Cyberconflict and warfare

Tech giants back Trump’s AI deregulation plan amid public concern over societal impacts

Donald Trump recently hosted an AI summit in Washington, titled ‘Winning the AI Race,’ geared towards a deregulated atmosphere for AI innovation. Key figures from the tech industry, including Nvidia’s CEO Jensen Huang and Palantir’s CTO Shyam Sankar, attended the event.

Co-hosted by the Hill and Valley Forum and the Silicon Valley All-in Podcast, the summit was a platform for Trump to introduce his ‘AI Action Plan‘, comprised of three executive orders focusing on deregulation. Trump’s objective is to dismantle regulatory restrictions he perceives as obstacles to innovation, aiming to re-establish the US as a leader in AI exportation globally.

The executive orders announced target the elimination of ‘ideological dogmas such as diversity, equity, and inclusion (DEI)’ in AI models developed by federally funded companies. Additionally, one order promotes exporting US-developed AI technologies internationally, while another seeks to lessen environmental restrictions and speed up approvals for energy-intensive data centres.

These measures are seen as reversing the Biden administration’s policies, which stressed the importance of safety and security in AI development. Technology giants Apple, Meta, Amazon, and Alphabet have shown significant support for Trump’s initiatives, contributing to his inauguration fund and engaging with him at his Mar-a-Lago estate. Leaders like OpenAI’s Sam Altman and Nvidia’s Jensen Huang have also pledged substantial investments in US AI infrastructure.

Despite this backing, over 100 groups, including labour, environmental, civil rights, and academic organisations, have voiced their opposition through a ‘People’s AI action plan’. These groups warn of the potential risks of unregulated AI, which they fear could undermine civil liberties, equality, and environmental safeguards.

They argue that public welfare should not be compromised for corporate gains, highlighting the dangers of allowing tech giants to dominate policy-making. That discourse illustrates the divide between industry aspirations and societal consequences.

The tech industry’s influence on AI legislation through lobbying is noteworthy, with a report from Issue One indicating that eight of the largest tech companies spent a collective $36 million on lobbying in 2025 alone. Meta led with $13.8 million, employing 86 lobbyists, while Nvidia and OpenAI saw significant increases in their expenditure compared to previous years. The substantial financial outlay reflects the industry’s vested interest in shaping regulatory frameworks to favour business interests, igniting a debate over the ethical responsibilities of unchecked AI progress.

As tech companies and pro-business entities laud Trump’s deregulation efforts, concerns persist over the societal impacts of such policies.

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China issues action plan for global AI governance and proposes global AI cooperation organisation

At the 2025 World AI Conference in Shanghai, Chinese Premier Li Qiang urged the international community to prioritise joint efforts in governing AI, making reference to a need to establish a global framework and set of rules widely accepted by the global community. He unveiled a proposal by the Chinese government to create a global AI cooperation organisation to foster international collaboration, innovation, and inclusivity in AI across nations.

‘China attaches great importance to global AI governance, and has been actively promoting multilateral and bilateral cooperation with a willingness to offer more Chinese solutions‘.

An Action Plan for AI Global Governance was also presented at the conference. The plan outlines, in its introduction, a call for ‘all stakeholders to take concrete and effective actions based on the principles of serving the public good, respecting sovereignty, development orientation, safety and controllability, equity and inclusiveness, and openness and cooperation, to jointly advance the global development and governance of AI’.

The document includes 13 points related to key areas of international AI cooperation, including promoting inclusive infrastructure development, fostering open innovation ecosystems, ensuring high-quality data supply, and advancing sustainability through green AI practices. It also calls for consensus-building around technical standards, advancing international cooperation on AI safety governance, and supporting countries – especially those in the Global South – in ‘developing AI technologies and services suited to their national conditions’.

Notably, the plan indicates China’s support for multilateralism when it comes to the governance of AI, calling for an active implementation of commitments made by UN member states in the Pact for the Future and the Global Digital Compact, and expressing support for the establishment of the International AI Scientific Panel and a Global Dialogue on AI Governance (whose terms of reference are currently negotiated by UN member states in New York).

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US senator urges Musk to block Starlink use by Southeast Asian criminal networks

US Senator Maggie Hassan has called on SpaceX CEO Elon Musk to take immediate action against transnational criminal groups in Southeast Asia, which are allegedly using Starlink satellite internet to perpetrate massive online fraud schemes targeting American citizens.

In a letter seen by Reuters, the senator highlighted the growing role of Starlink in enabling so-called ‘scam compounds’ operated by criminal syndicates across Myanmar, Thailand, Cambodia, and Laos.

According to the US Treasury’s Financial Crimes Enforcement Network, the fraud networks have collectively cost Americans billions of dollars.

