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U.S. banning Chinese AI DeepSeek from government agency IT systems
Published: October 19, 2026 at 10:48a.m. EDTBNN Bloomberg is Canada’s definitive source for business news dedicated exclusively to helping Canadians invest and build their businesses. WASHINGTON — The U. S. Homeland Security Department is ordering the removal of DeepSeek products and third-party services using the Chinese AI model from U. S. civilian agency IT systems, according to a notice published Monday. The department is also banning acquisition of DeepSeek products and third-party services developed using DeepSeek by U. S. civilian government agencies. DHS said 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 U. S. government employees or vendors.”DHS also said use of DeepSeek by government agencies “could produce actionable intelligence on U. S. persons and/or government agencies. The models themselves may contain malware or other security vulnerabilities.”Latest technology news on BNNBloomberg.caIn a July memo made public Monday, DHS told federal agencies to monitor flows of traffic in and out of government websites to address potential risks from DeepSeek.

Microsoft pulled out of AI data centre deal with a U.K. startup
Published: October 19, 2026 at 10:46a.m. EDTMicrosoft confirmed Monday that it has pulled out of a U. K. AI data centre deal with British start-up Nscale, in a blow to the country’s artificial intelligence ambitions. The U. S. technology giant agreed last year to lease computing capacity from AI infrastructure provider Nscale, which is backed by chip titan Nvidia, at a planned data centre in Loughton, northeast of London. A Microsoft spokesperson said “this decision relates to a single site”, adding the company remains “committed to our partnership with Nscale”. The deal was announced alongside a flurry of multi-billion-dollar investments from U. S. tech giants during U. S. President Donald Trump’s state visit to the U. K. last year, which were touted as helping turn Britain into an AI superpower. Former Prime Minister Keir Starmer cited the Loughton site as the “largest UK sovereign AI data centre”. But some data centre projects have struggled to get off the ground due to concerns over high electricity prices and lengthy waiting times to connect to Britain’s power grid.
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