Cyberconflict and warfare

Amodei warns US AI chip exports to China risk national security

Anthropic chief executive Dario Amodei has criticised the US decision to allow the export of advanced AI chips to China, warning it could undermine national security. Speaking at the World Economic Forum 2026 in Davos, he questioned whether selling US-made hardware abroad strengthens American influence.

Amodei compared the policy to ‘selling nuclear weapons to North Korea‘, arguing that exporting cutting-edge chips risks narrowing the technological gap between the United States and China. He said Washington currently holds a multi-year lead in advanced chipmaking and AI infrastructure.

Sending powerful hardware overseas could accelerate China’s progress faster than expected, Amodei told Bloomberg. He warned that AI development may soon concentrate unprecedented intelligence within data centres controlled by individual states.

Amodei said AI should not be treated like older technologies such as telecoms equipment. While spreading US technology abroad may have made sense in the past, he argued AI carries far greater strategic consequences.

The debate follows recent rule changes allowing some advanced chips, including Nvidia’s H200 and AMD’s MI325X, to be sold to China. The US administration later announced plans for a 25% tariff on AI chip exports, adding uncertainty for US semiconductor firms.

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Browser extension malware hits millions worldwide

Millions of browser users installed popular extensions that later became spyware as part of a long-running malware operation. Researchers linked over 100 Chrome, Edge and Firefox extensions to the DarkSpectre hacker group.

Attackers kept extensions legitimate for years before quietly activating malicious behaviour. Hidden code embedded in image files helped bypass security reviews in official browser stores.

The campaign enabled large-scale surveillance by collecting real-time browsing activity and corporate meeting data. Analysts warn that such information supports phishing, impersonation and corporate espionage.

Experts urge users to remove unused extensions and question excessive permission requests. Regular browser updates and cautious extension management remain essential cyber defences.

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Western cyber agencies issue guidance on cyber risks to industrial sectors

A group of international cybersecurity agencies has released new technical guidance addressing the security of operational technology (OT) used in industrial and critical infrastructure environments.

The guidance, led by the UK’s National Cyber Security Centre (NCSC), provides recommendations for securely connecting industrial control systems, sensors, and other operational equipment that support essential services. The NCSC operates as part of GCHQ, one of the three UK Intelligence and Security Agencies.

Operational technology is widely used across sectors such as energy generation, water treatment, manufacturing, and transportation. While many of these systems were previously isolated from external networks, they are increasingly connected for remote monitoring, maintenance, and performance optimisation. The shift has expanded the number of network interfaces that require protection.

According to the co-authoring agencies, industrial environments are being targeted by a range of actors, including cybercriminal groups and state-linked actors. The guidance references a joint advisory issued in June 2023 on China-linked cyber activity, as well as a more recent advisory from the US Cybersecurity and Infrastructure Security Agency (CISA) that notes opportunistic activity by pro-Russia hacktivist groups affecting critical infrastructure globally.

The document was co-authored by agencies from multiple countries, including the United States, the Netherlands, Germany, and members of the Five Eyes partnership, Australia, Canada, and New Zealand, alongside UK authorities.

In an accompanying statement, NCSC Chief Technology Officer Ollie Whitehouse noted that cybersecurity measures in industrial environments should be integrated into system design and operations to support safety, availability, and service continuity.

The agencies state that the guidance is intended for OT operators, system integrators, and security professionals responsible for designing or maintaining connected industrial systems, and is applicable across sectors and jurisdictions.

The guidance outlines eight technical principles to reduce risk in connected OT environments. These include network segmentation, strong authentication mechanisms, continuous monitoring, and limiting remote access pathways. The agencies note that these measures are intended to reduce the likelihood of disruptive incidents affecting essential services.

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Nvidia H200 chip sales to China cleared by US administration

The US administration has approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.

The US president announced the move last month, linking approval to a 25 per cent fee payable to the US government. The administration said the policy balances economic competitiveness with security interests, while critics warned it could strengthen China’s military and surveillance capabilities.

Under the new rules, Nvidia H200 chips may be shipped to China only after third-party testing verifies their performance. Chinese buyers are limited to 50 per cent of the volume sold to US customers and must provide assurances that the chips will not be used for military purposes.

Nvidia welcomed the decision, saying it would support US jobs and global competitiveness. However, analysts questioned whether the safeguards can be effectively enforced, noting that Chinese firms have previously accessed restricted technologies through intermediaries.

