Just a few hours after David Sacks claimed DeepSeek used OpenAI’s models to train its own models, Bloomberg Law reports that Microsoft is investigating

OpenAI believes DeepSeek used a process called “distillation,” which helps make smaller AI models perform better by learning from larger ones.

Microsoft Corp. and OpenAI are investigating whether data output from OpenAI’s technology was obtained in an unauthorized manner by a group linked to Chinese artificial intelligence startup DeepSeek,