AI startup DeepSeek facing hack, blocks questions about CCP
Published On Jan 27, 2025, 4:54 PM
Chinese AI startup DeepSeek is temporarily halting new user registrations due to large-scale cyberattacks. This follows the company's recent launch of a new AI model, R1, which is claimed to be significantly cheaper and comparable in performance to OpenAI's ChatGPT, leading to increased user interest. However, the app has limitations on politically sensitive discussions, notably related to China's political climate and history. Analysts suggest DeepSeek's emergence presents a competitive threat to U.S. AI firms, spurring a recent sell-off in tech stocks.
Stock Forecasts
GOOGL
Negative
DeepSeek's rise as a competitor in the AI space, combined with political tensions and security concerns around its ties to the Chinese government, may lead to continued volatility in U.S. tech stocks. Investors should be cautious, as while DeepSeek's offerings may appeal to users looking for affordable AI solutions, U.S. companies could face regulatory scrutiny and market challenges as a result.
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