DeepSeek Faces Cyber Attack After Big Wall Street Success, Limits New Users

Chinese AI startup DeepSeek faced a major cyberattack soon after its successful launch on Wall Street. The attack caused service disruptions, forcing the company to temporarily stop new user registrations. DeepSeek’s popular open-source AI model, DeepSeek-R1, is creating waves in the global market, shaking up the tech industry and affecting major tech stocks.

  • DeepSeek faced a massive cyberattack that caused login issues for users and disrupted its API services. The company fixed the problems but temporarily stopped new user registrations.
  • DeepSeek-R1, the open-source AI model, gained massive global popularity, especially in the US. It claims to outperform top AI models by using advanced training techniques, making it a serious competitor to technologies from OpenAI and Meta.
  • DeepSeek’s AI technology offers high performance at a fraction of the cost, making it a significant disruptor in the AI sector.

DeepSeek's rise affected the tech market:

  • Nvidia’s shares dropped by 11%.
  • Microsoft, Meta, and Alphabet stocks fell by 3-4%.
  • The Nasdaq fell by 3.1%, and the S&P 500 declined by 1.85%.

DeepSeek’s innovative AI model is transforming the industry but has also made it a target for cyberattacks. This incident emphasizes the critical need for robust cybersecurity measures to protect businesses, their users, and their market standing from increasing cyber threats.