In this edition, Russia bypasses sanctions to acquire crucial chips, China retaliates against tech controls, and Google’s CEO emphasizes the importance of safe AI deployment. Additionally, Apple launches a new savings account, Russian hackers threaten the UK’s infrastructure, Microsoft drops Twitter from its advertising platform, and a Stanford study shows misinformation education is effective.
Industrial Policy & International Security
Russia Is Importing Western Weapons Technology, Bypassing Sanctions | The New York Times
The United States and the European Union are struggling to prevent Russia from obtaining critical chips necessary for weapons systems, drones, and tanks. According to senior tax and trade officials, there has been a surge in the sale of chips and other electronic components to Russia through countries such as China, Armenia, and Kazakhstan. The US Bureau of Industry and Security reported that Armenia dramatically increased imported chips and processors from the US and the EU and subsequently exported 97 percent of those products to Russia. American and European officials have exchanged information about millions of dollars' worth of banned technology that is slipping through their defenses to end up in Russian hands. Though Western sanctions have diminished Russia's ability to manufacture weaponry, the country is establishing new pathways to access crucial electronic components. The US and the EU are supporting Ukraine with weapons but Russia is replenishing its stockpiles with Western technology to fight back.
China starts ‘surgical’ retaliation against foreign companies after US-led tech blockade | Financial Times
Over the past five years, the United States and other Western nations have imposed increasingly tough trade and technology restrictions on China. Beijing is beginning to respond with sanctions of their own on US companies including Lockheed Martin and Raytheon. They have also launched an investigation into US chipmaker Micron, fined London-headquartered Deloitte $31 million for audit deficiencies, and detained staff from foreign companies. China’s targeted response raises concerns about the use of hostage diplomacy if relations with the West continue to deteriorate. Some analysts are surprised that Beijing hasn’t responded more harshly to the US-led efforts to restrict the country’s access to chipmaking technology. A recent Chinese commerce ministry review explored potential controls on rare earth materials and lidar technology, which could significantly impact the automotive sector and development of autonomous vehicles. Such a move would not only impact the US but also European, Japanese, and Korean governments.
US Regulation
Google CEO Warns Against Rush to Deploy AI Without Oversight | Bloomberg
During a 60 Minutes interview, Sundar Pichai, CEO of Alphabet Inc. and Google, stressed the importance of regulating artificial intelligence (AI) to prevent potential harm to society. While Google has been a leader in AI development, its deployment of the technology has been cautious. OpenAI's ChatGPT has opened up the possibility of developing AI tools faster, but with less oversight, leaving Google playing catch up in the development race. However, Pichai warned against the competitive dynamics instigated by the release of such a powerful AI tool and advocated for responsible AI development. One risk of generative AI Pichai highlighted was deep fake videos, which could create major societal repercussions and emphasize the need for regulation. Notably, former Google CEO Eric Schmidt recently expressed similar alarm about the need for shared standards but also warned that delaying US development would “simply benefit China.”
Innovation
Apple Launches Savings Accounts With 4.15% Interest Rate | The Wall Street Journal
Apple has expanded its presence in the financial services industry with the launch of a high-yield savings account, offering an annual percentage yield of 4.15 percent. The account, which is protected by the Federal Deposit Insurance Corp., requires no minimum deposit and is available to Apple credit card customers. The company partnered with Goldman Sachs to offer the savings account, which is part of Apple's push into financial services. The company is seeking to solidify the iPhone as a digital wallet and, in some US states, has started to create legal digital versions of driver’s licenses. Compared to competitors’ high-yield savings products, Apple’s rate is favorable though some online banks still offer higher rates of up to 5 percent. The company faces much more competition with its entry into the savings account industry but will likely benefit from strong brand recognition. Apple Pay is already a leader in the payments industry and there is an established Apple Card user base.
Cyber
Russian hackers want to ‘disrupt or destroy’ UK infrastructure, minister warns | The Guardian
UK Cabinet Office minister Oliver Dowden will issue a national alert to businesses this week, warning that “ideologically motivated” adversaries are targeting the country’s critical national infrastructure. The Kremlin is searching for new ways to threaten the West as the war in Ukraine continues. A leaked US intelligence report indicated that after taking over the control systems for a Canadian pipeline, Russian cybercriminal group Zarya requested instructions on next steps from the country’s FSB spy agency. While no public evidence corroborates this attack, it is possible that US intelligence prevented Zarya from following through. Russian hackers associated with the paramilitary Wagner group are reportedly seeking to “disrupt or destroy'' targets in the UK and, according to Dowden, are less likely to exhibit the same levels of restraint as nation state actors. The UK urges critical sectors to invest in cybersecurity to defend against attacks. While serious attacks on critical infrastructure remain rare, the potential impact on daily life and emergency services could be severe.
State & Local Tech Ecosystems
Microsoft drops Twitter from its advertising platform | Mashable
Microsoft announced that it will drop Twitter from its Microsoft Advertising plan starting on April 25. Users will no longer be able to access their Twitter account through the Digital Marketing Center's social media management tool, nor will they be able to schedule, create, or manage tweets or tweet drafts. Just one day prior to Microsoft’s announcement, Elon Musk appeared at an advertising conference to entice brands back to the platform; Twitter lost half of its biggest advertisers following his takeover. At the same time, the company is driving indie developers and larger organizations away with its new paid API subscription plan that will charge enterprise users a minimum bill of $42,000 per month beginning April 29. Microsoft is not the only company leaving Twitter behind. Intercom, the National Weather Service, and Sweden’s Sveriges Radio have all decreased or eliminated their presence on the platform. Microsoft Advertising users will still be able to manage and create content for Facebook, Instagram, and LinkedIn after Twitter is dropped.
Democracy Online
Misinformation Defense Worked in 2020, Up to a Point, Study Finds | The New York Times
Stanford researchers published a new study in the journal Nature Human Behavior that indicates efforts to reduce the impact of misinformation through initiatives like content labels and media literacy training are having a positive effect. The number of Americans visiting websites that disseminate false and misleading narratives decreased between the 2016 and 2020 presidential elections. However, the study estimates that almost 68 million individuals in the United States still accessed unreliable websites 1.5 billion times in a month during the 2020 election. Older populations, conservatives, and non-English speakers are more vulnerable to misinformation than other groups. As the 2024 election approaches, researchers are alarmed that misinformation is becoming more sophisticated, especially with the advanced technology behind generative AI, and is moving beyond web browsers to mobile applications like TikTok and encrypted messaging platforms like Telegram and WhatsApp. At the same time, Jeff Hancock, lead author of the Stanford study, is hopeful and says misinformation “doesn’t affect most people most of the time.”
