US Government Orders Removal of DeepSeek AI Systems from Most Civilian Agencies

The US government has taken a significant step in addressing concerns over Chinese technology, issuing an order for all DeepSeek artificial intelligence (AI) systems to be removed from most civilian government agencies.

DeepSeek, an open-source AI model developed by a Chinese firm, has been identified as a potential security risk. Despite its accessibility and cost-effectiveness, the Department of Homeland Security (DHS) has deemed it unworthy of use within government systems, citing unspecified security concerns.

The DHS's decision is part of a broader trend of increased scrutiny towards Chinese AI technology in the US. In recent months, the White House has publicly criticized several Chinese companies for their role in developing AI models that pose potential risks to national security.

The ban affects civilian agencies such as the Department of Treasury, State, and Justice, but excludes those within the Department of Defense. The exact timing of the order is unclear, with the DHS stating it took effect at the end of July, although its decision was only made public on Monday.

The use of AI technology has become a highly competitive area, with the US and China vying for dominance in this field. As a result, there is growing concern about the potential misuse of American AI firms by rival companies, particularly those from China.

According to an internal memo written earlier this year by White House tech lead Michael Kratsios, "malicious exploitation" of American AI firms has indeed been occurring. This alleged exploitation has reportedly been carried out mainly by Chinese rival firms, which have been accused of copying the AI models of US companies such as Anthropic and OpenAI.

The popularity of DeepSeek's AI models has also raised eyebrows in Washington. Since its public release in 2025, DeepSeek has become increasingly sought after, with its servers struggling to keep up with demand at times. This has led several major tech companies to incorporate DeepSeek's models into their own offerings.

DeepSeek's free chatbot app is a particularly popular product, ranking high among the most downloaded apps on Apple's App Store. However, its use extends beyond consumer-facing products, with US tech companies such as Snowflake and Vercel also leveraging DeepSeek's AI capabilities in their services to customers.

DeepSeek's cost-effectiveness has been a significant factor in its adoption by various tech companies. Unlike expensive closed models from firms like Google and OpenAI, DeepSeek offers AI capabilities at a fraction of the cost.

The financial burden on DeepSeek to develop its models is also significantly lower compared to US-based AI developers. For instance, it took around $6 million to train the initial version of DeepSeek's model, whereas the development costs for OpenAI's GPT-4 were approximately $100 million, causing a notable market downturn.

The latest iteration of DeepSeek has received positive feedback from users, who claim it outperforms even the most advanced AI tools from OpenAI in common tasks such as coding computer software.