DeepSeek, a Chinese artificial intelligence startup, was hit by “large-scale malware attacks”.
To reduce the impact, the company has temporarily restricted new registrations. According to the company, those who already own an account can log in as normal.
The massive attacks on DeepSeek came only hours after ChatGPT, the most popular free app for Apple devices in the US, was dethroned by its AI assistant.
Cyberattacks are on the rise
DeepSeek is just the latest in a long list of notable businesses that have been the victims of cyberattacks.
Change Healthcare, which was affected by a ransomware infection in February last year, caused disruptions to healthcare services in the United States and affected hospitals’ ability process payments and prescribe medication.
In April, Snowflake’s cloud platform was compromised by a widespread hack.
At&T and Santander Bank were two of the most prominent victims, with attackers stealing sensitive information and extorting million.
Cyberattacks will cost the global economy over $10 trillion by 2025.
Cyberattack on DeepSeek – Could it have been planned?
DeepSeek recently launched a new AI model, the “R1”, that is comparable to or even better than OpenAI.
It was built for a fraction of its cost and is also very affordable to run.
The Chinese startup is not publicly traded, but its announcement shook shares of AI stocks around the world.
It’s reasonable to assume that, given the timing of the cyberattack, the cyberattack was likely intended to disrupt the company’s fast-growing influence in the global artificial intelligence industry.
DeepSeek has already been hailed as a serious contender to established names such as Anthropic (Claude), Google Gemini, and OpenAI (ChatGPT). Even Nvidia shares, the AI darlings, are down on Monday.
Should Nvidia investors be nervous?
Experts are divided over the potential impact of DeepSeek on Nvidia.
Its new offering could, on the one hand hurt the demand for NVDA’s products as it suggests that companies are able to meet their artificial-intelligence requirements without having to choose Nvidia AI chips.
US hyperscalers, on the other hand, could stick with Nvidia’s high end GPUs to build more powerful AI models – and NVDA may remain at the forefront of the artificial-intelligence debate going forward.
Bernstein analysts labelled the recent sell-off of AI stocks as “overblown” because they viewed the narrative.
If so, Nvidia shares at $118 could be a great opportunity for investors to purchase a quality brand at a discount.
Wall Street currently expects NVDA to rise by an average of $175, which would indicate a potential 45% increase from current levels.
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