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NATSEC-TECH THURSDAY for December 5, 2024: Every Thursday’s edition of Threat Status highlights the intersection between national security and advanced technology, from artificial intelligence and cyber threats to the battle for global data dominance.

Share Threat Status and the weekly NatSec-Tech Wrap with friends who can sign up here. Send tips to National Security Correspondent Ben Wolfgang or lead Tech Correspondent Ryan Lovelace.

The drama and political chaos gripping South Korea reached new heights Thursday amid the very real possibility of political paralysis. President Yoon Suk Yeol’s disastrous, short-lived attempt to declare martial law has left him barreling toward an impeachment vote in the country’s National Assembly now set for Saturday. Washington Times Asia Editor Andrew Salmon has all the latest from Seoul.

… And the fallout has real potential impacts for the global economy, and for the tech sector’s semiconductor supply chains in particular. One analyst told the publication CIO that the “fragility” of the global semiconductor market is once again in the spotlight amid fears that the domestic turmoil in South Korea could disrupt the sector. South Korea holds nearly 18% of the global semiconductor market, according to recent data.

… The price of bitcoin, the world’s most popular cryptocurrency, topped $100,000 on Wednesday, capping a major rally sparked by President-elect Donald Trump’s election victory and what is widely expected to be a crypto-friendly new administration.

… U.S. officials say that strong digital encryption is key to countering Chinese hackers.

… OpenAI and Anduril have formed a new partnership this week to protect against Chinese drones and other threats.

… Stanford University’s Hoover Institution offers a fascinating new “Defense Against the AI Dark Arts” report for national security officials to study.

… Fortress Information Security discovered the software code powering U.S. utilities remains rife with highly exploitable vulnerabilities.

… And C-SPAN captured new footage of the robot dog patrolling the grounds at Mr. Trump’s Mar-a-Lago headquarters. It showed no signs of struggling with sloped surfaces.

White House says at least 8 telecom firms hit by Chinese hacking; officials push digital encryption

The American and Chinese flags wave at Genting Snow Park ahead of the 2022 Winter Olympics, in Zhangjiakou, China, on Feb. 2, 2022. A top White House official on Wednesday said at least eight U.S. telecom firms and dozens of nations have been impacted by a Chinese hacking campaign. (AP Photo/Kiichiro Sato, File)

There are new details about the depth of Chinese hacking operations targeting the American telecommunications sector and what the federal government says must be done to fight back.

White House Deputy National Security Adviser Anne Neuberger said Wednesday that at least eight U.S. telecom firms and dozens of nations have been impacted by the Chinese campaign, believed to have given officials in Beijing access to private texts and phone conversations of an unknown number of Americans.

The revelations came as U.S. and international cyber officials pushed the use of digital encryption to protect against the suspected Chinese operations. Mr. Lovelace has all the details on the joint guidance issued by U.S. officials and their allies in Australia, Canada and New Zealand. The joint guidance calls on information technology professionals to harden their networks in response to the alleged Chinese hacking, which targeted AT&T, Verizon and other top companies.

The new guidance for network engineers recommends using encryption “to the maximum extent possible” and to have as little connection to the internet as acceptable.

“If feasible, limit exposure of management traffic to the internet,” the officials’ guidance said. “Only allow management via a limited and enforced network path, ideally only directly from dedicated administrative workstations.”

Such advocacy in favor of encryption represents a significant departure for the FBI, which helped author the guidance alongside the Cybersecurity and Infrastructure Security Agency and National Security Agency.

The FBI had long been among the strongest opponents of digital encryption in the U.S. for years, concerned that the technology prevents the bureau from catching criminals.

Will Elon Musk use government power to target business rivals?

President-elect Donald Trump walks with Elon Musk before the launch of the sixth test flight of the SpaceX Starship rocket Tuesday, Nov. 19, 2024 in Boca Chica, Texas. (Brandon Bell/Pool via AP)

It’s a question that’s suddenly top of mind in tech circles. As the co-chair of the Trump administration’s proposed advisory “Department of Government Efficiency,” Elon Musk could have significant financial and regulatory power inside the federal government.

OpenAI CEO Sam Altman addressed the issue Wednesday, telling The New York Times’ DealBook Summit that he doesn’t expect Mr. Musk to wield his new power and influence with the president-elect to crush rivals in the artificial intelligence sector.

“It would be profoundly un-American to use political power to the degree that Elon has it to hurt your competitors. I don’t think people would tolerate it,” Mr. Altman said at the summit. “I don’t think Elon would do it.”’

Mr. Musk runs his own AI company, xAI, which he has positioned as a direct competitor to OpenAI, with its Grok chatbot and upcoming standalone app. OpenAI remains well ahead of xAI in valuation, snagging a $157 billion valuation this year after a lucrative funding round.

