Chad Anderson is the founder/managing partner of the early-stage VC Space Capital (and an investor in SpaceX, along with dozens of other space companies). Space Capital produces quarterly reports on the space economy, and he says today, unlike 2021, "the froth is gone. But so is the hype. What's left is a more grounded — and investable — space economy."

On Yahoo Finance he shares several of the report's insights — including the emergence of "investable opportunities across defense-oriented startups in space domain awareness, AI-driven command systems, and hardened infrastructure." The same geopolitical instability that's undermining public markets is driving national urgency around space resilience. China's simulated space "dogfights" prompted the US Department of Defense to double down on orbital supremacy, with the proposed "Golden Dome" missile shield potentially unleashing a new wave of federal spending...

Defense tech is on fire, but commercial location-based services and logistics are freezing over. Companies like Shield AI and Saronic raised monster rounds, while others are relying on bridge financings to stay afloat...

Q1 also saw a breakout quarter for geospatial artificial intelligence (GeoAI). Software developer Niantic launched a spatial computing platform. SkyWatch partnered with GIS software supplier Esri. Planet Labs collaborated with Anthropic. And Xona Space Systems inked a deal with Trimble to boost precision GPS. This is the next leg of the space economy, where massive volumes of satellite data is finally made useful through machine learning, semantic indexing, and real-time analytics.

Distribution-layer companies are doing more with less. They remain underfunded relative to infrastructure and applications but are quietly powering the most critical systems, such as resilient communications, battlefield networks, and edge-based geospatial analysis. Don't let the low round count fool you; innovation here is quietly outpacing capital.
The article includes several predictions, insights, and possible trends (going beyond the fact that defense spending "will carry the sector...")

• "AI's integration into space (across geospatial intelligence, satellite communications, and sensor fusion) is not a novelty. It's a competitive necessity."

• "Focusing solely on rockets and orbital assets misses where much of the innovation and disruption is occurring: the software-defined layers that sit atop the physical backbone..."

• "For years, SpaceX faced little serious competition, but that's starting to change." [He cites Blue Origin's progress toward approval for launching U.S. military satellites, and how Rocket Lab and Stoke Space "have also joined the competition for lucrative government launch contracts." Even Relativity Space may make a comeback, with former GOogle CEO Eric Schmidt acquiring a controlling stake.]

• "An infrastructure reset is coming. The imminent ramp-up of SpaceX's Starship could collapse the cost structure for the infrastructure layer. When that happens, legacy providers with fixed-cost-heavy business models will be at risk. Conversely, capital-light innovators in station design, logistics, and in-orbit servicing could suddenly be massively undervalued."

Matt Asay answered questions from Slashdot readers in 2010 (as the then-COO of Canonical). He currently runs developer relations at MongoDB (after holding similar positions at AWS and Adobe).

This week he contributed an opinion piece to InfoWorld arguing that DeepSeek "may have originated in China, but it stopped being Chinese the minute it was released on Hugging Face with an accompanying paper detailing its development." Soon after, a range of developers, including the Beijing Academy of Artificial Intelligence (BAAI), scrambled to replicate DeepSeek's success but this time as open source software. BAAI, for its part, launched OpenSeek, an ambitious effort to take DeepSeek's open-weight models and create a project that surpasses DeepSeek while uniting "the global open source communities to drive collaborative innovation in algorithms, data, and systems."

If that sounds cool to you, it didn't to the U.S. government, which promptly put BAAI on its "baddie" list. Someone needs to remind U.S. (and global) policymakers that no single country, company, or government can contain community-driven open source... DeepSeek didn't just have a moment. It's now very much a movement, one that will frustrate all efforts to contain it. DeepSeek, and the open source AI ecosystem surrounding it, has rapidly evolved from a brief snapshot of technological brilliance into something much bigger — and much harder to stop. Tens of thousands of developers, from seasoned researchers to passionate hobbyists, are now working on enhancing, tuning, and extending these open source models in ways no centralized entity could manage alone.

For example, it's perhaps not surprising that Hugging Face is actively attempting to reverse engineer and publicly disseminate DeepSeek's R1 model. Hugging Face, while important, is just one company, just one platform. But Hugging Face has attracted hundreds of thousands of developers who actively contribute to, adapt, and build on open source models, driving AI innovation at a speed and scale unmatched even by the most agile corporate labs.

