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US orders federal agencies to remove Chinese AI DeepSeek over security concerns

The US government has directed all federal civilian agencies to stop purchasing and remove AI products and services developed by Chinese startup DeepSeek f…

The US government has directed all federal civilian agencies to stop purchasing and remove AI products and services developed by Chinese startup DeepSeek from their IT systems, citing national security risks. The Department of Homeland Security (DHS) issued the order on October 20, 2026, extending previous restrictions that targeted intelligence and national security systems to now include civilian agencies.

The DHS expressed concerns that DeepSeek’s handling of user data could allow sensitive information from US government users to be accessed by Chinese authorities under Chinese law. The order also bans third-party products built using DeepSeek’s technology, although agencies may request exceptions. This move follows a December 2025 law that restricted DeepSeek’s use in intelligence systems, reflecting growing US efforts to limit Chinese AI influence in government technology.

The action comes amid escalating competition in artificial intelligence between the US and China. DeepSeek offers low-cost open-weight AI models that compete with US firms like OpenAI and Meta. China’s Foreign Ministry criticized the US decision, accusing it of politicizing technology and trade issues and vowing to protect Chinese companies’ rights. The US government’s expanded restrictions highlight increasing scrutiny of Chinese technology over security and data privacy concerns.

The DHS order marks the broadest federal ban on DeepSeek products to date, affecting all civilian agencies. The US government’s previous December 2025 legislation targeted intelligence systems, while this new directive extends controls across the federal civilian sector, reinforcing national security safeguards against foreign AI technology risks.

Editorial standards. Reported and edited at Startupniti's news desk from the sources listed in the right rail. Every fact traces to a citation. If something looks wrong, write to corrections.
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