DHS orders US agencies to remove DeepSeek AI from government systems

Civilian departments directed to delete Chinese chatbot and stop purchasing third-party services built on the model

By LineZotpaper

Published20 October 2026

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The U.S. Department of Homeland Security on Monday directed civilian federal agencies to remove DeepSeek, China's best-known AI chatbot, from government computer systems and to halt any new purchases of the product or third-party services built on top of it, citing the risk of sensitive data being transferred to the Chinese government.

The DHS notice warns that DeepSeek's models pose "multiple threat vectors" and that using them "may result in the transfer of sensitive data to the PRC" if government employees or vendors engage with the platform. The memo also says the models could produce "actionable intelligence on U.S. persons and/or government agencies."

The ban extends beyond DeepSeek's own app to cover third-party services and applications developed using the open-source model. A July DHS memo, made public on Monday, had already instructed agencies to monitor traffic to and from government websites for DeepSeek-related risks.

DeepSeek had already been restricted in other parts of the U.S. government. The Commerce Department and the Navy previously banned the chatbot on government devices, and the states of New York, Tennessee and Virginia have taken similar steps. The Federal Communications Commission is scheduled to vote on October 29 on a proposal to bar all Chinese laboratories from testing electronics for U.S. use.

The Chinese Embassy in Washington did not immediately comment.

DeepSeek, a Hangzhou-based startup, became widely known on January 27, 2025, when its open-source model, built for under $5 million, triggered a sharp drop in Nvidia's stock and erased roughly $1 trillion in value from U.S. technology stocks as it demonstrated capabilities comparable to America's best models at a fraction of the cost.

The company has continued to release updates. In April 2025 it released a preview of its V4-Pro model, and this week it released an updated version of its V4.1-Flash model aimed at efficiency. A House select committee on the Chinese Communist Party had previously alleged that DeepSeek secretly sends American user data to the Chinese government and may have used restricted Nvidia chips in its training.

Italy's data protection authority also restricted the chatbot in early 2025, calling DeepSeek's responses to privacy questions "totally insufficient."

How it's landing

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SITUATION DETECTED: The US government is banning DeepSeek from all civilian federal agency IT systems under national security.

20 Oct, 4:23 am View on X

Posts on X from people the desk follows. Their words, unedited.

Analysis

Why This Matters

The order marks a significant escalation in U.S. government efforts to restrict Chinese AI technology from federal systems, setting a precedent for other agencies and potentially for state governments.
If similar measures are adopted by allied countries, it could fragment the global AI market and accelerate the decoupling of U.S. and Chinese technology supply chains.
The FCC vote on October 29 on barring Chinese labs from testing electronics signals that the federal push is broadening beyond AI into wider tech infrastructure.

Background

DeepSeek became a global phenomenon in January 2025 when it demonstrated that an open-source model could match leading U.S. AI systems at a fraction of the development cost, upending assumptions about the need for massive computing resources. Its open-source nature means it can be run on local hardware or hosted by any provider, including U.S.-based companies. However, the company's own cloud services are hosted in China, raising data security concerns. Several U.S. agencies and states had already restricted its use before Monday's DHS directive.

Key Perspectives

U.S. Government (DHS and other agencies): Protecting sensitive government data and preventing intelligence gathering by foreign adversaries justifies a blanket ban on DeepSeek products and services built on its model. China and DeepSeek: The Chinese Embassy in Washington did not immediately comment. DeepSeek has previously denied allegations of unauthorized data sharing and maintains that its open-source model is freely available for independent scrutiny. Critics and skeptics: Some industry observers note that because DeepSeek is open source, it can be run entirely on U.S. infrastructure without any connection to Chinese servers, suggesting the ban may be overly broad. Others argue that the move could stifle competition and innovation by blocking access to a cost-effective AI alternative.

