DHS is ordering civilian agencies to remove DeepSeek and any third-party service built on it, and barring new purchases. The ban reaches outside vendors, which is where the procurement risk actually l

What happened: DHS directed U.S. civilian agencies on Monday to remove DeepSeek products and third-party services built on the model from their IT systems, and barred new purchases. Key numbers: DHS cited a July memo made public Monday. DeepSeek's model, built for under $5 million, knocked Nvidia's stock down 16% and erased about $600 billion of its value on Jan. Why it matters: The notice says DeepSeek use may transfer sensitive data to the PRC and could produce intelligence on U.S. persons and agencies. Commerce, the Navy, New York, Tennessee and Virginia had already restricted DeepSeek. Coverage: 4 outlets in 24h

DHS directed U.S. civilian agencies on Monday to remove DeepSeek products and third-party services built on the model from their IT systems, and barred new purchases.

The notice says DeepSeek use may transfer sensitive data to the PRC and could produce intelligence on U.S. persons and agencies. Commerce, the Navy, New York, Tennessee and Virginia had already restricted DeepSeek.