Cyberattack Strikes Breakthrough Chinese AI Company
DeepSeek has paused new user registrations due to “large-scale malicious attacks” that followed the launch of its AI model, which affected market stability. Read Full Article at RT.com
TroibNews 
DeepSeek, a Chinese AI startup, has temporarily halted new user registrations following a significant attack on its servers reported on Monday. This incident comes at a time when global tech stocks are experiencing substantial losses, with hundreds of billions of dollars wiped out due to developments surrounding the startup's promising technology.
The company recently launched its AI assistant, which quickly gained popularity and has surpassed the US-based ChatGPT on the Apple App Store. DeepSeek asserts that its latest large language model matches the effectiveness of its Western counterparts while being significantly more cost-efficient in terms of training and operational expenses.
“Due to large-scale malicious attacks on DeepSeek’s services, we are temporarily limiting registrations to ensure continued service,” stated a notice on the company’s website on Monday. “Existing users can log in as usual.”
The DeepSeek website has experienced intermittent outages, reportedly the most severe in the past 90 days, as noted by Reuters.
Powered by the DeepSeek V3 and R1 models, the AI assistant “rivals the most advanced closed-source models globally,” the company claims.
DeepSeek's rapid rise has called into question the effectiveness of the previous US administration's strategy to prevent China from accessing advanced chips from the US and the Netherlands. The startup disclosed last month that it utilized Nvidia’s H800 chips—exempt from the ban—for training its latest AI model and spent under $6 million in that process.
While some US experts remain skeptical of DeepSeek's assertions, the stock markets reacted dramatically. Nvidia suffered a loss of over $600 billion in market capitalization during Monday’s trading, marking the most significant wipeout in history, according to Forbes. Oracle's stock also declined, contributing to nearly a 3% drop in the Nasdaq and pushing the S&P 500 toward its worst performance in over a month, as reported by AP.
The Amsterdam and Tokyo stock exchanges were negatively impacted as well, primarily due to losses incurred by Dutch chipmaker ASML and Japanese conglomerate Softbank. Just a week earlier, Softbank had announced a partnership with Oracle and OpenAI, aiming to invest up to $500 billion in AI infrastructure within the US.
Thomas Evans for TROIB News
The company recently launched its AI assistant, which quickly gained popularity and has surpassed the US-based ChatGPT on the Apple App Store. DeepSeek asserts that its latest large language model matches the effectiveness of its Western counterparts while being significantly more cost-efficient in terms of training and operational expenses.
“Due to large-scale malicious attacks on DeepSeek’s services, we are temporarily limiting registrations to ensure continued service,” stated a notice on the company’s website on Monday. “Existing users can log in as usual.”
The DeepSeek website has experienced intermittent outages, reportedly the most severe in the past 90 days, as noted by Reuters.
Powered by the DeepSeek V3 and R1 models, the AI assistant “rivals the most advanced closed-source models globally,” the company claims.
DeepSeek's rapid rise has called into question the effectiveness of the previous US administration's strategy to prevent China from accessing advanced chips from the US and the Netherlands. The startup disclosed last month that it utilized Nvidia’s H800 chips—exempt from the ban—for training its latest AI model and spent under $6 million in that process.
While some US experts remain skeptical of DeepSeek's assertions, the stock markets reacted dramatically. Nvidia suffered a loss of over $600 billion in market capitalization during Monday’s trading, marking the most significant wipeout in history, according to Forbes. Oracle's stock also declined, contributing to nearly a 3% drop in the Nasdaq and pushing the S&P 500 toward its worst performance in over a month, as reported by AP.
The Amsterdam and Tokyo stock exchanges were negatively impacted as well, primarily due to losses incurred by Dutch chipmaker ASML and Japanese conglomerate Softbank. Just a week earlier, Softbank had announced a partnership with Oracle and OpenAI, aiming to invest up to $500 billion in AI infrastructure within the US.
Thomas Evans for TROIB News
