In this week's edition, Ukrainian President Volodymyr Zelensky warns that a loss to Russia could lead the US to choose between the collapse of NATO or going to war; two US senators introduce legislation that would create an AI carve-out to Section 230; and the Biden administration grapples with curbing US investment in Chinese tech. Additionally, hackers target the DOE and YouTube reverses its policy on removing misinformation about the 2020 election.
Industrial Policy & International Security
Zelensky: Ukrainian loss could force US to choose between ‘collapse of NATO’ or war | The Hill
During an interview with NBC News, Ukrainian President Volodymyr Zelensky warned that if Ukraine were to lose to Russia, the US would face a choice between the "collapse of NATO" or engaging in war. Zelensky expressed concern that a Russian occupation of Ukraine would embolden Russia to target NATO members such as the Baltic states and Poland, potentially leading to a conflict with a NATO country. The Baltic states and Poland are part of NATO, and an attack on any member is considered an attack on all members under the principle of collective defense. Zelensky raised this possibility in response to Republican politicians suggesting that the US should limit its involvement and spending in the war. He emphasized that if NATO were to get involved, those who argue against supporting Ukraine financially would ultimately have to face the choice of war or the collapse of NATO. Zelensky stated that the conflict was not just Ukraine against Russia but rather Russia fighting against the civilized world.
US grapples with potential threats from Chinese AI | The Wall Street Journal
The Biden administration is currently grappling with the challenge of identifying artificial AI technologies that pose national security threats, especially as the US seeks to limit investments in advanced tech companies in China. An upcoming executive order aims to restrict US investment to prevent private equity and venture capital from supporting China's development of cutting-edge technology with potential military applications. However, distinguishing between AI technologies used for commercial purposes and those with military implications, such as the potential application of pharmaceutical models to the development of chemical weapons, is proving to be a difficult task. A Georgetown University report recently revealed that between 2015 and 2021, US investors participated in 401 transactions with Chinese AI companies, amounting to $7.45 billion in investments. This data underscores the need for the Biden administration to strike a delicate balance between mitigating national security risks and preserving investment and trade flows between the world's two largest economies.
US Regulation
Bipartisan US bill would end Section 230 immunity for generative AI | Reuters
Two US senators, Josh Hawley and Richard Blumenthal, have introduced legislation that would allow social media companies to be sued for spreading harmful material created with AI. The proposed law aims to create an AI carve-out to Section 230, which currently shields internet companies from liability for user-generated content. The bill specifically targets emerging generative AI technology, including realistic deepfake photos and videos. The bipartisan support for the legislation indicates a potential breakthrough in US legislative efforts concerning the tech sector. Calls for reforming Section 230 have come from both sides of the political spectrum, with concerns about the power and accountability of major tech companies. The proposed legislation reflects growing recognition of the need to establish safeguards around AI as its advancements accelerate.
Innovation
IBM achieves breakthrough in quantum computing | Forbes
IBM has achieved a significant milestone in the field of quantum computing by using a quantum computer to solve a problem that classical methods could not handle. The breakthrough was published in Nature and involved solving a complex problem related to simulating the Ising model, a mathematical description of ferromagnetism. The achievement demonstrates the potential for quantum computing to tackle previously intractable problems in fields such as chemistry, material science, and AI. IBM addressed the challenges of noisy and error-prone quantum computers by using error mitigation techniques, including Zero Noise Extrapolation. The results obtained from the quantum computer were validated against classical supercomputers, providing evidence of the quantum system's value beyond classical computation. IBM envisions a future where both quantum and classical computing continue to improve and solve problems suited to each paradigm.
Cyber
Mandiant says China-backed hackers exploited Barracuda zero-day to spy on governments | TechCrunch
Researchers from Mandiant have attributed the mass exploitation of a security flaw in Barracuda Networks' email security gear to China-backed hackers. The hackers exploited the flaw to compromise hundreds of organizations, primarily government agencies, as part of an alleged espionage campaign in support of the Chinese government. Barracuda discovered the flaw last month and issued patches, but later advised customers to remove and replace affected devices after evidence emerged of deeper network access by the hackers. Mandiant has urged customers to replace affected gear, as the uncategorized threat group UNC4841 deployed custom malware to maintain access and exfiltrate data to gather intelligence. Evidence indicates that UNC4841 targeted email accounts belonging to individuals working for governments “with political or strategic interest to China.” Mandiant's chief technology officer called the campaign the "broadest cyber espionage campaign" conducted by a China-backed group since the Microsoft Exchange server exploits in 2021. The Chinese Embassy in Washington denied the allegations, stating that the Chinese government opposes hacking.
