DeepSeek Limits API Access Amid Surging Demand for Its AI Model
5 Sources
5 Sources
[1]
DeepSeek Limits Access to AI Model as Demand Strains Capacity
DeepSeek, the Chinese startup whose artificial-intelligence model roiled global markets last week, said it would restrict access to its application programming interface service because of shortages with its server capacity. In a posting on its website, the company said it suspended the ability of customers to top up their API credits to avoid any broader impact on their services. Any existing stored values won't be affected, it added.
[2]
DeepSeek Restricts Access as AI Model Balloons in Popularity | PYMNTS.com
DeepSeek's artificial intelligence model is reportedly too popular for its own good. The Chinese startup said it is limiting access to its API service because of shortages with its server capacity, Bloomberg reported Thursday (Feb. 6). "Due to current server resource constraints, we have temporarily suspended API service recharges to prevent any potential impact on your operations," the company said, per a Thursday Engadget report. "Existing balances can still be used for calls. We appreciate your understanding!" DeepSeek made headlines -- and sent a number of tech stocks tumbling -- last month when it launched an AI model that it said could perform at the same level of its much larger, better-funded rivals in the United States for a fraction of the cost. The introduction of the company's chatbots came as AI reached an inflection point, with factors such as cost and environmental concerns stifling adoption and accessibility, Gokul Naidu, a consultant for SAP, told PYMNTS Jan. 27. "DeepSeek challenges the narrative that innovation must come at an unsustainable cost," Naidu said. "For businesses, this means AI could soon be accessible to small and medium enterprises, not just tech giants with deep pockets." In addition to limiting API service access, DeepSeek also said Thursday that it is ending discounts to access the model Saturday (Feb. 8), per the Bloomberg report. "This should be a no-brainer in terms of actions we should take immediately to prevent our enemy from getting information from our government," Gottheimer said. Similar bans are already in place in Australia, Taiwan and Italy -- and the state of Texas -- while DeepSeek is being investigated in Belgium, France, Ireland and South Korea.
[3]
DeepSeek limits model access due to overwhelming server demand
DeepSeek recent explosion in popularity continues to be a problem for the AI startup. In a notification spotted by Bloomberg, the company said it was temporarily limiting access to its application programming interface service in response to a shortage of server capacity. "Due to current server resource constraints, we have temporarily suspended API service recharges to prevent any potential impact on your operations," DeepSeek said. "Existing balances can still be used for calls. We appreciate your understanding!" Separately, DeepSeek announced pricing for its chat model would increase to $0.27 per million input tokens and $1.10 per million output tokens starting February 8. DeepSeek has been dealing with overwhelming demand for its services since the debut of its R1 model on January 20. The company's emergence as a leading premier AI provider, and the fact it was able to train R1 for a fraction of the price it cost OpenAI to develop its o1 reasoning model, sent US investors into a panic. Major tech stocks, including NVIDIA, shed $1 trillion of value the Monday after DeepSeek's chatbot hit the top of the App Store. Since then, OpenAI has released its o3-mini model and Deep Research feature for ChatGPT.
[4]
DeepSeek restricts access to its AI model -- What's behind the move?
DeepSeek, the Chinese artificial intelligence startup, has announced that it will be limiting access to its application programming interface (API) service due to capacity constraints on its servers. In a statement on its official website, DeepSeek explained that it had temporarily suspended the option for customers to add additional credits to their API accounts in order to prevent further disruptions to its services However, the company reassured users that any credits already stored in their accounts would remain unaffected and available for use. "The existing recharge amount can continue to be used, please understand," the company added. DeepSeek has seen a massive rise in demand for its services since the launch of its AI chatbot in late January. The company said that the chatbot is capable of competing with OpenAI's ChatGPT, offering similar capabilities at a significantly lower cost. Also Read : Amazon to unveil major AI upgrade for Alexa at February 26 event Initially, DeepSeek restricted access to the chatbot by only allowing new users with a mainland China phone number to sign up. The chatbot has since garnered attention for its ability to offer advanced AI-powered conversations while remaining cost-effective compared to other models in the market. The hype surrounding DeepSeek's new AI model has had a significant impact on global markets, triggering a $1-trillion decline in US and European tech stocks. The rise in interest in the Chinese company's AI capabilities has also prompted the United States to tighten regulations on the sale of chips for AI applications. US officials are now investigating whether DeepSeek managed to acquire Nvidia semiconductors through third parties in Singapore, potentially bypassing the export restrictions on AI chips to China. DeepSeek, which had raised concerns among competitors because of its low pricing, announced that discounts for its AI model would end on February 8. After that, access to its chat model will cost 2 yuan per million input tokens and 8 yuan per million output tokens. Once its reasoning model is available, the charges will rise to 4 yuan per million input tokens and 16 yuan per million output tokens. Also Read : Google rolls out Gemini 2.0 for all users: What you need to know about latest AI models 1. What is DeepSeek? DeepSeek is a Chinese startup focused on developing artificial intelligence models, including a chatbot designed to rival OpenAI's ChatGPT.. 2. How does DeepSeek differ from ChatGPT? DeepSeek differs from ChatGPT in several ways, primarily in terms of cost, development and target market. DeepSeek offers its AI models at a significantly lower cost compared to ChatGPT.
