Beijing: Chinese AI startup DeepSeek faced a cyberattack on Monday, forcing it to temporarily limit new user registrations. The incident comes after its AI assistant gained sudden popularity, becoming the top-rated free app on Apple’s App Store in the United States.
Outages and System Recovery
Earlier in the day, DeepSeek’s website experienced outages, disrupting users’ ability to log in. The company resolved the issues, including application programming interface (API) glitches, according to its status page. These outages marked the longest disruption DeepSeek has faced in the last 90 days, coinciding with its skyrocketing user base.
A Game-Changer in AI
DeepSeek recently launched a free AI assistant powered by its cutting-edge DeepSeek-V3 model. This model, according to the startup, rivals the most advanced AI systems globally while using significantly less data at a fraction of the cost. This breakthrough has drawn considerable attention in the tech world, especially in the United States, where the app has seen a surge in downloads since its release on January 10.
Shaking Silicon Valley’s AI Dominance
DeepSeek’s success challenges the long-standing belief in U.S. dominance in AI innovation. Its performance has also raised questions about the effectiveness of Washington’s export controls aimed at restricting China’s access to advanced chips and AI technology.
Despite U.S. bans, DeepSeek reportedly trained its V3 model using Nvidia’s H800 chips at a cost of under $6 million. While some experts have disputed these claims, the startup’s relatively low training expenses and use of less advanced chips highlight the potential to achieve high-quality AI outputs without massive investments.
Impact on Tech Stocks
The growing prominence of DeepSeek has rattled global tech markets. On Monday, technology stocks such as Nvidia and Oracle saw significant declines, as investors speculated about the disruption DeepSeek might bring to the AI landscape.
DeepSeek’s Rise to Global Attention
Founded in 2023 in Hangzhou, DeepSeek emerged in a competitive environment where Chinese tech companies were racing to create AI models. While many models failed to compete with their U.S. counterparts, DeepSeek has become the first Chinese AI platform to earn widespread praise from Silicon Valley, with some claiming it matches or even surpasses cutting-edge U.S. AI systems.
The Future of DeepSeek
As DeepSeek addresses its current challenges, including the cyberattack and system outages, it continues to solidify its place as a disruptive force in the AI industry. Its innovation in cost efficiency and model performance could signal a new era in global AI development, challenging the traditional giants of the field.
With its impressive debut and growing reputation, DeepSeek is not only reshaping perceptions of Chinese AI capabilities but also forcing the global tech industry to rethink its strategies in the face of new competition.
DeepSeek’s journey highlights the dynamic nature of the AI sector, where innovation knows no borders.
