Chinese AI platform DeepSeek announced on Monday (Jan 27) that it is limiting new user registrations due to large-scale cyberattacks, just hours after becoming the top free app on Apple’s App Store in the United States.
DeepSeek faces 'large-scale malicious attacks'
DeepSeek, which recently surpassed OpenAI’s ChatGPT in popularity, reported "large-scale malicious attacks" causing major service outages. As a result, the platform has restricted access for new users. These outages have impacted both its desktop and mobile versions.
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Tech stocks plunge following DeepSeek’s success
Developed by a start-up in Hangzhou, eastern China, DeepSeek has quickly gained recognition for competing with industry leaders like OpenAI at a fraction of the cost.
Its rise to the top of the US App Store on Monday sent shockwaves through the stock market, with shares in AI-related tech giants plummeting.
Nvidia’s market value dropped by $500 billion, while companies like Microsoft and Meta also faced significant losses. European firms were affected as well, with Dutch semiconductor equipment maker ASML’s shares falling over 10% and Siemens Energy’s shares declining by 21%.
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DeepSeek offers generative AI capabilities similar to its Western counterparts, enabling users to compose song lyrics, plan personal projects, or solve complex maths and reasoning problems. Although its functionality is subject to the strict censorship seen in other Chinese chatbots, such as Baidu’s Ernie Bot, which limits discussions on political topics.
Who founded DeepSeek?
DeepSeek was established in 2023 by Liang Wenfeng, an information and electronic engineering graduate from Hangzhou in southeastern China.
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Liang, who also founded the hedge fund that financed DeepSeek, reportedly stockpiled Nvidia A100 chips—now banned from export to China—to support the development of the app. Experts estimate he acquired around 50,000 of these chips and combined them with lower-end, imported alternatives to create the technology behind DeepSeek.
(With inputs from agencies)