DeepSeek, a Chinese tech company, has rapidly ascended to global prominence with its AI chatbot, DeepSeek R1, which has become the highest-rated free app on Apple’s App Store in the United States. However, this success has come with challenges. On January 27, the company reported a large-scale cyber-attack that temporarily disrupted new user registrations.

The attack occurred shortly after the app surpassed major American competitors on both Apple and Google’s app stores. On its status page, DeepSeek quickly initiated an investigation and, after two hours of monitoring, identified the attack as malicious. Despite restricting new registrations during this time, existing users remained unaffected. By January 28, registrations were fully restored.

DeepSeek R1 is an advanced AI assistant similar to OpenAI’s ChatGPT. What sets it apart is its ability to rival established models at a fraction of the cost. DeepSeek reportedly developed the app for approximately $5 million-an astonishingly low figure compared to the billions spent by tech giants like OpenAI and Google.

This cost-efficiency is particularly notable given China’s restrictions on accessing advanced computational hardware due to US-led export controls. Despite these constraints, DeepSeek R1’s performance has been described as nearly equal to its American counterparts, making it a potential disruptor in the global AI market.

The app’s sudden rise has triggered a ripple effect in the technology sector. On January 27, US technology stocks, including Nvidia, saw sharp declines. Nvidia, a leader in AI chip manufacturing and the most valuable US tech company, experienced a staggering 13.6% drop in stock value, equating to a loss........

© Blitz