This week, US officials suspect Ukrainian involvement in the Kremlin drone attack, China bans US company Micron Tech, the US Surgeon General warns about the risks of youth social media use, and Alphabet and the European Commission aim to develop voluntary AI guidelines. Additionally, the aviation industry explores sustainable aviation fuels Microsoft warns of a Chinese hacking group targeting critical US infrastructure, Applied Materials plans to build a $4 billion R&D site in California, and Twitter's new API policy poses challenges for journalists combating disinformation.
Industrial Policy & International Security
Ukrainians Were Likely Behind Kremlin Drone Attack, US Officials Say | The New York Times
According to US officials, the recent drone attack on the Kremlin was likely carried out by one of Ukraine's special military or intelligence units. Although it is unclear whether the attack was directly authorized by the Ukrainian government, American spy agencies have identified groups of Ukrainian units capable of conducting covert operations inside and outside Russia. Apart from the drone attack, US officials believe Ukraine was also responsible for the assassination of a Russian nationalist's daughter, the killing of a pro-Russian blogger, and various attacks near the Russian border. While there were initial suspicions that the Kremlin drone attack might have been a Russian government "false flag" operation, intercepted communications convinced US officials that Russia was not responsible. The US has advised Ukraine against such covert attacks due to concerns that they may lead Moscow to escalate the war beyond Ukraine’s borders. Despite their limited influence on the war in Ukraine, these covert attacks have showcased Kyiv’s ability to penetrate Russia.
China has hit back with a Micron ban months after the US blacklisted Huawei | Quartz
The tension between China and the United States has escalated further as Beijing has banned Micron Tech, an Idaho-based chipmaker, from selling microchips to Chinese companies. The ban is attributed to "serious network security risks" found in Micron's products, which are deemed to pose a threat to China's critical information infrastructure and national security. As a result, operators of vital tech infrastructure in China will cease purchasing from Micron, causing a drop in the company's shares. This move follows months after the US government's ban on equipment approval from Huawei, ZTE, Dahua Technology, Hangzhou Hikvision Digital, and Hytera Communications, citing concerns about national security risks. The ongoing tech war between the two nations is having economic repercussions, with potential losses for China's GDP and the value of its currency, as well as adverse effects on US tech firms that rely on microchips for innovation and European companies in the semiconductor industry.
US Regulation
The surgeon general’s advisory on risks of youth social media use could shift the conversation | TechCrunch
US Surgeon General Dr. Vivek Murthy issued a public health warning about the potential risks of social media use among children and teenagers. While acknowledging the benefits of social platforms, Murth’s advisory emphasizes the current lack of sufficient evidence to determine if social media is safe for young people. The report highlights social media’s impact on mental health and brain development during adolescence—a “vulnerable period of brain development”—urging policymakers and tech companies to take action. Murthy recommends higher data privacy standards, age restrictions, increased research, and digital media literacy education in social media. The surgeon general’s advisory presents youth social media use as a public health crisis, calling for urgent measures to protect young minds. The White House plans to establish an interagency task force including the Department of Education, the Federal Trade Commission, and the Department of Justice to address this issue.
EU, Google to develop voluntary AI pact ahead of new AI rules, EU's Breton says | Reuters
Alphabet and the European Commission (EC) aim to collaborate on an artificial intelligence (AI) pact before official regulations are in place, according to EU industry chief Thierry Breton. Breton met with Sundar Pichai, CEO of Google and parent company Alphabet, in Brussels and emphasized the importance of developing voluntary AI guidelines with all developers. He also urged EU countries and lawmakers to finalize the Commission's proposed AI rules before year-end. Concerns are growing about the disruptive potential of AI, and governments seek to balance regulation with innovation. Additionally, EC Vice President Vera Jourova and Pichai discussed the spread of pro-Kremlin propaganda and disinformation on Google platforms and the monetization challenges faced by independent Russian media on YouTube.
Innovation
Everything you need to know about the wild world of alternative jet fuels | MIT Technology Review
The aviation industry is seeking to reduce its climate impact by using sustainable aviation fuels (SAFs) created from renewable sources. These fuels, including biofuels and synthetic electrofuels, have the potential to help achieve the energy industry's goal of net-zero carbon dioxide emissions by 2050. However, the effectiveness of SAFs in cutting emissions depends on factors such as their production process and source. Some SAFs can offset their carbon dioxide emissions, but others may actually produce more emissions than fossil fuels because of the way they are produced or how they affect ecosystems. Currently, most commercially available alternative jet fuels are made from fats, oils, and greases, reducing emissions by around 70 to 80 percent compared to fossil fuels. Transitioning to SAFs would require few adjustments to aircraft or airport infrastructure. Both the EU and US are beginning to implement policies that encourage the adoption of SAFs.
Cyber
Chinese group has hacked critical US infrastructure, Microsoft warns | Financial Times
Microsoft has issued a warning that a state-sponsored Chinese hacking group called "Volt Typhoon" compromised critical infrastructure in the United States. The primary focus of Volt Typhoon is believed to have been gathering intelligence and engaging in espionage rather than immediate disruption. However, Microsoft believes that their activities are also aimed at developing capabilities to disrupt crucial communications infrastructure between the United States and Asia during potential future crises. US cyber officials report that Volt Typhoon is using tools already installed in targeted devices (instead of downloaded files) to execute the hack, which makes the intrusion harder to detect. The US and international cybersecurity authorities jointly released a statement highlighting the threat posed by Chinese state-sponsored cyber threats. The Chinese foreign ministry responded to the allegations, saying the US “lacked evidence” and implied that the involvement of Microsoft indicates the US government is “expanding channels for disseminating false information.”
State & Local Tech Ecosystems
Applied Materials to build $4 billion R&D site with US aid | Bloomberg
Applied Materials Inc. plans to invest up to $4 billion in a research-and-development center called the EPIC Center near its California headquarters in Sunnyvale. The facility will be the largest of its kind in the semiconductor equipment and processes industry. The project aims to accelerate the development of new production techniques for Applied Materials, the leading seller of chipmaking gear, and its customers. The company's decision to build in Silicon Valley is driven by the proximity to semiconductor-focused companies like Intel, Nvidia, and Advanced Micro Devices. Applied Materials seeks to benefit from the US Chips and Science Act, which allocates around $52 billion for domestic R&D and manufacturing revitalization. The EPIC Center will allow chip manufacturers to test new machinery and refine production technologies, reducing the time it takes for academic research to reach the factory floor. It will also support talent attraction and training for the industry. The project is expected to increase Applied Materials' capital spending without affecting its ability to fund dividends and share repurchases.
Democracy Online
A new Twitter policy cripples journalists’ efforts to halt disinformation | The Hill
Shannon Jankowski, program director for journalism and disinformation at PEN America, writes that Twitter’s new API policy compromises journalists’ ability to expose disinformation by pricing out bot detection tools. Experts believe this new policy could facilitate the spread of disinformation during the upcoming 2024 election season and undermine election integrity and public confidence. These tools, such as Bot Sentinel, Botometer, and Hoaxy, rely on Twitter's API to analyze automated platform activity and assess the accuracy of shared stories. With the amended API structure, the price of operating bot detection tools may cost up to $42,000 per month, threatening the availability of these tools. The situation poses a significant challenge to researchers, nonprofits, and journalists that either run or access bot detection services to combat disinformation. Jankowski argues that Twitter should reconsider its fees and ensure free API access for public interest purposes, including bot detection and protection against online harassment.
