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Hitting the Books: When the military-industrial complex came to Silicon Valley

As with most every other aspect of modern society, computerization, augmentation and automation have hyper-accelerated the pace at which wars are prosecuted — and who better to help reshape the US military into a 21st century fighting force than an entire industry centered on moving fast and breaking things? In his latest book, War Virtually: The Quest to Automate Conflict, Militarize Data, and Predict the Future, professor and chair of the Anthropology Department at San José State University, Roberto J González examines the military’s increasing reliance on remote weaponry and robotic systems are changing the way wars are waged. In the excerpt below, González investigates Big Tech’s role in the Pentagon’s high-tech transformations.  

War Virtually cover
UC Press

Excerpted from War Virtually: The Quest to Automate Conflict, Militarize Data, and Predict the Future by Roberto J. González, published by the University of California Press. © 2022 by Roberto J. González.


Ash Carter’s plan was simple but ambitious: to harness the best and brightest ideas from the tech industry for Pentagon use. Carter’s premise was that new commercial companies had surpassed the Defense Department’s ability to create cutting-edge technologies. The native Pennsylvanian, who had spent several years at Stanford University prior to his appointment as defense secretary, was deeply impressed with the innovative spirit of the Bay Area and its millionaire magnates. “They are inventing new technology, creating prosperity, connectivity, and freedom,” he said. “They feel they too are public servants, and they’d like to have somebody in Washington they can connect to.” Astonishingly, Carter was the first sitting defense secretary to visit Silicon Valley in more than twenty years.

The Pentagon has its own research and development agency, DARPA, but its projects tend to pursue objectives that are decades, not months, away. What the new defense secretary wanted was a nimble, streamlined office that could serve as a kind of broker, channeling tens or even hundreds of millions of dollars from the Defense Department’s massive budget toward up-and-coming firms developing technologies on the verge of completion. Ideally, DIUx would serve as a kind of liaison, negotiating the needs of grizzled four-star generals, the Pentagon’s civilian leaders, and hoodie-clad engineers and entrepreneurs. Within a year, DIUx opened branch offices in two other places with burgeoning tech sectors: Boston, Massachusetts, and Austin, Texas.

In the short term, Carter hoped that DIUx would build relationships with local start-ups, recruit top talent, get military reservists involved in projects, and streamline the Pentagon’s notoriously cumbersome procurement processes. “The key is to contract quickly — not to make these people fill out reams of paperwork,” he said. His long-term goals were even more ambitious: to take career military officers and assign them to work on futuristic projects in Silicon Valley for months at a time, to “expose them to new cultures and ideas they can take back to the Pentagon… [and] invite techies to spend time at Defense.”

In March 2016, Carter organized the Defense Innovation Board (DIB), an elite brain trust of civilians tasked with providing advice and recommendations to the Pentagon’s leadership. Carter appointed former Google CEO (and Alphabet board member) Eric Schmidt to chair the DIB, which includes current and former executives from Facebook, Google, and Instagram, among others.

Three years after Carter launched DIUx, it was renamed the Defense Innovation Unit (DIU), indicating that it was no longer experimental. This signaled the broad support the office had earned from Pentagon leaders. The Defense Department had lavished nearly $100 million on projects from forty-five companies, almost none of which were large defense contractors. Despite difficulties in the early stages — and speculation that the Trump administration might not support an initiative focused on regions that tended to skew toward the Democratic Party — DIUx was “a proven, valuable asset to the DoD,” in the words of Trump’s deputy defense secretary, Patrick Shanahan. “The organization itself is no longer an experiment,” he noted in an August 2018 memo, adding: “DIU remains vital to fostering innovation across the Department and transforming the way DoD builds a more lethal force.” Defense Secretary James “Mad Dog” Mattis visited Amazon’s Seattle headquarters and Google’s Palo Alto office in August 2017 and had nothing but praise for the tech industry. “I’m going out to see what we can pick up in DIUx,” he told reporters. In early 2018, the Trump administration requested a steep increase in DIU’s budget for fiscal year 2019, from $30 million to $71 million. For 2020, the administration requested $164 million, more than doubling the previous year’s request.

