US Senator Cruz pushes AI 'sandbox' to ease tech rules | Poland shoots down Russian drones | Meta, TikTok beat EU tech fees in court
Plus, AI is coming for Youtube creators
Good morning. It's Thursday, 11th of September.
The Daily Cyber & Tech Digest focuses on the topics we work on, including cybersecurity, critical technologies, foreign interference & disinformation.
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Republican US Senator Ted Cruz introduced a bill on Wednesday that would let artificial intelligence companies apply for exemptions from federal regulation to help them experiment in developing new technology. Reuters
Poland said it had shot down drones that violated its airspace during a Russian attack on Ukraine, in what the NATO member said was an “unprecedented violation” of its airspace. Financial Times
Meta Platforms and TikTok on Wednesday won a legal challenge to the way EU regulators calculated a supervisory fee imposed on them under landmark tech rules, but will receive no money back while officials reformulate the levy. Reuters
ASPI
AI’s national‑security risks are falling through the gaps
ASPI
Greg Sadler and Luke Freeman
While existing regulators have most AI risks under control, our new report shows that national-security risks are falling through the gaps. The Productivity Commission has called for a pause on guardrails for high-risk AI until the government completes a ‘gap analysis’ to identify which risks regulators can handle and which remain unmitigated. Our research, which applies the United Kingdom’s National Risk Assessment’s methodology to AI in Australia, finds that general-purpose AI poses national-security risks and that current mitigations are inadequate.
🚀 We’re rebuilding ASPI’s China Defence Universities Tracker from the ground up. The major expansion adds richer profiles, rankings powered by the Critical Technology Tracker, new mapping of links to China’s state-owned defence industry, analysis of China–Russia research ties, and data on the surge in dual-use research centres—now covering 180+ entities with faster search. Be first to get early-access invites and launch updates: https://unitracker.aspi.org.au/
Australia
While US stalls, Australia and Anduril move to put XL undersea vehicle into service
TechCrunch
Aria Alamalhodaei
With Anduril’s help, Australia has done what the US Navy has struggled to accomplish: transition an extra-large undersea drone from white board to under contract in just three years. Anduril announced Tuesday that a fleet of its XL uncrewed undersea vehicle “Ghost Shark” will begin operations in Australian waters next year under a massive AUS$1.7 billion contract.
Macquarie, Ribbit Capital and Nvidia’s NVentures lead PsiQuantum to $10.5bn valuation
The Australian
Jared Lynch
Taxpayer-backed PsiQuantum, which wants to become the Google of the quantum computing era, swept the world’s venture capital market to secure $1.5bn from top private investors including Nvidia. It received $1bn from the federal and Queensland governments to build Australia’s first quantum computer – a move which the Queensland Liberal National Party government initially questioned before deciding to proceed.
China
China consumer drone battle heats up as Insta360 takes on DJI
Nikkei Asia
Itsuro Fujino
Competition is intensifying in China's consumer drone industry as Insta360, the world leader in 360-degree cameras, enters the market while top global drone maker DJI starts selling 360-degree cameras, and both face tariff and other hurdles in the critical US market.
Chinese APT deploys EggStreme fileless malware to breach Philippine military systems
The Hacker News
Ravie Lakshmanan
An advanced persistent threat group from China has been attributed to the compromise of a Philippines-based military company using a previously undocumented fileless malware framework called EggStreme. The targeting of the Philippines is something of a recurring pattern for Chinese state-sponsored hacking groups, particularly in light of geopolitical tensions fueled by territorial disputes in the South China Sea between China, Vietnam, the Philippines, Taiwan, Malaysia, and Brunei.
China’s ‘Typhoons’ changing the way FBI hunts sophisticated threats
CyberScoop
Tim Starks
Major cyber intrusions by the Chinese hacking groups known as Salt Typhoon and Volt Typhoon have forced the FBI to change its methods of hunting sophisticated threats, a top FBI cyber official said Wednesday. US officials, allied governments and threat researchers have identified Salt Typhoon as the group behind the massive telecommunications hack revealed last fall but that could have been ongoing for years.
Chinese companies and bosses to face major fines over cybersecurity incidents
The Record by Recorded Future
Alexander Martin
Chinese lawmakers are this week considering a draft amendment to the country’s Cybersecurity Law that will introduce certification requirements for technology products, alongside more severe penalties for security shortcomings affecting critical sectors and sensitive data.
USA
US Senator Cruz proposes AI 'sandbox' to ease regulations on tech companies
Reuters
Jody Godoy
Republican US Senator Ted Cruz introduced a bill on Wednesday that would let artificial intelligence companies apply for exemptions from federal regulation to help them experiment in developing new technology. Cruz leads the Senate Commerce Committee, which held a subcommittee hearing on Wednesday about ways Congress can lower regulatory hurdles for the tech industry to give US companies a boost in competing with China.
