Good morning. Currently, the price of Bitcoin is hovering around $100,000, marking the third time in the last week.
This is a 40% increase since before Election Day in the U.S. and a 120% increase since the beginning of the year.
Why bring this up? Oh, no particular reason. Check out today’s news below. —Andrew Nusca
If you have any thoughts or suggestions for Data Sheet, feel free to reach out here.
Chinese hackers are mobilizing, U.S. official says
A top U.S. cybersecurity official warns that Chinese-backed hackers are gearing up for a potential conflict with the U.S.
Morgan Adamski, head of U.S. Cyber Command in the Dept. of Defense, revealed on Friday at an industry event that these hackers have infiltrated crucial IT networks in preparation for launching disruptive attacks if conflict arises between the two nations.
Their tactics could involve manipulating HVAC systems in server rooms or disrupting power and water to data centers. The U.S. government is actively collaborating with potential targets to address this threat, with a focus on undermining and disrupting Chinese cyber operations worldwide. China denies any official involvement in cyber attacks on the U.S.
One notable attack was the Salt Typhoon incident, which breached multiple U.S. telecom companies this year to access call records, law enforcement requests, and communications related to U.S. presidential candidates during the election.
Sen. Mark Warner, chairman of the Senate Intelligence Committee, stated last week to the Washington Post that this incident was “by far the worst telecom hack in our nation’s history.”
TikTok’s CEO reportedly sought guidance from Musk on Trump
Elon Musk’s close relationship with President-elect Donald Trump was seen as beneficial to TikTok CEO Shou Chew, who reportedly reached out to Musk for advice.
Despite owning a competing social media platform, Musk and Chew have known each other for some time. Chew sought Musk’s opinions on various topics, including the incoming Trump administration and potential tech policies, following recent exchanges,as per a Wall Street Journal report.
While there is a January 19 deadline looming for ByteDance, TikTok’s parent company, to sell the platform or face a U.S. ban, Musk and Chew did not discuss specific options for TikTok’s continued operation in the U.S. ByteDance executives remain cautiously optimistic about their U.S. prospects, with Chew keeping them updated on the discussions.
Maintaining communication between Musk and Chew could be crucial for ByteDance as they navigate the upcoming months. Despite Trump’s attempts to ban TikTok during his previous term, he opposes the law signed this year. Sourcestold the Washington Post this month that Trump will aim to block a U.S. ban, necessitating a new bill from Congress that Trump must sign to fully reverse the law. —Jason Ma
Amazon to inject $4 billion into Anthropic
Amazon has decided to invest $4 billion in Anthropic, doubling its previous investment in the AI startup since last year.
Amazon will retain a minority share in Anthropic, with the startup designating Amazon Web Services as its primary training partner and utilizing Tranium chips from Amazon’s Annapurna Labs for model training and operations.
Established in 2021 in San Francisco by siblings Dario and Daniela Amodei, along with five former colleagues, Anthropic currently holds a valuation of $40 billion as reported in September.
The growing partnership between tech giants and emerging AI leaders, like Amazon and Anthropic, has caught the attention of regulators. Recent U.K. assessments found their financial ties insufficient to warrant a formal investigation.
Meta faces shareholder lawsuit over Cambridge Analytica scandal
Meta’s attempts to evade a shareholder lawsuit related to the Cambridge Analytica scandal have failed.
The scandal, dating back around six years, exposed how Cambridge Analytica misused Facebook data to construct voter profiles. Despite Facebook’s restrictions, the incident highlighted the inadequacy of the company’s data governance.
Meta’s shareholders initiated a lawsuit alleging the company failed to disclose risks regarding data misuse, resulting in a plummet in share value when the scandal broke.
After a federal appeals court greenlighted the suit, Meta took the case to the Supreme Court, which ultimately dismissed the appeal on Friday. Consequently, the lawsuit will proceed, preventing Meta from swiftly moving past this damaging episode. —David Meyer
Saudi Aramco to invest $1bn in U.S. telco tech maker Mavenir
The digital division of Saudi Aramco, the state-owned oil and gas conglomerate, is reportedly exploring a minority stake in U.S. telecom software company Mavenir.
As stated in a Reuters report published on Friday, a potential deal, though not assured, is expected to be finalized before the end of the year. This would mark Aramco Digital’s inaugural significant telecommunications investment under Saudi Arabia’s tech-focused Vision 2030 agenda.
Mavenir, headquartered in Richardson, Texas, specializes in Open RAN—radio access network—software designed to cut costs for mobile network-supporting telecom companies. Established in 2017 through the merger of Mitel Mobile, Ranzur, and Xura, the company has reportedly raised around $800 million.
Both the Trump and Biden administrations have endorsed Open RAN technology as a means to reduce dependency on Chinese suppliers such as Huawei. An Aramco-Mavenir deal may trigger a U.S. national security review.
More data
—Kia, Hyundai, Genesis recall 208,000 electric vehicles due to power loss while driving.
—SEC penalties reach all-time high of $8.2bn in 2024. Half of the fine originates from the Terraform Labs-Do Kwon crypto fraud case.
—Northvolt CEO resigns following U.S. bankruptcy. The Swedish battery manufacturer laid off 1,600 employees two months ago.
—Germany’s Bosch reduces employee hours amidst a soft economy. The majority of the conglomerate’s revenue is derived from automotive supplies.
—HarperCollins secures AI agreement. The publishing house will receive $2,500 per selected book for up to three years of training an LLM.
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