[5]
DeepSeek temporarily suspends API service top-ups
BEIJING, Feb 6 (Reuters) - DeepSeek has temporarily suspended API service top-ups, a platform that allows developers of other models to integrate its AI models, due to server resource constraints, its website showed Thursday. The Chinese AI start-up has in the past two weeks faced server issues due to the high traffic spurred by the global clamour. Reporting by Beijing Newsroom Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence
Share
Share
Copy Link
Chinese AI startup DeepSeek temporarily suspends API service top-ups due to server capacity constraints, following the launch of its cost-effective AI model that rivaled major competitors and impacted global tech markets.
DeepSeek's Rapid Rise and Server Constraints
DeepSeek, a Chinese artificial intelligence startup, has recently made waves in the global AI market with the launch of its new AI model. The company's chatbot, introduced on January 20, 2025, has garnered significant attention for its ability to rival major competitors like OpenAI's ChatGPT at a fraction of the cost
1
.However, the sudden surge in popularity has led to unexpected challenges for the company. DeepSeek announced on February 6 that it would be limiting access to its application programming interface (API) service due to server capacity constraints
2
.API Service Suspension and Pricing Changes
In a statement on its website, DeepSeek explained that it had temporarily suspended the ability for customers to add additional credits to their API accounts. The company assured users that existing balances would remain unaffected and could still be used for API calls
3
.Alongside the API restrictions, DeepSeek announced changes to its pricing structure. Starting February 8, the company will end discounts for access to its model. The new pricing will be set at 2 yuan ($0.27) per million input tokens and 8 yuan ($1.10) per million output tokens for its chat model
4
.Market Impact and Competition
The emergence of DeepSeek as a leading AI provider has had significant repercussions on global markets. The company's ability to train its R1 model at a considerably lower cost compared to its U.S. counterparts sent shockwaves through the tech industry. Major tech stocks, including NVIDIA, experienced a collective loss of $1 trillion in value following DeepSeek's chatbot launch
3
.In response to DeepSeek's rise, competitors have been quick to react. OpenAI, for instance, has released its o3-mini model and introduced a new Deep Research feature for ChatGPT
3
.Related Stories
Regulatory Concerns and Investigations
The rapid growth of DeepSeek has also attracted regulatory attention. U.S. officials are investigating whether the company acquired Nvidia semiconductors through third parties in Singapore, potentially circumventing export restrictions on AI chips to China
4
.Additionally, several countries including Australia, Taiwan, and Italy have implemented bans on DeepSeek, while investigations are ongoing in Belgium, France, Ireland, and South Korea
2
.Future Implications
The rise of DeepSeek highlights the potential for AI to become more accessible to small and medium enterprises, not just tech giants with substantial resources. As Gokul Naidu, a consultant for SAP, noted, "DeepSeek challenges the narrative that innovation must come at an unsustainable cost"
2
.As DeepSeek works to address its server capacity issues, the AI industry watches closely to see how this Chinese startup will continue to impact the global AI landscape and potentially reshape the competitive dynamics in the field.
References
Summarized by
Navi
[1]
[4]
Related Stories
Weekly Highlights
1
Anthropic Secures $13B in Funding, Reaching $183B Valuation Amid AI Industry Boom
Business and Economy
2
OpenAI Partners with Broadcom to Develop Custom AI Chips, Challenging Nvidia's Dominance
Technology
3
Tesla Proposes $1 Trillion Pay Package for Elon Musk, Tied to Ambitious AI and Robotics Goals
Business and Economy
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
