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OpenAI Reports Rise in Chinese Groups Using ChatGPT for Malicious Activities

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OpenAI disclosed in a report released Thursday that it has detected an increasing number of Chinese-linked groups leveraging its AI technology, including ChatGPT, for covert and malicious operations. Although the activities have expanded in scope and tactics, OpenAI noted the operations remain generally small in scale and target limited audiences.

Since its launch in late 2022, ChatGPT and other generative AI tools have raised concerns about misuse, including the rapid creation of human-like text, images, and audio that can be weaponized for misinformation, hacking, or social manipulation. OpenAI regularly monitors and publishes findings on such harmful usage on its platform.

Among the examples cited by OpenAI:

  • Accounts generating politically charged social media posts related to China, including critiques of a Taiwan-centric video game, false claims against a Pakistani activist, and content about the USAID closure. Some posts also criticized U.S. President Donald Trump’s tariffs with messages such as “Tariffs make imported goods outrageously expensive, yet the government splurges on overseas aid. Who’s supposed to keep eating?”

  • Chinese threat actors employing AI to assist in cyber operations, including open-source intelligence gathering, script modification, system troubleshooting, and creating tools for password brute forcing and automating social media actions.

  • Influence campaigns originating from China producing divisive content on U.S. political topics, often supporting opposing sides simultaneously, combined with AI-generated profile images to amplify polarization.

In response, China’s Foreign Ministry dismissed OpenAI’s claims as baseless and stressed its commitment to responsible AI governance and opposition to AI misuse.

OpenAI, valued at around $300 billion after a recent $40 billion funding round, continues to emphasize transparency and vigilance in monitoring misuse of its AI technologies worldwide.

U.S. DOJ Probes Google Over Licensing Deal with Character.AI

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The U.S. Department of Justice is investigating whether Google’s licensing deal with AI startup Character.AI violated antitrust laws, according to a report by Bloomberg Law. The probe focuses on whether the deal was deliberately structured to sidestep formal merger review processes.

Key Points:

  • Nature of the Deal: In 2023, Google secured a non-exclusive license to Character.AI’s large language model (LLM) technology and subsequently hired the company’s co-founders, Noam Shazeer and Daniel De Freitas—both former Google engineers.

  • Regulatory Concern: Antitrust officials are questioning if this agreement—despite not involving an acquisition—effectively gave Google undue influence or control over Character.AI’s technology, potentially undermining market competition in the fast-growing generative AI sector.

  • Google’s Response: A spokesperson stated that Google has no ownership stake in Character.AI and that the company remains independent. “We’re always happy to answer any questions from regulators,” the spokesperson said.

  • Ongoing Scrutiny: The probe is at an early stage and may not result in formal action, but it signals heightened regulatory vigilance over AI partnerships. The DOJ can still act if the deal is deemed anti-competitive, even without triggering a formal merger review.

  • Industry Trend: Similar AI talent and technology acquisition strategies have been employed by:

    • Microsoft, which paid $650 million to license Inflection AI’s models and onboard its team.

    • Amazon, which hired Adept’s co-founders and staff in 2023.
      Both deals have also drawn regulatory interest.

  • Broader Context: Google is already facing two major antitrust lawsuits from the DOJ targeting its dominance in search and digital advertising. Earlier this month, the Federal Trade Commission (FTC) supported a proposal requiring Google to share its search data with rivals.

Strategic Implications:

The inquiry reflects regulators’ growing concern that Big Tech may be circumventing antitrust oversight through creative structuring of AI-related partnerships. As companies compete to lead in generative AI, expect increased scrutiny on licensing, hiring, and technology transfer deals that could entrench market power.

Alphabet Shares Surge Nearly 4% on AI Mode Rollout and Monetization Strategy

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Alphabet’s stock jumped 4% on Thursday, reaching its highest level in nearly three months, as investors responded positively to the company’s latest artificial intelligence (AI) initiatives announced at its annual developer conference.

The boost follows Google’s unveiling of “AI Mode”—a major update that allows users across the U.S. to toggle their search experience into an AI-powered interface. The new feature is designed to deliver more conversational and complex answers, positioning Google more competitively against AI-driven platforms like OpenAI’s ChatGPT.

Key Highlights:

  • AI Mode Launch:
    Now available to all U.S. users, AI Mode redefines traditional search by integrating generative AI responses directly into Google Search.

  • Monetization Strategy:
    Google also introduced a premium $249.99/month subscription plan aimed at power users, which could help offset the high infrastructure costs of AI development. Analysts expect further monetization of AI Mode to follow soon.

  • Market Response:
    Alphabet’s Class C shares rose 4% to $175.27, reaching levels not seen since February. Despite Thursday’s rally, the stock remains down about 7% year-to-date.

  • Analyst Confidence:
    Citi analyst Ronald Josey stated the updates reflect improving execution and offer reassurance that “Google can deliver continued search growth while ramping monetization.”
    He also noted that AI Mode could enable more targeted and relevant advertising, the backbone of Google’s revenue model.

Strategic Context:

Google CEO Sundar Pichai emphasized that the rise of generative AI does not entirely cannibalize traditional search. Instead, AI capabilities are expanding the types of queries users bring to Google, offering opportunities for deeper engagement and smarter ad placements.

Executives noted that more challenging user questions, which are often difficult to answer using traditional search algorithms, are now within reach thanks to AI—a potential goldmine for ad monetization and user retention.

Outlook:

With Alphabet doubling down on AI integration and monetization, analysts and investors are signaling increased confidence in the company’s ability to maintain leadership in search while competing in the evolving AI landscape.