Industrial Policy & International Security
Big Tech Goes to War | Foreign Affairs
What happens when tech companies stop providing an essential good or service in a war zone? Managing uncertainty is a known challenge in conflict but the role that tech companies are playing in Ukraine is introducing new dynamics. Elon Musk is wavering on how long he will continue to provide Starlink services, which have become the backbone for Ukrainian communications. Other cybersecurity and satellite companies have also stepped in to assist in Ukraine. But companies operate according to different interests than national governments. It is time for the US government to establish new methods of communicating and coordinating with corporations to ensure independent private sector decisions do not introduce unnecessary instability into conflicts. Additionally, experts in government can help companies prepare for potential geopolitical blowback.
Intel and the $1.5trn chip industry meltdown | The Economist
While the CHIPS Act is increasing supply, new export bans targeting China are decreasing demand and American-listed chip businesses are losing revenue. Although the chip industry is known to be cyclical, government intervention is pushing this cycle to extremes. This year, the combined market value of US companies in the chip business has declined by more than $1.5 trillion. Moreover, inflation rates are suppressing consumer demand for chip-powered goods like PCs and smartphones. As a result, more chip manufacturers are looking to break into new markets from cars to cloud-computing data centers to networking gear. But efforts to diversify may not be enough to make up for lost Chinese markets. National security-driven policies to increase domestic capacity could end up harming the American chip industry.
US Regulation
Meta files to dismiss FTC suit over Within acquisition | Axios
Earlier this month, the FTC modified its original complaint against Meta’s acquisition of Within–a virtual reality fitness startup–to focus on decreased competition in the market for virtual reality exercise apps. Meta filed to waive the FTCs request for a preliminary injunction that would block the acquisition until the case is resolved. The tech company argues that the FTC’s lawsuit “relies on pure speculation of a hypothetical future state” while the FTC points to Meta’s market power at all levels of the virtual reality sector as evidence that the acquisition represents anticompetitive behavior. A hearing is scheduled for December but it’s possible the judge may rule on Meta’s request before then. FTC critics argue the case against Meta would be tough to win but supporters favor the signal to slow down acquisitions in emerging fields.
Innovation
Meet the Army of Robots Coming to Fill In for Scarce Workers | The Wall Street Journal
Aging populations, labor shortages, rising costs of human labor, and increasingly capable robots are leading to a spike in the adoption of industrial and service robots. According to the International Federation of Robotics, half a million industrial robots were installed across the globe last year–22% more than the previous record set in 2018. From 2020 to 2021, the number of service robots installed annually also increased by 37%. Moreover, the amount of time it takes for a robot to pay for itself is decreasing. But this trend is not without downsides. In the short term, more automation can lead to job loss and smaller workforces. In industries experiencing high rates of robot adoption, trade unions are engaged in negotiations to protect members’ employment. While a “roboconomy” is growing, the rate of robot adoption will be metered by the fact that the world is optimized for human labor. Increased autonomy will also require changes to working conditions such as wider and unobstructed grocery aisles for cleaning robots.
Cyber
How the FBI Stumbled in the War on Cybercrime | ProPublica
In an excerpt from “The Ransomware Hunting Team: A Band of Misfits’ Improbable Crusade to Save the World from Cybercrime,” authors Renee Dudley and Daniel Golden describe the FBI’s shortfalls in addressing cybercrime. The Bureau suffered retention and cultural challenges as it sought to solve technical crimes without making many changes to its organizational structure or training requirements. In 2015, Director James Comey met with a group of Cyber Division agents leaving the Bureau for more lucrative private sector jobs to gain insight into their experience and perspectives. While cyber crimes, especially ransomware, were on the rise, these agents were treated as second-class citizens and often had to spend significant time training non-technical agents assigned to the Cyber Division. Moreover, the FBI’s reluctance to partner with outside experts prevented it from augmenting its limited internal resources. While the 2021 attack on the Colonial Pipeline heightened ransomware in the Bureau’s order of priorities, fundamental reforms to support and grow cyber talent have not followed.
State & Local Tech Ecosystems
Antony Blinken’s Silicon Valley visit underscores US cybersecurity concerns | The Guardian
Secretary of State visited Stanford University and Silicon Valley this week in a push to encourage cyber diplomacy and more US government-tech collaboration. His visit comes at a critical time: cyber risks are on the rise; attacks increased by 31% from 2020 to 2021. Analysts expect that Blinken’s priority topics with tech executives were warnings of the continuing potential for Russia-sponsored cyber attacks related to the war in Ukraine and US election interference. There is a need for increased public-private information sharing. However, the American public’s confidence in big tech is on the decline in the midst of a push for more regulation. Greater collaboration with the government could further threaten companies’ public image as citizens worry about digital privacy.
Democracy Online
U.S. security officials worry about homegrown election threats | Reuters
In the lead up to the midterm elections, government officials are more concerned about domestic disinformation campaigns and homegrown threats than foreign interference. Cybersecurity and Infrastructure Security Agency director Jen Easterly notes there are no credible threats to US elections infrastructure at this time, but “the current election threat environment is more complex than it has ever been.” Since the 2020 election, far-right influencers have spread the majority of election disinformation. A majority of Republican voters still believe Trump won the 2020 election and have threatened, harassed, or assaulted poll workers. Government agencies are working with social media companies to investigate threats and clamp down on domestic disinformation.