While Mr. Altman is optimistic about Mr. Musk’s intentions, it’s an issue that Threat Status will keep an eye on. And here’s why: Mr. Musk’s DOGE co-chair, Vivek Ramaswamy, said this week that the agency will look into federal loans given to two leading rivals of the electric vehicle titan Tesla. Mr. Musk is Tesla’s CEO.

OpenAI and drone maker Anduril join forces: ‘America needs to win’

Open AI CEO Sam Altman participates in a discussion entitled "Charting the Path Forward: The Future of Artificial Intelligence" during the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Thursday, Nov. 16, 2023, in San Francisco. (AP Photo/Eric Risberg)

Artificial intelligence company OpenAI and drone maker Anduril are partnering to create new tools to help the U.S. military thwart attacks from drones and other aerial threats.

Anduril announced the national security-focused partnership on Wednesday, saying on X, “America needs to win.”

“The Anduril and OpenAI strategic partnership will focus on improving the nation’s counter-unmanned aircraft systems (CUAS) and their ability to detect, assess and respond to potentially lethal aerial threats in real-time,” Anduril said on its website. “As part of the new initiative, Anduril and OpenAI will explore how leading-edge AI models can be leveraged to rapidly synthesize time-sensitive data, reduce the burden on human operators, and improve situational awareness.”

The models that the companies develop will be trained on Anduril’s data on drone operations and threats.

The companies cited the AI race between America and China as a motivating factor in their partnership. Anduril said the new effort “aims to ensure that the U.S. Department of Defense and intelligence community have access to the most advanced, effective and safe AI-driven technologies available in the world.”

Meta saw no AI threat to elections

People talk near a Meta sign outside of the company's headquarters in Menlo Park, Calif., March 7, 2023. Meta's Oversight Board said Monday, Feb. 5, 2024, that it is urging the company to clarify its approach to manipulated media so its platforms can better beat back the expected flood of online election disinformation this year. The recommendations come after the board reviewed an altered video of President Joe Biden that was misleading but didn't violate the company's policies. (AP Photo/Jeff Chiu) **FILE**

Content generated by AI accounted for less than 1% of the election misinformation social media giant Meta identified on its platforms, the company revealed this week.

The company said Tuesday that deep concerns about generative AI, which swirled in the weeks and months leading up to the U.S. presidential election, proved to be unfounded.

“Our existing policies and processes proved sufficient to reduce the risk around generative AI content,” Meta President Nick Clegg said. “During the election period in the major elections listed above, ratings on AI content related to elections, politics and social topics represented less than 1% of all fact-checked misinformation.”

Meta said it investigated posts concerning elections around the world, including in the U.S., Britain, France, India, Indonesia, Pakistan and Bangladesh.

The company attributed the lack of AI misinformation on its platforms to its focus on account behavior, rather than specific content. Meta said its content moderation teams focused on taking down “covert influence” operations with manufactured “audiences.” Meta said it blocked 20 similar influence operations around the world.

In our opinion: Congress isn't smart enough to regulate AI

Congress controlling Artificial intelligence (AI) industry illustration by Linas Garsys / The Washington Times

Congress is eyeing new AI regulations, but its members simply don’t have the necessary knowledge to understand the technology.

That’s the take from Adam Scott Wandt, associate professor of public policy and vice chair for technology in the Department of Public Management at John Jay College of Criminal Justice. He writes in a new piece for The Times that “Congress doesn’t have the knowledge necessary to micromanage new technologies.”

The reason? “The answer is that modern technology is complicated, requiring a staggering degree of fluid knowledge that Congress doesn’t and can’t have. Legislators are occupied with many issues; they don’t have time to specialize in something as demanding as AI,” he writes.

Events on our radar

• Dec. 5 — Real Space Strategy LIVE: The Future of the Space National Guard, National Institute for Deterrence Studies

• Dec. 7 — 2024 Reagan National Defense Forum, Ronald Reagan Presidential Foundation & Institute

• Dec. 10 — Trade & Technology: The Arms Trade Treaty at 10, Stimson Center

• Dec. 10-11 — AI Summit Seoul, DMK Global

• Dec. 11 — Hearing on Infiltration of U.S. Telecom Systems, Senate Commerce Committee

• Jan. 7-10 — CES 2025, Consumer Technology Association

Thanks for reading NatSech-Tech Thursdays from Threat Status. Don’t forget to share it with your friends, who can sign up here. And listen to our weekly podcast available here or wherever you get your podcasts.

If you’ve got questions, Ryan Lovelace and Ben Wolfgang are here to answer them.