DeepSeek cyber attack alert: China's AI app limits registration after its popularity skyrocketed on Apple Store

Chinese startup DeepSeek said on Monday it is temporarily limiting registrations due to a large-scale malicious attack on its services.

This follows shortly after the AI assistant was ranked as the top-rated free app on the Apple App Store in the United States. The app had also experienced major outages, which the company later fixed, addressing issues with its application programming interface and users’ inability to log in to the website, according to its status page.

Last week, Chinese tech startup DeepSeek AI launched its open-source AI model, DeepSeek-R1, which quickly gained global attention.

Powered by the DeepSeek-V3 model, which its creators say "tops the leaderboard among open-source models and rivals the most advanced closed-source models globally", the artificial intelligence application has surged in popularity among US users since it was released on January 10, according to app data research firm Sensor Tower.

Founded in 2023 by Liang Wenfeng, DeepSeek claims to have developed a chatbot that rivals the latest offerings from OpenAI and Meta Platforms Inc., but at a significantly lower cost.

DeepSeek's effect on Wall Street 

On Monday, DeepSeek's rise triggered a decline in technology stocks globally. The company's free, open-source AI model, DeepSeek-R1, has caused concerns among investors. US tech stocks saw a significant decline on Monday as growing interest in Chinese startup DeepSeek’s affordable artificial intelligence model cast doubt on the high valuations within the sector.

DeepSeek, which surpassed ChatGPT to become the top-rated free app on the US Apple App Store, claims to use lower-cost chips and fewer data resources, challenging the market expectation that AI growth would drive demand for chips and data centers.

While the Dow Jones Industrial Average saw a slight increase, the S&P 500 fell by approximately 2%, and the Nasdaq Composite dropped around 3.5%. Nvidia, the leading provider of chips for AI applications, saw a 16% decline, along with other industry giants such as Broadcom and Marvell Technology.