AsianFin -- OpenAI has issued a strong warning about its rising Chinese competitor, DeepSeek, cautioning the U.S. government that China is closing the AI gap.

In a 15-page letter to the Office of Science and Technology Policy on Thursday, OpenAI highlighted DeepSeek’s latest model, R1, as a "noteworthy" development that underscores China’s expanding AI ambitions and intensifying global competition.

"While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing," wrote Chris Lehane, OpenAI's vice president of global affairs.

Founded in 2023 by Chinese entrepreneur Liang Wenfeng, DeepSeek disrupted the AI industry in January with the launch of its low-cost reasoning model, R1. The company claims R1 rivals top models like ChatGPT’s o1 but at a significantly lower cost.

OpenAI raised concerns about potential security risks, warning that DeepSeek could be influenced by the Chinese government, posing threats if used in critical infrastructure or high-risk applications.

The U.S. Navy has advised service members against using DeepSeek, while Taiwan banned the model from government agencies in February over security concerns.