In this week’s edition, The Washington Post looks back on the road to war in Ukraine, the US announces a $775 million aid package to Ukraine, Nancy Pelosi’s visit alters the status quo in the Taiwan Strait, the Department of Energy allocates $45 million to secure the grid, and DEF CON attendees aim to make election equipment more secure. Additionally, carbon tech draws record funding, US state attorney generals push back against ESG investment, the State Department offers a reward for information about Conti members, and TikTok prepares for the midterm elections.
Industrial Policy & International Security
Road to war: U.S. struggled to convince allies, and Zelensky, of risk of invasion | The Washington Post
In the year leading up to Russia’s invasion of Ukraine, the Biden Administration was increasingly concerned by the picture US intelligence painted of Putin’s intentions. This time last summer, analysts believed Russia’s window of opportunity–underwritten by their regional energy dominance, economic resiliency, and leadership transitions in Europe–was closing and an invasion was increasingly likely. US government officials initiated a campaign in Europe to reinvigorate NATO in support of Ukraine but faced significant challenges. US credibility had been damaged by Trump’s presidency and intelligence blunders in the Middle East. And Europe was divided on the accuracy of US intelligence, which often left out details that would allow for external validation. Ukraine was similarly frustrated by information not shared, but that changed after the invasion. While interpretations of the months leading up to the war continue to diverge, the conversations and coordination that did occur laid the groundwork for a more unified response when Russia fired missiles into Ukraine in February.
Pentagon announces extra $775M in weapons to Ukraine | The Hill
The US announced a new $775 million assistance package to Ukraine this Friday. As the war comes to an operational standstill in the eastern part of the country, additional resources could make a critical difference on the battlefield. This latest aid package includes missiles, drones, vehicles, mine clearing equipment, and ammunition; High-Speed Anti-Radiation Missiles can be fired from aircraft and used against radar-equipped air defense systems and ScanEagle unmanned aerial systems (provided for the first time) can be used for intelligence, surveillance, and reconnaissance operations on the front lines. This package follows $1 billion in weapons and equipment committed earlier in August and brings the total in US military assistance to Ukraine to over $10 billion since August 2021.
How Nancy Pelosi’s Taiwan gambit backfired | Foreign Policy
Nancy Pelosi’s visit to Taiwan and meeting with President Tsai Ing-wen may have significantly altered the status quo in the Taiwan Strait. Since President Biden assumed office, China’s doubts about the United States’ adherence to the “One China” policy have increased. Pelosi’s visit instigated and provided political cover for aggressive military exercises that included launching four Dongfeng missiles over Taipei and flying aircraft across the informal maritime border that divides the Strait. A joint PLA force also conducted a simulated attack on Taiwan and announced further drills in the Yellow Sea. The demonstration unveiled Beijing’s deep strategic and tactical preparation (in stark contrast to Russia’s prewar planning to invade Ukraine) and raised questions about international support for Taiwan. Some US firms are considering exiting the country and neighbors in Southeast Asia and India were noticeably neutral.
US Regulation
On acquisitions, Beltway and tech talk past each other | Axios
While the Federal Trade Commission believes Meta’s proposed acquisition of Within Unlimited, a virtual reality fitness game, is illegal, venture capitalists and others in tech see the acquisition as a success within the industry. Startups often have two paths to success: either go public or get acquired by a much larger company. Getting acquired is much faster than securing an IPO. While FTC commissioner Lina Khan is hoping to create a business environment where more startups succeed on their own, the reaction to antitrust enforcement and regulation is mixed amongst the tech world. Some tech insiders argue that the current system works fine and it is better for startups with limited growth potential to be acquired. The FTC insists that limiting exits via acquisition by tech giants will not slow the startup business.
Innovation
Carbon-tech draws record venture funding as investors hunt for impact | Bloomberg
Investors directed a record $1.4 billion of funding to climate or carbon-tech focused startups this quarter, a 47% increase compared to last year’s funding for companies tied to climate mitigation. This increase contrasts with an overall drop in venture funding compared to the previous quarter, and climate investors aren’t the only ones responsible for the shift. There is a broader trend driven by increased interest in clean energy technology, corporations that adopt sustainability goals or commit to carbon offsets. Efforts like carbon mitigation projects still have a long way to go, but with increased attention from investors, climate mitigation startups could begin to expand.
