These artificial avatars would operate on social media and online platforms, featuring realistic expressions and high-quality images akin to government IDs. JSOC also seeks technologies to produce convincing facial and background videos, including ‘selfie videos’, to avoid detection by social media algorithms.
US state agencies have previously announced frameworks to combat foreign information manipulation, citing national security threats from these technologies. Despite recognising the global dangers posed by deepfakes, SOCOM’s initiative underscores a willingness to engage with the technology for potential military advantage.
Experts expressed concern over the ethical implications and potential for increased misinformation, warning of the entirely deceptive nature of deepfakes, with no legitimate applications beyond deceit, possibly encouraging further global misuse. Furthermore, such practices pose the risk of diminished public trust in government communications, exacerbated by perceived hypocrisy in deploying such technology.
Why does it matter?
This plan reflects an ongoing interest in leveraging digital manipulation for military purposes, despite previous incidents where platforms like Meta dismantled similar US-linked networks. It further shows a contradiction in the US’s stance on deepfake use, as it simultaneously condemns similar actions by countries like Russia and China.
Republican presidential candidate Donald Trump revealed that he spoke with Apple CEO Tim Cook about the financial penalties imposed on the tech giant by the European Union. Trump claimed that Cook informed him about a recent $15 billion fine from the EU, along with an additional $2 billion penalty, although Apple has not confirmed the details of the call.
The EU is investigating major tech companies to limit their influence and promote fair competition for smaller businesses. Recently, Apple encountered major challenges, including a court ruling that required the company to pay about $14 billion in back taxes to Ireland. Additionally, Apple was hit with a $2 billion antitrust fine for allegedly restricting competition in the music streaming sector via its App Store.
During the podcast with Patrick Bet-David, Trump expressed his commitment to protect American companies from what he described as unfair treatment. He stated, ‘Tim, I got to get elected first. But I’m not going to let them take advantage of our companies.’ Trump and Democrat Kamala Harris are currently in a tight race for the 5 November presidential election.
Funding for AI and cloud companies in the United States, Europe, and Israel is experiencing a resurgence, after three years of decline, and is expected to reach $79.2 billion by the end of 2024, according to venture capital firm Accel. This marks a 27% increase compared to the $62.5 billion invested in 2023. Generative AI is playing a major role, accounting for around 40% of this year’s investments.
Of the $56 billion invested in generative AI over the past two years, 80% went to US-based companies, with the remainder split between Europe and Israel. In the US, OpenAI, Anthropic, and Elon Musk’s xAI led funding rounds, while Europe saw significant investment in companies like Mistral, Aleph Alpha, and DeepL. AI foundation models attracted two-thirds of the total AI investment during this period.
Generative AI investment in Europe is growing quickly, rising from $2.4 billion in 2023 to $6.4 billion in 2024. By comparison, the US saw $25 billion in funding for private AI companies in 2024. Accel noted, however, that outside of AI, the focus in the tech industry has shifted towards profitability, signalling the end of an era of high growth in software.
Despite the shift, the booming AI sector is seen as transformative, with Accel partner Philippe Botteri comparing the current AI wave to other major technological shifts like the rise of broadband, mobile, and cloud computing.
The United States Federal Trade Commission (FTC) has introduced a new ‘click to cancel‘ rule, designed to simplify the process of ending subscriptions. The rule mandates that businesses must make it just as easy for consumers to cancel a subscription as it is to sign up for one, and requires customer consent before renewing subscriptions or converting free trials into paid services.
Under the new regulations, businesses will no longer be allowed to force customers to navigate chatbots or agents to cancel subscriptions initiated via an app or website. The rule will take effect in about six months and aims to save consumers time and money by eliminating unnecessary hurdles. For subscriptions made in person, companies must provide an option to cancel by phone or online.
The FTC has previously sued Amazon and Adobe for making it difficult for consumers to cancel subscriptions. Amazon was accused of using misleading website designs to push people into automatic Prime renewals, while Adobe allegedly imposed hidden fees and unclear cancellation terms. Both companies have rejected the claims.
Similar measures have also been adopted in the United Kingdom. The Digital Markets, Competition and Consumers Act 2024 ensures that businesses must give clear information to customers before they enter into subscription agreements, and make it easier for them to cancel or end contracts.
The Cybersecurity Association of China (CSAC) has urged a security review of Intel’s products in China, alleging that the US chipmaker poses a national security risk. Although CSAC is an industry group, it has strong connections to the Chinese government, and its claims may prompt action from the Cyberspace Administration of China (CAC).
CSAC’s post on WeChat accuses Intel’s chips, including its Xeon processors used for AI, of containing vulnerabilities and backdoors allegedly tied to the US NSA. The group warns that using Intel products threatens China’s national security and critical infrastructure.
This recommendation comes amid growing US-China tensions over technology and trade. Last year, the CAC banned Chinese infrastructure operators from using products from Micron Technology after a security review, raising concerns that Intel could face a similar outcome.
Intel’s China unit responded, emphasising its commitment to product safety and quality. The company stated on its WeChat account that it will cooperate with authorities to clarify concerns. If the CAC carries out a security review, it could impact Intel’s sales in its significant Chinese market. Intel’s shares recently dropped 2.7% in US premarket trading.