Senator Hassan emphasised that although SpaceX’s service rules allow for termination of access in cases of fraudulent activity, Starlink appears to remain active in regions where these scams flourish. She urged Musk to uphold SpaceX’s stated standards and take responsibility for cutting off illicit use of the service.

The scam compounds in question are more than just virtual hubs; reportedly, they are the sites of forced labour and human trafficking. Reports, including those from the UN, detail how hundreds of thousands of people have been trafficked into these centres, where they are coerced into operating elaborate online fraud schemes. These often target victims in the US and around the world through phishing messages, fake investment offers, and digital extortion.

The region has taken some steps to curb these operations. Since February, Thailand has actively disrupted resources such as electricity and internet to areas along its border with Myanmar, notably Myawaddy, where many scam centres are based. However, satellite services like Starlink can bypass these traditional infrastructure shutdowns, enabling fraud operations to persist despite regional crackdowns.

The criminal networks, many of which have roots in China, have also captured international attention due to high-profile cases. One such case was the January abduction of Chinese actor Wang Xing, who was kidnapped after arriving in Thailand and later rescued across the border in Myanmar by Thai authorities.

The incident further exposed these networks’ dangerous and organised nature, prompting broader calls for transnational cooperation and tech-sector accountability.

Source: Reuters

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Allianz breach affects most US customers

Allianz Life has confirmed a major cyber breach that exposed sensitive data from most of its 1.4 million customers in North America.

The attack was traced back to 16 July, when a threat actor accessed a third-party cloud system using social engineering tactics.

The cybersecurity breach affected a customer relationship management platform but did not compromise the company’s core network or policy systems.

Allianz Life acted swiftly by notifying the FBI and other regulators, including the attorney general’s office in Maine.

Those impacted are offered two years of credit monitoring and identity theft protection. The company has begun contacting affected individuals but declined to reveal the full number involved due to an ongoing investigation.

No other Allianz subsidiaries were affected by the breach. Allianz Life employs around 2,000 staff in the US and remains a key player within the global insurer’s North American operations.

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The US push for AI dominance through openness

In a bold move to maintain its edge in the global AI race—especially against China—the United States has unveiled a sweeping AI Action Plan with 103 recommendations. At its core lies an intriguing paradox: the push for open-source AI, typically associated with collaboration and transparency, is now being positioned as a strategic weapon.

As Jovan Kurbalija points out, this plan marks a turning point where open-weight models are framed not just as tools of innovation, but as instruments of geopolitical influence, with the US aiming to seed the global AI ecosystem with American-built systems rooted in ‘national values.’

The plan champions Silicon Valley by curbing regulations, limiting federal scrutiny, and shielding tech giants from legal liability—potentially reinforcing monopolies. It also underlines a national security-first mentality, urging aggressive safeguards against foreign misuse of AI, cyber threats, and misinformation. Notably, it proposes DARPA-led initiatives to unravel the inner workings of large language models, acknowledging that even their creators often can’t fully explain how these systems function.

Internationally, the plan takes a competitive, rather than cooperative, stance. Allies are expected to align with US export controls and values, while multilateral forums like the UN and OECD are dismissed as bureaucratic and misaligned. That bifurcation risks alienating global partners—particularly the EU, which favours heavy AI regulation—while increasing pressure on countries like India and Japan to choose sides in the US–China tech rivalry.

Despite its combative framing, the strategy also nods to inclusion and workforce development, calling for tax-free employer-sponsored AI training, investment in apprenticeships, and growing military academic hubs. Still, as Kurbalija warns, the promise of AI openness may clash with the plan’s underlying nationalistic thrust—raising questions about whether it truly aims to democratise AI, or merely dominate it.

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Microsoft hacking campaign expands into ransomware attacks

A state-aligned cyber-espionage campaign exploiting Microsoft server software vulnerabilities has escalated to ransomware deployment, according to a Microsoft blog post published late Wednesday.

The group, dubbed ‘Storm-2603’ by Microsoft, is now using the SharePoint vulnerability to spread ransomware that can lock down systems and demand digital payments. This shift suggests a move from espionage to broader disruption.

according to Eye Security, a cybersecurity firm from the Netherlands, the number of known victims has surged from 100 to over 400, with the possibility that the true figure is likely much higher.

‘There are many more, because not all attack vectors have left artefacts that we could scan for,’ said Eye Security’s chief hacker, Vaisha Bernard.

One confirmed victim is the US National Institutes of Health, which isolated affected servers as a precaution. Reports also indicate that the Department of Homeland Security and several other agencies have been impacted.

The breach stems from an incomplete fix to Microsoft’s SharePoint software vulnerability. Both Microsoft and Google-owner Alphabet have linked the activity to Chinese hackers—a claim Beijing denies.