What to Watch

The FCC vote on October 29 on barring Chinese labs from testing electronics for U.S. use, which would expand the federal crackdown.
Possible legal challenges from DeepSeek or from U.S. companies that rely on its open-source model.
Whether additional states or allied nations follow with their own restrictions on Chinese AI products.

Sources

US Orders Civilian Agencies to Rip DeepSeek Out of Government Systems · Decrypt

Checked

12 claims in this story checked against 1 source: 12 supported.

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SupportedDHS orders US agencies to remove DeepSeek AI from government systemsDecrypt: “DHS directed U.S. civilian agencies on Monday to remove DeepSeek products and third-party services built on the model from their IT systems, and barred new purchases.”
SupportedCivilian departments directed to delete Chinese chatbot and stop purchasing third-party services built on the modelDecrypt: “DHS directed U.S. civilian agencies on Monday to remove DeepSeek products and third-party services built on the model from their IT systems, and barred new purchases.”
SupportedThe U.S. Department of Homeland Security on Monday directed civilian federal agencies to remove DeepSeek, China's best-known AI chatbot, from government computer systems and to halt any new purchases of the product or third-party services built on top of it, citing the risk of sensitive data being transferred to the Chinese government.Decrypt: “DHS directed U.S. civilian agencies on Monday to remove DeepSeek products and third-party services built on the model from their IT systems, and barred new purchases. Using them 'may result in the transfer of sensitive data to the PRC'”
SupportedThe DHS notice warns that DeepSeek's models pose 'multiple threat vectors'Decrypt: “the models pose 'multiple threat vectors'”
Supportedusing them 'may result in the transfer of sensitive data to the PRC' if government employees or vendors engage with the platformDecrypt: “Using them 'may result in the transfer of sensitive data to the PRC'—the People’s Republic of China—if government employees or vendors use them”
SupportedThe memo also says the models could produce 'actionable intelligence on U.S. persons and/or government agencies.'Decrypt: “could produce 'actionable intelligence on U.S. persons and/or government agencies.'”
SupportedThe ban extends beyond DeepSeek's own app to cover third-party services and applications developed using the open-source model.Decrypt: “The ban reaches past DeepSeek’s own app to third-party services developed using it.”
SupportedA July DHS memo, made public on Monday, had already instructed agencies to monitor traffic to and from government websites for DeepSeek-related risks.Decrypt: “A July DHS memo, made public Monday, had already told agencies to monitor traffic flowing in and out of government websites for DeepSeek-related risks.”
SupportedThe Commerce Department and the Navy previously banned the chatbot on government devices, and the states of New York, Tennessee and Virginia have taken similar steps.Decrypt: “The Commerce Department and the Navy previously banned DeepSeek on government devices, and New York, Tennessee and Virginia have taken similar steps.”
SupportedThe Federal Communications Commission is scheduled to vote on October 29 on a proposal to bar all Chinese laboratories from testing electronics for U.S. use.Decrypt: “the Federal Communications Commission votes on October 29 on barring all Chinese labs from testing electronics for U.S. use.”
SupportedDeepSeek, a Hangzhou-based startup, became widely known on January 27, 2025, when its open-source model, built for under $5 million, triggered a sharp drop in Nvidia's stock and erased roughly $1 trillion in value from U.S. technology stocksDecrypt: “DeepSeek... became a household name on Jan. 27, 2025, when its open-source model, built for under $5 million, knocked Nvidia’s stock down 16% and erased about of the chipmaker’s value. U.S. tech as a whole lost an estimated $1 trillion that day”
SupportedA House select committee on the Chinese Communist Party had previously alleged that DeepSeek secretly sends American user data to the Chinese government and may have used restricted Nvidia chips in its training.Decrypt: “In April 2025, a House select committee on the Chinese Communist Party that DeepSeek secretly sends American user data to the Chinese government.. The same committee said DeepSeek may have used about 60,000 Nvidia chips, including 20,000 restricted under U.S. export controls”