US removes DeepSeek from federal civilian agency IT systems
The US Homeland Security department ordered DeepSeek products removed from federal civilian systems and barred new purchases. The rules took effect as soon as the order was published.
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what happened
According to Cointelegraph, the US Department of Homeland Security has instructed federal civilian agencies to strip DeepSeek software from their IT infrastructure. The directive, filed Monday, extends to DeepSeek affiliates and third-party offerings built on DeepSeek technology, and bars agencies from buying them going forward.
DHS argued that employees and contractors using DeepSeek could leak sensitive data to China, including information on American citizens and federal programs, and flagged security flaws in DeepSeek's iOS app. The rules became effective as soon as the order was published on Tuesday.
The move builds on earlier curbs at the Commerce Department and parts of the defense, security and intelligence establishment, as Washington and Beijing compete for leadership in artificial intelligence.
why it matters
The step deepens the technology rivalry between Washington and Beijing over AI. For markets it signals tighter limits on Chinese AI services in government use, which can weigh on sentiment toward AI-linked companies in both countries.
market impact
Chinese AI firms and the AI sector: tighter US government curbs add pressure on Chinese AI services.
tags
instruments
sources
- US bans DeepSeek from civilian agency IT systems — Cointelegraph, 20 October 2026 at 04:07 UTC
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