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US lawmaker proposes to train young Americans in AI for cyberwarfare

In a Washington Post opinion piece, Rep. Elise Stefanik and Stephen Prince, CEO of TFG Asset Management, argue that the United States is already engaged in a new form of warfare — cyberwarfare — waged by adversaries like China, Russia, and Iran using tools such as malware, phishing, and zero-day exploits. They assert that the US is not adequately prepared to defend against these threats due to a significant shortage of cyber talent, especially within the military and government.

To address this gap, the authors propose the creation of the United States Advanced Technology Academy (USATA) — a tuition-free, government-supported institution that would train a new generation of Americans in cybersecurity, AI, and quantum computing. Modelled after military academies, USATA would be located in upstate New York and require a five-year public service commitment from graduates.

The goal is to rapidly develop a pipeline of skilled cyber defenders, close the Pentagon’s estimated 30,000-person cyber personnel shortfall, and maintain US leadership in strategic technologies. Stefanik and Prince argue that while investing in AI tools and infrastructure is essential, equally critical is the cultivation of human expertise to operate, secure, and ethically deploy these tools. They position USATA not just as an educational institution but as a national security imperative.

The article places the academy within a broader effort to outpace rivals like China, which is also actively investing in STEM education and tech capacity. The authors call on the President to establish USATA via executive order or bipartisan congressional support, framing it as a decisive and forward-looking response to 21st-century threats.

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EU and Japan deepen AI cooperation under new digital pact

In May 2025, the European Union and Japan formally reaffirmed their long-standing EU‑Japan Digital Partnership during the third Digital Partnership Council in Tokyo. Delegations agreed to deepen collaboration in pivotal digital technologies, most notably artificial intelligence, quantum computing, 5G/6G networks, semiconductors, cloud, and cybersecurity.

A joint statement committed to signing an administrative agreement on AI, aligned with principles from the Hiroshima AI Process. Shared initiatives include a €4 million EU-supported quantum R&D project named Q‑NEKO and the 6G MIRAI‑HARMONY research effort.

Both parties pledge to enhance data governance, digital identity interoperability, regulatory coordination across platforms, and secure connectivity via submarine cables and Arctic routes. The accord builds on the Strategic Partnership Agreement activated in January 2025, reinforcing their mutual platform for rules-based, value-driven digital and innovation cooperation.

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Ransomware activity drops 43% in Q2 despite year‑on‑year rise

Ransomware incidents fell sharply in Q2 2025, with public disclosures dropping 43% from Q1 (from 22.9 to 17.5 cases per day). However, attacks remain elevated compared to the same quarter last year, showing a 43% year‑on‑year increase. In total, 1,591 new victims appeared on leak sites, confirming ransomware is still a serious and growing threat.

This decline coincided with law enforcement disruption of major operations such as Alphv/BlackCat and LockBit, alongside seasonal lulls like Easter and Ramadan. Meanwhile, active ransomware groups surged to 71, up from 41 in Q2 2024, indicating a fragmented threat landscape populated by smaller actors.

North America continued to absorb over half of all attacks, with healthcare, industrial manufacturing, and business services among the most affected sectors. Although overall volume dipped, newer threat actors remain agile, and fragmentation may fuel more covert ransomware behaviour, not less.

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UK to retaliate against cyber attacks, minister warns

Britain’s security minister has warned that hackers targeting UK institutions will face consequences, including potential retaliatory cyber operations.

Speaking to POLITICO at the British Library — still recovering from a 2023 ransomware attack by Rysida — Security Minister Dan Jarvis said the UK is prepared to use offensive cyber capabilities to respond to threats.

‘If you are a cybercriminal and think you can attack a UK-based institution without repercussions, think again,’ Jarvis stated. He emphasised the importance of sending a clear signal that hostile activity will not go unanswered.

The warning follows a recent government decision to ban ransom payments by public sector bodies. Jarvis said deterrence must be matched by vigorous enforcement.

The UK has acknowledged its offensive cyber capabilities for over a decade, but recent strategic shifts have expanded its role. A £1 billion investment in a new Cyber and Electromagnetic Command will support coordinated action alongside the National Cyber Force.

While Jarvis declined to specify technical capabilities, he cited the National Crime Agency’s role in disrupting the LockBit ransomware group as an example of the UK’s growing offensive posture.

AI is accelerating both cyber threats and defensive measures. Jarvis said the UK must harness AI for national advantage, describing an ‘arms race’ amid rapid technological advancement.

Most cyber threats originate from Russia or its affiliated groups, though Iran, China, and North Korea remain active. The UK is also increasingly concerned about ‘hack-for-hire’ actors operating from friendly nations, including India.

Despite these concerns, Jarvis stressed the UK’s strong security ties with India and ongoing cooperation to curb cyber fraud. ‘We will continue to invest in that relationship for the long term,’ he said.

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