Chinese AI startup DeepSeek has limited new signups to users with mainland China telephone numbers following “large-scale malicious attacks” that disrupted its services. The surge in demand for its AI assistant, powered by the R1 model, pushed the app to the top of Apple’s iPhone charts and Google’s Play Store but overwhelmed the startup’s systems. This is the app’s longest outage to date.
“Currently, only registration with a mainland China mobile phone number is supported,” the company stated, without clarifying whether this restriction is temporary or permanent.
DeepSeek’s AI assistant has gained traction for its transparent responses. It displays reasoning processes in real time, a feature widely praised on app stores. The company’s R1 model also climbed UC Berkeley’s AI leaderboard, which has made it a serious competitor in the AI space.
The startup’s rise has disrupted global markets, triggering a $1 trillion selloff in U.S. and European tech stocks. DeepSeek’s claims of developing a high-performing AI model at significantly lower costs than rivals have led investors to question the sustainability of massive AI spending by major players like OpenAI.
DeepSeek’s efficiency also challenges the assumption that cutting-edge AI requires vast resources, raising questions about the impact of U.S. trade sanctions on advanced technology. However, the company’s self-censorship on politically sensitive topics like Tiananmen Square and Taiwan may hinder its ability to expand internationally.
