Russia has the potential to improve its global AI standing by 2030, bolstered by local talent and the development of its own generative AI models, according to Alexander Vedyakhin, the first deputy CEO of Sberbank. Speaking at the bank’s AI Journey conference, Vedyakhin highlighted the resilience of Russian developers in navigating Western sanctions, which aimed to limit the country’s computing resources. He emphasised the importance of fostering experimentation to maintain progress in AI.
Although Russia currently trails the US and China in AI innovation by six to nine months, Vedyakhin is optimistic about closing the gap. Instead of building massive data centres, Russia is focusing on smart AI models tailored to its market, similar to Meta’s Llama. These efforts, he said, will ensure technological sovereignty, especially as generative AI gains global importance. For example, Russian language models address local cultural contexts better than English-trained systems, avoiding misunderstandings like misinterpreting cultural dishes.
President Vladimir Putin also underscored the strategic significance of AI, announcing plans to collaborate with BRICS countries to challenge US dominance. Vedyakhin added that while Europe and China face setbacks due to overregulation, Russia’s supportive regulatory environment could be a competitive advantage. Encouraging investment in AI startups and allowing for innovation without severe penalties for mistakes are key to advancing the sector.
Despite a broader decline in venture capital investment in Russia, funding for AI startups continues to grow, hinting at a more diversified market. Vedyakhin also suggested that decentralised autonomous organizations (DAOs), powered by blockchain, could address labour shortages, paving the way for Russia to strengthen its AI ecosystem in the years ahead.
Lawmakers have called for urgent measures to strengthen US telecommunications security following a massive cyberattack linked to China. The hacking campaign, referred to as Salt Typhoon, targeted American telecom companies, compromising vast amounts of metadata and call records. Federal agencies have briefed Congress on the incident, which officials say could be the largest telecom breach in US history.
Senator Ben Ray Luján described the hack as a wake-up call, urging the full implementation of federal recommendations to secure networks. Senator Ted Cruz warned of future threats, emphasising the need to close vulnerabilities in critical infrastructure. Debate also surfaced over the role of offensive cybersecurity measures, with Senator Dan Sullivan questioning whether deterrence efforts are adequate.
The White House reported that at least eight telecommunications firms were affected, with significant data theft. In response, Federal Communications Commission Chairwoman Jessica Rosenworcel proposed annual cybersecurity certifications for telecom companies. Efforts to replace insecure Chinese-made equipment in US networks continue, but funding shortfalls have hampered progress.
China has dismissed the allegations, claiming opposition to all forms of cybercrime. However, US officials have cited evidence of data theft involving companies like Verizon, AT&T, and Lumen. Congress is set to vote on a defence bill allocating $3.1 billion to remove and replace vulnerable telecom hardware.
Google has announced a $20 billion partnership with Intersect Power and TPG Rise Climate to build renewable energy projects, battery storage, and grid upgrades for its data centres. The initiative includes wind, solar, and battery storage facilities, each paired with 1-gigawatt-scale data centres to meet growing energy demands for AI technology. The first phase is expected to be operational by 2026.
The plan aims to address grid bottlenecks, with Google funding required upgrades to accelerate connectivity. This strategy highlights renewables’ speed over nuclear options, which have longer timelines for implementation.
Industry experts predict a shortfall in energy for AI-focused data centres by 2027, underscoring the urgency for alternative power sources. While Google also invests in nuclear energy projects, renewables are expected to dominate in the near term.
US government agencies are set to brief the House of Representatives on a widespread cyberespionage campaign allegedly linked to China. Known as Salt Typhoon, the operation reportedly targeted American telecommunications firms to steal call metadata and other sensitive information. A similar briefing was held for senators last week.
The White House revealed that at least eight US telecom companies had been affected, with a large number of citizens’ data compromised. Senator Ron Wyden is drafting legislation in response, while Senator Bob Casey expressed significant concern, noting that legislative action might be delayed until the new year.
On Wednesday, a Senate Commerce subcommittee will examine the broader risks posed by cyber threats to communication networks. Industry representatives, including Competitive Carriers Association CEO Tim Donovan, will contribute insights on best practices to counter such attacks.
China has denied the allegations, labelling them as disinformation, and reaffirmed its opposition to cyber theft. Officials and lawmakers continue to emphasise the gravity of the breaches, with Senator Richard Blumenthal calling the scale of Chinese hacking efforts ‘terrifying.’
The US House of Representatives is preparing to vote on a defence bill proposing $3 billion for telecom companies to replace equipment from Chinese firms Huawei and ZTE. The legislation aims to address security concerns posed by Chinese technology in American wireless networks. A previous allocation of $1.9 billion was deemed insufficient for the programme, which the Federal Communications Commission (FCC) estimates will cost nearly $5 billion.
The initiative, known as the ‘rip and replace’ programme, targets rural carriers reliant on the equipment, which could lose connectivity if funding gaps persist. FCC Chair Jessica Rosenworcel warned that insufficient funding might force some rural networks to shut down, endangering services such as 911 emergency calls. Rural regions face significant risks without immediate support for the removal and replacement of insecure telecoms infrastructure.
