DeepSeek Faces Sign-Up Restrictions Due to Surge in Cyber Attacks: Implications for AI Competition

DeepSeek is currently facing significant challenges as its service is disrupted by what the company describes as "large-scale malicious attacks." To mitigate the effects of these attacks, the Chinese company, which operates a popular chat application, has announced a temporary halt to new account registrations unless the users provide a China-based phone number.

As indicated on its website, only individuals with phone numbers coming from the China area code (+86) can currently register for the app. The announcement states, "Due to these extensive malicious attacks, DeepSeek's online services have experienced disruption. Thus, we restrict registration to phone numbers that are +86." However, existing users can continue to log in without any issues.

As of now, the registration process has been reopened, but users are cautioned that "registration may be busy," indicating possible overcrowding in the system. Existing users should still be able to access their accounts. Nonetheless, an ongoing status page has outlined continuing issues, highlighting the difficulties faced by the breakthrough AI platform following its rapid growth.

Challenges Following Rapid Expansion

DeepSeek has rapidly transformed into a game-changing player in the competition for AI superiority. The application gained instant popularity, climbing to the top of Apple’s App Store, causing concern among major tech firms located in the US due to its powerful open-source AI model.

The real strength of DeepSeek lies in its capacity to function effectively on less advanced hardware, offering a more economical and accessible alternative to higher-profile competitors, such as OpenAI’s ChatGPT. This unique advantage significantly shook investor confidence, leading to a striking decrease in stock prices of major US technology firms as industry experts predict that the emergence of competitors like DeepSeek could become increasingly common, thus challenging the established players.

Nigel Green, the CEO of the global financial advisory firm deVere Group, remarked, "China’s advancements in technology, especially in AI, are undermining the US's capacity to utilize tariffs as a means of maintaining global supremacy." He points out that the shift in technological power dynamics implies that Washington cannot dictate terms to Beijing as it once did, predicting far-reaching implications for investors and policymakers.

Green emphasized, "AI represents the defining technology of our era, and the quest to dominate it will dictate global markets for years to come." He also suggested that this shift opens the door for non-traditional players and regions to capture the lead in AI technology, stressing that established tech giants may no longer be the guaranteed winners in this rapidly evolving field.

Ongoing Rivalry Between Global Powers

The recent news about DeepSeek unfolds against the backdrop of intensifying competition between China and the US in AI and other emerging technologies. Even with export limitations on US hardware, China's AI landscape continues to flourish, spurred on by robust government funding and a thriving ecosystem of innovative startups.

The emergence of applications like DeepSeek illustrates that Silicon Valley no longer holds an unchallenged advantage. Traditionally, US companies have benefited from advanced semiconductor technologies produced by domestic companies like NVIDIA. However, China's ability to deliver competitive AI functionalities on less advanced technology could signal a vital turning point.

Despite the surge in AI innovation around the globe, the struggles confronted by DeepSeek serve to remind us of the obstacles that can trail rapid growth. Understanding the delicate balance of emerging technologies and their accompanying challenges is of utmost importance in navigating this dynamic landscape.

Photo by Markus Spiske

For more information on this evolving situation and to stay updated with related topics, keep an eye on AI-related developments stemming from both traditional and new players in the tech landscape.