The Pentagon’s battle inside the U.S. for control of a new Cyber Force

Published

8 months ago

November 22, 2024

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A recent Chinese cyber-espionage attack inside the nation’s major telecom networks that may have reached as high as the communications of President-elect Donald Trump and Vice President-elect J.D. Vance was designated this week by one U.S. senator as “far and away the most serious telecom hack in our history.”

The U.S. has yet to figure out the full scope of what China accomplished, and whether or not its spies are still inside U.S. communication networks.

“The barn door is still wide open, or mostly open,” Senator Mark Warner of Virginia and chairman of the Senate Intelligence Committee told the New York Times on Thursday.

The revelations highlight the rising cyberthreats tied to geopolitics and nation-state actor rivals of the U.S., but inside the federal government, there’s disagreement on how to fight back, with some advocates calling for the creation of an independent federal U.S. Cyber Force. In September, the Department of Defense formally appealed to Congress, urging lawmakers to reject that approach.

Among one of the most prominent voices advocating for the new branch is the Foundation for Defense of Democracies, a national security think tank, but the issue extends far beyond any single group. In June, defense committees in both the House and Senate approved measures calling for independent evaluations of the feasibility to create a separate cyber branch, as part of the annual defense policy deliberations.

Drawing on insights from more than 75 active-duty and retired military officers experienced in cyber operations, the FDD’s 40-page report highlights what it says are chronic structural issues within the U.S. Cyber Command (CYBERCOM), including fragmented recruitment and training practices across the Army, Navy, Air Force, and Marines.

“America’s cyber force generation system is clearly broken,” the FDD wrote, citing comments made in 2023 by then-leader of U.S. Cyber Command, Army General Paul Nakasone, who took over the role in 2018 and described current U.S. military cyber organization as unsustainable: “All options are on the table, except the status quo,” Nakasone had said.

Concern with Congress and a changing White House

The FDD analysis points to “deep concerns” that have existed within Congress for a decade — among members of both parties — about the military being able to staff up to successfully defend cyberspace. Talent shortages, inconsistent training, and misaligned missions, are undermining CYBERCOM’s capacity to respond effectively to complex cyber threats, it says. Creating a dedicated branch, proponents argue, would better position the U.S. in cyberspace. The Pentagon, however, warns that such a move could disrupt coordination, increase fragmentation, and ultimately weaken U.S. cyber readiness.

As the Pentagon doubles down on its resistance to establishment of a separate U.S. Cyber Force, the incoming Trump administration could play a significant role in shaping whether America leans toward a centralized cyber strategy or reinforces the current integrated framework that emphasizes cross-branch coordination.

Known for his assertive national security measures, Trump’s 2018 National Cyber Strategy emphasized embedding cyber capabilities across all elements of national power and focusing on cross-departmental coordination and public-private partnerships rather than creating a standalone cyber entity. At that time, the Trump’s administration emphasized centralizing civilian cybersecurity efforts under the Department of Homeland Security while tasking the Department of Defense with addressing more complex, defense-specific cyber threats. Trump’s pick for Secretary of Homeland Security, South Dakota Governor Kristi Noem, has talked up her, and her state’s, focus on cybersecurity.

Former Trump officials believe that a second Trump administration will take an aggressive stance on national security, fill gaps at the Energy Department, and reduce regulatory burdens on the private sector. They anticipate a stronger focus on offensive cyber operations, tailored threat vulnerability protection, and greater coordination between state and local governments. Changes will be coming at the top of the Cybersecurity and Infrastructure Security Agency, which was created during Trump’s first term and where current director Jen Easterly has announced she will leave once Trump is inaugurated.

Cyber Command 2.0 and the U.S. military

John Cohen, executive director of the Program for Countering Hybrid Threats at the Center for Internet Security, is among those who share the Pentagon’s concerns. “We can no longer afford to operate in stovepipes,” Cohen said, warning that a separate cyber branch could worsen existing silos and further isolate cyber operations from other critical military efforts.

Cohen emphasized that adversaries like China and Russia employ cyber tactics as part of broader, integrated strategies that include economic, physical, and psychological components. To counter such threats, he argued, the U.S. needs a cohesive approach across its military branches. “Confronting that requires our military to adapt to the changing battlespace in a consistent way,” he said.

