David Sacks said there's evidence that DeepSeek 'distilled' knowledge from OpenAI's models, a process that Sacks equated to theft.

DeepSeek is causing havoc throughout the AI industry. U.S.-based tech companies that have heavily invested in AI saw their stocks take a tumble this week after the China-based startup released a new AI model on par with OpenAI's latest model,

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.