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Can contractors still run DeepSeek locally after the Oct 2026 DHS order?

AI-assisted, reviewed by our team · Last verified Oct 21, 2026 · How we research

The order is aimed at federal civilian agencies, not private companies, and it doesn't mention running DeepSeek models on your own computers. If you have federal contracts, don't rely on this page: check your contract terms and ask your contracting officer or counsel.

What it orders. DHS published a notice in the Federal Register on Oct 20, 2026, excluding DeepSeek products from federal civilian agency procurements and removing DeepSeek and affiliate products, plus third-party products and services developed using DeepSeek implementations, from civilian agency IT. National security systems are carved out.

Contractors and subcontractors. Not addressed as a direct rule for companies. The exclusion does reach third-party implementations of DeepSeek used to provide products and services to civilian agencies, but the order doesn't say whether a contractor's own internal tools count. It doesn't mention FAR or DFARS flow-down clauses.

Open weights run offline. Not addressed. The order's concerns center on DeepSeek's servers, the data its hosted service collects, and prompts going to the PRC. The Register notes the order doesn't define "developed using."

States and other models. The Register reports some states blocked DeepSeek on their own, without listing which. CyberScoop reports DeepSeek is the only Chinese AI model named in the order.

Exceptions. Agencies can request an exception in writing within 60 days of the order's issuance, with a compelling justification.

See our news brief on the order and the hardware-fit guide for running AI on your own hardware. This is a summary of three sources, not legal advice.

Sources

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