DeepSeek Crypto Faces Cyber Attack Amid Explosive Growth

DeepSeek Crypto Faces Cyber Attack: After Becoming Top in Apple’s App

Chinese startup and AI sensation Deepseek said on Monday, it will temporarily limit registrations of new users due to large-scale cyber attack on its services after the company's AI assistant amassed sudden popularity. Deepseek was also hit by outrage on its website after its AI assistant became the top-rated free application available on Apple’s App Store in the United States. 

According to the company's status page, they have resolved the issues related to its application programming interface and users login difficulties in the website. Monday's outages, which were the longest in approximately 90 days, occurred amid the company's sky-rocketing popularity.

Attack After becoming Top in Apple’s App Store

This cyberattack hit just after its AI Chatbot became the top downloaded app on monday and took over openAI’s ChatGPT in Apple’s App Store in the United States. After the attack Deepseek got outages and was unable to take on new users. 

Since its launch on January 10 the AI assistant Powered by DeepSeek-V3, has quickly gained popularity among US users. It came into the market as a model capable of competing with top closed-source systems worldwide, DeepSeek-V3 represents a significant milestone in the AI industry.

Its success on the US app store sent shares in AI-linked tech giants plummeting on Monday. The low-cost Chinese generative AI venture is thought to have matched US companies in its abilities but at a fraction of the cost.

DeepSeek’s AI Assistant Challenges U.S. Dominance in Tech

Last week, DeepSeek introduced a free assistant that claims to use less data and operate at a fraction of the cost of existing competitors models, potentially marking an acceleration in the investment required for AI research and development.

However, such growth has resulted in the debate of US export controls meant to limit China's access to advanced AI chips. DeepSeek's researchers claimed that the model was trained on the Nvidia H800 chip, less advanced than the restricted products but those that reportedly were used for deep search's training, which will estimate the cost at under USD 6 million.

DeepSeek’s huge success is seen as a challenge to US primacy in AI and highlights the innovative approaches Chinese firms are taking to compete on a global scale. deepSeek has the ability to take over openAI chat gpt means it really has potential. 

Crypto Market Crash 

The crypto market experienced a significant crash following the cyberattack on DeepSeek, a Chinese AI startup that had recently gained immense popularity. As news of the attack spread, investor confidence took a hit, leading to major losses across several prominent cryptocurrencies. 

What is DeepSeek

DeepSeek is a Hangzhou-based startup which was founded in 2023. it has emerged as a disruptive force in a crowded field of Chinese tech companies developing AI large-language models. Unlike its domestic peers, DeepSeek has garnered acclaim from Silicon Valley for its ability to match or exceed the performance of cutting-edge US models.