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US banning Chinese AI DeepSeek from government agency IT systems

Confirmed

Technology Desk

In Short: The US Department of Homeland Security has ordered federal civilian agencies to remove all products affiliated with the Chinese artificial intelligence company DeepSeek from their IT systems, citing potential national security risks and concerns over the exposure of sensitive information to Chinese authorities.

United States Department of Homeland Security on 2024-06-24 - 1
Photo: DHSgov / Wikimedia Commons (Public domain)

The order, issued on July 24 but made public only this week, instructs federal civilian agencies to remove any DeepSeek-related technology, including third-party products or services built on DeepSeek’s AI models.

DeepSeek founder Liang Wenfeng is expected to commit nearly $2.96 billion of his own capital, and the proposed deal is likely to value DeepSeek between $52 billion and $59 billion.

According to the Department of Homeland Security, the removal of DeepSeek products may result in the transfer of sensitive data to the People’s Republic of China if used by U.S. government employees or vendors.

DeepSeek has been accused of having its AI models essentially copied by some Chinese AI firms, including itself, by rivals such as Anthropic and OpenAI.

DeepSeek announced a collaboration with Huawei on September 30, revealing that it is releasing open-source software infrastructure designed specifically for Huawei’s AI processors.

DeepSeek’s collaboration with Huawei focused on improving both computation and communication within the 128-chip system, optimizing specifically for Huawei’s Ascend 950 chips and supporting a “supernode” configuration linking up to 128 of those accelerators.

The US ban on DeepSeek has drawn criticism from China, with the commerce ministry stating that the U.S. is trying to suppress and contain China through discriminatory restrictions under the guise of national security.

China has warned of possible retaliatory measures, highlighting tensions in the tech race between the two countries.

The Department of Homeland Security's order is filed under docket DHS-2026-0628 at regulations.gov, and questions go to a FASCSA implementation team inside the Cybersecurity and Infrastructure Security Agency.

Agencies may submit written exemption requests within 60 days through the Cybersecurity and Infrastructure Security Agency for mission-critical functions.

DeepSeek’s Beam model, a text-only mixture-of-experts model trained on high-compute reinforcement learning, is designed to be effective at reasoning, coding, and agentic tasks at a fraction of the token cost and inference time compute of rivals.

The ban on DeepSeek is part of a broader effort by the US to address concerns over the potential misuse of AI technology by rival firms in China.

Background

The United States Department of Homeland Security has ordered federal civilian agencies to remove Chinese artificial intelligence company DeepSeek’s products and related third-party services from their IT systems, citing concerns that sensitive government information could be transferred to China.

The US has ordered all DeepSeek AI technology from China to be removed from government systems, citing national security risks.

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