DeepSeek Tackles Cyberattack Amidst U.S. Popularity Surge
DeepSeek, a Chinese AI startup, halted new registrations due to a cyberattack as its AI model gained popularity in the U.S., leading to website outages. The DeepSeek-V3 model has been lauded for its cost efficiency and effectiveness, challenging U.S. export restrictions and traditional views on AI supremacy. As technology stocks fluctuate, the Hangzhou-based startup stands as a prominent figure in AI development.
DeepSeek Faces Cyberattack Amidst Rising Popularity in the U.S.
Chinese startup DeepSeek has announced a temporary halt to new user registrations following a cyberattack, a situation that emerged as the company’s AI assistant surged in popularity. This unexpected rise in user interest recently propelled DeepSeek to the top of Apple’s App Store rankings for free applications in the United States.
Earlier on the same day, DeepSeek encountered website outages attributed to overwhelming traffic, making it the most extended downtime the company has experienced in nearly three months. Rectifications were made to the application programming interface, and login issues were addressed swiftly, as reported on their status page.
Last week marked a significant shift for DeepSeek with the launch of its free assistant, which offers reduced data usage at a fraction of the cost of existing market leaders. This move potentially signifies a change in the investment dynamics within the AI sector.
The Power Behind DeepSeek-V3
The AI assistant, utilizing the DeepSeek-V3 model, has been recognized for its superior performance. According to its developers, this open-source model rivals the most sophisticated closed-source AI globally. Released on January 10, the application’s popularity in the U.S. spiked rapidly, as confirmed by app research analytics from Sensor Tower.
The achievement of DeepSeek signifies a notable overturn of assumptions about U.S. superiority in artificial intelligence and raises questions about the efficacy of U.S. export controls targeting China’s AI advancements.
As the market responded to these developments, technology stocks faced a downturn. Companies like Nvidia and Oracle saw a notable drop in their share values. AI applications including ChatGPT and DeepSeek rely heavily on advanced chips for their development.
Debate Surrounding Export Controls
The U.S. administration, since 2021, has enforced bans to curb exports of critical chips to China, aimed at hindering the country's AI progress. However, DeepSeek’s recent disclosures show that their DeepSeek-V3 was trained using Nvidia’s H800 chips, incurring costs under $6 million. Although this claim has sparked controversy, it challenges the effectiveness of these export restrictions, prompting discourse among U.S. technology executives.
A Star from Hangzhou
DeepSeek, a relatively unknown Hangzhou-based startup founded in 2023 amidst the competitive AI landscape, stands out as a pioneer. It was established soon after Baidu released China's initial large-language AI model. In a landscape populated by both major and minor Chinese tech firms unveiling their AI models, DeepSeek uniquely earns accolades from the U.S. tech community for matching, if not exceeding, the capabilities of leading U.S. AI models.
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