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AI & Tech 20 OCT 2026 · 09:11 ET

US Federal Agencies Told to Purge DeepSeek AI Over Security Fears

Washington is banning the popular Chinese chatbot from government computers, citing fears that sensitive data could end up in Beijing's hands.

Reporting by LoopWire
US Federal Agencies Told to Purge DeepSeek AI Over Security Fears

The federal government has directed civilian agencies to strip DeepSeek's AI products from their networks, along with any third-party tools built on top of the Chinese startup's models. Officials cited national security risks as the driving factor behind the order, though the directive stops short of naming specific incidents of data compromise. The move marks one of the most direct actions Washington has taken yet against a Chinese AI company's software footprint inside the US government.

DeepSeek burst onto the global stage as a low-cost, high-performing rival to American AI labs, rattling markets and prompting fresh debate about whether the US still holds a commanding lead in frontier AI development. Its chatbot and underlying models drew praise for matching the output of pricier Western systems at a fraction of the computing cost, which made it attractive to cost-conscious users and developers alike, including, apparently, some corners of the federal workforce.

That popularity is precisely what now worries national security officials. Because DeepSeek is a Chinese company, its products are subject to Chinese data and security laws, raising concerns that information processed through its systems, or through apps and services built using its underlying technology, could be accessible to the Chinese government. Agencies are now being told not just to remove DeepSeek's own apps but to audit for any third-party software quietly relying on DeepSeek's models under the hood, a far broader task than simply deleting a single app.

This action fits into a longer pattern of Washington treating Chinese-origin consumer technology as a potential espionage vector, echoing past fights over telecom equipment and social media apps. But DeepSeek's case is distinct because it sits inside the AI race specifically, a field where the US has staked enormous political and economic capital on maintaining dominance. Barring the use of a rival's technology inside government is one lever officials can pull quickly, even as broader questions about AI competitiveness with China play out over a much longer horizon.

The order applies to federal civilian agencies rather than the entire government, and it remains unclear how compliance will be enforced or audited across sprawling federal IT systems. Contractors and agencies that have quietly integrated DeepSeek-based tools into workflows may face the most disruption, since identifying embedded third-party dependencies is harder than banning a standalone app. The decision is also likely to intensify pressure on other governments and large enterprises weighing whether to continue experimenting with DeepSeek's technology given its price and performance advantages.

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