Federal civilian agencies and their suppliers cannot deploy or retain DeepSeek products or third-party services built on them in government IT systems.
Vendors serving US federal agencies must audit and remove DeepSeek technology or derivative components integrated in their products.- Third-party services built on DeepSeek (fine-tuned, distilled, or packaged) are also covered; companies with US government business need to plan model replacement.- Chinese AI models face tighter access to the US federal market; DeepSeek-dependent go-to-market strategies need reassessment.
Vendors and integrators in federal civilian supply chains must identify and replace products built on DeepSeek.- Companies building on Chinese open-source models face procurement restrictions when targeting US government customers.- Tightening two-way controls between the US and China raises compliance scrutiny for Chinese AI firms operating in the US and vendors with ASEAN footprints.
Procurement of DeepSeek-origin or DeepSeek-architecture-based hardware, software, and services to U.S. federal civilian agencies is prohibited, blocking related contracts immediately.
Federal software vendors must audit which open-weight models are embedded in products sold to civilian agencies and demonstrate supply chain compliance to keep contracts
AI companies must evaluate whether their product restrictions comply with supply chain security regulations to avoid being classified as 'manipulating products'