Q BRANCH

Although Pentagon officials portrayed DIUx as a groundbreaking organization, it was actually modeled after another firm established to serve the US Intelligence Community in a similar way. In the late 1990s, Ruth David, the CIA’s deputy director for science and technology, suggested that the agency needed to move in a radically new direction to ensure that it could capitalize on innovations being developed in the private sector, with a special focus on Silicon Valley firms. In 1999, under the leadership of its director, George Tenet, the CIA established a nonprofit legal entity called Peleus to fulfill this objective, with help from former Lockheed Martin CEO Norman Augustine. Soon after, the organization was renamed In-Q-Tel.

The first CEO, Gilman Louie, was an unconventional choice to head the enterprise. Louie had spent nearly twenty years as a video game developer who, among other things, created a popular series of Falcon F-16 flight simulators. At the time he agreed to join the new firm, he was chief creative officer for the toy company Hasbro. In a 2017 presentation at Stanford University, Louie claimed to have proposed that In-Q-Tel take the form of a venture capital fund. He also described how, at its core, the organization was created to solve “the big data problem”:

The problem they [CIA leaders] were trying to solve was: How to get technology companies who historically have never engaged with the federal government to actually provide technologies, particularly in the IT space, that the government can leverage. Because they were really afraid of what they called at that time the prospects of a “digital Pearl Harbor” Pearl Harbor

happened with every different part of the government having a piece of information but they couldn’t stitch it together to say, “Look, the attack at Pearl Harbor is imminent.” The White House had a piece of information, naval intelligence had a piece of information, ambassadors had a piece of information, the State Department had a piece of information, but they couldn’t put it all together [In] 1998, they began to realize that information was siloed across all these different intelligence agencies of which they could never stitch it together [F]undamentally what they were trying to solve was the big data problem. How do you stitch that together to get intelligence out of that data?

Louie served as In-Q-Tel’s chief executive for nearly seven years and played a crucial role in shaping the organization.

By channeling funds from intelligence agencies to nascent firms building technologies that might be useful for surveillance, intelligence gathering, data analysis, cyberwarfare, and cybersecurity, the CIA hoped to get an edge over its global rivals by using investment funds to co-opt creative engineers, hackers, scientists, and programmers. The Washington Post reported that “In-Q-Tel was engineered with a bundle of contradictions built in. It is independent of the CIA, yet answers wholly to it. It is a non- profit, yet its employees can profit, sometimes handsomely, from its work. It functions in public, but its products are strictly secret.” In 2005, the CIA pumped approximately $37 million into In-Q-Tel. By 2014, the organization’s funding had grown to nearly $94 million a year and it had made 325 investments with an astonishing range of technology firms, almost none of which were major defense contractors.

If In-Q-Tel sounds like something out of a James Bond movie, that’s because the organization was partly inspired by — and named after — Q Branch, a fictional research and development office of the British secret service, popularized in Ian Fleming’s spy novels and in the Hollywood blockbusters based on them, going back to the early 1960s. Ostensibly, both In-Q-Tel and DIUx were created to transfer emergent private-sector technologies into the US intelligence and military agencies, respectively. A somewhat different interpretation is that these organizations were launched “to capture technological innovations… [and] to capture new ideas.” From the perspective of the CIA these arrangements have been a “win-win,” but critics have described them as a boondoggle — lack of transparency, oversight, and streamlined procurement means that there is great potential for conflicts of interest. Other critics point to In-Q-Tel as a prime example of the militarization of the tech industry.

