US bans China’s DeepSeek from government in race for AI dominance

The Department of Homeland Security has ordered that all artificial‑intelligence technology from Chinese company DeepSeek be removed from most civilian government systems. The ban, which was announced publicly on Monday, took effect at the end of July and applies to agencies such as the Treasury, State and Justice departments, while Department of Defense entities are exempt.

DeepSeek’s models are open source, meaning they can be accessed for free and at lower cost than many commercial alternatives. Since its public launch in 2025, the company’s chatbot has become one of the most downloaded apps on the Apple App Store, and its models have been integrated into services offered by U.S. firms including Snowflake, Vercel and OpenRouter. The low expense of using DeepSeek—estimated at about $6 million to train its first version—contrasts sharply with the roughly $100 million cost reported for OpenAI’s GPT‑4, a disparity that has drawn attention from investors and policymakers alike.

The DHS notice did not spell out specific security worries, but it follows a broader U.S. critique of Chinese AI firms that began during the Trump administration and has continued under the current White House. In an internal memo earlier this year, technology adviser Michael Kratsios warned of “malicious exploitation” of American AI by rival companies in China. Both Anthropic and OpenAI, which are preparing for public listings, have alleged that Chinese firms, including DeepSeek, have copied their models.

President Donald Trump has repeatedly framed China as the United States’ primary competitor in the development of artificial intelligence, describing the technology as vital to the nation’s future. The recent ban is part of a growing effort to limit Chinese AI influence within government operations.

DeepSeek’s latest model, released last week, has received praise from users who claim it outperforms leading tools from OpenAI on tasks such as software coding. The company’s rapid rise and the popularity of its free chatbot have occasionally strained its servers, underscoring the demand for affordable, open‑source AI solutions among startups and developers. The Department of Homeland Security, DeepSeek, and the Chinese embassy in Washington have been contacted for comment.