In 2018, CYBERCOM certified its Cyber Mission Force teams as fully staffed, but concerns have been expressed by the FDD and others that personnel were shifted between teams to meet staffing goals — a move they say masked deeper structural problems. Nakasone has called for a CYBERCOM 2.0, saying in comments early this year “How do we think about training differently? How do we think about personnel differently?” and adding that a major issue has been the approach to military staffing within the command.

Austin Berglas, a former head of the FBI’s cyber program in New York who worked on consolidation efforts inside the Bureau, believes a separate cyber force could enhance U.S. capabilities by centralizing resources and priorities. “When I first took over the [FBI] cyber program … the assets were scattered,” said Berglas, who is now the global head of professional services at supply chain cyber defense company BlueVoyant. Centralization brought focus and efficiency to the FBI’s cyber efforts, he said, and it’s a model he believes would benefit the military’s cyber efforts as well. “Cyber is a different beast,” Berglas said, emphasizing the need for specialized training, advancement, and resource allocation that isn’t diluted by competing military priorities.

Berglas also pointed to the ongoing “cyber arms race” with adversaries like China, Russia, Iran, and North Korea. He warned that without a dedicated force, the U.S. risks falling behind as these nations expand their offensive cyber capabilities and exploit vulnerabilities across critical infrastructure.

Nakasone said in his comments earlier this year that a lot has changed since 2013 when U.S. Cyber Command began building out its Cyber Mission Force to combat issues like counterterrorism and financial cybercrime coming from Iran. “Completely different world in which we live in today,” he said, citing the threats from China and Russia.

Brandon Wales, a former executive director of the CISA, said there is the need to bolster U.S. cyber capabilities, but he cautions against major structural changes during a period of heightened global threats.

“A reorganization of this scale is obviously going to be disruptive and will take time,” said Wales, who is now vice president of cybersecurity strategy at SentinelOne.

He cited China’s preparations for a potential conflict over Taiwan as a reason the U.S. military needs to maintain readiness. Rather than creating a new branch, Wales supports initiatives like Cyber Command 2.0 and its aim to enhance coordination and capabilities within the existing structure. “Large reorganizations should always be the last resort because of how disruptive they are,” he said.

Wales says it’s important to ensure any structural changes do not undermine integration across military branches and recognize that coordination across existing branches is critical to addressing the complex, multidomain threats posed by U.S. adversaries. “You should not always assume that centralization solves all of your problems,” he said. “We need to enhance our capabilities, both defensively and offensively. This isn’t about one solution; it’s about ensuring we can quickly see, stop, disrupt, and prevent threats from hitting our critical infrastructure and systems,” he added.

Technology

Texas Instruments stock falls 12% as CEO warns of tariff concerns

Published

4 hours ago

July 23, 2025

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Texas Instruments stock falls 12% as CEO warns of tariff concerns

The Texas Instruments headquarters in Dallas, Texas, US, on Sunday, Jan. 21, 2024.

N. Johnson | Bloomberg | Getty Images

Texas Instruments shares plunged 12% after the automotive and industrial semiconductor supplier warned of ongoing tariff aftershocks.

The company said it expects third-quarter earnings between $1.36 and $1.60 per share, a midpoint of $1.48 per share. That fell short of an LSEG estimate of $1.50.

Texas Instruments anticipates revenues between $4.45 billion and $4.48 billion. The midpoint of $4.63 billion was slightly ahead of the $4.59 billion expected by analysts.

In an earnings call with analysts, CEO Haviv Ilan said the company is experiencing a “shallow” recovery in the automotive sector and said customers may have lingering worries over tariffs and geopolitical uncertainty.

Tesla set to report second-quarter earnings after the bell

Published

4 hours ago

July 23, 2025

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Tesla set to report second-quarter earnings after the bell

Elon Musk, chief executive officer of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris, June 16, 2023.

Gonzalo Fuentes | Reuters

Tesla will report second-quarter results after the close of regular trading on Wednesday.

Here’s what Wall Street expects, according to an average of estimates compiled by LSEG:

Earnings per share: 43 cents
Revenue: $22.74 billion

Revenue in the period is expected to drop 11% from a year earlier, marking a second straight quarterly decline. In early July, Tesla reported a 14% year-over-year slide in vehicle deliveries to 384,000 for the second quarter.

