Tag: ‘technology

Turkish Cargo Ship Sunk By Drone Strike Off Romania, Two Sailors Killed

There’s no doubt that the tit-for-tat war on Black Sea shipping is getting nastier. For several months now, both Russian and Ukrainian forces have traded drone and missile attacks on ports and ships, disrupting vital Black Sea trade.

For Ukraine this national transit lifeline is even more important amid its war time economy. A major incident has unfolded Monday after an alleged direct hit by Russian drone on a Turkish cargo ship carrying grain from a Ukrainian port.

Two crew members died, while eleven others were rescued, and with another reported missing. Ukraine quickly blamed Russia for the attack.

Romanian vessels and helicopters conducted the large rescue operation off national waters, some 20 miles from the NATO member’s shore.

The Saint Kitts and Nevis flagged ship – identified as the Royad Mammadov – eventually sunk as a result of the attack after catching fire in the wake of the initial drone impact and blasts.

It had reportedly been headed out of the Ukrainian port of Ismail in the Odesa region navigating towards Ravenna, Italy when it came under assault.

Ukraine’s President Zelensky laid direct blame on Russia. “A horrific strike by two Russian drones on a civilian vessel in neutral waters carrying corn and owned by Türkiye. Azerbaijani and Indian citizens were on board,” he wrote on X.

“As of now, unfortunately, we know that the ​ship’s captain was killed. My condolences. The fate of one other person is still being ‌established. Eleven ⁠crew members were rescued, one of them injured,” he added.

While Russian authorities did not comment or own up to the specific attack, the Russian Defense Ministry did announce hours earlier that its forces had struck two cargo vessels, according to Reuters.

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“Deeply Flawed”: Biggest US Grid Scraps Emergency Data Center Power Auction One Day After FERC Smackdown

We have been documenting the slow-motion collision between the AI capex fantasy and the laws of physics since late 2025, when we noted that some of Oracle’s OpenAI data centers were being pushed back to 2028 (Dec 12, 2025). Since then the delays have gone from anecdote to trend: in April we reported that half of US data centers scheduled to start in 2026 will be canceled or delayed (Apr 13), in August that more than two-thirds of the power sought for US data centers will never materialize (Aug 14), and just last week the two flagship Stargate campuses hit the wall within 24 hours of each other, with SB Energy delaying the IPO meant to fund the world’s largest data center (Sept 23) and Oracle’s Project Jupiter declaring force majeure (Sept 24).

Now we can add the US electrical grid itself to the list of things that won’t arrive on time.

On Wednesday, PJM Interconnection, operator of the largest US grid stretching from Illinois to DC serving 67 million customers across 13 states, and home to Virginia’s Data Center Alley, suspended the one-time “backstop” auction it was about to launch to plug a 6.8 gigawatt hole in its supply stack, less than a day after FERC ordered it back to the drawing board. The procurement, which was supposed to open for offers on Sept 30 and run through Oct 21 with selections by early December, now has, in the words of a PJM spokesman, a launch date that is “yet to be determined.”

For those keeping score, that is a power auction for data centers… delayed. You can’t make this up.

Recall that in July, PJM’s base capacity auction for 2028/29 came up 6.8GW short of its reliability requirement, the first time in PJM’s history that the entire RTO fell short, and only the price cap kept the clearing price at roughly $325/MW-day. As we tweeted that night, without the ceiling, PJM capacity prices would have been 70% higher at $554.72. A few hours later we added that “PJM is already below the critical reliability threshold.”

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Trump Taps Intelligence Chief Jay Clayton As AI Czar, Brushing Off Calls To Slow Down

President Trump on Sunday named Director of National Intelligence Jay Clayton the White House’s AI czar. Clayton will hold both jobs, keeping the DNI post while spearheading the administration’s AI strategy.

Trump announced the move on Truth Social, saying the new “Super Intelligence Force” will “ensure that America continues to lead the World in Super Intelligence.” Its vice chairs are FTC Chairman Andrew Ferguson, OPM Director Scott Kupor and Pentagon Chief Technology Officer Emil Michael. Vice President JD Vance, Defense Secretary Pete Hegseth and Treasury Secretary Scott Bessent also sit on it, and it reports to Trump and Chief of Staff Susie Wiles.

The force has 120 days to report on the risks and opportunities of the technology and to recommend ways to strengthen the government’s response. Its charter, according to Implicator, calls for “preventing overregulation and regulatory capture that would stifle innovation and competition.”

