OpenAI says it has evidence DeepSeek used its model to train | Chinese, Iranian hackers using US AI to bolster cyberattacks | Trump officials discuss tighter curbs on Nvidia China sales
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The Daily Cyber & Tech Digest focuses on the topics we work on, including cybersecurity, critical technologies, foreign interference & disinformation.
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OpenAI says it has found evidence that Chinese artificial intelligence start-up DeepSeek used the US company’s proprietary models to train its own open-source competitor. Financial Times
Hackers linked to China, Iran and other foreign governments are using new AI technology to bolster their cyberattacks. The Wall Street Journal
Trump administration officials are exploring additional curbs on the sale of Nvidia chips to China, according to people familiar with the matter. Bloomberg
ASPI
DeepSeek’s disruption: Australia needs a stronger artificial intelligence strategy
The Strategist
Andrew Horton & James Corera
The success of DeepSeek, a Chinese AI startup, has thrown a wrench in the middle of what many observers thought were largely American, or at least democratic, gears. While the world seems to have been woken up by an AI surprise, DeepSeek’s breakthrough should be a timely reminder for Australia of the need to reduce consumer dependence for technology on China through a proactive and strategic approach to AI.
China's chatbot juggernaut DeepSeek could mark the end of US supremacy in AI
ABC News
Ange Lavoipierre
As for exactly what DeepSeek has done, some of the claims are shaky or yet to be thoroughly tested. Many experts are deeply sceptical of the touted $US5.5 million price tag and two-month timeline. "I think it needs to be questioned," says Jenny Wong Leung, senior analyst at ASPI. The AI model in question, DeepSeek-R1, isn't the company's first effort. "The $5.5 million in the last two months are specifically attached to the latest version, and builds on the shoulders of previous investment dating back to 2021," she says.
Deep end: Chinese AI chatbot disrupts global big tech
The Australian
Ben Packham
ASPI executive director Justin Bassi said the AI development presented an even more profound challenge to the West than Sputnik. “It’s even worse, as we were never reliant on the Soviet economy or its technology in the way we are with China,” he said. “We now face the prospect of being dominated in almost every field of life from the cars we drive to the news we get from social media to the so-called facts Beijing decides to give us through AI models. Both western governments and companies acted after Sputnik – that action is required once again.”
Australia
Australia urges citizens to be cautious about using China AI model DeepSeek
Reuters
Alasdair Pal
Australia Treasurer Jim Chalmers on Wednesday urged Australians to be cautious when using Chinese AI model DeepSeek, the latest government to warn over its use.
China
Images show China building huge fusion research facility, analysts say
Reuters
Gerry Doyle
China appears to be building a large laser-ignited fusion research centre in the southwestern city of Mianyang, experts at two analytical organisations say, a development that could aid nuclear weapons design and work exploring power generation.
USA
Trump officials discuss tighter curbs on Nvidia China sales
Bloomberg
Mackenzie Hawkins & Jenny Leonard
Trump administration officials are exploring additional curbs on the sale of Nvidia chips to China, according to people familiar with the matter, who emphasised that conversations are in very early stages as the new team works through policy priorities.
DeepSeek leveraged US chips, 'stolen' technology, Trump's commere secretary pick says
Reuters
China's DeepSeek was able to create a powerful artificial intelligence model "dirt cheap" by leveraging stolen US technology and advanced US semiconductors, President Donald Trump's US commerce secretary nominee Howard Lutnick told senators on Wednesday, vowing to address that.
Chinese and Iranian hackers are using US AI products to bolster cyberattacks
The Wall Street Journal
Hackers linked to China, Iran and other foreign governments are using new AI technology to bolster their cyberattacks against US and global targets, according to US officials and new security research.
Why blocking China's DeepSeek from using US AI may be difficult
Reuters
Stephen Nellis, Krystal Hu, Jeffrey Dastin, Anna Tong & Katie Paul
Top White House advisers this week expressed alarm that China's DeepSeek may have benefited from a method that allegedly piggybacks off the advances of US rivals called "distillation." The technique, which involves one AI system learning from another AI system, may be difficult to stop, according to executive and investor sources in Silicon Valley.
Americas
Canada inquiry found no evidence of 'traitors’ in parliament, but warns against disinformation
ABC
Jim Morris
A public inquiry on foreign interference in Canada concluded Tuesday that while some foreign entities tried to interfere in the country's elections, its democratic institutions remain "robust,” but warned against the danger of misinformation.
Ads on X targeting Canadian politicians amidst increasing disinformation online
CTV News
Ricardo Veneza
Sponsored posts masquerading as mainstream news content on American social media platform X, formerly known as Twitter, are inundating feeds with messages targeting Canadian political leaders — and it appears to be part of a Russian-backed scheme.
