The order cites risks that sensitive government data could be transferred to the People's Republic of China since DeepSeek's servers are based there. DHS also flagged security vulnerabilities and potential malware within the company's iOS application as a reason for the ban. The restriction impacts a broader ecosystem of developers who use DeepSeek's open-weight models to build AI assistants and agents for federal contracts, which are now subject to a 60 day exemption window.
