US bans DeepSeek from most government systems, asks agencies to remove tech built with it

For the chief risk officer at a regional bank

The US banned Chinese AI firm DeepSeek from most government systems and asked agencies to remove all technology built with it, Semafor reported on Oct. 20.1

Semafor's report did not say why the ban was issued now, which agency or official issued it, or by what legal instrument.1 Semafor reported the ban as competition for AI supremacy between the US and China heats up, and said US firms have long accused Chinese rivals of "distilling" their AI models.1

Semafor said the White House's technology advisor has called such distilling a "malicious exploitation" of American technology.1

The report did not define "built with" DeepSeek, did not list which systems are exempt from the ban, and did not give a deadline for removal.1

This account rests on one secondary summary from Semafor; the underlying government order or statement was not provided.1

Why it matters

Banks that sell to or work with government agencies may be asked whether their vendors' software uses DeepSeek models, and the term "built with" has no clear edge in the reporting. Asking vendors now which models sit inside their products would prepare a bank for those requests and for its own third-party risk reviews.

From the brief

Our take. Washington now treats anything built with DeepSeek as something to remove, not just the app. Your bank may run none of it directly and still hold it inside a vendor's model, unlabeled. Find out before an examiner asks.

Action. Third-party risk: Ask AI vendors in writing whether any model they supply was built on or distilled from DeepSeek.

What our records say

The records say the White House requires nothing of banks on AI: its orders create no obligations for banks and no private rights (EO 14179 Sec. 6(c); EO 14365 Sec. 9(c)).1 It does not regulate AI at banks directly: executive orders direct federal agencies, and EO 14179 and EO 14365 each state that they create no right or benefit enforceable against the United States and impose no new duties on private parties.2

  1. White House: how it regulates AI in banking (part 1)
  2. White House: Does the White House regulate AI at banks?

From our records

Sources

  1. ReportWashington bans DeepSeek from government agencies | Semafor Semafor