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US orders federal civilian agencies to remove DeepSeek; days later DeepSeek reportedly raises $15 billion

The Federal Register notice is the order itself; BleepingComputer and TechCrunch explain what it covers, Beijing's response and the funding news that followed.

The Department of Homeland Security published an order in the Federal Register on October 20 that excludes products and services from Hangzhou DeepSeek Artificial Intelligence Co. and its affiliates from federal civilian procurement, and requires agencies to remove DeepSeek products, including third-party products built on DeepSeek technology, from their IT systems. It was issued under the Federal Acquisition Supply Chain Security Act of 2018. Agencies can request exceptions within 60 days, which CISA will review. BleepingComputer notes it is not a ban on private or consumer use.

According to the reports, DHS cited concerns about possible Chinese government access to data and transfer of sensitive government information, and pointed to earlier research finding security flaws in DeepSeek's iOS app. China's Foreign Ministry said Beijing opposes "overstretching the concept of national security."

Two days later, Bloomberg reported (via TechCrunch) that DeepSeek raised about $15 billion (roughly 100 billion yuan), with CATL and Tencent among potential investors.

Read it at the source
Across the spectrum 3

Democrat

Rep. Josh Gottheimer (D-N.J.): Introducing the No DeepSeek on Government Devices Act in February 2025, Gottheimer said the Chinese Communist Party "will exploit any tool at its disposal to undermine our national security, spew harmful disinformation, and collect data on Americans," and "We simply can't risk the CCP infiltrating the devices of our government officials."

KSAT (Associated Press) ↗

Libertarian

Matt Mittelsteadt, Cato Institute: In a March 2025 Cato blog post, Mittelsteadt argued against any "catch-all ban" on Chinese AI, but said "highly sensitive federal data, for instance, should not touch Chinese AI," calling the No DeepSeek on Government Devices Act "appropriately scoped to this narrow circumstance."

Cato Institute ↗

Republican

Rep. Darin LaHood (R-Ill.): Co-sponsoring the February 2025 bill to ban DeepSeek from federal devices, LaHood said "The technology race with the Chinese Communist Party is not one the United States can afford to lose" and that it is "critical that Congress safeguard Americans' data."

KSAT (Associated Press) ↗
Cascadic Analysis 1
UndertowConversations are a new kind of sensitive data

What hidden risk could pull against this, even if the news is good?

DHS cited possible Chinese government access to data and transfer of sensitive government information. With a chatbot, that data is whatever employees type into it: drafts, questions, pasted documents. The order also reaches third-party products built on DeepSeek technology, which means agencies first have to find where it is embedded.

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Rabbit Holes 2