Last week, Chinese startup DeepSeek launched a free AI assistant that it says uses less data at a fraction of the cost of incumbent services. By Monday, the assistant had overtaken U.S. rival ChatGPT in downloads from Apple's (AAPL.O), opens new tab app store.
   
 

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Liang Wenfeng, DeepSeek AI CEO. Chinatalk Media | Sohu

  Tech startup DeepSeek hit by cyber attack amid surge in popularity

Nilay Seetharaman - Technology
Tell Us USA News Network

HANGZHOU, CHINA - Chinese tech startup DeepSeek reported a cyber attack on Monday that hindered new user registrations on their site.

The company, known for its AI chatbot that's making waves in the tech industry, announced it had faced “large-scale malicious attacks” on its services. Existing registered users, however, were able to log in without issues, according to DeepSeek.

Last month, DeepSeek gained significant attention in the AI field with the release of a new AI model that it claimed matched the capabilities of models from U.S. firms like OpenAI, the creator of ChatGPT. Additionally, the model was touted as more cost-effective, utilizing expensive Nvidia chips more efficiently for training the system on vast amounts of data. The chatbot's accessibility increased further with its debut on Apple and Google app stores earlier this year.

By Monday, DeepSeek’s AI assistant had risen to the top as the No. 1 free app on Apple’s iPhone store. Its surge in popularity sparked discussions about the competition between the U.S. and China in AI development. However, some U.S. tech industry analysts expressed concerns that the Chinese startup had managed to rival leading American companies in generative AI at a fraction of the cost.

DeepSeek, founded in Hangzhou, China in 2023, launched its first AI large language model later that year.

AI models, from ChatGPT to DeepSeek, rely on advanced chips for their training. Since 2021, the Biden administration has expanded bans aimed at preventing these chips from being exported to China and used to train AI models by Chinese firms.

However, in a paper last month, DeepSeek researchers claimed that the DeepSeek-V3 was trained using Nvidia's H800 chips, costing under $6 million. Though this detail is disputed, the assertion that less powerful chips were used compared to the advanced Nvidia products restricted by Washington, along with the relatively low training costs, has led U.S. tech executives to question the effectiveness of tech export controls.

DeepSeek, a small startup founded in Hangzhou, China, in 2023, remains relatively unknown. It emerged the same year search engine giant Baidu released the first Chinese AI large-language model.

Since then, numerous Chinese tech companies, both large and small, have released their AI models. However, DeepSeek has become the first to be praised by the U.S. tech industry for matching or even surpassing the performance of state-of-the-art U.S. models.








 

                      

 
 

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