Hugging Face by itself could be stopped. But the communities it enables and accelerates cannot. Through the influence of Hugging Face and many others, variants of DeepSeek models are already finding their way into a wide range of applications. Companies like Perplexity are embedding these powerful open source models into consumer-facing services, proving their real-world utility. This democratization of technology ensures that cutting-edge AI capabilities are no longer locked behind the walls of large corporations or elite government labs but are instead openly accessible, adaptable, and improvable by a global community.
"It's Linux all over again..." Asay writes at one point. "What started as the passion project of a lone developer quickly blossomed into an essential, foundational technology embraced by enterprises worldwide," winning out "precisely because it captivated developers who embraced its promise and contributed toward its potential."

We are witnessing a similar phenomenon with DeepSeek and the broader open source AI ecosystem, but this time it's happening much, much faster...

Organizations that cling to proprietary approaches (looking at you, OpenAI!) or attempt to exert control through restrictive policies (you again, OpenAI!) are not just swimming upstream — they're attempting to dam an ocean. (Yes, OpenAI has now started to talk up open source, but it's a long way from releasing a DeepSeek/OpenSeek equivalent on GitHub.)

The Trump administration is "taking measures to restrict the sale of AI chips by Nvidia, Advanced Micro Devices and Intel," especially in China, reports the New York Times. But that's triggered a series of dominoes. "In the two days after the limits became public, shares of Nvidia, the world's leading AI chipmaker, fell 8.4%. AMD's shares dropped 7.4%, and Intel's were down 6.8%." (AMD expects up to $800 million in charges after the move, according to CNBC, while NVIDIA said it would take a quarterly charge of about $5.5 billion.)

The Times notes hopeful remarks Thursday from Jensen Huang, CEO of Nvidia, during a meeting with the China Council for the Promotion of International Trade. "We're going to continue to make significant effort to optimize our products that are compliant within the regulations and continue to serve China's market." But America's chipmakers also have a greater fear, according to the article: "that their retreat could turn the Chinese tech giant Huawei into a global chip-making powerhouse." "For the U.S. semiconductor industry, China is gone," said Handel Jones, a semiconductor consultant at International Business Strategies, which advises electronics companies. He projects that Chinese companies will have a majority share of chips in every major category in China by 2030... Huang's message spoke to one of his biggest fears. For years, he has worried that Huawei, China's telecommunications giant, will become a major competitor in AI. He has warned U.S. officials that blocking U.S. companies from competing in China would accelerate Huawei's rise, said three people familiar with those meetings who spoke on the condition of anonymity.

If Huawei gains ground, Huang and others at Nvidia have painted a dark picture of a future in which China will use the company's chips to build AI data centers across the world for the Belt and Road Initiative, a strategic effort to increase Beijing's influence by paying for infrastructure projects around the world, a person familiar with the company's thinking said...

Nvidia's previous generation of chips perform about 40% better than Huawei's best product, said Gregory C. Allen, who has written about Huawei in his role as director of the Wadhwani AI Center at the Center for Strategic and International Studies. But that gap could dwindle if Huawei scoops up the business of its American rivals, Allen said. Nvidia was expected to make more than $16 billion in sales this year from the H20 in China before the restriction. Huawei could use that money to hire more experienced engineers and make higher-quality chips. Allen said the U.S. government's restrictions also could help Huawei bring on customers like DeepSeek, a leading Chinese AI startup. Working with those companies could help Huawei improve the software it develops to control its chips. Those kinds of tools have been one of Nvidia's strengths over the years.
TechRepublic identifies this key quote from an earlier article: "This kills NVIDIA's access to a key market, and they will lose traction in the country," Patrick Moorhead, a tech analyst with Moor Insights & Strategy, told The New York Times. He added that Chinese companies will buy from local rival Huawei instead.

"Russia is automating the spread of false information to fool AI chatbots," reports the Washington Post. (When researchers checked 10 chatbots, a third of the responses repeated false pro-Russia messaging.)