There’s an important difference between DIUx and In-Q-Tel. DIUx is part of the Defense Department and is therefore financially dependent on Pentagon funds. By contrast, In-Q-Tel is, in legal and financial terms, a distinct entity. When it invests in promising companies, In-Q-Tel also becomes part owner of those firms. In monetary and technological terms, it’s likely that the most profitable In-Q-Tel investment was funding for Keyhole, a San Francisco–based company that developed software capable of weaving together satellite images and aerial photos to create three-dimensional models of Earth’s surface. The program was capable of creating a virtual high-resolution map of the entire planet. In-Q-Tel provided funding in 2003, and within months, the US military was using the software to support American troops in Iraq.

Official sources never revealed how much In-Q-Tel invested in Keyhole. In 2004, Google purchased the start-up for an undisclosed amount and renamed it Google Earth. The acquisition was significant. Yasha Levine writes that the Keyhole-Google deal “marked the moment the company stopped being a purely consumer-facing internet company and began integrating with the US government [From Keyhole, Google] also acquired an In-Q-Tel executive named Rob Painter, who came with deep connections to the world of intelligence and military contracting.” By 2006 and 2007, Google was actively seeking government contracts “evenly spread among military, intelligence, and civilian agencies,” according to the Washington Post.

Apart from Google, several other large technology firms have acquired startups funded by In-Q-Tel, including IBM, which purchased the data storage company Cleversafe; Cisco Systems, which absorbed a conversational AI interface startup called MindMeld; Samsung, which snagged nanotechnology display firm QD Vision; and Amazon, which bought multiscreen video delivery company Elemental Technologies. While these investments have funded relatively mundane technologies, In-Q-Tel’s portfolio includes firms with futuristic projects such as Cyphy, which manufactures tethered drones that can fly reconnaissance missions for extended periods, thanks to a continuous power source; Atlas Wearables, which produces smart fitness trackers that closely monitor body movements and vital signs; Fuel3d, which sells a handheld device that instantly produces detailed three-dimensional scans of structures or other objects; and Sonitus, which has developed a wireless communication system, part of which fits inside the user’s mouth. If DIUx has placed its bets with robotics and AI companies, In-Q-Tel has been particularly interested in those creating surveillance technologies — geospatial satellite firms, advanced sensors, biometrics equipment, DNA analyzers, language translation devices, and cyber-defense systems.

More recently, In-Q-Tel has shifted toward firms specializing in data mining social media and other internet platforms. These include Dataminr, which streams Twitter data to spot trends and potential threats; Geofeedia, which collects geographically indexed social media messages related to breaking news events such as protests; PATHAR, a company specializing in social network analysis; and TransVoyant, a data integration firm that collates data from satellites, radar, drones, and other sensors. In-Q-Tel has also created Lab41, a Silicon Valley technology center specializing in big data analysis and machine learning.

Sony’s WH-1000XM5 noise-cancelling headphones could feature a new design

Since their release in 2020, Sony’s WH-1000XM4 have consistently been among the best Bluetooth headphones you can buy thanks to their long-lasting battery and excellent noise cancelling capabilities. It now looks like the company has a substantial upgrade planned. In a leak spotted by Gizmodo, German-language publication TechnikNews shared details on what to expect from the WH-1000XM5.

According to the outlet, Sony’s next flagship noise cancelling headphones will feature up to 40 hours of battery life. If accurate, that would be a significant improvement from the already impressive 30 hours you can get on a single charge from the XM4. Charging the new model to full via USB-C will reportedly take approximately three-and-a-half hours, or about 30 minutes longer than the XM4. The new model is also said to feature an additional processing chip for ANC and a new set of drivers.

But as you can see from the renders TechnikNews shared, the most notable difference between the WH-1000XM4 and its alleged successor is an entirely new design. It looks like the XM5 won’t fold in like Sony’s current flagship Bluetooth headphones but the tradeoff it appears is that they’ll feature more padding on the earcups and a lighter band. A lot of people love the WH4 for their comfort and it will be interesting to see if the design of the new model makes it even easier to wear over long listening sessions.

TechnikNews didn’t say anything about a release date or pricing for the WH-1000XM5. Outside of sales, the current model retails for $350. We’ll note here Sony’s WF-1000XM4 earbuds ended up costing more than their predecessor due the addition of features like Qi charging and LDAC support.

