United States bans DeepSeek from civilian agencies over espionage concerns

The United States government has banned the Chinese artificial intelligence company DeepSeek from federal civilian agencies due to spying fears, Cointelegraph reported. The action comes alongside wider efforts by the United States Treasury to restrict foreign investments in critical technologies. [1]

DeepSeek is an artificial intelligence firm based in Hangzhou, Zhejiang, that develops open weights large language models. The company is owned and funded by High-Flyer, a Chinese hedge fund. [2]

The United States Treasury has proposed additional rules to block domestic investments in artificial intelligence projects and high risk semiconductors in designated foreign countries, according to Cointelegraph. These restrictions target China alongside other nations including Russia, Iran, North Korea, and Cuba. [1]

The proposed Treasury rules aim to implement the COINS Act passed in December 2025, Cointelegraph reported. The legislation expands restrictions on outbound foreign investments in sensitive technology sectors. [1]