In this week's edition: Lawmakers seek ways to increase Pentagon funding despite debt deal; Ukraine and allies plan peace summit without Russia; new bill promotes cybersecurity cooperation between US and Abraham Accords nations; and deepfake videos in challenge 2024 election integrity. Additionally, the Defense Innovation Unit plans hypersonic testbed flight; hackers exploit vulnerability in file transfer software; and investors use AI for dealmaking edge.
Industrial Policy & International Security
The debt deal limits Pentagon spending. Lawmakers are already figuring out ways around it. | Politico
Lawmakers in both parties are seeking ways to increase Pentagon funding despite the newly passed debt ceiling deal. The deal, which establishes an $886 billion military budget, was passed by the House and Senate within hours of each other. Republicans claim the deal provides insufficient defense funding and demanded an emergency supplemental, noting the 3.3 percent increase falls below the rate of inflation. Some lawmakers see an emergency funding bill for Ukraine as a means to override the defense spending caps. Overseas contingency operations funds have been similarly used since the early 2000s to circumvent sequestration spending caps. Regardless, revisiting the Pentagon budget will face challenges, as progressive Democrats may resist the continuing increases in defense spending.
Ukraine and Allies Plan Peace Summit Without Russia | Wall Street Journal
Ukraine and several Western allies are considering organizing a summit of global leaders, excluding Russia, with the aim of gaining support for Ukraine's terms for ending the war. The plans for the summit have gained strong support from European leaders, including French President Emmanuel Macron, who are advocating for the participation of countries that have sided with Russia or remained neutral. Ukrainian President Volodymyr Zelensky's chief of staff, Andriy Yermak, stated that direct negotiations with Russia are not possible so long as Russian troops remain in the country. Additionally, Ukraine is working with European officials to revise its ten-point peace plan to make it more acceptable to global powers like India, Brazil, Saudi Arabia, and China. Ukrainian officials emphasized that they will continue to fight against Russia unless Moscow engages with their peace plan, which rejects a temporary cease-fire and calls for the withdrawal of Russian forces before talks of a treaty begin.
US Regulation
New bill aims to boost cybersecurity cooperation between U.S., Abraham Accords nations | Axios
A group of bipartisan senators plan to introduce a new bill promoting cybersecurity collaboration between the Department of Homeland Security and the countries involved in the Abraham Accords: Israel, the United Arab Emirates, Bahrain, and Morocco. The bill aims to enhance partnerships and defend against cyber threats from Iran and other hostile actors. The legislation, supported by senators from both parties, seeks to authorize information-sharing, technical assistance, joint training, and exercises to bolster collective cybersecurity defenses. The senators emphasized the need to strengthen cybersecurity measures to further protect critical infrastructure against malicious cyberattacks.
Innovation
Defense Innovation Unit eyes first flight of hypersonic testbed | C4ISRNET
The Defense Innovation Unit (DIU) plans to conduct an experimental hypersonic cruise vehicle flight next summer to support the Pentagon's efforts to increase its flight-test frequency. DIU awarded a contract through its Hypersonic and High-Cadence Airborne Testing Capabilities (HyCAT) program, which focuses on leveraging non-traditional and commercial companies' technologies for military use. The program aims to relieve the strain on government testing infrastructure by utilizing commercial aircraft, payloads, and supporting technology. The Pentagon has approximately seventy programs devoted to developing hypersonic weapons and aircraft, and HyCAT is part of the strategy to achieve one hypersonic test flight per week at a low cost. Three companies, including Hypersonix, Rocket Lab, and Fenix Space, have been awarded contracts, and DIU plans to select a fourth company to provide another test vehicle. The success of HyCAT will contribute to the Multi-Service Advanced Capability Hypersonics Testbed.
Multiple companies could win work on US Army’s Project Linchpin AI | Defense News
The US Army is planning to engage multiple companies for Project Linchpin, an AI initiative aimed at supporting intelligence-gathering and electronic warfare systems. The project intends to deliver AI capabilities across intelligence, cyber, and electronic warfare domains while addressing challenges related to data consumption and real-world integration. The initial contract is anticipated to be signed in March or April 2024, followed by additional contracts. Col. Chris Anderson, the project manager, envisions a collaborative effort involving government, industry, academia, and others to ensure the success of Project Linchpin. Recognizing the value of AI, the Pentagon has made substantial investments to advance the technology for various applications, such as vehicle navigation, predictive maintenance, target identification, and data analysis. Different leaders in the AI industry are expected to be involved in areas like data labeling, model training, verification and validation, and infrastructure management. The project will encompass multiple programs within the Army's Program Executive Office Intelligence, Electronic Warfare, and Sensors portfolio, supporting future battlefield operations.
Cyber
Hackers launch another wave of mass-hacks targeting company file transfer tools | TechCrunch
Hackers have been exploiting a newly discovered vulnerability in the MOVEit Transfer managed file transfer software, developed by Ipswitch, to launch mass data exfiltration attacks. The vulnerability could lead to escalated privileges and unauthorized access, prompting Progress Software, Ipswitch's parent company, to advise users to disable internet traffic to the software and apply patches. The US Cybersecurity and Infrastructure Security Agency has also recommended organizations to follow these mitigation steps. The affected file transfer tool is used by thousands of organizations globally, with over 2,500 MOVEit Transfer servers discoverable on the internet. Security firms such as Mandiant, Huntress, and Rapid7 have observed evidence of exploitation and data theft, with the attacker's behavior appearing opportunistic rather than targeted. This incident follows similar attacks on enterprise file transfer systems in recent years, which allow hackers to target multiple victims at once.
State & Local Tech Ecosystems
Investors turn to AI-guided dealmaking to gain edge over rivals | Financial Times
Venture capital funds, private equity groups, and accountancy firms are leveraging AI to gain a competitive advantage in finding investment targets. The use of generative AI allows for efficient evaluation of a company's growth potential based on financial analysis. For example, PitchBook has developed an AI-driven tool to predict the likelihood of companies going public or being acquired. Headline and Moonfire Ventures utilize generative AI to assess investment targets using metrics like web traffic and new users. However, concerns exist regarding the impact of AI on human relationships and judgment in the investment sector. Analysts predict that AI and data analytics will significantly influence venture capital and early-stage investments by 2025. However, Amadeus Capital Partners CEO Anne Glover points out that “where we are investing at the cutting edge, there isn’t a lot written about what we’re looking for.” Some remain skeptical that AI technology trained on historical data can make good, unbiased decisions in such unstructured environments.
Democracy Online
Deepfaking it: America's 2024 election collides with AI boom | Reuters
The 2024 US presidential race is witnessing the rise of deepfake videos, created by AI algorithms, most recently seen with a viral video made of candidate Ron DeSantis. Generative AI tools like Midjourney have made it easier and cheaper to create convincing deepfakes. DeepMedia, a company that is developing synthetic media detection tools, estimates that 500,000 video and voice deepfakes will be shared globally on social media platforms in 2023. The surge in deepfake content poses a challenge for voters in distinguishing real from fake, potentially allowing supporters of opposing candidates to manipulate public opinion. Major social media platforms have made efforts to remove deepfakes, but it has proven difficult to identify and block this content. Industry leader OpenAI is taking steps to restrict political use of its products. However, smaller startups have fewer restrictions, leading to the proliferation of AI-generated content for political campaigns. The use of generative AI in politics raises questions about the future of election integrity and the potential for misinformation.
