US bars government agencies from using China's DeepSeek AI tools

• The US has directed civilian agencies to remove DeepSeek products from their IT devices.

• The Department of Homeland Security warned that sensitive data could be transferred to China.

• The move comes amid intensifying competition between Washington and Beijing over AI.

The United States has ordered civilian government agencies to stop using artificial intelligence tools developed by Chinese startup DeepSeek, citing concerns that sensitive data could be transferred to China.

A notice issued by the Department of Homeland Security (DHS) on Monday said DeepSeek products, along with tools developed by third parties using the company's technology, must be removed from government IT devices.

“DeepSeek's models present multiple threat vectors,” a document accompanying the notice said.

The department warned that using DeepSeek's AI tools could result in sensitive information being transferred to China when accessed by US government employees or vendors.

It also pointed to the location of DeepSeek's servers in China, where the legal system gives the government extensive authority to access private companies' infrastructure.

The DHS can issue directions to civilian government agencies but does not have authority over the military or intelligence services. The US Department of Defense did not respond to a request for comment from Agence France-Presse (AFP).

DeepSeek emerged as one of China's leading artificial intelligence companies after launching a low-cost, high-performance chatbot in January 2025. Its entry challenged assumptions about the cost of developing advanced AI systems and the dominance of US companies in the sector.

The company released its V4 model in April 2026 and updated a faster, lighter version of the model in October.

The United States has accused DeepSeek and other leading Chinese AI companies of systematically stealing capabilities developed by their American competitors. These allegations come amid growing rivalry between the two countries over advanced AI technology.

Despite the competition, the US and China agreed in September to establish a communication channel for addressing AI-related incidents.

The issue is expected to feature in discussions when the two countries' leaders meet at a summit in Shenzhen, China, next month.