Chinese artificial intelligence company DeepSeek disrupted Silicon Valley with the release of cheaply developed AI models that compete with flagship offerings from OpenAI — but the ChatGPT maker suspects they were built upon OpenAI data.

KEY TAKEAWAYS Bloomberg is reporting that Microsoft and OpenAI are investigating whether a group linked to Chinese startup DeepSeek used improperly obtained data from the American AI company to launch the low-cost AI model that sparked a selloff Monday.

Experts say AI model distillation is likely widespread and hard to detect, but DeepSeek has not admitted to using it on its full models.