Clayton takes a job last held by David Sacks, who stepped down as White House AI and crypto czar in March and now co-chairs the President’s Council of Advisors on Science and Technology. Sacks is one of two outside advisers to the force, along with former Secretary of State Condoleezza Rice.

Bessent had been mentioned for the job until Trump ruled it out on Sept. 25. “Scott Bessent will not be going to be Super Intelligence (SI) Czar,” Trump wrote. “Number One, he doesn’t want to. Number Two, he’s doing such a great job at Treasury, and that’s where I want to keep him! Why would I ever make such a change? Just more Fake News!” Axios reported Friday that Trump was expected to pick Clayton instead, and Trump has described Clayton as “a good man” for the role.

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Judge Tosses Road Rage Killer’s Sentence over AI-Generated Video of Victim Played in Court

An Arizona appeals court has overturned the prison sentence of a man convicted of manslaughter after a road rage incident, determining that an AI-generated video of his deceased victim used during sentencing was unreliable and created fundamental unfairness in the proceedings.

The New York Post reports that Gabriel Horcasitas will face resentencing after the Arizona Court of Appeals vacated his 10.5-year prison sentence on Wednesday. Horcasitas was convicted of manslaughter and endangerment in the 2021 shooting death of Christopher Pelkey during a road rage incident in Chandler, Arizona, approximately 25 miles outside Phoenix.

The appellate court took issue with an AI-generated video of Pelkey that was presented during the original sentencing hearing. Breitbart News reported on the controversial AI video last year:

The AI-generated video, believed to be the first of its kind used nationwide, recreated Pelkey’s image and voice, allowing him to “speak” about his life and the fateful day he encountered Horcasitas. The video included real footage from Pelkey’s life, showcasing his personality and sense of humor, while also addressing his killer directly.

“In another life, we probably could have been friends,” the AI version of Pelkey said to Horcasitas. “I believe in forgiveness…” The video also featured a photo of Pelkey with an “old age” filter, as he remarked, “This is the best I can ever give you of what I would have looked like if I got the chance to grow old. Remember, getting old is a gift that not everybody has, so embrace it and stop worrying about those wrinkles.”

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Stockpiling Begins: Neros Awarded $100 Million Pentagon Contract For Kamikaze Drones

US defense company Neros Technologies, which focuses on Category 1 one-way attack drones, was awarded a $100 million contract under the Department of War’s Drone Dominance Program for 14,000 drones and explosive payloads.

The award, under the Drone Dominance Program’s Gauntlet II, prioritizes Archer AI, the Category 1 FPV attack drone. Its automated kill chain lets the FPV fly to an operator-selected target, a huge advantage in battle zones where electronic warfare jammers, such as those targeting radio frequencies and GPS signals, dominate.

Neros CEO Soren Monroe-Anderson stated:

“We’ve developed our Archer FPV system to be highly modular and easily adapted to end user needs. Pairing real warfighter feedback with our deep engineering talent is the reason Neros is the only manufacturer to have placed in the top three across two fundamentally different mission sets, deep strike and close quarters battle, with the same drone platform.

Ultimately, Drone Dominance is a test of two things: can competitors build high-performance drones? And can they produce them in massive quantities with short notice? We’re the only manufacturer to receive multiple bonus awards for Gauntlet I based on our delivery speed. We’re ready to fulfill this next batch of 14,000 drones, and more whenever the Department of War signals need for them.”

The announcement comes after Defense Secretary Pete Hegseth revealed that Autonomous Warfare Command, dubbed “AutoWarCom,” will become operational in the fall of next year and will accelerate the DoW’s purchases across all drone categories. 

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“Are You An FPV Pilot”: Pentagon Calls On Drone Operators For Next “Gauntlet” Showdown

The Department of War has put out a request for service members with “FPV experience” to participate in testing events called “Gauntlets” and fly Category 1 drones in field training exercises to accelerate drone development and prepare the US for the next conflict, where drones, robotics, and automated kill chains dominate the modern battlefield.

“Are you an FPV pilot? We want to hear from you!” DoW asked on X on Friday morning.

“The Drone Dominance Program is recruiting service members with FPV experience who would like to be considered as pilots for future Gauntlets and related efforts,” the request said.

The Drone Dominance Program is the DoW’s answer to purchasing large quantities of drones across every category, from 1 to 5, and building out a domestic supply chain of components free from dependence on conflict areas and countries such as China, which can easily weaponize supply chains to hinder procurement.

Earlier this week, Defense Secretary Pete Hegseth revealed that Autonomous Warfare Command, dubbed “AutoWarCom,” is set to accelerate the DoW’s purchases across all categories of drones, robotics, and AI.

