company.

OpenAI's new AI chatbot is an expansion on its flagship ChatGPT product. The new tool, ChatGPT Gov, is specifically for use by U.S. government agencies.

The product is not approved for government use yet, but OpenAI of course hopes President Trump will speed things up.

ChatGPT creator OpenAI said on Tuesday said that Chinese firms are "constantly" trying to tap into U.S. rivals to improve Chinese artificial intelligence models.