The incoming Trump administration is set to explore ways to impose higher costs on adversaries and private actors behind cyber attacks, according to Representative Mike Waltz, the pick for national security adviser. Waltz’s statement follows US allegations that a widespread Chinese cyberespionage operation, known as Salt Typhoon, targeted senior American officials and stole significant amounts of metadata.
The White House has revealed that at least eight telecommunications and infrastructure firms in the US were compromised during this campaign. While Waltz did not specify potential actions against Salt Typhoon, he emphasised the need to go beyond defensive measures and start taking offensive actions to deter cyber threats.
Waltz also highlighted the role of the US tech industry in strengthening national defence and exposing vulnerabilities in adversaries. Meanwhile, Chinese officials continue to deny involvement, dismissing the accusations as disinformation and asserting that Beijing opposes cyber attacks in all forms.
The US Commerce Department announced a preliminary deal to provide German auto supplier Bosch with up to $225 million in subsidies to produce silicon carbide (SiC) power semiconductors in California. The funding supports Bosch’s $1.9 billion transformation of its Roseville facility, with an additional $350 million in proposed government loans. This effort draws from the $52.7 billion fund established in 2022 to bolster US semiconductor production and research.
Bosch plans to begin manufacturing SiC chips, critical for electric vehicles, telecommunications, and defence, by 2026. These chips, known for their energy efficiency, play a vital role in improving electric vehicle performance and charging capabilities. The Commerce Department estimates the project could represent over 40% of US-based SiC manufacturing capacity once fully operational.
The investment aligns with Bosch’s strategy following its 2023 acquisition of TSI Semiconductors and highlights the growing importance of domestic chip production after pandemic-related supply chain disruptions. Representative Doris Matsui, who helped craft the semiconductor funding law, praised the move as a step toward advancing clean energy technologies and electric vehicle development in the US.
Singaporean asset manager Keppel and Vietnam’s Sovico Group are in discussions to develop undersea fibre-optic cables aimed at boosting Southeast Asia’s data centre industry. The potential $150 million project would directly link Vietnam with Singapore, a critical regional hub for data infrastructure. However, talks remain fluid, with Keppel reportedly favouring a larger consortium-led project extending from Singapore to Japan, while Sovico supports a direct connection.
The discussions highlight Southeast Asia’s growing demand for AI services and internet capacity, with Vietnam planning 10 new submarine cables by 2030. These cables are also a focal point in the ongoing US-China tech rivalry, with the United States lobbying against the involvement of Chinese contractors, citing security concerns. US officials have reportedly briefed Sovico and other stakeholders on the risks of working with China’s HMN Technologies.
Vietnam, with a rapidly growing digital economy and a population nearing 100 million, currently relies on five undersea cable branches for global connectivity. Expanding its cable infrastructure is seen as key to establishing itself as a regional data hub, despite challenges like power shortages and stringent data regulations. Keppel and Sovico’s efforts, along with other planned projects, signal significant investment in the region’s digital future.
The US Securities and Exchange Commission (SEC) has reopened its investigation into Neuralink, Elon Musk’s brain-chip startup, according to a letter shared by Musk on X, formerly known as Twitter. The letter, dated Dec. 12 and written by Musk’s attorney Alex Spiro, also revealed that the SEC issued Musk a 48-hour deadline to settle a probe into his $44 billion takeover of Twitter or face charges. The settlement amount remains undisclosed.
Musk’s tumultuous relationship with the SEC has resurfaced amid allegations that he misled investors about Neuralink’s brain implant safety. Despite ongoing investigations, the extent to which the SEC can take action against Musk is uncertain. Musk, who also leads Tesla and SpaceX, is positioned to gain significant political leverage after investing heavily in supporting Donald Trump’s presidential campaign. Trump, in turn, has appointed Musk to a government reform task force, raising questions about potential regulatory leniency toward his ventures.
In the letter, Spiro criticised the SEC’s actions, stating Musk would not be “intimidated” and reserving his legal rights. This marks the latest in a series of clashes between Musk and the SEC, including a 2018 lawsuit over misleading Tesla-related tweets, which Musk settled by paying $20 million and stepping down as Tesla chairman. Both the SEC and Neuralink have yet to comment on the reopened investigation.
Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.
Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.
China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.