What’s key is that drone procurement will be a massive part of the rearmament supercycle and provide tailwinds to drone companies, such as heavily shorted Ondas, whose Ultra drone could very well see ramped-up orders by the military as it’s seen as an MQ-9 Reaper alternative for ISR missions. 

“Once we apply sustained budget to changed doctrine, we will outperform the world,” said Owen West, a former Marine, assistant defense secretary, and Goldman Sachs trader who has been tasked with leading the DoW’s Defense Innovation Unit. “And by snapping in AI, we will be ahead of the world, because we are the leaders in AI.”

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Chainalysis Used Ai To Trace The $387m Bitget Hack Back To North Korea

In a recent blog post, blockchain analytics firm Chainalysis attributed the $387 million theft from cryptocurrency exchange Bitget to North Korean state-sponsored hackers. The firm used a combination of its’ AI-powered cryptocurrency analysis and its’ traditional investigative methods to track the stolen funds, moving them across multiple blockchains. Importantly, although the firm used technology to enhance the analysis of the data, it was human investigators who ultimately attributed the theft and controlled the output of their analysis.

After the breach, the attackers had been using more sophisticated techniques for laundering the stolen assets, spreading them through cross-chain liquidity protocols, messaging platforms, instant swap services, as well as specialized laundering infrastructure. The scale of such attempts highlights the attackers’ high level of experience in managing a large-scale cybercrime operation and in evading detection by blockchain forensics experts, writes Decrypt.

Stolen XRP was handled differently by the hackers and after some time it was converted into Bitcoin through cross-chain liquidity protocol and then extracted from the pool on the other side of the trade. This cross-chain arbitrage was used by hackers not only to convert very traceable asset into something else but also to make it as anonymous as possible by hopping from one protocol to another. The activity of extracting tens of millions of dollars in assets through this method took approximately 36 hours.

We previously highlighted that the attack bore similarities to past attacks conducted by DPRK cyber crime operators, as identified by Bitget CEO Gracy Chen. Blockchain analytics firm Elliptic also assessed the involvement of North Korean cyber crime operators in the theft to be “highly likely”.

The money laundering activity is very transparent and is being carried out on public blockchains. The attacker moved parts of the funds to Zcash’s shielded pool in order to use the privacy features. However, how swap services react to these transactions varies greatly. Near Intents for example rejected over $50m in hacker-linked transactions. They got hacked days later though. Thorchain on the other hand continued to process the suspect transactions.

However, stablecoin issuers such as Circle and Tether were able to prevent $318,000 in stablecoins that were siphoned off in the hack from entering circulation. The move highlights the power of centralized control of widely held stablecoins even as the broader decentralized trading environment continues to facilitate hacker activity.

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California Man Accused Of Routing More Than $300 Million In Restricted Servers To China

A California man has been arrested on federal charges accusing him of helping route more than $300 million in export-controlled computer servers to China through Malaysia and Singapore.

Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, was arrested Oct. 1 after a federal grand jury returned a three-count indictment two days earlier.

Lui was the chief executive officer and owner of Earthmade Computer Inc., a company based in City of Industry, California, and established in November 2023. He was also the registered agent of another company, Coindigger, that did business as Earthmade.

Earthmade has not been charged in the case. The company did not respond by publication time to a request for comment.

Lui is charged with conspiracy to violate U.S. export-control laws, outbound smuggling, and conspiracy to commit money laundering. Prosecutors allege payments from Malaysia flowed into Earthmade’s U.S. bank accounts and were then used to buy restricted servers from American manufacturers.

Prosecutors allege the conspiracy began no later than October 2023 and continued through at least Aug. 12, 2026. The indictment’s detailed transaction examples are concentrated in 2024, when Lui and others allegedly bought high-end computer servers and graphics processing units, or GPUs, from U.S. manufacturers and routed them through Malaysia and Singapore before they ultimately reached China.

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More of Connecticut’s AI Law Takes Effect. Lawmakers Already Say It Doesn’t Regulate Enough

More provisions of Connecticut’s artificial intelligence (AI) law, Public Act 26-15, take effect today (Oct. 1), with broader workplace requirements scheduled to begin next year. 

While Connecticut is still implementing the law, legislators are already considering another round of AI regulations. Legislative leaders want tougher rules for AI developers, while labor unions are seeking additional protections for workers affected by the technology. 

Connecticut could be writing another set of AI rules before the largest provisions of its current law have had a chance to take effect. 

