How OpenAI’s dominance in AI is getting challenged

When the Soviet Union launched the world’s first artificial satellite, Sputnik, in 1957, it reshaped the global political, military, technological, and scientific landscapes. This event not only gave rise to NASA—the US response to the Soviet challenge—but also marked the beginning of the intense space race between the USSR and the US.

Nearly 70 years later, a similar shift is unfolding in the global technology arena. Chinese artificial intelligence (AI) company DeepSeek has stirred the tech industry with the launch of highly efficient AI models that rival the advanced products from leading US companies like OpenAI and Anthropic. DeepSeek’s AI tool even surpassed OpenAI’s ChatGPT in popularity on Apple’s App Store in the US, signalling a new chapter in AI competition.

DeepSeek’s success becomes especially significant amid the backdrop of US sanctions on China, aimed at preserving its technological dominance. Since 2022, the Biden administration has implemented several rounds of export controls to prevent China from accessing technologies that could potentially be used to develop advanced weapons and AI systems.

Through its AI models, China has now directly challenged the US's claim of being the global leader in advanced AI technology, questioning the narrative that significant technological progress is only possible through massive investment. For years, US tech giants have argued that government protection from competition is essential for maintaining American leadership in the sector.

The economic viability of AI models developed by US tech giants is now under scrutiny, with OpenAI also facing legal challenges from media organizations in both India and the US.

Against this backdrop, the visit of Sam Altman, CEO of OpenAI and creator of ChatGPT, to Delhi is pivotal in the context of the ongoing narrative surrounding US hegemony in the tech world.

DELHI DIARY

Altman visited New Delhi on February 5 and met Union IT Minister Ashwini Vaishnaw to discuss India's strategy for building an indigenous AI ecosystem. This would include the development of foundational models, applications, and the essential hardware infrastructure. Altman emphasised India’s central role in the AI revolution, noting that the country has become OpenAI’s second-largest market, with user numbers tripling over the past year. "India is an incredibly important market for AI in general, and for OpenAI in particular," he remarked.

This stance was a significant change from his position in 2023 on India’s AI potential. He had expressed scepticism regarding the feasibility of developing powerful AI models outside the US, due to high computing costs. In a clear shift in perspective, he acknowledged India’s growing potential for AI innovation. "That was a very specific time when it was a scaling issue—'pre-trained' models were expensive. But one of the most interesting things that has happened since then is that the world has made significant progress with smaller models," he said.

Business Today learned that Altman also engaged with senior officials from the Prime Minister's Office and the Ministry of Electronics and Information Technology during his visit. He had a bilateral meeting with the IT minister and participated in a fireside chat with him. Altman also met numerous start-ups and venture capital firms in India.

During the fireside chat, Minister Vaishnaw outlined India’s long-term AI vision. "India’s AI mission will evolve at all three levels: chip designing, foundational models, and application layers. We will, of course, collaborate with OpenAI," he said.

Altman’s visit to India, however, was not just about discussing the country’s AI prospects. It also came amid ongoing legal disputes with Indian media houses.

LEGAL CHALLENGES

OpenAI has recently come under fire over accusations of copyright infringement. A group of book publishers and media organisations in India has filed a lawsuit against OpenAI, with several well-known Indian news outlets, such as HT Digital Streams, The Indian Express Digital, and NDTV Convergence, joining forces with the news agency Asian News International (ANI) in the legal action. These parties allege that their news content was used without proper authorisation.

The publishers, represented by the Federation of Indian Publishers, contend that OpenAI’s ChatGPT service violates their copyrights by using book summaries and excerpts sourced from unauthorised online content. In its defence, OpenAI has submitted a motion to dismiss the lawsuit, maintaining that its ChatGPT service only utilises publicly available information.

In its initial response to ANI’s legal action, OpenAI also argued that Indian courts do not have jurisdiction over the case, given that its servers are based outside of India.

The company’s legal battles with media outlets are not confined to India alone. In the United States, prominent news organisations, led by The New York Times, have filed their own lawsuits against OpenAI. The outcome of this case could determine whether the company must face a major copyright infringement trial. Three lawsuits filed by publishers against OpenAI and its financial partner Microsoft have been consolidated into a single case, with The New York Times, The New York Daily News, and the Center for Investigative Reporting leading the charge.

ChatGPT and other large language models "learn" by processing vast amounts of data, often drawn from the internet. The case could have significant implications for the relationship between generative AI and copyright law, particularly regarding fair use, and it could ultimately shape the way AI models are developed.