Justin Sullivan
- TikTok parent company ByteDance used OpenAI's API to develop its own chatbot.
- The company also tried to cover up its use of the API, the Verge reported.
- OpenAI said it suspended the company's account while it investigates.
ByteDance, the parent company of TikTok, has been caught using OpenAI technology to advance its own large language model, the Verge reported.
According to the Verge, ByteDance's move isn't just frowned upon in the Artificial Intelligence industry — it violates OpenAI's terms of service.
Customers aren't allowed to "develop any artificial intelligence models that compete with our products and services," according to the terms. Nor can they "use any method to extract data from the Services other than as permitted through the APIs" or Application Programming Interfaces, which allow developers to use GPT to create their own applications.
ByteDance was aware of this but continued to use the API to train and compare its model, dubbed Project Seed, the Verge reported. The Verge also said it viewed internal communications from the Chinese company instructing employees to mask the evidence using "data desensitization" techniques.
The company later instructed that employees stop using the API to develop Project Seed around the time its chatbot, Doubao, was approved by regulators for use in China — but the Verge reported the API was still used to gauge their own chatbot's performance.
OpenAI confirmed Friday that it suspended ByteDance's account due to a breach of its terms of service.
"All API customers must adhere to our usage policies to ensure that our technology is used for good. While ByteDance's use of our API was minimal, we have suspended their account while we further investigate," OpenAI spokesperson Niko Felix said in a statement to the Verge. "If we discover that their usage doesn't follow these policies, we will ask them to make necessary changes or terminate their account."
In a statement to Business Insider, ByteDance denied any wrongdoing and clarified that it was licensed to use GPT's APIs.
"ByteDance is licensed by Microsoft to use the GPT APIs. We use GPT to power products and features in non-China markets, but use our self-developed model to power Doubao, which is available ONLY in China," a spokesperson said.
OpenAI did not immediately respond to requests sent by Business Insider outside regular business hours.
Bytedance is currently expanding its reach and wading into the AI market. This month, the South China Morning Post reported that it was developing a chatbot-building competitor to OpenAI's customizable ChatGPT bots.
US regulators and lawmakers have scrutinized the China-based company over the past year. Officials say they worry ByteDance could hand over user data collected from TikTok to the Chinese government.