Maga vs AI: Donald Trump’s big tech courtship risks a backlash
Financial Times
Joe Miller
Former White House chief strategist Steve Bannon has called for Mark Zuckerberg — who sat next to Trump at a recent White House dinner with other AI leaders — to be jailed for using his Facebook platform to help Democrats. But AI’s rise has given the sceptics another cudgel with which to beat Silicon Valley elites. A warning by Anthropic chief executive Dario Amodei that AI could wipe out half of all entry-level, white-collar jobs within five years was seized upon by some on the right, who called for Trump to constrain the technology.
Melania Trump’s AI era is upon us
WIRED
Jake Lahut
Even more so than the first time around, Melania Trump’s tenure as first lady thus far has been more notable for her absence than her presence. But that’s beginning to change. The ever elusive first lady, who has been highly sparing in her public appearances, emerged in recent weeks to highlight the newest addition to her slim policy portfolio: artificial intelligence, for the children.
Bluesky will comply with age-verification laws in South Dakota and Wyoming after exiting Mississippi
TechCrunch
Sarah Perez
After blocking its service in Mississippi over its new age-assurance law, the social networking startup is taking a different approach to comply with laws in South Dakota and Wyoming. Instead of requiring Bluesky to restrict access to all unverified users, users in South Dakota and Wyoming can verify their ages through the Kids Web Services’ solution.
US data center build hits record as AI demand surges, Bank of America Institute says
Reuters
Construction spending on US data centers reached an all-time high of $40 billion at a seasonally adjusted annual rate in June, as technology giants continue pouring billions into AI infrastructure, according to a Bank of America Institute report.
North Asia
Inside Taiwan's fight to protect its vital undersea cables
Nikkei Asia
Cheng Ting-Fang, Lauly Li and Thompson Chau
Taiwan has reported an unprecedented number of subsea cable disruptions in the first few months of this year. Although some damage was attributed to natural aging, the surge has sparked mounting concerns that Beijing could use fishing and cargo ships as cover for gray-zone operations aimed at hitting Taiwan's critical communications infrastructure. Such activities are difficult to detect and pose a growing threat to the island's economic and communications security.
South Korea aims to enter mass production of humanoid robots in 2029
The Economic Times
IANS
South Korea will work to begin mass producing humanoid robots in 2029 and autonomous vehicles powered by artificial intelligence the following year, making it a global leader in the AI transformation of manufacturing industries, the industry ministry said on Wednesday.
KT mobile payment breach rattles users over new security threat
The Korea Times
Lee Gyu-lee
A series of unauthorized mobile payment fraud cases have recently hit KT users in Seoul and the surrounding Gyeonggi Province, sparking an unprecedented type of security threat, with suspicions that rogue cellular base stations were used for the crimes.
Southeast Asia
Scam syndicate operating out of Phnom Penh busted; cross-border operation nets 12 suspects in Singapore
Channel News Asia
Darcel Al Anthony
A joint operation by Singapore and Cambodian police disrupted a scam syndicate running out of Phnom Penh, leading to the arrest of 12 people, said the Singapore Police Force (SPF) on Wednesday. The syndicate ran government official impersonation scams out of a location in Cambodia's capital and targeted victims in Singapore, said the SPF.
Europe
Poland shoots down Russian drones
Financial Times
Steff Chávez
Poland said it had shot down drones that violated its airspace during a Russian attack on Ukraine, in what the NATO member said was an “unprecedented violation” of its airspace. “An operation is under way related to multiple violations of Polish airspace. The military has used weapons against the objects,” Prime Minister Donald Tusk wrote on X in the early hours of Wednesday.
ASML-Mistral is Europe’s dream tech tie-up. Can it deliver?
POLITICO
Pieter Haeck
Two of Europe's tech powerhouses tied the knot on Tuesday in a landmark deal that is a boon for politicians seeking to reduce reliance on the United States for critical technology. Dutch microchips champion ASML confirmed it was investing €1.3 billion in French AI frontrunner Mistral, one of the few European companies that is able to go head-to-head with US leaders like OpenAI and Anthropic on artificial intelligence technology.
French police investigate pigs’ heads found near Paris-area mosques
The New York Times
Aurelien Breeden
The French police have opened an investigation into at least nine pigs’ heads that were found on Tuesday near the entrances of mosques in the Paris area, an act widely condemned by French religious leaders, politicians and top officials as anti-Muslim.
Big Tech
Meta, TikTok win challenge against EU tech fees, forcing regulators to recalculate
Reuters
Foo Yun Chee
Meta Platforms and TikTok on Wednesday won a legal challenge to the way EU regulators calculated a supervisory fee imposed on them under landmark tech rules, but will receive no money back while officials reformulate the levy. Meta and ByteDance's TikTok sued the European Commission after they were hit with a supervisory fee of 0.05% of their annual worldwide net income to cover the EU executive's cost of monitoring their compliance with the Digital Services Act.
Meta manipulated child safety research, ex-employees tell US Senate panel
Financial Times
Hannah Murphy
Meta buried, “pruned, and manipulated” worrying internal research on the safety of children using its virtual reality products, two whistleblowers told US senators on Tuesday, as the social platform faces a growing backlash over its alleged failure to protect younger users. Two former Meta employees told a US Senate judiciary sub-committee that the company’s internal research in recent years showed its VR products were causing harm to children, who would regularly encounter sexual solicitation from adults and be exposed to other graphic content and interactions.
