The ban had been in force for weeks before anyone outside government knew about it. The US Department of Homeland Security (DHS) made its order public on Monday, but it took effect at the end of July: civilian agencies must stop using any AI technology from the Chinese firm DeepSeek, including products built with the help of its models. The Treasury, State and Justice departments are all covered. Agencies inside the Department of Defense are excluded, a distinction the notice did not explain.
Equally striking is what the notice leaves out. It names no specific security flaw, and the DHS, DeepSeek and the Chinese embassy in Washington had not yet commented. The context, however, is clear. White House technology lead Michael Kratsios wrote in an internal memo earlier this year that American AI firms were being maliciously exploited, mainly by Chinese rivals.
Anthropic and OpenAI, both expected to list on the stock market in the coming months, have claimed that Chinese companies, DeepSeek among them, essentially copied their models. The difficulty for Washington is that DeepSeek is not easy to avoid. Its models are open source, free to access and far cheaper to run than closed rivals such as Google's Gemini, Anthropic's Claude or OpenAI's Codex. Startups have flocked to them, and American companies including Snowflake, Vercel and OpenRouter build DeepSeek into products they sell to customers.