US bans use of China’s DeepSeek AI tools by government agencies

Use of tools ‘may result in the transfer of sensitive data to (China)’, defense department says

The US government on Monday ordered its agencies to stop using artificial intelligence (AI) tools from Chinese startup DeepSeek, as the countries race for dominance in the fast-moving sector.

A notice from the Department of Homeland Security (DHS) announced the ban on products developed by DeepSeek – and tools created using DeepSeek by third parties – saying they must be removed from IT devices.

The DHS can issue direction to civilian agencies but not the military or intelligence services. The US defense department did not respond to an AFP request for comment.

“DeepSeek’s models present multiple threat vectors,” said a document attached to Monday’s notice.

Use of DeepSeek AI tools “may result in the transfer of sensitive data to (China) if used by US government employees or vendors”, the department warned.

Its servers are located in China, where the legal system permits the government “extensive authority” to access private company infrastructure, it said.

One of China’s top AI labs, DeepSeek shook up the industry in January 2025 with a low-cost, high-performance chatbot, challenging assumptions of US dominance.

The firm released a long-awaited new model, V4, in April, and earlier in October updated a faster, more lightweight version of V4.

The US has accused DeepSeek and other top Chinese AI firms of systematically stealing the capabilities of cutting-edge models developed by American rivals.

Despite their fierce competition in the field, when their leaders Xi Jinping and Donald Trump met at the White House in September, China and the US agreed to set up a “communication channel” for AI incidents.

The topic is expected to arise again at a meeting between Xi and Trump at a summit scheduled for November in the Chinese city of Shenzhen.