US Government Bans Chinese AI Firm DeepSeek From Civilian IT Systems
· Technology · Times of India, NDTV, CNBC
The US Department of Homeland Security has ordered all civilian federal agencies to ban products and third-party services from Chinese artificial intelligence company DeepSeek. The DHS order states that DeepSeek models present multiple threat vectors, raising concerns over potential sensitive data transfers to China and the generation of actionable intelligence on US persons. Several US agencies and multiple states, including New York, Tennessee, and Virginia, had previously restricted the use of the AI tool on government devices. In January 2025, DeepSeek's low-cost AI model triggered a massive stock market selloff that erased over $1 trillion in market value across American semiconductor and technology companies. Nvidia alone suffered a record one-day loss of approximately $593 billion during the market downturn.
Why it matters
The federal ban escalates security restrictions on foreign artificial intelligence tools across US government infrastructure, affecting major technology and semiconductor markets.
Read the original report — Times of India
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