The proposed funding would also cover up to $500 million for regional technology hubs, supported by revenue from an FCC spectrum auction. Advocates emphasise the importance of securing connectivity while maintaining services for millions of Americans. Competitive Carriers Association CEO Tim Donovan welcomed the proposed funding, calling it critical for network security and consumer access.
Broadcom has announced breakthrough technology aimed at accelerating custom chip performance in response to rising demand for generative AI infrastructure. The innovation, known as 3.5D XDSiP, enhances memory integration and speeds up processing by directly linking critical components. Developed in collaboration with TSMC, the technique uses advanced packaging methods, including chip-on-wafer-on-substrate, which remains a bottleneck in AI chip supply chains.
The California-based chipmaker has positioned itself as a key player in the AI hardware market, supplying custom processors to cloud providers looking to diversify beyond Nvidia’s pricier options. Although Broadcom has not disclosed its partners, industry experts suggest that major companies like Google and Meta are among its clients.
Broadcom’s CEO, Hock Tan, stated in September that the company expects AI revenue to reach $12 billion in fiscal year 2024, reflecting a significant increase from earlier forecasts. Five products using the 3.5D XDSiP technology are currently in development, with production shipments planned for early 2026.
The custom chip market, valued at $45 billion by 2028, is set to be dominated by Broadcom and rival Marvell. Analysts predict continued growth for both companies as AI infrastructure demand expands globally.
FCC Chairwoman Jessica Rosenworcel has proposed requiring US communications providers to certify annually that they have plans to defend against cyberattacks. The move comes amid growing concerns over espionage by ‘Salt Typhoon,’ a hacking group allegedly linked to Beijing that has infiltrated several American telecom companies to steal call data.
Rosenworcel highlighted the need for a modern framework to secure networks as US intelligence agencies assess the impact of Salt Typhoon’s widespread attack. A senior US official confirmed the hackers had stolen metadata from numerous Americans, breaching at least eight telecom firms.
The FCC proposal, which Rosenworcel has circulated to other commissioners, would take effect immediately if approved. The announcement follows a classified Senate briefing on the breach, but industry giants like Verizon, AT&T, and T-Mobile have yet to comment.
Romania has been subjected to ‘aggressive hybrid Russian attacks’ during a series of recent elections, according to declassified documents from the country’s security council. The revelations come ahead of a presidential runoff between pro-Russian far-right candidate Calin Georgescu and pro-European centrist Elena Lasconi. Georgescu’s unexpected rise, attributed in part to coordinated promotion on TikTok, has raised alarms in this European Union and NATO member state.
Romanian intelligence reported over 85,000 cyber attacks exploiting vulnerabilities, including the publication of election website access data on Russian cybercrime platforms. The attacks persisted on election day and beyond, with officials concluding they stemmed from resources typical of a state actor. Russia has denied any involvement in the election.
If Georgescu wins, his anti-NATO stance and opposition to aiding Ukraine could isolate Romania from Western allies, marking a significant geopolitical shift. The alleged cyber campaigns have intensified concerns about election integrity in the region, drawing attention to the role of foreign interference in shaping democratic outcomes.
In recent years, China and Russia have significantly ramped up efforts to advance their semiconductor equipment industries, aiming to secure competitive positions in the global market. While the US, Netherlands, Japan, and South Korea dominate the semiconductor equipment sector, China’s aggressive R&D investments in etching, CVD, PVD, and packaging technologies are helping it make strides in domestic substitution. However, the country still lags in high-end lithography equipment, especially EUV machines.
Despite challenges, China’s semiconductor equipment market is expected to see record-high purchases in 2024, surpassing $40 billion. Experts attribute this growth to localisations, new fabs, and global supply chain concerns. However, demand is expected to stabilise in 2025 once production lines are up and running, although long-term growth remains promising, fueled by applications in 5G, AI, and automotive electronics.
Meanwhile, Russia has accelerated its efforts to develop domestic semiconductor equipment, receiving over $2.5 billion in government funding. With a focus on manufacturing 200mm wafers for chips with nodes from 180nm to 90nm, Russia aims to reduce reliance on imports. The country’s ambitious goal is to replace 70% of imported equipment with domestically produced alternatives by 2030. Despite progress, Russian manufacturers like Angstrem and Mikron are still constrained to mature process nodes, depending on imported lithography systems.
US agencies have briefed senators on ‘Salt Typhoon,’ a Chinese cyber-espionage campaign allegedly targeting American telecommunications networks. Officials claim the hackers stole call metadata and other sensitive information, affecting at least eight US telecom firms and dozens of companies worldwide. The breaches have sparked bipartisan concern, with some senators pressing for stronger preventive measures and legislation.
Telecom giants like Verizon, AT&T, and T-Mobile acknowledged the incidents but downplayed the impact on customer data. Federal agencies, including the FBI and Cybersecurity and Infrastructure Security Agency, emphasised the challenge of fully removing hackers from networks, while incoming FCC Chair Brendan Carr pledged to strengthen cybersecurity defences.
China has denied the allegations, calling them disinformation. Meanwhile, a Senate subcommittee hearing on December 11 will focus on the risks posed by such cyber threats and explore ways to protect US communications infrastructure.
