US Bans DeepSeek From Civilian Agencies and Tightens Limits on AI Investment in China

The US Department of Homeland Security has ordered DeepSeek products removed from the IT systems of federal civilian agencies. The order, filed Monday, also covers DeepSeek affiliates and any third-party products or services built on DeepSeek implementations, and it blocks affected agencies from making new purchases.

DHS warned that use of the tools by government employees and contractors could expose sensitive information to China, including details about US citizens and federal programs.

Treasury Proposes New Limits on AI and Semiconductor Investment

The US Treasury has proposed rules that would block American investment in artificial intelligence projects and certain high-risk semiconductors in selected foreign countries. China remains the main target, but the list now also takes in Russia, Iran, North Korea and Cuba.

The plan would put the COINS Act from December 2025 into practice and widen the Outbound Investment Security Program that began in January 2025. It builds on earlier curbs on selling powerful AI chips to China. Enforcement has already started, with a first $200,000 penalty issued this month against Amidi, LLC for failing to report an investment by its Chinese subsidiary in Shanghai Qiongche Intelligent Technology, also known as Noematrix, a robotics and embodied AI company.