Ubisoft’s new ‘team battle arena’ game isn’t a battle royale, claims company

Following a leak early Saturday, Ubisoft announced it was working on a new “team battle arena” game codenamed Project Q. Before Ubisoft’s official announcement, leaker Tom Henderson shared footage of Project Q, showcasing a title that looks like a mix between Overwatch and Fortnite. One mode, dubbed “Showdown,” features four teams of two players pitted against one another to decide the winner, while a second “Battle Zone” mode sees two teams of four players competing to earn 100 points first.

Despite similarities to games like PUBG and Warzone, Ubisoft was quick to claim Project Q isn’t another battle royale. “By the way, this is not a battle royale,” the company tweeted. “The game will feature a variety of PvP modes with one single goal in mind: Fun!” Ubisoft also announced it doesn’t plan to add NFTs to Project Q. Among video game publishers, Ubisoft has been one of the more bullish proponents of Web3 monetization, a stance that has not endeared the company among gamers.

You can sign up on Ubisoft’s website to receive updates on Project Q. According to the registration page, the company is developing the title for Xbox One, Xbox Series X/S, PlayStation 4, PS5 and PC. The confirmation of Project Q‘s existence follows the recent news that Ubisoft would shut down Hyper Scape, its first attempt at a battle royale, on the 28th.

Lapsus$ stole T-Mobile’s source code before member arrests in March

Before police arrested seven of the group’s more prolific members in late March, ransomware gang Lapsus$ stole T-Mobile’s source code that same month. In a report published Friday and spotted by The Verge, security journalist Brian Krebs shared screenshots of private Telegram messages that show the group targeted the carrier multiple times.

“Several weeks ago, our monitoring tools detected a bad actor using stolen credentials to access internal systems that house operational tools software,” T-Mobile told Krebs. “Our systems and processes worked as designed, the intrusion was rapidly shut down and closed off, and the compromised credentials used were rendered obsolete.” The company added the “systems accessed contained no customer or government information or other similarly sensitive information.”

Lapsus$ initially accessed T-Mobile’s internal tools by buying stolen employee credentials on websites like Russian Market. The group then carried out a series of SIM swap attacks. Those type of intrusions typically involve a hacker hijacking their target’s mobile phone by transferring the number to a device in their possession. The attacker can then use that access to intercept SMS messages, including links to password resets and one-time codes for multi-factor authentication. Some Lapsus$ members attempted to use their access to hack into T-Mobile accounts associated with the FBI and Department of Defense but failed to do so due to the additional verification measures tied to those accounts.

Hackers have frequently targeted T-Mobile in recent years. Last August, the company confirmed it had fallen victim to a hack that saw the personal data of more than 54 million of its customers compromised. That breach also involved SIM swap attacks and may have even seen the carrier secretly pay a third-party firm to limit the damage.

European Union limits targeted advertising and content algorithms under new law

Following a marathon 16-hour negotiation session, the European Union reached an agreement early Saturday to adopt the Digital Services Act. The legislation seeks to impose greater accountability on the world’s tech giants by enforcing new obligations companies of all sizes must adhere to once the act becomes law in 2024. Like the Digital Markets Act before it, the DSA could have far-reaching implications, some of which could extend beyond Europe.

While the European Commission has yet to release the final text of the Digital Services Act, it did detail some of its provisions on Saturday. Most notably, the law bans ads that target individuals based on their religion, sexual orientation, ethnicity or political affiliation. Companies also cannot serve targeted ads to minors.

Another part of the law singles out recommendation algorithms. Online platforms like Facebook will need to be transparent about how those systems work to display content to users. They will also need to offer alternative systems “not based on profiling,” meaning more platforms would need to offer chronological feeds. Additionally, some of the largest platforms today will be required to share “key” data to vetted researchers and NGOs so those groups can provide insights into “how online risks evolve.”

