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Technology
28 January 2025

Chinese AI Startup DeepSeek Hit By Widespread Service Outages

Malicious attack coincides with surge in DeepSeek's popularity on the Apple App Store.

DeepSeek, the Chinese AI startup capturing the attention of tech enthusiasts across the globe, faced significant service outages on January 28, 2025, following what the company described as a large-scale malicious attack against its systems. The timing of these challenges could not have been more ironic, as just days before, the startup's AI assistant had catapulted to the top of the free applications on the Apple App Store, generating buzz among its users and drawing curiosity from industry experts alike.

According to Reuters, DeepSeek was forced to temporarily limit new registrations as users reported difficulties logging onto its platform. The company's website and application programming interface (API) had been affected by the outages, making it particularly challenging for users trying to access the AI services they had recently turned to for assistance. This incident marks the company's most prolonged period of disruption within the past three months, highlighting the growing pains of rapidly gaining popularity.

At the heart of DeepSeek's appeal lies its DeepSeek-V3 model, which its creators tout as outperforming many advanced, closed-source AI systems on the market. Such claims have sparked discussions within Silicon Valley, where experts have begun to reassess the narrative around China's capabilities in the AI field. The application, launched on January 10, rapidly garnered positive reviews and attention, propelling it to the forefront of the competitive AI application market.

Interestingly, the debate surrounding DeepSeek also touches on the effectiveness of US export controls on technology, particularly concerning advanced chips necessary for the training and operation of AI models. The Biden administration has been working since 2021 to restrict the transfer of high-performance chips to entities and companies within China, aiming to curb their competitive edge. Despite these efforts, DeepSeek's recent success raises troubling questions about how well these restrictions are working.

DeepSeek's researchers claimed to have trained their model using Nvidia's H800 chips for under $6 million, which is considerably less expensive than the costs associated with acquiring more advanced models sought after by companies like OpenAI and others producing models like ChatGPT. While some industry insiders quickly challenged these assertions, the notion of achieving high-performance AI with lower-cost resources will likely provoke heavy discussions about technology sharing and US strategy moving forward.

This startup, founded only two years ago, has already made waves not only concerning its innovations but also its potential to shift the balance of AI power. With such rapid advancements, DeepSeek has become emblematic of the increasing competition between US and Chinese tech firms.

Yet, with popularity often accompanied by scrutiny, DeepSeek now must navigate the challenges of scaling its infrastructure securely, especially as its services rely on populations not restricted by trade policies. The question remains: how will this small company sustain its growth and protect its innovations from attacks amid increasing geopolitical tensions?

Experts speculate about the unknowns surrounding DeepSeek, largely due to its recent ascension and limited information about its operations and founders. Currently, the startup operates from Hangzhou, China, where it commenced its ambitious endeavors shortly after the launch of China's initial large-language AI model by tech giant Baidu. While many Chinese companies are vying for prominence, DeepSeek stands alone as the first to seriously contend with the leading models from the US.

DeepSeek's outages are not just technical failures; they reflect the underlying volatility and risks inherent when using and operating AI technology. Following the abrupt downtime, users expressed their frustrations online, with many taking to social media to share their experiences. This backlash is expected, considering how reliant individuals can become on leading tech services to provide instant information and assistance.

Moving forward, DeepSeek's ability to resolve these technical issues and regain its user base will be pivotal. The company has indicated it is focusing on rectifying these issues and enhancing its infrastructure to prevent future attacks. What is at stake is not merely the startup's reputation but potentially the future balance of AI innovation and leadership within the global tech framework.

With experts closely monitoring the dynamics of AI development between China and the US, DeepSeek’s commitment to recovering from this setback may prove instrumental not just for its growth, but for shaping the broader narrative surrounding AI technology.