Friday, January 2, 2026

Defense Department Discovers Staff Using Chinese AI on Work Computers

US Defense Department employees connected their work computers to Chinese servers while using DeepSeek‘s AI chatbot for at least two days before officials blocked access late Tuesday.

The Defense Information Systems Agency acted after discovering DeepSeek stores user data on Chinese servers under Chinese law. Some workstations continued to access the platform Wednesday despite the block.

The oversight extends back to fall 2024, when defense personnel downloaded earlier versions of DeepSeek code. Reports say that security teams failed to identify the Chinese connection at the time.

Military branches are now scrambling to respond. The Navy has banned DeepSeek entirely, while the Air Force restricts the use of sensitive data in commercial AI systems. The Army’s June 2024 guidance encourages governance over outright bans.

Thousands of Defense Department staff still access DeepSeek through Ask Sage, an authorized platform that avoids Chinese servers, according to Ask Sage CEO Nicolas Chaillan.

Officials are discussing new policies that will specifically address Chinese AI models as Pentagon IT experts assess the extent of direct DeepSeek usage.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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