Swiss robotics firm Anybotics has raised an additional $60 million, closing its Series B round at $110 million. Known for its Anymal quadruped robot, the company focuses on automating routine inspections in complex industrial environments such as oil and gas, mining, and utilities. Equipped with sensors and cameras, Anymal enhances safety and productivity by detecting issues like thermal anomalies and gas leaks, minimising human exposure to hasardous areas.
Since first announcing the Series B round 18 months ago, the Swiss Zürich-based startup has doubled its robot deployments, with nearly 200 units now operational across various industries. Clients include major companies such as Novelis and Iamgold, as well as Stanford University, which uses the technology for advanced research.
The new funding will support Anybotics’ expansion into the US following the opening of its San Francisco office. Co-led by Qualcomm Ventures and Supernova Invest, the investment ensures the company can scale its operations globally, with plans for a broader product portfolio and industry applications in the future.
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.
The US Supreme Court has dismissed an appeal by Nvidia, rejecting its attempt to block a securities fraud lawsuit accusing the chipmaker of misleading investors about its reliance on the volatile cryptocurrency market. The decision upholds a lower court’s ruling, allowing a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB to proceed. The justices, offering no explanation in their one-line order, had previously expressed hesitation about addressing the case’s technical and factual complexities during November arguments.
The lawsuit centres on allegations that Nvidia’s leadership, including CEO Jensen Huang, downplayed how much of the company’s 2017-2018 revenue growth stemmed from crypto-related purchases. Nvidia’s chips gained popularity during the cryptocurrency boom but faced a sales slump when the market cooled in late 2018, leading to a drop in the company’s stock price. A federal judge initially dismissed the case, but the Ninth Circuit Court of Appeals revived it, concluding that plaintiffs sufficiently alleged Nvidia knowingly made misleading statements.
Nvidia has denied wrongdoing and vowed to continue its defence, emphasising the need for clear standards in securities litigation to protect shareholders. However, the plaintiffs argue their case is well-supported by expert analysis and insider accounts. Deepak Gupta, representing the shareholders, called the Supreme Court’s dismissal a victory for corporate accountability. President Biden’s administration backed the investors, reflecting broader concerns about corporate transparency in securities practices.
This case mirrors another recent Supreme Court decision involving Meta, where justices also dismissed a securities fraud lawsuit. Both rulings highlight the challenges of navigating legal thresholds for investor class actions under stringent US securities laws.
Russia has unveiled plans to create an AI alliance with BRICS countries Brazil, China, India, and South Africa along with other interested nations. President Vladimir Putin made the announcement at a major AI conference in Moscow, highlighting the initiative as a key step to challenge the dominance of the United States in the rapidly advancing field of AI.
The AI Alliance Network will promote joint research, technology development, and regulation among member nations. Despite Western sanctions that have hampered Russia’s access to essential AI hardware like microchips, domestic leaders like Sberbank and Yandex are driving innovation with generative AI models such as GigaChat and YandexGPT.
Russia also has ambitious plans to integrate AI across its economy, targeting a contribution of 11.2 trillion roubles to GDP by 2030 and training 80% of its workforce in AI skills. While the country currently lags behind global leaders like the US and China in AI development, this alliance could mark a turning point in its technological aspirations.
Italy is revamping its web tax to target large tech companies while sparing small and medium-sized enterprises (SMEs) and publishing groups, government officials announced. The move aims to balance domestic fiscal needs with international concerns, especially those raised by the United States, which has criticised the tax as unfairly targeting US-based firms like Meta, Google, and Amazon.
Introduced in 2019, the 3% tax applies to digital firms with global revenues exceeding €750 million and at least €5.5 million generated in Italy. Recent attempts by Italy’s Treasury to expand the tax’s scope were met with backlash, prompting officials to retain the original revenue thresholds to avoid burdening smaller companies.
Economy Minister Giancarlo Giorgetti argued that a broader tax base could reduce friction with the US, but internal government opposition led to a pivot. Rome also plans to cut corporate taxes for companies that invest and create jobs, offsetting the cost by raising €5 billion from banks and insurers over three years through measures outlined in the 2025 budget. By refining its approach, Italy seeks to strike a balance between fiscal responsibility and fostering a favorable business environment for smaller enterprises.
