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US orders federal agencies to remove DeepSeek AI · Global Advisors Daily Business News

• 0:10
  Welcome to Global Advisors Daily Business News. I'm Sam. Today is Wednesday, the twenty-first of October 2026. Let's explore today's business headlines and what they mean for leaders. Please hit like and subscribe for daily updates if you find this useful.
• 0:29
  We begin in Washington with a significant escalation in technological friction between the United States and China. The Department of Homeland Security has instructed all federal civilian agencies to remove DeepSeek software from their information technology systems. That mandate reaches well beyond native applications. It also requires the elimination of any third-party products and commercial services developed using DeepSeek models.
• 0:53
  The administrative directive, which became public this week, actually dates back to late July. In addition to demanding the removal of existing software, the order bars federal civilian agencies from procuring any DeepSeek products or services going forward.
• 1:08
  According to the official notice published in the Federal Register, regulators determined that models from DeepSeek introduce multiple threat vectors. The core security concern focuses on physical infrastructure. DeepSeek operates servers located in mainland China, which American officials argue could allow Chinese authorities to access private corporate systems and harvest sensitive government data.
• 1:30
  The response from Beijing came quickly. Foreign Ministry spokesperson Mao Ning stated during a press briefing that China will firmly safeguard the legitimate rights and interests of its domestic companies. She accused Washington of consistently stretching the concept of national security beyond reasonable bounds.
• 1:47
  China's Ministry of Commerce expressed intense dissatisfaction and firm opposition to the directive late Tuesday. Officials in the ministry argued that the United States disregarded the consensus established between President Xi Jinping and President Donald Trump, warning that the ban ignores the broader reality of bilateral economic and trade ties.
• 2:07
  The commerce ministry went on to characterize the policy as discriminatory containment masquerading as national security protection. Chinese authorities warned that they are tracking the situation closely and will take all necessary steps to defend domestic commercial interests.
• 2:23
  To place this action in context, this software ban runs parallel to extensive trade controls. Washington has already imposed sweeping restrictions that prevent Chinese firms from acquiring the most advanced artificial intelligence processors and the specialized machinery required to fabricate them.
• 2:40
  Independent analysts observe that this episode reflects the deep institutional mistrust dividing both governments. George Chen of the consulting firm The Asia Group pointed out that structural friction persists in technology supply chains even while top political leaders seek to maintain a constructive personal dialogue.
• 2:58
  From an enterprise leadership perspective, this development underscores the vital need to audit code lineage and software dependencies. If your company operates in regulated industries or supplies public agencies, tools built on foreign open-weight architectures could face sudden regulatory exclusion. Corporate risk leaders should evaluate whether enterprise compliance requirements will soon mirror these federal restrictions.
• 3:26
  Turning across the Atlantic to infrastructure resilience, an operational failure in the United Kingdom has demonstrated how concentrated digital plumbing can ripple across modern economies. Google Cloud confirmed that an electrical power incident at a London data centre disrupted services across Europe for several hours, driving elevated error rates and intermittent connectivity problems.
• 3:48
  The disruption began shortly after six o'clock in the morning local time. Google confirmed the root issue was localized to a data centre within its London-based Europe-West2 region, a cluster that includes multiple facilities and availability zones serving enterprise customers throughout the continent.
• 4:05
  The real-world impacts quickly hit high-profile retail financial services. Digital banking platform Revolut acknowledged disruptions across multiple customer services. High street lender Halifax informed account holders that both its mobile application and online banking platforms were experiencing technical faults.
• 4:24
  Public administration was also caught in the fallout. The United Kingdom Courts and Tribunals Service reported problems with its Cloud Video Platform, an essential digital system relied upon to conduct remote legal hearings across the court system.
• 4:38
  During the outage, status monitors at Revolut indicated difficulties processing card transactions and automated teller machine withdrawals. However, the company issued reassurances to customers, emphasizing that their deposited funds and personal records remained entirely safe throughout the incident.
• 4:55
  Google Cloud stated that technical personnel resolved the London site disruption later in the day. Yet the breakdown immediately engaged state oversight bodies. The United Kingdom Financial Conduct Authority announced that it is in active discussions with Google and affected institutions to determine the full operational scope of the failure.
• 5:14
  This event represents an early practical test for new regulatory powers. In July, British regulators formally designated Google Cloud, Microsoft, Amazon Web Services, and Oracle as critical third-party suppliers to the financial sector, specifically warning that shared supplier failures create systemic systemic risks.
• 5:33
  In our interpretation, this outage offers an urgent lesson in enterprise architecture. Even when organizations build redundancy across multiple availability zones, unexpected regional events can still take down interconnected services. Chief information officers must re-examine whether their business-critical workflows possess true multi-region failover capabilities that can survive severe local power shocks.
• 6:01
  Finally, we turn to equity markets in South Korea, where a major artificial intelligence infrastructure listing experienced a brutal market reception. Shares in Elice, a domestic provider of artificial intelligence data centre computing, plummeted thirty-two percent during their trading debut on the Kosdaq in Seoul.
• 6:19
  The steep drop marks the worst opening session on record for any South Korean initial public offering raising one hundred million dollars or more. The company had priced its offering of two point two two million shares at ninety thousand five hundred won, which was the very top of its indicated range.
• 6:36
  When the market opened, Elice shares immediately broke down, starting at seventy-five thousand seven hundred won. Intraday selling dragged the price as low as fifty-eight thousand won before the stock eventually settled at sixty-one thousand five hundred won by the closing bell.
• 6:51
  This sharp selloff unfolded despite tremendous preliminary excitement among small investors. The retail portion of the share sale was oversubscribed four hundred times, attracting roughly ten point three trillion won in subscription deposits. Because individual investors were allotted a quarter of the offering, they suffered an estimated twelve million dollars in collective paper losses on day one.
• 7:12
  Interestingly, the company is not an unprofitable startup. Company prospectus filings showed that Elice achieved a two hundred percent increase in first-half revenue to thirty-four point four billion won, generating ten point three billion won in operating earnings, supported by prominent backers Altos Ventures and Vertex Ventures.
• 7:31
  However, market timing worked heavily against the transaction. The final listing price was established back on October sixth, when institutional orders reached three hundred and eighty-eight times the shares available, just before a broader global retreat in artificial intelligence equities gathered momentum.
• 7:48
  General market conditions in Seoul were also deeply hostile. The benchmark KOSPI index had dropped by more than twenty-one percent over the previous month, slipping an additional three point five percent on Tuesday morning alone.
• 8:00
  Beyond local market turbulence, investor sentiment toward specialized computing providers has turned distinctly cautious worldwide. High-profile neocloud operator CoreWeave suffered sharp bond and share declines last week over debt burdens, while Australian operator Firmus shelved its planned listing and European firm Nscale ran into valuation resistance.
• 8:21
  Analysts also note deeper fundamental uncertainties about compute economics. While investment managers like Kim Dojoon of Zian Investment Management emphasize that Elice carries far less debt risk than peers, research analysts from Kiwoom Securities caution that total long-term demand for artificial intelligence computing remains exceptionally difficult to quantify.
• 8:41
  For enterprise technology buyers, the collapse of premium valuations among computing providers could alter commercial dynamics. If public markets refuse to fund aggressive balance sheet expansion for infrastructure challengers, compute rental pricing and capacity commitments may undergo a healthy normalization over the coming year.
• 9:00
  That's it from me, Sam. Thanks for listening. Follow the show on Spotify, YouTube, Apple Podcasts, Amazon Music, or your favourite podcast platform, and join our WhatsApp channel for free updates. Until next time.