Chinese companies have reportedly ordered more than two million Nvidia H200 chips, far exceeding the chipmaker’s current inventory. The scale of demand has intensified debate over whether the policy will limit China’s AI ambitions or accelerate its access to advanced computing power.

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Grok to be integrated into Pentagon networks as the US expands military AI strategy

The US Department of Defence plans to integrate Elon Musk’s AI tool Grok into Pentagon networks later in January, according to Defence Secretary Pete Hegseth.

The system is expected to operate across both classified and unclassified military environments as part of a broader push to expand AI capabilities.

Hegseth also outlined an AI acceleration strategy designed to increase experimentation, reduce administrative barriers and prioritise investment across defence technology.

An approach that aims to enhance access to data across federated IT systems, aligning with official views that military AI performance relies on data availability and interoperability.

The move follows earlier decisions by the Pentagon to adopt Google’s Gemini for an internal AI platform and to award large contracts to Anthropic, OpenAI, Google and xAI for agentic AI development.

Officials describe these efforts as part of a long-term strategy to strengthen US military competitiveness in AI.

Grok’s integration comes amid ongoing controversy, including criticism over generated imagery and previous incidents involving extremist and offensive content. Several governments and regulators have already taken action against the tool, adding scrutiny to its expanded role within defence systems.

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AI race shows diverging paths for China and the US

The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.

The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.

Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.

Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.

Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.

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Crypto crime report 2025 reveals record nation-state activity

Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.

Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.

North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.

Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.

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Korean Air staff data exposed in supplier hack

Korean Air has disclosed a data breach affecting about 30,000 employees. Stolen records were taken from systems operated by a former subsidiary.

The breach occurred at catering supplier KC&D, sold off in 2020. Hackers, who had previously attacked the Washington Post accessed employee names and their bank account details, while customer data remained unaffected.

Investigators linked the incident to exploits in Oracle E-Business Suite. Cybercriminals abused zero day flaws during a wider global hacking campaign.

The attack against Korean Air has been claimed by the Cl0p ransomware group. Aviation firms worldwide have reported similar breaches connected to the same campaign.

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Health insurer Aflac suffers breach affecting 22.6 million

Aflac, a health and life insurer in the US, revealed that a cyberattack discovered in June affected over 22.6 million individuals. Personal and claims information, including social security numbers, may have been accessed.

The investigation found the attack likely originated from the Scattered Spider cybercrime group. Authorities were notified, and third-party cybersecurity experts were engaged to contain the incident.

Systems remained operational, and no ransomware was detected, with containment achieved within hours. Notifications have begun, and the insurer continues to monitor for potential fraudulent use of data.

Class-action lawsuits have been filed in response to the incident, which also affected employees, agents, and other related individuals. Erie and Philadelphia Insurance previously reported network issues linked to similar threats.

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Europe tightens cybersecurity around satellites

European governments are intensifying their efforts to safeguard satellites from cyberattacks as space becomes an increasingly vital front in modern security and hybrid warfare. Once seen mainly as technical infrastructure, satellites are now treated as strategic assets, carrying critical communications, navigation, and intelligence data that are attractive targets for espionage and disruption.

Concerns intensified after a 2022 cyberattack on the Viasat satellite network coincided with Russia’s invasion of Ukraine, exposing how vulnerable space systems can be during geopolitical crises. Since then, the EU institutions have warned of rising cyber and electronic interference against satellites and ground stations, while several European countries have flagged growing surveillance activities linked to Russia and China.

To reduce risks, Europe is investing in new infrastructure and technologies. One example is a planned satellite ground station in Greenland, backed by the European Space Agency, designed to reduce dependence on the highly sensitive Arctic hub in Svalbard. That location currently handles most European satellite data traffic but relies on a single undersea internet cable, making it a critical point of failure.

At the same time, the EU is advancing with IRIS², a secure satellite communication system designed to provide encrypted connectivity and reduce reliance on foreign providers, such as Starlink. Although the project promises stronger security and European autonomy, it is not expected to be operational for several years.

Experts warn that technology alone is not enough. European governments are still clarifying who is responsible for defending space systems, while the cybersecurity industry struggles to adapt tools designed for Earth-based networks to the unique challenges of space. Better coordination, clearer mandates, and specialised security approaches will be essential as space becomes more contested.

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