US energy department, other agencies hit in global hacking spree | Reuters
Several federal agencies, including the US Department of Energy (DOE), were targeted in a global hacking campaign that exploited a vulnerability (discovered last month) in widely used file-transfer software called MOVEit Transfer. The DOE confirmed that data was compromised at two entities within the department: DOE contractor Oak Ridge Associated Universities and the Waste Isolation Pilot Plant, a facility for disposing of defense-related nuclear waste. Other victims of the hack include British energy giant Shell, the University System of Georgia, Johns Hopkins University, and the Johns Hopkins Health System. The hacking group Cl0p, believed to be linked to Russia, claimed responsibility for the attack but stated that it would not exploit any data taken from government agencies. The cybersecurity firm Progress Software, the maker of MOVEit Transfer, disclosed another critical vulnerability in the software but it is unclear if it has been exploited by hackers.
State & Local Tech Ecosystems
Joe White is leading the British charm offensive in Silicon Valley | Politico
Joe White, the United Kingdom's ambassador to Silicon Valley, is working to position the UK as a friendly destination for the tech industry amid the European Union's crackdown on big tech. White, a former tech executive and venture capitalist, is seeking to attract tech talent and investment to the UK, particularly in AI. The UK government aims to adopt a nuanced approach to regulation, striking a balance between the EU's strict rules and America’s relatively unregulated environment. White wants the UK and US to collaborate on pro-innovation rules to boost the UK's tech economy. The UK's $1.25 billion investment in advanced computing infrastructure is seen as a testament to the country's seriousness in becoming a global leader in setting AI rules. However, the UK faces stiff competition from the EU, which has a larger market share and head start on AI regulation. Nathaniel Fick, US Ambassador at Large for Cyberspace and Digital Policy, describes the US-UK alliance as one that is “always reconfiguring itself for the challenges of a particular time” and suggests we may be on the cusp of another realignment focused on technology policy.
Layoffs and AI are changing tech’s once-invincible job market | Bloomberg
Silicon Valley's once invincible job market is undergoing a transformation, leaving tech industry workers uncertain about their job security. Layoffs in the tech sector have increased significantly, with over 200,000 employees laid off in 2023, causing widespread concern among workers who previously enjoyed high demand and lucrative offers. The job cuts have affected not only startups but also established tech giants like Google and Meta. The recent trend of focusing on AI has emerged as a potential strategy for job seekers, as AI-related roles are on the rise and offer higher salaries compared to other software engineering positions. However, the rise of AI also poses a threat to conventional programming jobs, potentially displacing a significant number of positions in the future. The tech industry's recent volatility has disrupted the traditional norms and expectations of job security in Silicon Valley, forcing workers to consider alternative sectors and reassess their career choices.
Democracy Online
Experts divided as YouTube reverses policy on election misinformation | Voice of America
YouTube's decision to no longer remove content containing misinformation about the 2020 US presidential election has sparked a divided response among experts. The platform, owned by Google, stated that removing such content could curb some misinformation but might also limit political speech without effectively reducing real-world harm. While YouTube claims the change supports free speech, critics argue that it could enable the easy spread of harmful content. Some experts believe the policy resulted in the removal of legitimate content while others suggest that YouTube is sending a message that election deniers are welcome back to spread messages that undermine American institutions. The platform's policies on other forms of election misinformation remain unchanged, including content misleading people about voting logistics and discouraging voting. Content moderation on YouTube is more difficult than on other popular social media platforms due to the challenge of analyzing videos in bulk. Regardless, the reversal has raised concerns among lawmakers and experts about the circulation of harmful content on YouTube and its impact on democracy and the safety of elected officials.
The ongoing Reddit blackout, explained | Vox
The Reddit Blackout, which was initially meant to be a short protest, has extended as Redditors express their discontent with new company policies. The protest arose after Reddit announced its plan to charge third-party developers for accessing its data starting in July. The decision was partially prompted by the use of Reddit's data by generative AI companies, which profited from it without compensating Reddit. While some subreddits have resumed their normal activities, others have vowed to remain offline indefinitely. The long-term consequences of the blackout on Reddit's financial performance are uncertain, as the collective outrage and widespread subreddit outage could impact the platform's profitability. This incident highlights the changing landscape of free online platforms like Facebook, Twitter, Instagram, and Reddit, as they grapple with the need to generate profits or face reduced earnings. The era of users trading their data and attention for free services may be coming to a close. The Reddit blackout showcases the growing tension between the platform's monetization goals and the concerns of its user base and developers.
