DeepSeek’s Major Breakdown Raises Questions Over Its Next Move

DeepSeek, the Chinese AI startup that gained global attention for challenging Western dominance in artificial intelligence, recently suffered the biggest outage in its history. According to reports, users first began facing problems on Sunday evening, with the company’s status page acknowledging issues at 9:35 p.m. Although the incident was briefly marked as resolved, disruptions continued into Monday, when DeepSeek again reported performance problems that were not fully fixed until 10:33 a.m. This meant the platform remained unstable for more than seven hours, making it an unusual event for a company that claims nearly 99% uptime since launching its R1 model in January 2025.

The exact reason behind the outage has not been officially explained, adding to speculation around the company’s internal challenges. DeepSeek had earlier shaken global markets by emerging as a serious Chinese AI contender, but since that viral breakthrough, it has not released another model with the same impact. Meanwhile, competitors like OpenAI, Google, Anthropic, and Chinese rivals such as Alibaba have continued to move quickly. Recent hiring activity at DeepSeek, especially for agent-related AI roles, suggests the company may be preparing a major new launch, keeping market expectations high despite this setback.

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