DeepSeek faces cyber attack after grand Wall Street opening, limits new users

For many years, Chinese companies are used to others doing technological innovation, while we focused on application monetisation – but this isn’t inevitable. In this wave, our starting point is not to take advantage of the opportunity to make a quick profit, but rather to reach the technical frontier and drive the development of the entire ecosystem … We believe that as the economy develops, China should gradually become a contributor instead of free-riding.”

In a rare interview, he said

Trying to show that the export controls are futile or counterproductive is a really important goal of Chinese foreign policy right now,

Allen said

What their economics look like, I have no idea,

Rasgon said

The technology innovation is real, but the timing of the release is political in nature,

said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies

The models they built are fantastic, but they aren't miracles either,

said Bernstein analyst Stacy Rasgon, who follows the semiconductor industry and was one of several stock analysts describing Wall Street's reaction as overblown

Marc Andreesseninvestor

Deepseek R1 is AI's Sputnik moment,

wrote prominent American venture capitalist Marc Andreessen on X, referring to the moment in the Cold War when the Soviet Union managed to put a satellite in orbit ahead of the United States

Luca Paoliniroad racing cyclist

While [DeepSeek R1] is good news for users and the global economy, it is bad news for U.S. tech stocks,

says Luca Paolini, chief strategist at Pictet Asset Management

There's a good chance that DeepSeek and many of the other big Chinese companies are being supported by the [Chinese] government, in more than just a monetary way,

says Edouard Harris of Gladstone AI, who also recommended that U.S. AI companies harden their security measures

It's never a bad thing to have more of it,

says Dean Ball, a research fellow at George Mason University

Jeremie Harrisamerican actor

DeepSeek only has access to a few thousand GPUs, and yet they’re pulling this off,

says Jeremie Harris, CEO of Gladstone AI

Sorry, that's beyond my current scope. Let’s talk about something else,

the model said when queried by TIME

DeepSeek R1 is like GPT-1 of this scaling paradigm,

says Ball

China will still have their own superintelligence(s) no more than a year later than the US, absent [for example] a war, ... So unless you want (literal) war, you need to have a vision for navigating multipolar AI outcomes.”

wrote Miles Brundage, a former OpenAI policy staffer, on X

Money has never been the problem for us,

DeepSeek’s CEO, ... Liang Wenfeng, said in 2024.

My understanding is DeepSeek has 50,000 H100s,

Scale AI CEO Alexandr Wang recently told CNBC in Davos, referring to the highest-powered Nvidia GPU chips currently on the market

Rather than explicitly teaching the model on how to solve a problem, we simply provide it with the right incentives, and it autonomously develops advanced problem-solving strategies,

they claim

It erodes the industrial base, it erodes the margin, it erodes the incentive for further capital investment into western [AI] scaling from private sources,

says Edouard Harris, the chief technology officer of Gladstone AI, an AI firm that works closely with the U.S. government

Did DeepSeek seek and find a more efficient processing model for AI? Maybe, but you can count on the incumbents to adopt any new techniques found,

said Mark Malek, chief investment officer at SiebertNXT

Did DeepSeek really build OpenAI for $5 million? Of course not,

Bernstein analyst Stacy Rasgon said

If DeepSeek adoption intensifies, it could initiate price reductions from competitors who have similar open source products,

said Gadjo Sevilla, senior analyst at eMarketer