Deliveries are the closest approximation of EV sales reported by Tesla but aren’t precisely defined in its shareholder communications.

Tesla’s slump this year is partly due to a backlash against the company in the U.S. and Europe, after CEO Elon Musk spent heavily to help reelect President Donald Trump, endorsed Germany’s extreme anti-immigrant AfD party, and then led the Trump administration’s Department of Government Efficiency. At DOGE, Musk helped to slash the federal workforce, roll back regulations, and eliminate USAID.

Other automakers saw their electric vehicle sales increase, eating away at Tesla’s market share during the second quarter.

General Motors’ U.S. sales of EVs rose 111% year-over-year to nearly 46,300 units in the period for an estimated market share of 16%, still far behind Tesla.

Musk’s political activism hasn’t been the only factor weighing on the brand.

Alphabet to report Q2 earnings after the bell

Published

4 hours ago

July 23, 2025

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Alphabet to report Q2 earnings after the bell

Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, Calif., Tuesday, May 20, 2025.

Jeff Chiu | AP

Alphabet is set to report its second-quarter earnings after the bell Wednesday.

Here’s what analysts polled by LSEG are expecting:

Revenue: $93.94 billion
Earnings per share: $2.18

Wall Street is also watching these numbers in the report:

YouTube advertising revenue: $9.56 billion, according to StreetAccount
Google Cloud revenue: $13.11 billion, according to StreetAccount
Traffic acquisition costs (TAC): $14.18 billion, according to StreetAccount

Alphabet is among the megacaps expected to be a major driver of earnings growth during the second-quarter earnings season. Wall Street is anticipating the search giant to report a 10.9% increase in revenue and 15% growth in earnings per share.

Shares of Alphabet haven’t moved much this year, lagging the other Magnificent Seven stocks and the S&P 500. Investors are primarily concerned about the rise of artificial intelligence chatbots, which could impact Google’s ability to remain competitive in search.

During the second quarter, the search giant rolled out a number of new AI products.

At its annual Google I/O conference in May, Google announced a new subscription tier, called “Google AI Ultra,” that offers access to the company’s “cutting edge” AI features for $249.99 per month. Google also unveiled its return to the smart glasses market with a $150 million partnership with Warby Parker — the two companies said they plan to launch a series of smart glasses as soon as next year.

Google in May also announced a venture fund to invest in AI startups. As part of the “AI Futures Fund,” eligible startups will receive Google investment, early access to AI models, and hands-on support from Google researchers, engineers and go-to-market specialists. They also get credits to use on Google Cloud.

Additionally in May, Google began testing the placement of its “AI Mode” product on its home page, directly beneath the Google search.

Earlier this month, OpenAI added Google to its list of suppliers, saying it expects to use the search company’s cloud infrastructure for its popular ChatGPT service. The announcement represented a win for Google, whose cloud unit is younger and smaller than those of Amazon and Microsoft.

Google made a splash in the AI talent wars, announcing it would bring in Windsurf CEO Varun Mohan and other top researchers at the artificial intelligence coding startup as part of a $2.4 billion deal that also includes licensing the company’s technology.

Internally, Google also made a number of personnel changes during the quarter.

The company added the new role of chief AI architect when it elevated Koray Kavukcuoglu from his position as Google DeepMind’s chief technology officer in June.

Google also made more workforce reductions by offering buyouts to U.S.-based employees across several of its divisions, including search, ads and commerce.

Alphabet made several strides with Waymo, its self-driving car unit, during the quarter.

Waymo reached 100 million “real world, fully autonomous miles” driven on public roads, the company said last week. Waymo also announced expansions into new markets.

In June, Waymo announced plans to drive vehicles manually in New York, marking the first step toward potentially cracking the largest U.S. city. In July, the company said it will do limited testing in Philadelphia and it began offering accounts for teens ages 14 to 17, starting in Phoenix.

The company also endured some less-flattering optics during the quarter.

In June, Google’s cloud suffered significant global outages knocking down or disrupting dozens of large internet services, including OpenAI and Shopify, among others.

WATCH: Google might be in the lead in their AI capability, says Constellation’s Ray Wang