Federal software vendors must now identify and remove any open-weight models from Hangzhou DeepSeek Artificial Intelligence integrated into their products, as a U.S. government mandate expands to target the entire supply chain of the Chinese AI firm. The Department of Homeland Security order requires civilian agencies to purge not only direct DeepSeek products but also any third-party services developed using its implementations. The ban applies even if the models are hosted on U.S. servers, meaning contractors must audit their current software deliveries to ensure no DeepSeek-derived weights remain in agency information technology.
The order, issued under the Federal Acquisition Supply Chain Security Act of 2018, cites risks that the tools could transfer sensitive data to China or contain malware. While the directive was signed in June and took effect in July, the specific requirements for third-party contractors only became public last week. Agencies can seek exemptions for mission-critical functions by filing a request 60 days in advance. China’s Commerce Ministry has condemned the ban as discriminatory and claimed it violates an agreement between the heads of state of the U.S. and China.