DeepSeek Suspends Registrations Amid Cyberattacks as Stock Markets React to AI Breakthrough
Chinese AI startup DeepSeek announced on January 28 that it is temporarily suspending new user registrations due to large-scale malicious cyberattacks targeting its services. Despite this security incident, existing registered users retain normal access to the platform. This announcement follows a significant milestone achieved on January 27, when the DeepSeek App surpassed ChatGPT to become the top free application on both the US and Chinese App Stores. The rapid rise of DeepSeek has triggered substantial turbulence in global financial markets, particularly affecting major technology hardware firms. Shares of Nvidia dropped by up to 10.39% in pre-market trading, while ASML and TSMC experienced declines of 10.59% and 9.8%, respectively. According to Bloomberg, this market volatility stems from investor concerns that DeepSeek’s newly released AI model, which is highly cost-effective and capable of operating on lower-end chips, challenges the current valuation models of leading semiconductor companies. The event highlights the intense competition in the artificial intelligence sector and the immediate economic repercussions of technological advancements that disrupt established supply chain dependencies.
Wire timeline
DeepSeek Suspends Registrations Amid Cyberattacks as Stock Markets React to AI Breakthrough
Chinese AI startup DeepSeek announced on January 28 that it is temporarily suspending new user registrations due to large-scale malicious cyberattacks targeting its services. Despite this security incident, existing registered users retain normal access to the platform. This announcement follows a significant milestone achieved on January 27, when the DeepSeek App surpassed ChatGPT to become the top free application on both the US and Chinese App Stores. The rapid rise of DeepSeek has triggered substantial turbulence in global financial markets, particularly affecting major technology hardware firms. Shares of Nvidia dropped by up to 10.39% in pre-market trading, while ASML and TSMC experienced declines of 10.59% and 9.8%, respectively. According to Bloomberg, this market volatility stems from investor concerns that DeepSeek’s newly released AI model, which is highly cost-effective and capable of operating on lower-end chips, challenges the current valuation models of leading semiconductor companies. The event highlights the intense competition in the artificial intelligence sector and the immediate economic repercussions of technological advancements that disrupt established supply chain dependencies.
TechNode