By Hafiz Rahat Usama 
Beijing/Washington – In a dramatic turn of events, Chinese artificial intelligence firm DeepSeek has become the target of a major cyberattack just days after its groundbreaking AI advancements led to a historic selloff in U.S. tech stocks. The attack, suspected to be the work of sophisticated hackers, has raised concerns over cybersecurity in the rapidly evolving AI industry.
DeepSeek’s Disruptive Rise
DeepSeek, a China-based AI startup, recently launched a revolutionary AI model capable of competing with leading Western technologies at a fraction of the cost. The company’s innovation triggered widespread panic among investors, leading to a staggering $1.2 trillion loss in the U.S. tech sector, particularly affecting companies like Nvidia, Microsoft, and OpenAI’s backer, Altman Ventures.
Financial analysts have compared DeepSeek’s impact to the rise of Huawei, which faced intense scrutiny and trade restrictions from Western governments.
Cyberattack Hits DeepSeek’s Operations
Shortly after its meteoric rise, DeepSeek confirmed that its systems were under a massive cyberattack, targeting its AI infrastructure, confidential research, and internal servers. The company’s security team reported that:
- Several AI training models were compromised, leading to speculation of potential data leaks.
- Key research files were wiped, forcing engineers to restore backups.
- Suspicious traffic spikes were detected, suggesting a coordinated breach rather than random hacking attempts.
While the source of the attack remains unclear, cybersecurity experts suspect involvement from state-backed hackers aiming to sabotage China’s AI leadership.
U.S. and China Tech War Intensifies
The timing of the cyberattack has fueled speculation that it could be linked to the ongoing U.S.-China tech rivalry. With DeepSeek challenging the dominance of Western AI firms, experts believe this attack could be part of a larger effort to curb China’s rapid advancements in artificial intelligence.
Meanwhile, the Biden administration has remained tight-lipped, but sources suggest that Western intelligence agencies are closely monitoring the situation.
What’s Next for DeepSeek?
Despite the attack, DeepSeek remains resilient, stating that no core AI models were permanently damaged. The company has vowed to strengthen its cybersecurity and continue its aggressive expansion into the global AI market.
As tensions between the U.S. and China escalate, DeepSeek’s fate could reshape the AI industry, influencing the future of AI dominance, cybersecurity, and economic power on a global scale.