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The US has ordered DeepSeek out of federal agencies, not off your machine

Policy

By Leon Mallett

Originally announced by US Federal Register (DHS FASCSA order) . We link the primary source so you can read it for yourself.

The headlines this week say the United States has banned DeepSeek. The underlying document says something narrower and more precise, and the gap between the two matters a great deal if you run models locally.

What the order actually is

On 20 October 2026 the US Federal Register published a notice from the Department of Homeland Security of an “Exclusion and Removal Order” against DeepSeek. It is not a law, not an executive order, and not an import or app-store ban. It is an administrative order issued under the Federal Acquisition Supply Chain Security Act of 2018 (a “FASCSA order”), following a recommendation from the Federal Acquisition Security Council. Press reports describe it as the first time that authority has been used against an AI company.

The order has two operative parts, quoted from the notice: the “exclusion of information technology products and services developed by Hangzhou DeepSeek Artificial Intelligence Co., Ltd (DeepSeek), to include affiliated entities … from federal civilian agency procurements”, and the “removal of all DeepSeek and DeepSeek-affiliate products, and third-party products and services developed using DeepSeek implementations, from civilian agency information technology”.

So two things happen, both inside the federal government: civilian agencies may no longer buy DeepSeek-based products, and they must rip out the ones they already run, including third-party tools built on DeepSeek models. The second part is broader than it first appears, because it reaches products merely “developed using DeepSeek implementations”, not only DeepSeek’s own app and API.

What it does not do

For the audience of this site, the important half is what the order leaves untouched. It does nothing to a private individual, a company, or a researcher downloading DeepSeek’s open weights and running them on their own hardware. It does not remove the weights from Hugging Face. It does not block the DeepSeek API for anyone outside the federal government. It creates no civil or criminal exposure for a US person who uses DeepSeek. If you run DeepSeek-R1 or DeepSeek V4.1 Flash on a machine under your desk, nothing about this order changes that.

The single local-relevant exception is narrow and specific: a federal civilian agency running a DeepSeek-derived model on its own systems is caught by the removal part. For everyone else, the practical effect is zero.

This is worth stating plainly because “the US banned DeepSeek” will be read by many as “DeepSeek is now off-limits”, and it is not. A government barring a vendor’s software from its own networks is a procurement and security-hygiene decision, which is a normal thing for a government to do. It is a different act from banning a technology for everyone, and the two should not be blurred.

The stated reasoning, and the response

The published notice itself gives little detail, saying only that the Secretary acted after reviewing the Security Council’s recommendation and the supporting evidence. The specific rationale that has been widely reported, that DeepSeek’s products could route sensitive data to China under laws that compel Chinese companies to cooperate with the state, along with concerns about intelligence gathering and possible vulnerabilities, comes from press coverage and the order’s appendix rather than the notice body, and should be read as such.

DeepSeek did not comment to the news agencies that broke the story, and China’s embassy did not immediately respond; Beijing has previously said it will defend its companies’ interests and has accused Washington of stretching the idea of national security. All of that is press reporting, not part of the order.

The history this fits into

This is not the first US move against DeepSeek, but it is the broadest. Through 2025, action came agency by agency: the Pentagon’s networks blocked the DeepSeek chatbot, the Commerce Department reportedly barred it on government-furnished equipment, the Navy told staff not to use it, several states (New York among them) restricted it on official devices, and bills with names like the “No DeepSeek on Government Devices Act” circulated in Congress. This order is the first government-wide formalisation of that patchwork for the civilian executive branch. Reporting notes it does not cover the Department of Defense, which had already acted separately, and that affected agencies can request exceptions.

Why the distinction matters

There is a quiet lesson here about open weights that is worth drawing without overstating it. A government can bar a company’s products from its own systems, and can tell its agencies to stop running a particular model. What it cannot easily do is recall weights that have already been downloaded hundreds of thousands of times around the world. That portability is much of the point of open weights, and it is the reason a procurement order and the availability of a model are two separate questions.

None of which is a reason to be glib about the underlying concerns. If you run DeepSeek’s models yourself, the counterpoint is also true: the responsibility for where your data goes becomes yours, and running a model locally is precisely what keeps that data on your own hardware rather than a provider’s. The order is about the federal government’s own supply chain. What it changes for you, if you run the weights, is nothing. What it is a useful prompt to think about, either way, is who controls the software you depend on, and where your data actually goes.

Models mentioned

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