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.
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) ↗-
SECURE Technology Act
After exploring Notice of Order Regarding Exclusion and Removal of DeepSeek Products From Federal Civilian Executive Branch Information Technology Systems and Procurements, the 2018 law that makes orders like this possible is the SECURE Technology Act.
Covers the 2018 federal law that set up a DHS vulnerability disclosure policy and bug bounty, and provides for federal acquisition supply chain security.
Wikipedia · Wade · 5 min
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DeepSeek
After exploring DHS bans DeepSeek products across US federal civilian agencies, the company itself is profiled in DeepSeek.
Background on DeepSeek, the Hangzhou-based Chinese AI company owned and funded by the hedge fund High-Flyer that develops open-weights large language models.
Wikipedia · Wade · 5 min
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