The Department of Homeland Security has issued a directive barring the Chinese artificial intelligence startup DeepSeek from federal agency IT systems and prohibiting its use in government contracting, according to an order published Monday on the Federal Register website. The directive, which initially circulated in July, marks a significant escalation in Washington's efforts to counter technology risks linked to Beijing.
DHS cited "multiple threat vectors" associated with DeepSeek's AI models, emphasizing that the Chinese government possesses "extensive authority" to access private infrastructure. The agency warned that the models could harvest personally identifiable information and may "track or digitally fingerprint" users, in addition to potentially harboring malware or other security flaws.
The order specifically highlighted the prompt-and-response process in DeepSeek's most popular applications, cautioning that it could result in the "transfer of sensitive data to the PRC [People's Republic of China] if used by U.S. government or vendors." Such data transfers, the agency said, could produce "actionable intelligence on U.S. persons and/or government programs" when combined with publicly available information.
DeepSeek, which sent shockwaves through Washington and Silicon Valley last year with the release of its R1 model, drew comparisons to top American models from OpenAI and Google. However, the company achieved these results using reduced-capacity chips and at a fraction of the cost, intensifying fears that China is closing the gap with the U.S. in the fiercely competitive AI race.
The DHS action reflects growing bipartisan concern in Congress over the national security implications of foreign AI technologies. Lawmakers have increasingly scrutinized Chinese tech firms, citing espionage risks and data privacy violations. This move aligns with broader efforts to secure federal supply chains and protect sensitive information from adversarial access.
Industry analysts note that the ban could have ripple effects beyond government agencies, as contractors and vendors may need to reassess their reliance on DeepSeek's tools. The order underscores the administration's determination to prioritize security over cost savings in AI procurement.
"The transfer of the aforementioned information to the PRC, either independently or in combination with publicly available data, could produce actionable intelligence on U.S. persons and/or government programs," the order stated, reinforcing the gravity of the perceived threat.
As the U.S. and China vie for dominance in AI, this directive signals a hardening stance against Chinese technological influence. It remains to be seen whether other federal agencies will follow suit with similar restrictions, but the DHS order sets a clear precedent for safeguarding government systems from foreign AI risks.
