Microsoft (NASDAQ:MSFT) is investigating whether individuals linked to DeepSeek, the Chinese AI startup that recently disrupted markets, extracted OpenAI data without authorization, according to Bloomberg.

Key Developments

• Microsoft's security team identified individuals possibly linked to DeepSeek who extracted large amounts of OpenAI API data.
• OpenAI's API allows licensed access to its AI models, but unauthorized data use could pose serious legal and competitive concerns.
• DeepSeek's R1 AI model, which reportedly delivers ChatGPT-like performance at a fraction of the cost, raised intellectual property concerns in the AI industry.
• Market Impact:
  • Nvidia (NASDAQ:NVDA): Nearly $600 billion wiped off its market cap in Monday's AI-driven sell-off.
  • Microsoft: Shares fell Monday but rebounded Tuesday ahead of its Q4 earnings report.

Investor Takeaway

With AI competition heating up, investors can track Microsoft's financial health using the Full Financials API and assess its growth trajectory through the Financial Growth API.