“Today’s agreement on the Digital Services Act is historic, both in terms of speed and of substance,” said European Commission President Ursula von der Leyen. “It will ensure that the online environment remains a safe space, safeguarding freedom of expression and opportunities for digital businesses. It gives practical effect to the principle that what is illegal offline, should be illegal online.”

Under the DSA, the EU will have the power to fine tech companies up to six percent of their global turnover for rule violations, with repeat infractions carrying the threat of a ban from the bloc. As The Guardian points out, in the case of a company like Meta, that would translate into a single potential fine of approximately $7 billion.

The DSA differentiates between tech companies of different sizes, with the most scrutiny reserved for platforms that have at least 45 million users in the EU. In that group are companies like Meta and Google. According to a recent report, those two, in addition to Apple, Amazon and Spotify, collectively spent more than €27 million lobbying EU policymakers last year to change the terms of the Digital Services Act and Digital Markets Act. The laws could inspire lawmakers in other countries, including the US, as they look to pass their own antitrust laws.

“We welcome the DSA’s goals of making the internet even more safe, transparent and accountable, while ensuring that European users, creators and businesses continue to benefit from the open web,” a Google spokesperson told Engadget. “As the law is finalized and implemented, the details will matter. We look forward to working with policymakers to get the remaining technical

Amazon workers in New York accuse the company of retaliatory firings

An independent group of Amazon workers called Amazonians United is accusing the e-commerce giant of firing four workers in Queens because they “supported a labor organization.” According to BuzzFeed News, the group filed charges with the National Labor Relations Board on April 14th, arguing that the company fired the workers for “protesting terms and conditions of employment.” The group also said that Amazon made the move to “discourage union activities.”

Workers at Amazon’s warehouses in Long Island City and Woodsland staged a walkout back in March to demand a pay raise of $3 an hour and the reinstatement of their 20-minute rest breaks. A Motherboard report about the protest noted that the workers were earning around $15.75 to $17.25 an hour and that Amazon had shortened their rest breaks from 20 to 15 minutes. Workers at the Queens facilities also joined a petition that circulated in December demanding better inclement weather policy and the right to keep their phones with them in case of emergency. 

As a labor organization, Amazonians United collectively fights for better policies that benefit workers without being an official union. It successfully fought for workplace policy changes and pay raises in the past. In this particular case, the National Labor Relations Board (NLRB) still has to review the group’s complaint before it decides if it has any merit. Just a few days ago, the NLRB successfully convinced a judge to order Amazon to reinstate Staten Island warehouse worker Gerald Bryson. The judge sided with the labor board and agreed with its argument that the company fired Bryson in retaliation for participating in a COVID-19 safety protest back in 2020.

Google files a trademark application for ‘Pixel Watch’

There’s a big chance that Google’s long-rumored smartwatch will be called the “Pixel Watch.” The tech giant has filed paperwork with the United States Patent and Trademark Office to trademark “Pixel Watch,” 9to5Google reports. In its application, Google wrote that the name is intended to “cover the categories of smartwatches,” “wearable computers in the nature of smartwatches,” as well as smartwatch cases, straps and bands. 

The trademark application didn’t contain additional details about the device. But based on previous rumors and rendering leaks, the company’s first in-house-developed smartwatch will have a circular face with no bezel. It’s expected to have a heart rate sensor and other features found in devices by Fitbit, which Google purchased in 2021, as well. The device will reportedly cost more than a Fitbit, though, and will be a veritable Apple Watch competitor. It’s also expected to run Wear OS 3, the tech giant’s upcoming wearable platform that will only make its way to a handful of current smartwatches. 

Jon Prosser, who’s known for leaking upcoming releases in tech, previously said that Google is planning to launch its first smartwatch on May 26th. That doesn’t sound unlikely, since the date coincides with the tech giant’s annual I/O conference that usually takes place in May. However, as 9to5Google points out, Google has to go through a few more regulatory hurdles before the device’s launch. Since the device hasn’t been spotted in listings at the Federal Communications Commission and the Bluetooth SIG yet, May 26th might be too soon for its unveiling.