Southeast Asia
Filipino tech workers demand protections in AI bill after Rest of World report
Rest of World
Michael Beltran
New coalition calls for labor and free speech protections as AI tools make call center work both more efficient and demanding.
South & Central Asia
Pakistan outlaws disinformation with 3-year jail term
France24
Pakistan criminalised online disinformation on Tuesday, passing legislation dictating punishments of up to three years in jail and prompting journalist protests accusing the government of quashing dissent.
India’s open arms approach to AI
Rest of World
In India, according to industry sources, AI companies are currently being welcomed with open arms. India is home to the world’s largest internet base outside of China and has an extensive history of regulating Big Tech companies. With AI, though, the administration has signaled a friendlier attitude.
Ukraine - Russia
EU plans ban on sales of video game consoles to Russia
Financial Times
Andy Bounds
Brussels is proposing a ban on video game console sales to Russia to stop the country’s armed forces using them to control drones sent to Ukraine.
Europe
Italy’s privacy regulator goes after DeepSeek
POLITICO
Alfred Ng
Italy's data protection authority is asking Chinese artificial intelligence startup DeepSeek for formal responses on how it handles Italians' data when they use its AI chatbot app.
DeepSeek blocked on Apple and Google app stores in Italy
Reuters
Elvira Pollina
The Chinese artificial intelligence app DeepSeek could not be accessed on Wednesday in Apple and Google app stores in Italy, the day after the country's data protection authority requested information on its use of personal data.Irish data regulator requests information from DeepSeek on data processing
Reuters
Ireland's Data Protection Commission has requested information from Chinese artificial intelligence app DeepSeek about data processing conducted in relation to Irish users, it said on Wednesday.
EU sanctions Russian intelligence personnel for cyberattacks against Estonia
The Record by Recorded Future
Daryna Antoniuk
The European Union has sanctioned three Russian nationals for their alleged involvement in cyberattacks targeting Estonia in 2020, the European Council announced on Monday.
Poland accuses Russia of recruiting Polish citizens online for election meddling
The Record by Recorded Future
Daryna Antoniuk
Russia is attempting to recruit Polish citizens via the darknetto conduct influence operations ahead of Poland’s presidential election, a senior Polish official said.
Europe’s AI hopes rebound after DeepSeek success
POLITICO
Pieter Haeck
In just a week, Europe saw its artificial intelligence scene floundering in the face of American flexing, only to see it rebound with the rise of a Chinese rival. New Chinese model suggests winning the AI race could be done on the cheap.
UK
Microsoft, AWS could face UK watchdog probe into cloud services market
The Wall Street Journal
Ian Walker & Edith Hancock
Microsoft and Amazon Web Services could face an investigation by UK regulators after an independent enquiry found that competition isn’t working in the cloud-services market.
Africa
South Africa’s government-run weather service knocked offline by cyberattack
The Record by Recorded Future
Jonathan Greig
A cyberattack has forced the government-run South African Weather Service offline, limiting access to a critical service used by the country’s airlines, farmers and allies.
Big Tech
Meta engineers see vindication in DeepSeek's apparent breakthrough
The New York Times
Cade Metz & Mike Isaac
The Silicon Valley giant was criticised for giving away its core AI technology two years ago for anyone to use. Now that bet is having an impact.
Artificial Intelligence
OpenAI says it has evidence China’s DeepSeek used its model to train competitor
Financial Times
Cristina Criddle & Eleanor Olcott
OpenAI says it has found evidence that Chinese artificial intelligence start-up DeepSeek used the US company’s proprietary models to train its own open-source competitor, as concerns grow over a potential breach of intellectual property.
Events & Podcasts
Safeguarding Australian elections: Addressing AI-enabled disinformation
ASPI
As artificial intelligence advances, it creates new challenges for democracy and electoral integrity. AI-enabled disinformation, deepfakes, and influence operations are increasingly being weaponised to distort political discourse and erode public trust. This event on Thursday 6 February, 5:30-6:30pm, co-hosted by ASPI and CETaS, will focus on the intersection of AI, electoral integrity and democratic resilience.
Supercharging Adaptation: AI and War in the 21st Century
ANU Coral Bell School
AI offers the chance to improve all aspects of adaptive cycles for individuals, institutions and nations. But it also offers the chance to understand, and interfere with, enemy adaptation cycles, in an approach called Counter Adaptation.
The Daily Cyber & Tech Digest is brought to you by the Cyber, Technology & Security team at ASPI.
