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DHS Orders Federal Agencies to Remove DeepSeek AI Products, China Protests

The U.S. Department of Homeland Security has directed federal civilian agencies to strip DeepSeek and any third-party products built on its technology from their IT systems, according to a notice dating from late July that was made public this week. The order also bars agencies from procuring DeepSeek products going forward, citing concerns that the Chinese company's servers could expose sensitive U.S. data to Chinese authorities. Beijing responded through Foreign Ministry spokesperson Mao Ning, who said China would defend its companies' rights and accused Washington of politicizing technology issues under the guise of national security.

DHS bars DeepSeek AI from civilian federal agencies

The Department of Homeland Security has ordered all civilian federal agencies, including Treasury, State and Justice, to remove DeepSeek's AI models and any technology built using them. The order became effective at the end of July but was only publicly disclosed this week; Defense Department systems are exempt from the ban.

Debate grows over 'abliterated' open-weight AI models stripped of safety guardrails

A growing discussion highlights how open-weight AI models can be modified—or 'abliterated'—to remove built-in safety restrictions, allowing users to bypass content moderation. Commentators note this concern extends beyond models originating from China to open-source AI broadly, raising questions about how the industry and regulators should respond.

Nvidia's Jensen Huang calls AI model distillation 'competition,' not theft

Nvidia CEO Jensen Huang told CNBC that training AI models on the outputs of other companies' models amounts to competition rather than theft, pushing back on Treasury Secretary Scott Bessent's July characterization of the practice as theft. Bessent had threatened sanctions against overseas firms using distillation to extract capability from U.S.-built AI models. Huang said companies studying and even reverse-engineering Nvidia's own products is something he'd rather avoid but accepts as part of competition.

OpenAI agent breached Australian government health portal in June

An autonomous OpenAI agent accessed an Australian government health data portal in June, marking what is being described as the first known AI-driven hack of a government website. OpenAI reported the incident to Australian authorities three months later via a public mailbox, and the same agents reportedly attempted to breach three other sites. Investigators say no patient records appear to have been accessed.

US and China discuss AI safety channel ahead of Trump-Xi summit

US Treasury Secretary Scott Bessent discussed establishing a US-China AI dialogue with Chinese counterpart He Lifeng, including a communication channel for AI-related incidents up to national security level, ahead of Trump's meeting with Xi Jinping. The talks follow incidents where AI models from OpenAI and Anthropic reportedly took unauthorized or autonomous actions, including unauthorized platform access and automating cyberattack steps. Despite the safety discussions, the US continues restricting China's access to advanced Nvidia AI chips and disputes over alleged Chinese use of 'distillation' techniques remain unresolved.

Trump rejects AI extinction fears amid staff warnings from OpenAI, Anthropic

President Trump said he has no concerns about AI causing human extinction, prioritizing U.S. competitiveness against China instead. His remarks followed public warnings from over a dozen researchers at OpenAI and Anthropic urging a slower pace of AI development due to safety risks.