Chinese AI startup DeepSeek recently started limiting new user registrations, claiming it was the victim of a ‘large-scale malicious attack’—just as its AI assistant skyrocketed to the top of Apple’s US App Store rankings.
DeepSeek’s official status page reported API and website disruptions, attributing them to a cyberattack. The company assured users that existing accounts remained functional, but new sign-ups were temporarily frozen.
Despite the server failures and registration limits, DeepSeek has quickly emerged as a major player in AI. The startup claims its model rivals the most advanced closed-source AI while requiring less data and operating at a fraction of its competitors’ costs.
The firm’s AI assistant, launched on January 10, has since become a top-rated free app on the US App Store. The sudden surge in popularity coincided with the outages, leading some to speculate whether DeepSeek is spinning a cyberattack narrative to cover up infrastructure weaknesses.
Nevertheless, the Chinese startup is poised to challenge AI supremacy in the West. DeepSeek’s model was reportedly trained using Nvidia’s H800 chips, which, while less powerful than the cutting-edge AI chips banned for export to China, are still strong enough to raise questions about U.S. chip restrictions. The firm also reportedly spent under $6 million on model training—a fraction of what Western AI firms spend.
Information for this story was found via Reuters and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