Defense innovation stymied as gridlock in Congress bars emerging tech | DefenseNews
Congress has approximately six weeks left in the fiscal year to pass a defense appropriations bill, but law firm Alston & Bird is already advising clients to expect a continuing resolution (CR) for fiscal year 2023. While CRs help the government avoid shutdowns, they pose long-term risks to defense technology initiatives and modernization efforts. Because CRs fix funding at the previous year’s level, they delay new starts and introduce contracting uncertainty that is especially difficult for nontraditional contractors to weather. The promise of future resources is often an insufficient incentive for smaller companies to enter or continue in the defense sector and it sacrifices invaluable time in the Pentagon’s mission to outpace near-peer competitors.
Cyber
DOE announces $45 million for next-generation cyber tools to protect the power grid | Department of Energy
The Department of Energy announced this week that the Office of Cybersecurity, Energy Security, and Emergency Response will award $45 million in funding for up to fifteen research, development, and demonstration projects to increase the electric grid’s resilience in the face of cyber attacks. This opportunity is open to applicants from the public and private sector and academia and proposed topics include automated cyberattack prevention and mitigation, security and resiliency by design, authentication mechanisms for energy delivery systems, automated methods to discover and mitigate vulnerabilities, cybersecurity through advanced software solutions, and integration of new concepts and technologies with existing infrastructure. In combination with upgrades funded by the Bipartisan Infrastructure Law and the Inflation Reduction Act, this effort is part of a broader mission to secure energy infrastructure and encourage adoption of clean energy technologies.
US unmasks alleged Conti ransomware operative, offers $10M for intel | TechCrunch
The State Department is offering up to $10 million through its Rewards for Justice (RFJ) program for information about alleged Conti ransomware members, “Target,” “Tramp,” “Dandis,” “Professor,” and “Reshaev.” The announcement included an image of “Target,” which is the first time the US government has publicly identified a member of the Russia-backed operation. Before Conti shut down in June 2022, the group carried out over 1,000 operations across the globe and targeted US critical infrastructure. Conti members are believed to have moved on to other ransomware groups. RFJ is also offering up to $5 million for information leading to the arrest of any individual attempting to “participate in a Conti variant ransomware incident.”
State & Local Tech Ecosystems
The ESG investing backlash arrives | The Wall Street Journal
A group of nineteen state attorney generals are questioning whether BlackRock’s environmental, social, and governance (ESG) investing standards are preventing public pension funds from generating the best financial returns possible on behalf of state employees. In a letter to BlackRock, the group raises concerns that the investment firm is steering citizen’s assets according to a political agenda with alleged negative impacts to the economy and national security instead of seeking out the highest potential financial returns. As ESG models face increasing scrutiny, Strive Asset Management launched DRLL–a new passively managed energy index fund that will use proxy measures to incentivize companies to maximize returns to shareholders over other goals. Strive’s approach presents an alternative to stakeholder models of corporate governance and ESG investment.
Democracy Online
‘Hackers against conspiracies’: cyber sleuths take aim at election disinformation | Politico
DEF CON attendees have been discovering vulnerabilities in voting equipment since 2017 when the annual conference began featuring a Voting Machine Village. However, this year was about more than testing the machines. While working to make voting equipment more secure, conference organizers and participants were more concerned that misinformation about machines’ vulnerabilities could be weaponized in the lead up to the midterm elections. Greater transparency up front could be the solution. Equipment manufacturers are hesitant to go public about machines’ weaknesses, but election security researchers suggest that sharing information about vulnerabilities and election procedures could help debunk conspiracy theories early and prevent them from gaining traction like the stories that proliferated after the 2020 election.
TikTok preps for midterm misinformation chaos | The Verge
TikTok is relying on a two-pronged approach to address the threat of misinformation in preparation for the midterm elections. This week, the platform began rolling out its Election Center to help users identify authoritative voting information and election results. Additionally, TikTok is reemphasizing and educating creators about its 2019 ban on paid political advertising. The ban includes any content influencers are paid to produce as part of a sponsorship or partnership with political organizations or campaign teams. Notably, the policy does not apply to non-monetary compensation. According to the Pew Research Center, 67% of US teenagers use TikTok. Google, Twitter, and Facebook are also making announcements about their election content policies and tools for managing misinformation.
