Breakthrough Chinese AI firm gets struck by cyberattack
Date
1/28/2025 7:05:28 AM
(MENAFN) Chinese AI startup DeepSeek experienced a significant cyberattack on its servers, leading to interruptions in its services and sparking concerns in the global tech industry. The company's AI assistant, which was released last week, quickly surpassed US-based ChatGPT in popularity on the Apple App Store. DeepSeek's technology is said to rival Western models in performance, but at a much lower operational cost.
In response to the cyberattack, DeepSeek temporarily restricted new registrations while assuring existing users that they could still log in. The company’s website also experienced outages, the worst in recent months. DeepSeek’s success has challenged previous US policies aimed at blocking China’s access to advanced chips, as it used Nvidia’s H800 chips—outside the scope of restrictions—for training its AI models.
The news of the cyberattack caused a significant decline in global tech stocks, with Nvidia losing over $600 billion in market value, marking the largest single-day drop in its history. Other companies, including Oracle, also saw significant losses, with the Nasdaq and S&P 500 suffering notable declines.
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