The Post argues that this tactic offers "a playbook to other bad actors on how to game AI to push content meant to inflame, influence and obfuscate instead of inform," and calls it "a fundamental weakness of the AI industry." Chatbot answers depend on the data fed into them. A guiding principle is that the more the chatbots read, the more informed their answers will be, which is why the industry is ravenous for content. But mass quantities of well-aimed chaff can skew the answers on specific topics. For Russia, that is the war in Ukraine. But for a politician, it could be an opponent; for a commercial firm, it could be a competitor. "Most chatbots struggle with disinformation," said Giada Pistilli, principal ethicist at open-source AI platform Hugging Face. "They have basic safeguards against harmful content but can't reliably spot sophisticated propaganda, [and] the problem gets worse with search-augmented systems that prioritize recent information."

Early commercial attempts to manipulate chat results also are gathering steam, with some of the same digital marketers who once offered search engine optimization — or SEO — for higher Google rankings now trying to pump up mentions by AI chatbots through "generative engine optimization" — or GEO.
Our current situation "plays into the hands of those with the most means and the most to gain: for now, experts say, that is national governments with expertise in spreading propaganda." Russia and, to a lesser extent, China have been exploiting that advantage by flooding the zone with fables. But anyone could do the same, burning up far fewer resources than previous troll farm operations... In a twist that befuddled researchers for a year, almost no human beings visit the sites, which are hard to browse or search. Instead, their content is aimed at crawlers, the software programs that scour the web and bring back content for search engines and large language models. While those AI ventures are trained on a variety of datasets, an increasing number are offering chatbots that search the current web. Those are more likely to pick up something false if it is recent, and even more so if hundreds of pages on the web are saying much the same thing...

The gambit is even more effective because the Russian operation managed to get links to the Pravda network stories edited into Wikipedia pages and public Facebook group postings, probably with the help of human contractors. Many AI companies give special weight to Facebook and especially Wikipedia as accurate sources. (Wikipedia said this month that its bandwidth costs have soared 50 percent in just over a year, mostly because of AI crawlers....) Last month, other researchers set out to see whether the gambit was working. Finnish company Check First scoured Wikipedia and turned up nearly 2,000 hyperlinks on pages in 44 languages that pointed to 162 Pravda websites. It also found that some false information promoted by Pravda showed up in chatbot answers.
"They do even better in such places as China," the article points out, "where traditional media is more tightly controlled and there are fewer sources for the bots." (The nonprofit American Sunlight Project calls the process "LLM grooming".)

The article quotes a top Kremlin propagandist as bragging in January that "we can actually change worldwide AI."

"There has never been a consensus or a 'smoking gun' to explain what started the pandemic," writes ABC News.

Yet the Associated Press reports that "A federal website that used to feature information on vaccines, testing and treatment for COVID-19 has been transformed into a page supporting the theory that the pandemic originated with a lab leak." (This despite the fact that "about 325 Americans have died from COVID per week on average over the past four weeks, according to the U.S. Centers for Disease Control and Prevention.") The covid.gov website shows a photo of President Donald Trump walking between the words "lab" and "leak" under a White House heading... The web page also accuses Dr. Anthony Fauci, the former director of the National Institute of Allergy and Infectious Diseases, of pushing a "preferred narrative" that COVID-19 originated in nature. The origins of COVID have never been proven. Scientists are unsure whether the virus jumped from an animal, as many other viruses have, or came from a laboratory accident. A U.S. intelligence analysis released in 2023 said there is insufficient evidence to prove either theory.
"Many scientists think it's more likely the virus originated naturally in a wild animal and then spilled over into people in a wildlife market located in Wuhan," reports NPR.

And even Jamie Metzl, a critic of the wildlife spillover theory, told NPR that while they appreciated "efforts to dig deeper... it would be a terrible shame if such efforts distracted from essential work to help prevent further infections and treat people suffering from COVID-19 and long COVID." (The federal website covidtests.gov now also redirects instead to the new page...) Some scientists were critical of the new site, which they say appears political in intent. "Every one of the five pieces of evidence supporting the lab leak hypothesis ... is factually incorrect, embellished, or presented in a misleading way," [wrote Angela Rasmussen, a virologist at the University of Saskatchewan in Canada]. "But making evidence-based arguments in good faith about the pandemic's origin is not the purpose of this document. This is pure propaganda, intended to justify the systematic devastation of the federal government, particularly programs devoted to public health and biomedical research," Rasmussen added.