Wolfspeed is set to receive $750 million in government grants for its new silicon carbide wafer manufacturing plant in North Carolina, as announced by the US Commerce Department. This funding news caused the US chipmaker’s shares to surge over 30%. The preliminary agreement requires Wolfspeed to strengthen its balance sheet to safeguard taxpayer funds.
Investment firms, led by Apollo Global Management, have pledged an additional $750 million in financing for Wolfspeed. The company produces energy-efficient chips using silicon carbide, crucial for applications like electric vehicles and renewable energy systems. As part of a larger $6 billion expansion plan, Wolfspeed aims to increase its manufacturing capacity in Marcy, New York.
Wolfspeed anticipates up to $1 billion in cash tax refunds from the advanced manufacturing tax credit under the Chips and Science Act. CEO Gregg Lowe highlighted the significance of Wolfspeed’s products to the US economy and national security. However, the company has encountered difficulties this year, with its stock plummeting nearly 75% due to a decline in electric vehicle demand. The grant remains subject to due diligence and is not yet finalised.
The US Department of Justice (DOJ) has released a significant Statement of Interest, urging scrutiny of surveys and information exchanges managed by trade associations. The DOJ expressed concerns that such exchanges may create unique risks to competition, particularly when competitors share sensitive information exclusively among themselves.
According to the DOJ, antitrust laws will evaluate the context of any information exchange to determine its potential impact on competition. Sharing competitively sensitive information could disproportionately benefit participating companies at the expense of consumers, workers, and other stakeholders. The department noted that advancements in AI technology have intensified these concerns, allowing large amounts of detailed information to be exchanged quickly, potentially heightening the risk of anticompetitive behaviour.
This guidance follows the DOJ’s withdrawal of long-standing rules that established “safety zones” for information exchanges, which previously indicated that certain types of sharing were presumed lawful. By retracting this guidance, the DOJ signals a shift toward a more cautious, case-by-case approach, urging businesses to prioritise proactive risk management.
The DOJ’s statement, made in relation to an antitrust case in the pork industry, has wider implications for various sectors, including real estate. It highlights the need for organisations, such as Multiple Listing Services (MLS) and trade associations, to evaluate their practices and avoid environments that could lead to price-fixing or other anticompetitive behaviours. The DOJ encourages trade association executives to review their information-sharing protocols, educate members on legal risks, and monitor practices to ensure compliance with antitrust laws.
A recent Microsoft report claims that Russia, China, and Iran are increasingly collaborating with cybercriminals to conduct cyber espionage and hacking operations. This partnership blurs the lines between state-directed activities and the illicit financial pursuits typical of criminal networks. National security experts emphasise that this collaboration allows governments to amplify their cyber capabilities without incurring additional costs while offering criminals new profit avenues and the security of government protection.
The report, which analyses cyber threats from July 2023 to June 2024, highlights the significant increase in cyber incidents, with Microsoft reporting over 600 million attacks daily. Russia has focused its efforts primarily on Ukraine, attempting to infiltrate military and governmental systems while spreading disinformation to weaken international support. Meanwhile, as the US election approaches, both Russia and Iran are expected to intensify their cyber operations aimed at American voters.
Despite allegations, countries like China, Russia, and Iran have denied collaborating with cybercriminals. China’s embassy in Washington dismissed these claims as unfounded, asserting that the country actively opposes cyberattacks. Efforts to combat foreign disinformation are increasing, yet the fluid nature of the internet complicates these initiatives, as demonstrated by the rapid resurgence of websites previously seized by US authorities.
Overall, the evolving landscape of cyber threats underscores the growing interdependence between state actors and cybercriminals, posing significant risks to national security and public trust.
Chip stocks took a sharp hit after ASML, a leading chip equipment maker, lowered its annual sales forecast due to weak demand for non-AI chips. This downturn raised concerns about the broader semiconductor market, even as AI-related chips remain in high demand. Nvidia, a major player in the AI chip sector, saw its stock drop 4.5%, erasing $158 billion in market value, while other key chipmakers like AMD, Intel, and Micron also saw declines.
ASML’s early results revealed a slowdown in bookings and delayed orders from logic chip manufacturers, as well as limited new capacity plans from memory chip makers. This caused US and Asian semiconductor stocks to slide, with the Philadelphia Semiconductor Index down nearly 5%. Despite growth in AI chips, the overall chip market remains under pressure, with many factories holding off on new equipment purchases as demand stabilises.
The chip industry had expanded rapidly during the pandemic, but now faces a period of slower recovery outside the AI segment. Adding to the uncertainty, US officials are considering restrictions on exporting AI chips to certain countries over national security concerns, further complicating the outlook for the sector.
On Monday, Britain announced a major investment of £6.3 billion ($8.2 billion) by US companies ServiceNow, CyrusOne, CloudHQ, and CoreWeave in UK data centre technology. This announcement aligns with the UK government’s broader economic plans, as Prime Minister Keir Starmer hosts the International Investment Summit in London, gathering hundreds of global business leaders.
At the summit, the government is set to unveil an additional £50 billion ($65 billion) in new investments aimed at stimulating growth in sectors like AI, life sciences, and infrastructure. Starmer, emphasising the importance of private sector involvement, aims to create a stable environment that fosters economic expansion, aligning with his Labour Party’s commitment to boosting the economy.
The event will also feature discussions between ministers and business leaders on capitalising on opportunities in emerging industries, including health tech, clean energy, and creative sectors.
