The United States has mandated that all artificial intelligence technology supplied by the Chinese company DeepSeek be taken off most federal government systems. The Department of Homeland Security issued a directive that bars the use of DeepSeek within civilian agencies and prohibits any technology built with its AI models. The order, announced publicly on Monday, took effect at the end of July and applies to agencies such as the Treasury, State and Justice Departments, while defense entities are exempt.
DeepSeek, an open‑source AI platform that launched in 2025, has gained popularity for its low cost and high performance. Its free chatbot ranks among the top apps in the Apple App Store, and its models are integrated by U.S. tech firms including Snowflake, Vercel and OpenRouter. The company’s servers have at times gone down due to high demand.
While the DHS notice did not specify the exact security risks, the White House has previously criticised Chinese AI firms. White House technology chief Michael Kratsios warned earlier this year that “malicious exploitation” of American AI companies by rivals in China was occurring. President Donald Trump has repeatedly identified China as the chief competitor in AI development.
DeepSeek’s rapid rise has drawn attention from both U.S. and Chinese firms. Anthropic and OpenAI, both preparing for public listings, have alleged that their models have been copied by Chinese competitors, including DeepSeek. The company’s latest version, released last week, has been praised online for outperforming some of the most advanced tools from OpenAI on routine coding tasks.
The ban follows a broader trend of U.S. scrutiny over Chinese technology. The DHS, DeepSeek and the Chinese embassy in Washington D.C. have been contacted for comment. The directive underscores the growing tension between the two tech giants as they vie for dominance in the AI race.
What to watch next: The U.S. government may extend restrictions to other agencies or impose further measures against Chinese AI firms. Analysts will be monitoring how the ban affects U.S. tech companies that currently rely on DeepSeek models.
