Industry Insights · October 21, 2026

US Bans DeepSeek AI Across Federal Agencies

The US government has banned DeepSeek AI products from federal agencies, highlighting data security and supply chain risks.

The U.S. Department of Homeland Security (DHS) has ordered federal civilian agencies to stop using DeepSeek products and remove them from government IT systems due to national security concerns. This order encompasses not only DeepSeek's own products but also third-party products and services built using DeepSeek technology. The DHS raised alarms about the potential for the Chinese government to access sensitive information from U.S. government users, citing concerns over data sovereignty and security vulnerabilities associated with DeepSeek's operations in China. The order mandates that agencies must purge their systems of DeepSeek products within 60 days, although they can request exceptions under specific circumstances. This move is part of a broader trend of increasing scrutiny on AI technologies developed in China, particularly as the U.S. and China engage in heightened competition in the AI sector. Organizations considering the use of DeepSeek technology must carefully assess the associated risks and ensure robust data security measures are in place.

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