What Takes Effect October 1 

The first change concerns large layoffs. Under the federal Worker Adjustment and Retraining Notification (WARN) Act, certain employers must give advance notice of a mass layoff or plant closing. Starting today, an employer sending that notice to Connecticut’s Department of Labor must also disclose whether the layoffs are related to its use of AI or another technological change. 

The requirement does not prevent a layoff. It could, however, give the state a better record of where technology is changing employment. 

Employers also remain responsible for discriminatory employment decisions made with automated technology. If a company uses software to screen applicants, it cannot dismiss a discrimination claim by saying the computer made it do it. 

For consumers, companies that make generative AI systems with more than 1 million monthly users and sell subscriptions in Connecticut must spell out key terms, including limits on use and whether they can reduce or cut off access. Customers must accept those terms in writing when they sign up or renew.

Large AI providers face another rule. When technically and commercially reasonable, they must include information that helps identify certain images, audio and video as computer-generated. 

State agencies can still put AI to work, but they must follow state standards when using it to deliver public assistance or perform work that could significantly affect residents’ rights, safety or welfare. Agencies authorized to purchase AI must complete an impact assessment.

Software helping staff answer routine questions is one thing. Software involved in a family’s benefits is another. 

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Forget ‘superintelligence’: error-prone AI nearly sparked world war three this month

Amid a barrage of news stories warning about superintelligent machines rendering humanity extinct, a CNN story describing the opposite scenario – one in which the US military’s reliance on brittle chatbots almost brought the US into war with China – went mostly unnoticed by the public.

The biggest international AI news of the past three weeks was the Anthropic engineer Jacob Coxon’s resignation. According to him, OpenAI and Anthropic are “racing straight towards self-improving superintelligence and gambling with our lives”. Coxon’s description of a “terminator” scenario, a machine becoming much smarter than humanity and deciding to wipe us out, captured the public’s, journalists’ and politicians’ attention, stirring waves of fear-inducing, credulous reporting, and policy actions.

The California governor, Gavin Newsom, issued a mandate to create an “AI kill-switch”; New York’s governor, Kathy Hochul, is similarly exploring the possibility of having “AI kill-switches”; and Senator Bernie Sanders and Congressman Greg Casar introduced legislation to “ban artificial superintelligence”.

While so many of us were focused on fictional superintelligent machines that we were told could hypothetically cause human extinction, however, there was a more serious story being reported.

A series of events almost got us to armageddon, not caused by “rogue, superintelligent AI”, but by government reliance on error-prone systems that are marketed by their manufacturers as being close to superintelligent.

A CNN report published on 18 September, which hasn’t been verified by other major outlets, describes how the US “almost started a war” with China, based on an intelligence report that claimed a Chinese ship was transporting components of nuclear weapons. Military personnel made plans to intercept the Chinese vessel, complete with aircraft and soldiers ready to board the ship. A military skirmish of this kind between China and the US could quickly escalate and spiral into world war three.

It was only moments before executing on the plan that American officials further investigated the intelligence report and found that it had been generated with the use of a chatbot and contained erroneous information about the vessel’s contents.

Unlike the terminator, “rogue AI”, scenario, this incident didn’t galvanize lawmakers into announcing calls for regulation so as to avoid potential human extinction. Media outlet after media outlet didn’t warn the public that we almost triggered a war against a nuclear superpower because of our military’s reliance on error-prone chatbots.

We describe the large language models (LLMs) powering these chatbots as stochastic parrots, that is, models that are designed to regurgitate the patterns of the data they are trained on. News coverage describing them as “powerful” “rogue” models that could render humanity extinct all on their own, bolsters perceptions of tools based on these models being infallible enough to merit usage in stakes as high as warfare.

Even CNN’s more critical coverage describes the chatbot used by the US military as presenting “profound risks” because it is “powerful, new and relatively poorly understood technology”.

In fact, today’s LLMs and the chatbots they power are not poorly understood, nor are they powerful in the sense of being effective tools for this use case. They are systems for generating plausible-looking text, built out of enormous, haphazardly collected datasets and then “fine-tuned” (that is, further trained) to be especially appealing to their intended users.

CNN wasn’t able to learn which chatbot product was used in this case, but the LLM powering the product was probably fine-tuned to output text with the stylistic hallmarks of intelligence reports. Both the basic functionality and the risks of such a model have been well-understood and well-documented for years, including in our 2021 paper On the Dangers of Stochastic Parrots: Can Language Models Be Too Big?

Claims that system behavior is mysterious arise from deliberate mystification on the part of those selling those systems, and a misapprehension of what their output is by those procuring and using it.

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