That is the finding from a Taiwanese research firm that has been watching these groups closely.
These hackers are not using AI for amusement. They are using it to write malware, scout for weaknesses, and automate the grunt work that used to slow them down. The result is a sharper, faster, and more dangerous threat aimed at companies, governments, and everyday internet users.
The firm tracks groups tied to the Chinese state and has documented a sharp rise in activity since the models became widely available. The increase is not limited to one kind of operation: attacks range from probing email systems to mapping corporate networks, and the same tools are being reused across multiple campaigns.
"DeepSeek is the AI of choice for Chinese hackers because it's relatively powerful with very low cyber guardrails," the Taiwanese research firm said.
The money story behind the headlines is usually the part that matters. Join Market Briefs free and get it every morning.
It is not the most powerful model out there. A more powerful option exists, but it costs too much for hackers to run at scale, and researchers have not recorded a single incident involving it. DeepSeek is the sweet spot: good enough to do real damage, cheap enough to use everywhere, and built with weak safeguards that do not get in the way.
The hackers have put it to work across many stages of their attacks. One group used DeepSeek to create exploit code, which is the tool that turns a security flaw into a way inside a system. Another group likely used the model to attack a Taiwanese company's email system. A third group used it to gather 1,000 IP addresses and map a company's domains.
The attacks are getting more ambitious.
The hackers are not just using Chinese AI, either. A group used Anthropic's Claude Code to move sideways inside a Taiwanese technology company's systems. That was the first documented large-scale cyberattack carried out without substantial human intervention, and it changes the risk calculation for everyone.
The clearest lesson is that cheap, powerful AI has a dark side. The same technology that helps people write emails and analyze spreadsheets also makes it easier for bad actors to cause trouble. Cybersecurity is no longer just about patches and passwords. Both sides are now locked in an escalating contest powered by artificial intelligence.
For your portfolio, this means the cost of data breaches and cyberattacks will likely keep going up. Companies will need to spend more on defense, which could squeeze profits in the short term. It also means that the people protecting your money, your identity, and your accounts are fighting a smarter enemy than they were just a year ago.
Understanding what moved a market beats knowing that it moved. Get the free Market Briefs daily newsletter and follow the drivers.
