DeepSeek AI Faces Cyber-Attack After Topping US App Charts

China’s artificial intelligence organization DeepSeek encountered a massive cyber-attack on Monday, forcing it to pause new user account creation. The privacy breach emerged when the AI assistant app reached the number-one spot on Apple’s App Store in the US and established a wide audience on Google Play. The cyber-attack did not disrupt existing user logins, and new user registrations returned after the breach.

The DeepSeek status page details show that the company learned about the attack on Monday night (Beijing Time) and started its investigation. Within two hours, the company confirmed the “large-scale malicious attack” as the root cause. Shortly after the app gained significant success in the U.S. market, the timing of this attack has people guessing about its perpetrators.

DeepSeek’s Rise Sparks AI Market Shake-Up

DeepSeek’s AI assistant, DeepSeek, matches OpenAI’s ChatGPT solution and gained worldwide recognition because it performs well at reasonable prices. A Chinese startup constructed the model with $5 million in funding, while American AI firms spent billions on similar projects. Despite Chinese import barriers for advanced chips, DeepSeek demonstrates the exceptional implementation of its technology, which sets industry standards.

The app launched disruption waves through all sections of the American technology market. CEO Elina Feldman’s announcement of their first-ever quarterly sales decline caused Nvidia’s stock value to collapse about 13.6%, leading to market depletion exceeding $500 billion. According to analysis predictions, DeepSeek’s inception creates a potential major threat to US supremacy in AI technological leadership.

Business magnate Marc Andreessen described DeepSeek R1 as “AI’s Sputnik moment,” drawing parallels to the historical race for space supremacy during the Cold War. Propelled by businessman and politician Vivek Ramaswamy, the United States requires a reality check rather than overreacting.

Trump Responds with $500B AI Initiative

Former President Donald Trump noted DeepSeek’s development during this time, declaring it an alert to US tech organizations and declaring his address at the House Republican conference in Florida. Trump stressed that American businesses must compete successfully in the AI market.

Wielding a $500 billion investment fund, Trump established “Stargate” as part of his AI initiative through a partnership with OpenAI alongside SoftBank and Oracle. The venture has encountered intense public opposition recently after Tesla and X owner Elon Musk began to dispute OpenAI’s CEO Sam Altman about funding matters.

Trump planned to cancel AI regulations enforced by the Biden administration through an executive order. He wanted businesses to innovate instead of conforming to political directions.

What’s Next for DeepSeek?

Despite the security breach, DeepSeek functions as one of the leading forces in the artificial intelligence sector. Although it has successfully contained the attack, DeepSeek has not released an official breach statement. The forthcoming global AI competition is expected to reshape future artificial intelligence development as DeepSeek accelerates its rapid market expansion.

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