Other scientists said the web site doesn't follow the existing body of scientific evidence on the issue. That evidence does not support "any of the many, often contradictory, lab leak scenarios that have been proposed," Michael Worobey, an evolutionary biologist at the University of Arizona, in an email to NPR. He argued that the evidence is consistent with "the less flashy hypothesis that bringing live animals infected with pathogens with pandemic potential into the heart of one of the biggest cities in the world was how this pandemic started.... the next pathogen with pandemic potential will find us easy pickings if we don't appreciate how risky this sort of 'biosafety level zero' activity is."

An anonymous reader quotes a report from Reuters: Twenty-one humanoid robots joined thousands of runners at the Yizhuang half-marathon in Beijing on Saturday, the first time these machines have raced alongside humans over a 21-km (13-mile) course. The robots from Chinese manufacturers such as DroidVP and Noetix Robotics came in all shapes and sizes, some shorter than 120 cm (3.9 ft), others as tall as 1.8 m (5.9 ft). One company boasted that its robot looked almost human, with feminine features and the ability to wink and smile.

Some firms tested their robots for weeks before the race. Beijing officials have described the event as more akin to a race car competition, given the need for engineering and navigation teams. "The robots are running very well, very stable ... I feel I'm witnessing the evolution of robots and AI," said spectator He Sishu, who works in artificial intelligence. The robots were accompanied by human trainers, some of whom had to physically support the machines during the race.

A few of the robots wore running shoes, with one donning boxing gloves and another wearing a red headband with the words "Bound to Win" in Chinese. The winning robot was Tiangong Ultra, from the Beijing Innovation Center of Human Robotics, with a time of 2 hours and 40 minutes. The men's winner of the race had a time of 1 hour and 2 minutes. [...] Some robots, like Tiangong Ultra, completed the race, while others struggled from the beginning. One robot fell at the starting line and lay flat for a few minutes before getting up and taking off. One crashed into a railing after running a few metres, causing its human operator to fall over. You can watch a recording of the race in its entirety on YouTube.

Longtime Slashdot reader hackingbear shares a report from Interesting Engineering: A research team at Fudan University in Shanghai, China has built the fastest semiconductor storage device ever reported, a nonvolatile flash memory dubbed "PoX" that programs a single bit in 400 picoseconds (0.0000000004 s) -- roughly 25 billion operations per second. Conventional static and dynamic RAM (SRAM, DRAM) write data in 1-10 nanoseconds but lose everything when power is cut while current flash chips typically need micro to milliseconds per write -- far too slow for modern AI accelerators that shunt terabytes of parameters in real time.

The Fudan group, led by Prof. Zhou Peng at the State Key Laboratory of Integrated Chips and Systems, re-engineered flash physics by replacing silicon channels with two dimensional Dirac graphene and exploiting its ballistic charge transport. Combining ultralow energy with picosecond write speeds could eliminate separate highspeed SRAM caches and remove the longstanding memory bottleneck in AI inference and training hardware, where data shuttling, not arithmetic, now dominates power budgets. The team [which is now scaling the cell architecture and pursuing arraylevel demonstrations] did not disclose endurance figures or fabrication yield, but the graphene channel suggests compatibility with existing 2Dmaterial processes that global fabs are already exploring. The result is published in the journal Nature.

Sage has retracted 678 more papers from the Journal of Intelligent and Fuzzy Systems (JIFS), concluding an investigation that has now purged 1,561 articles -- the most ever removed from a single journal. The publisher, which acquired JIFS from IOS Press in November 2023, began investigating the journal in early 2024 after discovering "indicators that raised concerns about the authenticity of the research and the peer review process."

This final batch follows 467 articles retracted in August and another 416 in January. Problems in the retracted papers included citation manipulation, "tortured phrases," unauthorized third-party involvement in submissions, and evidence suggesting collusion between authors and reviewers. Most authors were from India and China, with some from Pakistan, Turkey, Iran, and Iraq. Cengiz Kahraman of Istanbul Technical University, who authored 20 of the retracted papers, disputed the decision, telling Retraction Watch that Sage acted "without any reason and evidence." The journal has now resumed publishing.

China is banning automakers from using the terms "smart driving" and "autonomous driving" when they advertise driving assistance features, and it will tighten scrutiny of such technology upgrades. From a report: The mandate on vehicle advertising was delivered by the Ministry of Industry and Information Technology in its meeting with nearly 60 representatives from automakers on Wednesday, according to a transcript seen by Reuters and confirmed by one of the attendees. The move follows a fatal accident involving Xiaomi's best-selling SU7 sedan in March that triggered widespread concerns over vehicle safety.

