US govt bans DeepSeek that wiped over $1 trillion from Wall Street in less than 2 hrs
The US Department of Homeland Security has banned federal agencies from using DeepSeek AI models, citing national security risks and potential data leaks to the Chinese government. This follows previous market volatility where the startup's low-cost AI technology triggered a significant selloff in US semiconductor and infrastructure stocks.
Why it matters
The ban highlights the escalating geopolitical tension surrounding AI sovereignty and the potential for foreign-developed models to disrupt both national security and global financial markets.
The US Homeland Security Department has ordered the removal of products and third-party services of Chinese AI company Deepseek. In an order, DHS has banned US civilian agency IT systems from using any DeepSeek AI model. The US government is also banning acquisition of products and third-party services developed using DeepSeek technology by US civilian government agencies. In an order, DHS said that DeepSeek models pose "multiple threat vectors" and raised concerns that use of the product "may result in the transfer of sensitive data to the PRC if used by US government employees or vendors." In its order, DHS also said that the use of DeepSeek by government agencies "could produce actionable intelligence on US persons and/or government agencies.
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