DeepSeek’s new AI assistant app, which topped app stores in the US, was targeted by a large-scale cyber-attack, forcing the Chinese company to limit new registrations temporarily.

DeepSeek, the Chinese company behind a rapidly rising AI assistant app, was hit by a large-scale cyber-attack on Monday, forcing the company to temporarily limit new registrations. The attack came just as the app surged to the top of Apple’s App Store, becoming the highest-rated free app in the US, and gained traction in Google’s Play Store.

The company began investigating the attack late Monday night, noting that the disruption was due to a “large-scale malicious attack.” Although new registrations were restricted, existing users were still able to access the app without issues. DeepSeek has since resumed allowing registrations.

The DeepSeek app, a chatbot similar to OpenAI’s ChatGPT, drew significant attention due to its ability to rival US-based AI companies at a fraction of the cost. The success of the app sent shockwaves through the tech sector, causing a sharp drop in Nvidia’s stock price by 13.6%, wiping out approximately $500bn in market value.

With limited access to advanced computational power due to China’s chip export controls, DeepSeek’s ability to create a highly competitive AI assistant with a relatively small budget has caught the attention of investors. Marc Andreessen, a prominent investor, called DeepSeek’s AI model “AI’s Sputnik moment,” drawing parallels to the Cold War-era space race.

Former President Donald Trump also reacted to DeepSeek’s rise, suggesting that the app should serve as a wake-up call for US companies. Trump criticized the Biden administration’s AI regulations and emphasized the need for American firms to refocus on competing globally.

Despite the ongoing cyber-attack and market turmoil, DeepSeek’s rapid success has raised questions about China’s increasing influence in the AI sector, especially as the US faces growing competition from its global rivals.