More than half of the top privately held AI companies based in the U.S. have at least one immigrant founder, according to an analysis from the Institute for Progress. From the report: The IFP analysis of the top AI-related startups in the Forbes AI 2025 list found that 25 -- or 60% -- of the 42 companies based in the U.S. were founded or co-founded by immigrants. The founders of those companies "hail from 25 countries, with India leading (nine founders), followed by China (eight founders) and then France (three founders). Australia, the U.K., Canada, Israel, Romania, and Chile all have two founders each."

Among them is OpenAI -- whose co-founders include Elon Musk, born in South Africa, and Ilya Sutskever, born in Russia -- and Databricks, whose co-founders were born in Iran, Romania and China. The analysis echoes previous findings about the key role foreign-born scientists and engineers have played in the U.S. tech industry and the broader economy.

China's outing of alleged US National Security Agency hackers marks a major escalation in the ongoing tit-for-tat between Chinese and American intelligence agencies, according to analysts. From a report: Chinese authorities Tuesday said three NSA employees hacked the Asian Winter Games held this year in Harbin, accusing them of targeting systems that held vast amounts of personal information on people involved in the event. The hacks "severely endangered the security of China's critical information infrastructure, national defense, finance, society, production, as well as citizens' personal information," Chinese foreign ministry spokesman Lin Jian told reporters.

While the US has repeatedly published names of alleged Chinese hackers and filed criminal charges against them, China has historically refrained from making similar accusations against American spies. Rafe Pilling, director of threat intelligence at the cyber firm Sophos' Secureworks unit, said the development may signal a broader policy change from Chinese security agencies, with allegations of US cyberattacks becoming more specific and timely. "This is an escalation in China's experimentation with 'name and shame' policies for the alleged perpetrators of cyberattacks, mirroring US pursuit of a similar policy for a number of years now," said Pilling.

Longtime Slashdot reader AmiMoJo shares the news that China has halted all rare earth exports globally -- including to the U.S., Japan, and Germany. Fortune reports: After Trump unveiled his "Liberation Day" tariffs on April 2, China retaliated on April 4 with its own duties as well as export controls on several rare earth minerals and magnets made from them. So far, those export controls have translated to a halt across the board, cutting off the U.S. and other countries, according to the New York Times. That's because any exports of the minerals and magnets now require special licenses, but Beijing has yet to fully establish a system for issuing them, the report said.

In the meantime, shipments of rare earths have been halted at many ports, with customs officials blocking exports to any country, including to the U.S. as well as Japan and Germany, sources told theÂTimes. China's Ministry of Commerce issued export restrictions alongside the General Administration of Customs, prohibiting Chinese businesses from any engagement with U.S. firms, especially defense contractors. While the Trump administration unveiled tariff exemptions on a range of key tech imports late Friday night, China's magnet exports were still halted through the weekend, industry sources told the Times. Beijing's export halt is notable because China has a stranglehold on global supplies of rare earths and magnets derived from them. They also represent an asymmetric advantage in that rare earths constitute a small share of China's exports but have an outsize impact on trade partners like the U.S., which relies on them as critical inputs for the auto, chip, aerospace, and defense industries.

An anonymous reader quotes a report from Forbes: Robotaxi development is speeding at a fast pace in China, but we don't hear much about it in the USA, where the news focuses mostly on Waymo, with a bit about Zoox, Motional, May, trucking projects and other domestic players. China has 4 main players with robotaxi service, dominated by Baidu (the Chinese Google.) A recent session at last week's Ride AI conference in Los Angeles revealed some details about the different regulatory regime in China, and featured a report from a Chinese-American YouTuber who has taken on a mission to ride in the different vehicles.

Zion Maffeo, deputy general counsel for Pony.AI, provided some details on regulations in China. While Pony began with U.S. operations, its public operations are entirely in China, and it does only testing in the USA. Famously it was one of the few companies to get a California "no safety driver" test permit, but then lost it after a crash, and later regained it. Chinese authorities at many levels keep a close watch over Chinese robotaxi companies. They must get approval for all levels of operation which control where they can test and operate, and how much supervision is needed. Operation begins with testing with a safety driver behind the wheel (as almost everywhere in the world,) with eventual graduation to having the safety driver in the passenger seat but with an emergency stop. Then they move to having a supervisor in the back seat before they can test with nobody in the vehicle, usually limited to an area with simpler streets.