Meta adds new features to community notes fact checks, including alerts for corrected posts
TechCrunch
Sarah Perez
Meta is introducing a few new features for its crowdsourced fact-checking program, Community Notes, launched in the US earlier this year. Now, users will be notified when they’ve interacted with a post on Facebook, Instagram, or Threads that receives a Community Note. Plus, anyone can now request a note or rate a note if it’s been helpful to them.
Apple launches skinny iPhone as it holds prices despite tariff costs
Financial Times
Michael Acton
Apple introduced a new slimline iPhone Air on Tuesday, the biggest change to the look of its flagship product in years, as the tech giant held smartphone prices steady despite pressure from the US trade disruption. Chief executive Tim Cook described the iPhone Air, which is 5.6mm thick, features a single camera on the back and is packed with Apple’s own custom chips, as the “biggest leap ever for iPhone”.
Apple is teaching its artificial intelligence to adapt to the Trump era
POLITICO
Océane Herrero
Apple policy documents enacted by a subcontractor show how the company shifted its approach to fine-tuning its AI in March, two months after the US president was inaugurated. As well as taking greater care around a host of politically sensitive topics including diversity initiatives, elections and vaccines, the company also updated its guidance to give closer attention to the AI’s responses on Trump’s supporters and on Apple itself.
US Senator Wyden pushes FTC to investigate Microsoft for 'gross cybersecurity negligence'
Reuters
A.J. Vicens
US Democratic Senator Ron Wyden on Wednesday requested the Federal Trade Commission “investigate and hold Microsoft responsible” for its role in a string of high-profile cybersecurity incidents in recent years, saying the company’s approach to security “continues to threaten US national security.”
Nasa blocks Chinese citizens with US visas from its facilities
South China Morning Post
Bochen Han
Nasa has barred Chinese nationals on US visas from its facilities and networks, in the latest reflection of Washington’s mounting concern over Beijing’s progress in space and other advanced technologies. Although the space agency has typically restricted the employment of Chinese citizens, Chinese nationals on US visas without affiliations with Chinese government institutions or state-owned companies could contribute as contractors, graduate students, or university scientists.
Palantir to open Honolulu office, hiring for federal contract work
Pacific Business News
Nichole Villegas
Denver-based data analytics firm Palantir Technologies is opening a Hawaii office in downtown Honolulu and is hiring for three positions to work on federal contracts. The company's new office on the 18th floor of the Mauka Tower in the Pacific Guardian Center is currently undergoing a $750,000 interior renovation, according to the building permit filed with the City and County of Honolulu.
Artificial Intelligence
AI is coming for YouTube creators
The Atlantic
Alex Reisner
Over the past few months, I’ve discovered more than 15.8 million videos from more than 2 million channels that tech companies have, without permission, downloaded to train AI products. Nearly 1 million of them, by my count, are how-to videos. You can find these videos in at least 13 different data sets distributed by AI developers at tech companies, universities, and research organizations, through websites such as Hugging Face, an online AI-development hub.
Why are chatbots parroting Russian propaganda?
Time
Billy Perrigo
Over the last year, as chatbots have gained the ability to search the internet before providing an answer, the likelihood that they will share false information about specific topics in the news has gone up, according to new research by NewsGuard Technologies. This means that AI chatbots are prone to parroting narratives spread by Russian disinformation networks, NewsGuard claims.
Misc
Are third-party blind spots the weakest link in enterprise cybersecurity chain?
iTnews
Abbinaya Kuzhanthaivel
As enterprise digital ecosystems become more complex and interconnected, one reality is becoming increasingly clear: the greatest cybersecurity threats may no longer come from within, but from partners, vendors, and third-party service providers. In conversation with iTNews Asia, Kavitha Mariappan, Chief Technology and Experience Officer at Rubrik shared a stark warning that many organisations are dangerously blind to the true risks embedded in their supply chains, and it’s time for security and business leaders to take a more proactive, resilience-driven approach.
Events & Podcasts
The Sydney Dialogue 2025
The Australian Strategic Policy Institute is pleased to announce the Sydney Dialogue, the world’s premier policy summit for critical, emerging and cyber technologies, will return on 4-5 December. Now in its fourth year, the dialogue attracts the world’s top thinkers, innovators and policymakers, and focusses on the most pressing issues at the intersection of technology and security. TSD has become the place where new partnerships are built among governments, industry and civil society, and where existing partnerships are deepened.
Join us for WIRED’s AI power summit
WIRED
On September 15, WIRED is gathering a panel of leaders across technology, politics, and media to tell you everything you need to know about the future of generative AI. We’ll break down the White House’s AI Action Plan and examine its consequences across industries; explore how emerging regulations could redefine the trajectory of innovation and shape public policy; and discuss who stands to gain—and who stands to lose—in AI’s next chapter.
The Daily Cyber & Tech Digest is brought to you by the Cyber, Technology & Security Programs team at ASPI and supported by partners.
