DHS has ordered civilian federal agencies to remove DeepSeek, a Chinese AI tool, including products built on it. Businesses that sell to government should check their software.
The U.S. Department of Homeland Security has banned DeepSeek, a Chinese AI startup's technology, from federal civilian agency computer systems. The order was issued July 24 and made public on Monday. Agencies must remove DeepSeek-related technology and may not buy its products or services. The reason given is security.
The order covers more than DeepSeek's own apps. It also reaches third-party products and services built with the company's technology. That means an agency could have to drop a tool it did not know was tied to DeepSeek.
It applies to civilian agencies, including the Treasury, State and Justice departments. The Defense Department is excluded.
The order says DeepSeek's AI models "present multiple threat vectors." In plain terms, DHS sees several ways things could go wrong. It points to two main worries.
China's foreign ministry told Reuters it would safeguard the rights of its companies. Spokesperson Mao Ning said China opposes "the over-generalization of national security as well as the politicization of science, technology and trade issues." DeepSeek did not immediately respond to CNBC.
DeepSeek burst onto the scene at the start of 2025, and restrictions have piled up since. The Defense Information Systems Agency moved to block access in January 2025, according to Bloomberg. Commerce Department bureaus told staff in March it was banned on government devices, Reuters reported. Congress restricted its use in intelligence community systems in December 2025.
If your business sells to government, or handles sensitive client data, ask your software vendors whether any of their tools are built on DeepSeek. The order's reach into third-party products makes that a fair question now.
Agencies can ask for exceptions, including more time to comply. They must send DHS a written justification within 60 days of the order's issuance. The material does not say which exceptions, if any, will be granted, or how agencies will find products built on DeepSeek.
Ask your software vendors whether any of their tools are built on DeepSeek, especially if you work with government or hold sensitive client data.
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