The big jump can then come to allow testing with nobody in the vehicle, but with full time monitoring by a remote employee who can stop the vehicle. From there they can graduate to taking passengers, and then expanding the service to more complex areas. Later they can go further, and not have full time remote monitoring, though there do need to be remote employees able to monitor and assist part time. Pony has a permit allowing it to have 3 vehicles per remote operator, and has one for 15 vehicles in process, but they declined comment on just how many vehicles they actually have per operator. Baidu also did not respond to queries on this. [...] In addition, Chinese jurisdictions require that the system in a car independently log any "interventions" by safety drivers in a sort of "black box" system. These reports are regularly given to regulators, though they are not made public. In California, companies must file an annual disengagement report, but they have considerable leeway on what they consider a disengagement so the numbers can't be readily compared. Chinese companies have no discretion on what is reported, and they may notify authorities of a specific objection if they wish to declare that an intervention logged in their black box should not be counted. On her first trip, YouTuber Sophia Tung found Baidu's 5th generation robotaxi to offer a poor experience in ride quality, wait time, and overall service. However, during a return trip she tried Baidu's 6th generation vehicle in Wuhan and rated it as the best among Chinese robotaxis, approaching the quality of Waymo.

The European Commission is issuing burner phones and basic laptops to some US-bound staff to avoid the risk of espionage [non-paywalled source], a measure traditionally reserved for trips to China. Financial Times: Commissioners and senior officials travelling to the IMF and World Bank spring meetings next week have been given the new guidance, according to four people familiar with the situation. They said the measures replicate those used on trips to Ukraine and China, where standard IT kit cannot be brought into the countries for fear of Russian or Chinese surveillance.

"They are worried about the US getting into the commission systems," said one official. The treatment of the US as a potential security risk highlights how relations have deteriorated since the return of Donald Trump as US president in January. Trump has accused the EU of having been set up to "screw the US" and announced 20 per cent so-called reciprocal tariffs on the bloc's exports, which he later halved for a 90-day period.

At the same time, he has made overtures to Russia, pressured Ukraine to hand over control over its assets by temporarily suspending military aid and has threatened to withdraw security guarantees from Europe, spurring a continent-wide rearmament effort. "The transatlantic alliance is over," said a fifth EU official.

Late Friday news broke that U.S. President Trump's new tariffs included exemptions for smartphones, computer monitors, semiconductors, and other electronics. But Sunday morning America's commerce secretary insisted "a special-focus type of tariff" was coming for those products, reports ABC News. President Trump "is saying they're exempt from the reciprocal tariffs," the commerce secretary told an interviewer, "but they're included in the semiconductor tariffs, which are coming in probably a month or two.... This is not like a permanent sort of exemption."

The Wall Street Journal notes that Sunday the president himself posted on social media that "NOBODY is getting 'off the hook' for the unfair Trade Balances, and Non Monetary Tariff Barriers... There was no Tariff 'exception' announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.'"

"The administration is expected to take the first step toward enacting the new tariffs as soon as next week," reports the New York Times, "opening an investigation to determine the effects of semiconductor imports on national security."

More from ABC News: Commerce Secretary Howard Lutnick said Sunday that the administration's decision Friday night to exempt a range of electronic devices from tariffs implemented earlier this month was only a temporary reprieve.. Lutnick said on "This Week" that the White House will implement "a tariff model in order to encourage" the semiconductor industry, as well as the pharmaceutical industry, to move its business to the United States. "We can't be beholden and rely upon foreign countries for fundamental things that we need," he said.... "These are things that are national security that we need to be made in America."

Here's an update from the Wall Street Journal about a "widespread series of alarming cyberattacks on U.S. infrastructure."

China was behind it, "Chinese officials acknowledged in a secret December meeting... according to people familiar with the matter..." The Chinese delegation linked years of intrusions into computer networks at U.S. ports, water utilities, airports and other targets, to increasing U.S. policy support for Taiwan, the people, who declined to be named, said... U.S. officials went public last year with unusually dire warnings about the uncovered Volt Typhoon effort. They publicly attributed it to Beijing trying to get a foothold in U.S. computer networks so its army could quickly detonate damaging cyberattacks during a future conflict. [American officials at the meeting perceived the remarks as "intended to scare the U.S. from involving itself if a conflict erupts in the Taiwan Strait."]

