🔥 China-Russia Arctic Alliance Grows

Good Morning. 

Technology giants are increasingly acquiring energy assets from bitcoin miners to power their expanding AI and cloud computing data centers, which are driving the fastest U.S. power demand growth in decades.

While some crypto miners are profiting from leasing or selling their power infrastructure to tech companies, others are struggling to maintain access to the electricity needed for their operations.

— 🐈‍⬛ Acoustic Kitty

THE BOTTOM LINE UP FRONT

China and Russia are deepening cooperation in the Arctic, focusing on shipping, energy exploration, and security, raising concerns among analysts about increased geopolitical competition in the region.

Nordic countries, particularly Finland and Sweden, are becoming more aware of potential threats posed by this collaboration and are seeking to increase cooperation with NATO allies in response.

The growing interest of major powers in the Arctic is likely to lead to greater geopolitical tension in a region that has historically been free from global power struggles.

INTERNATIONAL SECURITY & DIPLOMACY

Counterterrorism

• Pakistan calls on Taliban to clarify ties with TTP terrorist group and address restrictions on Afghan women, while Taliban denies TTP's presence in Afghanistan.

• African Stream falsely claims U.S. routinely bombs Somali civilians, ignoring U.S. support for Somalia's government against terrorists.

Military & Defense

• U.S. National Security Advisor Sullivan meets Chinese officials to manage tensions and potentially arrange a final Biden-Xi summit before Biden leaves office.

• Israel has initiated a major military operation in the West Bank, targeting militants in cities like Jenin and Tulkarem, amid rising tensions and violence in the region.

• U.S. urges foreign nations to stop arming Sudan's warring factions and calls for a code of conduct to reduce abuses amid a severe humanitarian crisis.

Cybersecurity

• The Play ransomware gang has claimed responsibility for a cyberattack on U.S. semiconductor manufacturer Microchip Technology, potentially compromising sensitive data and disrupting business operations.

• A mysterious malfunction at a Dutch Ministry of Defence datacenter has caused widespread disruption across the Netherlands, affecting air traffic control, emergency services, and government communications.

• U.S. intelligence officials express confidence in their preparedness for potential foreign cyberattacks on the 2024 election, while anticipating increased hacking attempts as the election approaches.

Counterintelligence & Espionage

• Gaurav Srivastava, a young Indian businessman, allegedly scammed millions by posing as a CIA operative, donating to Democratic causes, and deceiving business partners in the oil industry.

• Former GE engineer's appeal fails to overturn conviction for stealing trade secrets for China.

Transnational Organized Crime

• Mexican cartels attack police station with drone bombs and set vehicles on fire in Michoacan state.

SCIENCE & TECHNOLOGY

Chinese AI developers are circumventing U.S. export controls on advanced Nvidia chips by accessing computing power overseas through brokers and anonymity techniques.

These brokers are setting up servers with Nvidia's H100 chips in data centers outside China and offering access to Chinese companies through decentralized platforms, often using cryptocurrency and blockchain technology to maintain anonymity.

In other news…

Telegram CEO Pavel Durov faces charges in France for alleged complicity in criminal activities on the app, including the spread of child sexual abuse material and refusing to assist authorities with legal wiretaps.

Notion, a popular U.S.-based productivity app, plans to suspend its service in Russia in September due to U.S. government sanctions.

Some police departments are using AI tools to generate incident reports, raising concerns among watchdogs while saving officers time on paperwork.

Microsoft reports that Iranian government-linked hackers are using custom malware to target various sectors in the U.S. and UAE, including oil and gas, satellite, and government.

The U.S. Air Force is dividing its intelligence and cyber directorate on the Air Staff at the Pentagon to elevate the role of cyber and networks in future conflicts, as part of broader reorganization efforts to better counter China.

DEALS & FUNDING

OpenAI is in talks to raise several billion dollars in a new funding round that would value the company at over $100B, with Thrive Capital and Microsoft as key investors.

This funding is crucial for OpenAI to maintain its leadership position in the competitive AI market and continue developing advanced AI technologies.

In other news…

The U.S. Army has awarded drone maker AeroVironment a $990M contract for multiple variants of Switchblade loitering munitions, aiming to enhance infantry units' capabilities against various targets.

A $136M land purchase near Phoenix by data-center developer Tract highlights the growing demand for sites to house power-hungry AI and cloud computing facilities.

ParaFi Capital, a digital asset manager, raised $120M to partly acquire stakes in other crypto funds, aiming to build a portfolio of 30 to 50 such investments over the next few years.

Outpost Technologies awarded $33.2M Air Force contract to develop reentry vehicle for hypersonic testing missions.

Comun, a digital bank focused on serving Latino immigrants in the United States, has raised $21.5M in Series A funding just months after its previous raise, driven by rapid growth in users, revenue, and new product offerings.

U.S. Navy to complete autonomy roadmap by late fall to guide future investments in autonomous systems.