AI startup DeepSeek is facing challenges due to its skyrocketing popularity. In a recent notification, the company announced it is temporarily limiting access to its API service due to server capacity constraints. “To prevent any potential impact on your operations, we have suspended API service recharges,” DeepSeek stated, assuring users that existing balances remain usable.
In addition, the company revealed a price increase for its chat model, set to take effect on February 8, raising costs to $0.27 per million input tokens and $1.10 per million output tokens.
Since the launch of its R1 model on January 20, DeepSeek has experienced overwhelming demand, causing a ripple effect in the tech market. Following the chatbot’s rise to the top of the App Store, major tech stocks, including NVIDIA, lost $1 trillion in value. Meanwhile, OpenAI has responded with its o3-mini model and new features for ChatGPT. ✨
