Indian-American billionaire Vinod Khosla accuses DeepSeek of ripping off technology

Indian-American billionaire Vinod Khosla has criticised the Chinese artificial intelligence startup DeepSeek for “ripping off” the technology behind its R1 model.

Khosla claims that DeepSeek made “mistakes” similar to those in the O1 model, which, according to the veteran investor, indicates "a strong possibility that the technology was copied."

Questioning DeepSeek's capabilities

Khosla is not alone in doubting DeepSeek's capabilities. A Bernstein report has also raised questions about the AI model's claim of being developed for just $5 million. The report said, “We don't think Deepseek built OpenAI for $5M. The models are impressive, but not miraculous. The panic on Twitter over the weekend seems exaggerated.”

OpenAI and Microsoft’s investigation

According to a Bloomberg report, both OpenAI and Microsoft are investigating whether DeepSeek used OpenAI’s technology to develop its own AI models. This probe was prompted after DeepSeek released models that compete with OpenAI’s well-known AI products, raising concerns about potential violations of intellectual property (IP) rights.

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Sources revealed that Microsoft’s security team detected unusual data activity in late 2024, possibly linked to DeepSeek, suggesting that large amounts of data may have been taken from OpenAI. OpenAI also found indications that DeepSeek might have used its AI models without permission.

Stock drop impact following DeepSeek’s release

The release of DeepSeek triggered a significant market reaction, directly impacting Nvidia’s share price. On January 27, Nvidia's stock dropped by nearly 17%, resulting in a loss of $589 billion in value. This marked the largest drop since 2020, coinciding with the introduction of the DeepSeek AI model.

This decline surpassed the previous record when Nvidia lost $279 billion in September due to a 9% drop. Although Nvidia's stock has been volatile since then, it has begun to recover some of the lost value.

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FAQs:

1. What is Nvidia?
Nvidia is a leading manufacturer of powerful computer chips used in AI models.

2. What is AI model distillation?
AI model distillation is a technique where smaller AI models are trained using data from larger, more advanced models.