This week, the US declares Russia has wrongfully detained US journalist Evan Gershkovich, China and Russia are engaging in secret talks with Iran to provide the country with a key ingredient for missile fuel, the Biden administration explores tighter AI development regulations, and the suspected perpetrator of the classified Discord leaks was arrested and charged.
Industrial Policy & International Security
US declares journalist Evan Gershkovich wrongfully detained by Moscow | The Guardian
The US State Department officially declared on Monday that Wall Street Journal reporter Evan Gershkovich has been wrongfully detained, two weeks after Gershkovich was imprisoned in Russia. Gershkovich, a well-respected journalist, was arrested by the Russian security service (FSB) and charged with espionage on Friday, which both he and the Wall Street Journal deny. Gershkovich is the first US journalist to be detained by Russia on espionage charges since the end of the Cold War. Secretary of State Antony Blinken vouched for Gershkovich's innocence last Wednesday, but acknowledged that the process of resolving the issue may take some time. The State Department also called for the release of retired US marine, Paul Whelan, who has been imprisoned in Russia since 2018.
Iran in secret talks with China, Russia to acquire sanctioned missile fuel | Politico
Diplomats close to the matter have revealed that China and Russia are engaging in secret talks with Iran to provide the country with the chemical compound ammonium perchlorate (AP), which is the main ingredient in solid propellants used to power missiles. The acquisition of this compound would violate UN sanctions, which require Security Council approval to supply Iran with AP. Moreover, Iran may choose to replenish Russia’s supply of rockets in return, fueling Moscow’s war in Ukraine; Iran has already provided the country with kamikaze drones. Negotiations involve both government-controlled entities and state officials. While the exact quantity of AP that Iran is seeking is unknown, it is estimated to be enough to fuel thousands of rockets. Beijing has mostly heeded Western warnings against offering military support to Russia, but this deal could be a way for China to help Russia behind the scenes, via Iran.
US Regulation
Biden Administration Weighs Possible Rules for AI Tools Like ChatGPT | The Wall Street Journal
The Biden administration is considering the regulation of artificial intelligence (AI) tools, including ChatGPT, over concerns of possible misuse including discrimination and the spread of harmful information. The Commerce Department has requested comments on potential accountability measures, such as a certification process for high-risk AI models. Microsoft, a minority owner of OpenAI, developer of ChatGPT, has also expressed support for further examination of AI tools. Other US agencies, including the Justice Department's antitrust division and the Federal Trade Commission, are monitoring competition and cautioning against false claims about AI products. These steps come on the heels of a public statement from tech leaders calling for a six-month moratorium on developing systems more advanced than GPT-4 to manage and plan for potential risk. However, Eric Schmidt, former Alphabet Chair, cautioned the House Oversight Committee that stalling American innovation could create space for others, like China, to lead development according to a different set of values.
Innovation
R&D isn’t a bargaining chip: Congress must support American innovation | The Hill
In 2017, the Tax Cuts and Jobs Act (TCJA) rescinded immediate deductions for research and development (R&D) costs from businesses total taxable income. Instead, they must now be spread over a period of five years. David Kautter, former assistant secretary of the US Department of the Treasury, believes that the TCJA is disproportionately impacting small businesses that face early losses during product development, and medium-sized businesses developing new product lines. Kautter believes the weaker incentives are jeopardizing US innovation at a critical time for economic competitiveness and national security. For example, Beijing is increasing and extending deductions for companies investing in R&D—they may deduct 75 to 150 percent of R&D expenses in the year they occur. Kautter argues that restoring the R&D deductibility for US companies would increase GDP, wages, and job creation, but estimates that it would cost the government $108 billion over the next eight years. While there is bipartisan support to reinstate immediate deductibility, lawmakers are using it as a bargaining chip to achieve other priorities.
Cyber
How top-secret documents leaked from a chatroom to the world | The Washington Post
Jack Teixeira, a 21-year-old technology support officer with the Air National Guard, has been arrested and charged with “retention and transmission of national defense information and willful retention of classified documents.” Last summer, Teixeira allegedly began sharing classified information with the two dozen members of Thug Shaker Central, an invitation-only chatroom on Discord. Texeira, suspected to be the member known as OG, became frustrated by the group’s lack of interest in transcripts of secret documents. In February, OG began posting pictures of the classified documents instead, sharing battlefield assessments, geopolitical analysis, and satellite images. The leaked information included details about Ukraine’s defenses and US intelligence agencies’ penetration of Russia’s military leadership. The documents spread to more Discord groups, Minecraft Earth Map, and then to Russian Telegram channels, 4chan, and, finally, Twitter. OG shut down Thug Shaker Central on April 6th, the same day New York Times reporters announced that the Pentagon was investigating the leak. Teixeira faces up to fifteen years in prison for the two felony charges.
State & Local Tech Ecosystems
VC Firm Raises $1.2 Billion to Find and Fund the Next Elon Musk | Bloomberg
Eclipse, a Silicon Valley venture capital firm, has raised $1.2 billion to support startups modernizing physical industries. The capital will be distributed between two new funds, Eclipse Fund V and Early Growth Fund II, and brings the firm's total assets under management to $4 billion. The $720 million Eclipse Fund V will focus on young companies in manufacturing, supply chain, transportation, and electrification businesses while Early Growth Fund II will invest in more mature companies. Eclipse is primarily focused on US-based startups that can impact domestic supply chains and manufacturing but is also open to opportunities in China. The firm released a statement that “the next decade in tech will be defined by companies focused on physical industries” and Founding Partner Lior Susan believes that the current crop of founders are more inspired by Elon Musk’s impact building cars and rockets compared to Silicon Valley’s dominant software-as-a-service model.
Democracy Online
Misinformation contributing to lower life expectancy in US, FDA chief says | The Hill
Robert Califf, the Commissioner of the Food and Drug Administration (FDA), asserted during an interview with CNBC that the prevalence of health misinformation has contributed to declining life expectancy in the United States. Although the US leads the world in medical innovation and has the “safest food in the world,” Califf argues that the choices people make about their health are preventing the country from fully capitalizing on these resources. He points out that this discrepancy becomes more pronounced when comparing the US to similar industrialized nations, noting that it essentially ranks last in this group in areas including life expectancy. Califf believes the rise and widening spread of misinformation, spurred by COVID-19 and political polarization, is influencing poor healthcare decisions. The Centers for Disease Control and Prevention report that life expectancy in the US in 2021 fell to 76.1 years, after declining for two years in a row. However, the outlook for rural areas is even worse.
