03:45 AM EST, 01/30/2025 (MT Newswires) -- (Updates with responses from OpenAI and Microsoft ( MSFT ) throughout.)

Microsoft ( MSFT )-backed (MSFT) OpenAI said it has evidence that China's DeepSeek used the San Francisco-based company's AI models to train its offering in a possible infringement of intellectual property, the Financial Times reported Wednesday, citing the ChatGPT maker.

OpenAI says it has evidence that DeepSeek improved its performance using OpenAI large language models.

"We know that groups in the People's Republic of China are actively working to use methods, including what's known as distillation, to try to replicate advanced US AI models," OpenAI said in an email to MT Newswires Wednesday. "We are aware of and reviewing indications that DeepSeek may have inappropriately distilled our models, and will share information as we know more."

Microsoft ( MSFT ) and OpenAI investigated whether unauthorized OpenAI technology was accessed by a group linked to DeepSeek last year, the FT report cited a person with knowledge of the matter as saying.

President Donald Trump's technology envoy David Sacks told Fox News on Tuesday "there's substantial evidence" DeepSeek "distilled" knowledge from OpenAI models, multiple news outlets reported.

"We take aggressive, proactive countermeasures to protect our technology and will continue working closely with the US government to protect the most capable models being built here," OpenAI said.

Microsoft ( MSFT ) declined to comment.

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