DeepSeek Hit by Large-Scale Cyberattack, Limits New Registrations Amid Disruptions

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DeepSeek, a Chinese AI startup, has been hit by a large-scale cyberattack, leading to significant disruptions and the company's decision to limit new registrations. The attack has been described as malicious and has severely impacted DeepSeek's online services. The company has temporarily restricted new sign-ups, particularly for users outside China, to only those with Chinese mobile numbers.

The cyberattack has caused notable outages and technical issues, including users being unable to log in to the website and significant downtime for the application programming interface (API). Despite resolving some of these issues, the impact on DeepSeek's operations remains substantial.

DeepSeek's recent release of its open-source AI model, DeepSeek-R1, contributed to its rapid rise in popularity, particularly in the United States. The model, powered by the DeepSeek-V3 model, has been praised for its advanced capabilities, rivaling those of leading AI models from companies like OpenAI and Meta Platforms. However, the cyberattack has not only disrupted the company's growth trajectory but also sent shockwaves through the tech industry, leading to a notable decline in technology shares on Wall Street. For instance, Nvidia's shares dropped by 11% in early trading, and other tech giants like Microsoft and Meta Platforms also saw significant declines.

The attack has raised concerns about data privacy and security, given DeepSeek's extensive user base and the potential for hyper-realistic phishing attacks using insights from breached datasets. The company's decision to limit registrations is a precautionary measure aimed at mitigating further damage and stabilizing its services in the wake of the attack.