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

Creatives have been screaming for years that generative AI relies on the unfair use of copyrighted material. The world’s preeminent AI startup is suddenly on the other end of the debate. Well, well, well—look who suddenly wants a word with the sheriff in the fair-use Wild West landscape of artificial intelligence.

DeepSeek built top-performing AI models using less-advanced chips at what it says is a fraction of the cost of rivals such as OpenAI.