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

Microsoft Corp. and OpenAI are investigating whether data from OpenAI’s technology was obtained without authorization by a group linked to Chinese AI startup DeepSeek, sources said. Microsoft researchers observed individuals possibly tied to DeepSeek extracting large amounts of data via OpenAI’s API last fall,

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