US bars DeepSeek from federal agencies and government contracts over security concerns

The US has ordered civilian agencies to remove DeepSeek products from their systems and barred the Chinese AI firm from federal contracts.

The Trump administration barred civilian US government agencies from using products or services from Chinese artificial intelligence startup DeepSeek, whose more affordable open-weight models pose an increasing challenge to Silicon Valley Valley developers.

The order also bars the Chinese firm from participating in federal government contracts. (REUTERS/Dado Ruvic) (Representative Image)

Federal agencies must remove any DeepSeek products from their systems, according to a notice posted Monday by the Department of Homeland Security on the Federal Register website. The order, which cites US cybersecurity laws, also bars the Chinese firm from participating in federal government contracts.

Since DeepSeek’s breakthrough R1 model rattled global markets early last year, the company has faced scrutiny from policy makers in Washington who see the firm as a potential risk to US national security. In an April 2025 report, the House Select Committee on China said DeepSeek’s ties to the government in Beijing are “significant.”