OpenAI Sees Drawback of Fair Use After DeepSeek Used Its Data

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Despite capitalizing on the fair-use doctrine to develop its AI models, OpenAI is now facing similar defensive strategy from other entities cultivating its data.

There are concerns over artificial intelligence intellectual property rights because, according to widespread information, the Chinese AI company DeepSeek used OpenAI‘s data to create its own model.

Bloomberg first reported how Microsoft and OpenAI conducted investigations into DeepSeek, following claims of data extraction by Microsoft security staff using OpenAI’s API in the fall of 2018.

White House AI czar David Sacks said there is “substantial evidence” DeepSeek learned from OpenAI’s models. Although he did not elaborate

DeepSeek’s quick rise to prominence is notable due to its low funding and limited processing power. Amidst ongoing concerns about unauthorized data usage, a test of its chatbot system revealed that Microsoft was mistakenly identified as its inventor.

DeepSeek may find itself in a similar legal limbo as OpenAI, given its possible use of OpenAI outputs to train its algorithms. OpenAI has continued to defend its data usage policies after being accused of copyright infringement several times in recent years.

Unauthorized access to copyrighted publications allows huge language models to consume vast amounts of data.

OpenAI Faces A Barrage of Lawsuits

Elite authors Jonathan Franzen and Jodi Picoult, along with other lesser-known authors filed a lawsuit against OpenAI for using their copyrighted content. Other prominent publishers, including the New York Times, have lodged legal objections against OpenAI.

OpenAI justifies its usage of copyrighted resources because these AI models generate new data by deciphering learned information patterns, in line with fair use standards.

It appears that DeepSeek’s possible line of defense is the same that OpenAI uses to support its use of copyrighted material.

Experts are still skeptical about fair use criteria for AI applications. If legal disputes intensify then authorities will begin to look more closely. OpenAI’s handling of DeepSeek’s operations will likely set industry standards.

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