US Prohibits Chinese AI Firm DeepSeek From Federal Contracts

The US federal government has taken decisive action against Chinese AI platform DeepSeek, issuing directives to prevent the company from securing federal contracts and mandating its removal from government agency systems. The prohibition reflects heightened scrutiny over data security risks posed by foreign technology firms accessing sensitive information.

According to the directive, the primary concern centres on potential data leakage risks. Information entered by US government employees or vendors using DeepSeek's services—including prompts and queries—could potentially be transmitted to Chinese entities, posing national security and confidentiality risks. This threat prompted federal authorities to move swiftly in restricting the platform's access to government infrastructure.

The action represents part of a broader US strategy to limit Chinese technology companies' access to sensitive government systems and data. DeepSeek, which has gained rapid international attention for its AI capabilities, now faces significant barriers to conducting business with the American federal sector, one of the world's largest technology procurement markets.

The order requires all federal agencies to identify existing DeepSeek installations on their networks and execute removal procedures. Agencies have been instructed to audit their systems for compliance and ensure no new deployments of the platform occur within their infrastructure going forward.