The US government has ordered federal civilian agencies to remove DeepSeek products from agency information systems, citing national security concerns. The removal order also covers third-party services developed using DeepSeek artificial intelligence models. A Department of Homeland Security (DHS) notice made public on Monday also barred agencies from acquiring DeepSeek products and services, including those developed by affiliated entities.
The DHS notice said use of DeepSeek products by US government employees or vendors may result in sensitive data being transferred to China. The notice said the models themselves may contain malware or other security vulnerabilities. Homeland Security Secretary Markwayne Mullin signed the underlying order on July 24. China's embassy in Washington did not immediately respond to a request for comment.
DeepSeek disrupted global markets and the AI industry in 2025 with the release of the R1 model. US President Donald Trump called the breakthrough a "wake-up call" for America's technology sector. DeepSeek has since faced scrutiny from Washington policymakers who view DeepSeek's Chinese ownership as a national security threat. Monday's announcement forms part of the Trump administration's broader effort to restrict Chinese technology as the United States and China compete for global AI leadership.
The House Select Committee on China published a report in April 2025 claiming that DeepSeek represented a "profound threat to our nation's security". US lawmakers introduced the No Adversarial AI Act in June 2025 to restrict federal use of China-linked artificial intelligence tools such as DeepSeek. Committee chairman John Moolenaar said after the announcement that the United States was in a new Cold War, with AI as the central strategic technology.
Liu Pengyu, a spokesperson for China's embassy in the United States, said at the time that Congress' allegations of Chinese technology theft were "nothing but slander and smears". Liu also said China actively promotes AI innovation and places high importance on AI safety and ethics.
Lawmakers introduced a separate bipartisan bill, the No DeepSeek on Government Devices Act, in the House of Representatives in February 2025. A Senate version followed later that month. The legislation seeks to ban DeepSeek from federal government devices. Several other federal agencies, including the Department of Commerce and the Navy, have restricted DeepSeek use on government devices.
DeepSeek topped a "trending software vendors" list from New York-based corporate spending platform Ramp in June 2026. US businesses are seeking more affordable alternatives to expensive American AI providers such as OpenAI and Anthropic. Ramp Economics Lab lead economist Ara Kharazian said some companies were willing to use cheaper Chinese models, sending US data between the United States and China-hosted servers. Kharazian described that willingness as probably the biggest sign that companies were seeking cheaper alternatives to OpenAI and Anthropic.
US Bans DeepSeek AI from Federal Systems Over National Security Concerns
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The US government has banned DeepSeek AI from federal systems over national security concerns, with the Department of Homeland Security ordering its removal from civilian agencies. CFT regulations are increasingly influencing how agencies assess foreign tech risks. The move aligns with broader efforts to limit Chinese AI influence, including the No DeepSeek on Government Devices Act. Despite the ban, DeepSeek remained popular in 2026 as businesses sought cheaper alternatives, affecting liquidity and crypto markets.
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