U.S. Agencies Bar DeepSeek as Disney Takes Character.AI Assets

The Trump administration has barred civilian U.S. agencies from using DeepSeek products or services, citing national-security concerns tied to the Chinese startup’s operations. In the private sector, Disney is pursuing Character.AI’s technology and hiring its engineers through the chatbot company’s bankruptcy. Separate reports point to a proposed 45 billion compute agreement between Anthropic and Nscale, a new U.S. Army program for autonomous cyber operations, and fresh funding for chip startup Tenstorrent.

DeepSeek Barred From Civilian Federal Systems

The Trump administration has barred civilian U.S. government agencies from using products or services from Chinese AI startup DeepSeek, according to Bloomberg. The administration cited a potential national-security threat linked to the company’s operations in China.

The restriction places DeepSeek inside the continuing technology tension between the United States and China. The BBC described DeepSeek as a powerful and relatively inexpensive Chinese model, but the supplied reporting does not specify the ban’s implementation timetable or scope beyond civilian federal agencies.

Disney Targets Character.AI Technology, Not Its Liabilities

Disney is bidding 20 million for Character.AI technology and has hired engineers from the bankrupt chatbot company, Forbes reports. The reported transaction would leave Character.AI’s platform and its 12 million users behind while Disney pursues the technology and talent.

The bankruptcy structure is significant because Character.AI faces private lawsuits and regulatory investigations related to chatbot safety. Ars Technica reports that the deal appears designed to let Disney acquire much of the technology while the remaining company retains responsibility for ongoing legal battles. The court process and final asset transfer remain unresolved.

Anthropic and Nscale Discuss Another 45 Billion Compute Deal

Anthropic and AI cloud provider Nscale are reportedly discussing a new deal that could be worth 45 billion, according to Bloomberg, citing people familiar with the negotiations. The proposed arrangement would have Nscale sell computing power to Anthropic.

The talks would follow an earlier 45 billion compute deal announced by the companies in August, TechCrunch reports. The new agreement is reported, not announced, and its terms could still change.

Army Documents Describe ECHOTRIBBLE Cyber-AI Plan

Documents reviewed by The Intercept describe an Army Cyber Command program called ECHOTRIBBLE. The proposed system would use autonomous AI agents to navigate adversary infrastructure and identify and “neutralize” specified threats or targets.

The program is still in the whitepaper phase, according to Gizmodo. The documents describe a plan rather than a deployed capability, so the evidence does not establish that the system is operational or that the Army has authorized a fielded weapon.

Tenstorrent Raises 1.5 Billion at a 6.2 Billion Valuation

AI chip startup Tenstorrent raised 1.5 billion in a funding round that values the company at about 6.2 billion, TechCrunch reports. The company plans to remain independent after attracting acquisition interest earlier in the year.

CEO Jim Keller said Tenstorrent is focused on scaling its Galaxy server program and developing AI intellectual property rather than pursuing a sale, according to Bloomberg. The company’s stated strategy is to build its own position in AI chips and server systems.

Microsoft Exits an Nscale U.K. Data-Center Deal

Microsoft has pulled out of a large Nscale data-center deal in the U.K. because of power-supply issues, according to the Wall Street Journal. The move is a setback for Nscale as the AI infrastructure company prepares to go public.

The report gives no further detail in the supplied evidence about the project’s revised plans or Microsoft’s next steps. It does, however, identify power availability as the reason for the withdrawal from this particular arrangement.

Several Deals and Plans Remain Unsettled

The DeepSeek restriction now awaits further detail on its reach across federal agencies. Disney’s Character.AI transaction still depends on the bankruptcy process, while Anthropic’s reported Nscale talks have not been finalized. ECHOTRIBBLE remains a proposal, and Nscale’s U.K. project has lost Microsoft over power-supply concerns.