US orders agencies to remove DeepSeek AI over national security concerns

The US Department of Homeland Security has ordered federal civilian agencies to stop buying and to remove services and products from Chinese AI startup DeepSeek, citing national security risks. The directive also covers third-party products using DeepSeek technology, though agencies may request exceptions. The DHS warned that DeepSeek’s handling of user data could allow Chinese authorities access to sensitive US government information under Chinese law.

This move extends restrictions first passed in December 2025 that targeted DeepSeek’s use in intelligence systems, now including all federal civilian agencies and both new and existing IT systems. The order comes as US-China competition in AI intensifies, with DeepSeek’s low-cost open-weight models challenging US firms like OpenAI and Meta. China has criticised the US action, calling it an overreach of national security.

US authorities also accused DeepSeek and other Chinese AI firms of using model distillation to extract information from American AI systems. OpenAI and Anthropic have separately reported suspected unauthorised attempts by DeepSeek to collect outputs from their models. China, meanwhile, is considering export restrictions on 23 AI-related technologies, according to Bloomberg.

Regulated-industry leaders should review their suppliers’ AI dependencies and prepare for further restrictions or compliance checks as US-China tech policy evolves.