The Chinese official's remarks at the December meeting were indirect and somewhat ambiguous, but most of the American delegation in the room interpreted it as a tacit admission and a warning to the U.S. about Taiwan, a former U.S. official familiar with the meeting said... In a statement, the State Department didn't comment on the meeting but said the U.S. had made clear to Beijing it will "take actions in response to Chinese malicious cyber activity," describing the hacking as "some of the gravest and most persistent threats to U.S. national security...."

A Chinese official would likely only acknowledge the intrusions even in a private setting if instructed to do so by the top levels of Xi's government, said Dakota Cary, a China expert at the cybersecurity firm SentinelOne. The tacit admission is significant, he said, because it may reflect a view in Beijing that the likeliest military conflict with the U.S. would be over Taiwan and that a more direct signal about the stakes of involvement needed to be sent to the Trump administration. "China wants U.S. officials to know that, yes, they do have this capability, and they are willing to use it," Cary said.
The article notes that top U.S. officials have said America's Defense Department "will pursue more offensive cyber strikes against China."

But it adds that the administration "also plans to dismiss hundreds of cybersecurity workers in sweeping job cuts and last week fired the director of the National Security Agency and his deputy, fanning concerns from some intelligence officials and lawmakers that the government would be weakened in defending against the attacks."

The Washington Post reports: The United States urgently needs more energy to fuel an artificial intelligence race with China that the country can't afford to lose, industry leaders told lawmakers at a House hearing on Wednesday. "We need energy in all forms," said Eric Schmidt, former CEO of Google, who now leads the Special Competitive Studies Project, a think tank focused on technology and security. "Renewable, nonrenewable, whatever. It needs to be there, and it needs to be there quickly." It was a nearly unanimous sentiment at the four-hour-plus hearing of the House Energy and Commerce Committee, which revealed bipartisan support for ramping up U.S. energy production to meet skyrocketing demand for energy-thirsty AI data centers.

The hearing showed how the country's AI policy priorities have changed under President Donald Trump. President Joe Biden's wide-ranging 2023 executive order on AI had sought to balance the technology's potential rewards with the risks it poses to workers, civil rights and national security. Trump rescinded that order within days of taking office, saying its "onerous" requirements would "threaten American technological leadership...." [Data center power consumption] is already straining power grids, as residential consumers compete with data centers that can use as much electricity as an entire city. And those energy demands are projected to grow dramatically in the coming years... [Former Google CEO Eric] Schmidt, whom the committee's Republicans called as a witness on Wednesday, told [committee chairman Brett] Guthrie that winning the AI race is too important to let environmental considerations get in the way...

Once the United States beats China to develop superintelligence, Schmidt said, AI will solve the climate crisis. And if it doesn't, he went on, China will become the world's sole superpower. (Schmidt's view that AI will become superintelligent within a decade is controversial among experts, some of whom predict the technology will remain limited by fundamental shortcomings in its ability to plan and reason.)

The industry's wish list also included "light touch" federal regulation, high-skill immigration and continued subsidies for chip development. Alexandr Wang, the young billionaire CEO of San Francisco-based Scale AI, said a growing patchwork of state privacy laws is hampering AI companies' access to the data needed to train their models. He called for a federal privacy law that would preempt state regulations and prioritize innovation.
Some committee Democrats argued that cuts to scientific research and renewable energy will actually hamper America's AI competitiveness, according to the article. " But few questioned the premise that the U.S. is locked in an existential struggle with China for AI supremacy.

"That stark outlook has nearly coalesced into a consensus on Capitol Hill since China's DeepSeek chatbot stunned the AI industry with its reasoning skills earlier this year."

UPDATE (4/13): Smartphones, computer monitors, semiconductors, and various other electronics will be exempt from U.S. President Trump's tariffs, CNN reported Saturday, "according to a US Customs and Border Protection notice posted late Friday." But then Sunday morning America's commerce secretary insisted "a special-focus type of tariff" was coming for those products, ABC News reported. (President Trump "is saying they're exempt from the reciprocal tariffs," the commerce secretary told an interviewer, "but they're included in the semiconductor tariffs, which are coming in probably a month or two.... This is not like a permanent sort of exemption.")

