DeepSeek, a Chinese artificial intelligence startup, announced on January 27, 2025, that it will temporarily limit user registrations due to large-scale malicious attacks on its services. Existing users will still be able to log in as normal while the company addresses the security issues.
- DeepSeek limits user registrations temporarily.
- Startup rivals OpenAI and Google’s AI tools.
- DeepSeek becomes most-downloaded app in U.S.
- R1 model developed at lower costs.
- Concerns about potential AI funding bubble.
- Focus on achieving artificial general intelligence (AGI).
The startup, which has quickly emerged as a competitor to established AI platforms like OpenAI’s ChatGPT and Google’s Gemini, recently became the most-downloaded free app in the U.S. on Apple’s App Store, contributing to a significant sell-off in global tech stocks.
DeepSeek was founded in 2023 and has gained attention for its rapid growth and innovative AI models. The company released its R1 reasoning model last week, which has been praised for its performance and reasoning capabilities. This open-source model allows developers to utilize its technology, further enhancing its popularity in the tech community.
Despite facing challenges, including U.S. restrictions on chip exports to China, DeepSeek’s R1 model reportedly has a training cost significantly lower than its competitors. Analysts estimate that the training cost for R1 is around $5.6 million, which is less than 10% of the cost of Meta’s Llama model. This cost efficiency raises questions about the sustainability of funding and valuations in the AI sector.
The increasing interest in DeepSeek reflects a broader trend in the AI industry, where companies are racing to develop advanced technologies amid fears of falling behind. This competitive environment has led to concerns about potential market bubbles, especially as funding rounds and valuations reach astronomical levels.
In summary, DeepSeek’s decision to limit user registrations highlights the ongoing security challenges faced by emerging AI companies. As the startup continues to compete with major players in the industry, its cost-effective model development and user engagement strategies will be closely monitored.