CNN had reported that several other products also received an exemption which "applies to products entering the United States or removed from warehouses as early as April 5, according to the notice." Roughly 90% of Apple's iPhone production and assembly is based in China, according to Wedbush Securities' estimates. Counterpoint Research, a firm that monitors global smartphone shipments, estimated Apple has up to six weeks of inventory in the United States. Once that supply runs out, prices would have been expected to go up...

Semiconductors and microchips are among the products heavily outsourced to factories in Asia due to lower costs. Those electronic parts are now exempt, according to the Friday notice. That could help Asian chipmakers, such as Taiwan Semiconductor Manufacturing Company (TSMC), South Korea's Samsung and SK Hynix.
The exemptions were believed to also include solar cells, memory cards, and computers, according to the BBC. "It was not clear whether technology imports from China would still be hit by a 20% tariff that was not part of the reciprocal tariffs announced on 2 April..."

Thanks to Slashdot readers Alain Williams and Mr. Dollar Ton for sharing the news.

A former Facebook employee/whistleblower alleges Meta's AI model Lllama was used to help DeepSeek.

The whistleblower — former Facebook director of global policy Sarah Wynn-Williams — testified before U.S. Senators on Wednesday. CBS News found this earlier response from Meta: In a statement last year on Llama, Meta spokesperson Andy Stone wrote, "The alleged role of a single and outdated version of an American open-source model is irrelevant when we know China is already investing over 1T to surpass the US technologically, and Chinese tech companies are releasing their own open AI models as fast, or faster, than US ones."

Wynn-Williams encouraged senators to continue investigating Meta's role in the development of artificial intelligence in China, as they continue their probe into the social media company founded by Zuckerberg. "The greatest trick Mark Zuckerberg ever pulled was wrapping the American flag around himself and calling himself a patriot and saying he didn't offer services in China, while he spent the last decade building an $18 billion business there," she said.
The testimony also left some of the lawmakers skeptical of Zuckerberg's commitment to free speech after the whistleblower also alleged Facebook worked "hand in glove" with the Chinese government to censor its platforms: In her almost seven years with the company, Wynn-Williams told the panel she witnessed the company provide "custom built censorship tools" for the Chinese Communist Party. She said a Chinese dissident living in the United States was removed from Facebook in 2017 after pressure from Chinese officials. Facebook said at the time it took action against the regime critic, Guo Wengui, for sharing someone else's personal information. Wynn-Williams described the use of a "virality counter" that flagged posts with over 10,000 views for review by a "chief editor," which Democratic Sen. Richard Blumenthal of Connecticut called "an Orwellian censor." These "virality counters" were used not only in Mainland China, but also in Hong Kong and Taiwan, according to Wynn-Williams's testimony.

Wynn-Williams also told senators Chinese officials could "potentially access" the data of American users.

The ubiquitous but often overlooked Wi-Fi router lies at the heart of one of Washington's biggest national security dilemmas -- and a rift between two brothers on opposite sides of the Pacific. From a report: US investigators are probing the China ties of TP-Link, the new American incarnation of a consumer Wi-Fi behemoth, following its rapid growth and a spate of cyber attacks by Chinese state-sponsored actors targeting many router brands. The inquiry is testing whether TP-Link's corporate makeover represents enough of a divorce from China to spare it from a ban in a crucial market.

While TP-Link's recent restructuring split the company into separate US- and China-headquartered businesses, a Bloomberg News investigation found that the resulting American venture still has substantial operations in mainland China. If US officials conclude TP-Link's China connections pose an "unacceptable risk," they could use a powerful new authority to ban the company from the US. Such an outcome could also unravel plans by the owner of its US business, Jeffrey Chao, to start fresh in California following an estrangement from his older brother, who started the router business with him in Shenzhen nearly three decades ago.

In an interview -- the first Jeffrey Chao said he has ever given -- he told Bloomberg he's quitting China. He opened a new headquarters in Irvine last year and said he will invest $700 million in the US to build a factory and jumpstart research and development on highly secure routers while awaiting the green card he said he applied for in January. He has also traded his perch in a Hong Kong skyscraper for a 1980s-era split-level near his office, joined a neighborhood evangelical church, and is now eyeing a Cadillac Escalade for road trips, he said, burnishing his American credentials. "I know the current relationship between the US and China is complex," Chao said in the interview last month. "I have chosen the US."