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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.

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‘Focus on value creation; the stock market will settle itself,’ says Snowflake CEO amid bubble fears

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‘Focus on value creation; the stock market will settle itself,’ says Snowflake CEO amid bubble fears

The CEO of AI data firm Snowflake isn’t letting the stock market distract him from ambitions to become “one of the great technology companies in this world,” he told CNBC.

The company — a cloud data storage platform — made history when it became the largest-ever software IPO when it went public five years ago, and its share price is currently rallying amid an AI boom.

However, as investors flock to AI-related companies, fears of a bubble have emerged, leaving the market keen to distinguish between hype and reality in a bid to avoid being burned in the event of a pull-back.   

“You don’t control the stock price,” Sridhar Ramaswamy told “Squawk Box Europe” on Thursday. Shares of Snowflake rose 6.5% on Wednesday and are up over 60% year-to-date.

Snowflake CEO downplays concerns of an AI bubble: 'The stock market will settle itself'

“My focus very much is on value creation. We have to earn dollars, every single dollar at a time, so we are focused on the quarter, focused on the year, but, much more, also on the value that we create with customers, or the long term, the stock market will settle itself,” he added.   

His comments came after Snowflake investor Michael Speiser last week sold shares to net over $11 million, while senior VP Vivek Raghu Nathan made around $2.6 million in a share sale at the end of last month.

Ramaswamy declined to comment on individuals’ sales but added: “I am not selling any stock, I’m very much in favor of the long-term value that Snowflake is going to be creating, and the sales tend to be very, very modest.”  

Toeing the line of incremental adoption  

Markets are probably in a bubble and that's okay, says Vista Equity's Ashley MacNeill

But AI might not necessarily play out in the same way as the dot-com bubble, according to Vista Equity’s Ashley MacNeill, especially if investors keep a cool head, While bullish, she told CNBC’s “Closing Bell” that it’s important to have a “measured” approach.

“Is this a bubble that’s going to burst like it did in 1999? Or is this more like a balloon where we’re going to see it inflate and deflate as we go through the cycles?” MacNeill said. 

“Given the longevity of this technology and given the fact this is waves that’s going to adopt this technology, I’m more inclined to think that we aren’t bursting, but rather we’re going to inflate and deflate as this technology ebbs and flows,” she added.  

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Citi backs stablecoin firm BVNK as Wall Street warms to crypto

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Citi backs stablecoin firm BVNK as Wall Street warms to crypto

BVNK co-founders (L to R) Donald Jackson, Jesse Hemson-Struthers and Chris Harmes, at the company’s San Francisco Office.

BVNK

Citi has invested in stablecoin infrastructure company BVNK, the startup told CNBC on Thursday, as big U.S. banks ramp up their presence in the cryptocurrency and digital asset space.

Stablecoins are a type of digital asset pegged to a fiat currency and backed by real-world assets like bonds. The two biggest are USDC and Tether, which issues USDT.

BVNK’s core technology is effectively a payments rail to facilitate transactions in stablecoins globally, allowing customers to move money from fiat into the cryptocurrency and back.

The company declined to disclose the sum that Citi invested or its current valuation. But Chris Harmse, co-founder of BVNK, told CNBC in an interview that its valuation is higher than the $750 million that was publicly disclosed at its last funding round.

The investment was made by Citi Ventures, the venture capital arm of Citigroup.

Stablecoins, once just a tool for people to trade quickly in and out of other cryptocurrencies like bitcoin, are now being seen as a potential key tool for cross-border transactions due to the speed to send and receive them, the low cost and 24/7 settlement.

There were nearly $9 trillion worth of stablecoin transactions over the last 12 months, according to Visa, while the current valuation of all stablecoins in existence stands at over $300 billion, Coinmarketcap data shows.

U.S. growth

BVNK’s Harmse said the company is seeing momentum, especially in the U.S., which has been its fastest-growing market over the last 12-18 months thanks to what is seen by the crypto industry as a more favorable regulatory environment.

Earlier this year, the U.S. passed the GENIUS Act, a bill designed to regulate and bring more clarity to the stablecoin market.

“You are seeing with the GENIUS Act coming through, and regulatory clarity, an explosion of demand for building on top of stablecoin infrastructure,” Harmse told CNBC.

BVNK’s technology can be used by customers to pay suppliers, contractors or merchants in other countries. The company is looking to expand its customer base, including to digital-only banks or neobanks that may use stabelcoins for their core checking account, Harmse said.

Read more CNBC tech news

The co-founder declined to get into the specifics of the company’s work with Citi as it’s “too early to announce” but noted the Wall Street bank has been bolstering its cross-border payment services.

“U.S. banks at the scale of Citi, because of the GENIUS Act, are putting their weight behind … investing in leading businesses in the space to make sure they are at forefront of this technological shift in payments,” Harmse said. 

Citi signaled its step up into crypto this year. CEO Jane Fraser said in June that the company is considering issuing its own stablecoin and is interested in offering custodian services for crypto assets.

BVNK has “dipped in and out of profitability” as the company has invested in growth, Harmse said, adding that the company is on track to be profitable next year. BVNK is also backed by Coinbase and Tiger Global.

The startup is playing in a highly-competitive space with other newcomers like Alchemy Pay and TripleA and established players like Ripple trying to get a slice of the cross-border digital money pie.

Wall Street welcomes crypto

Citi isn’t alone in embracing digital assets when it comes to major U.S. banks and financial institutions.

JPMorgan Chase launched its own stablecoin-like token called JPMD this year. The bank also made the decision this year to allow clients to buy bitcoin.

Banks have been looking at how to use blockchain, a technology originally developed to underpin bitcoin, to lower the cost and speed up transactions of many kinds. Part of this involves “tokenization” which broadly means the idea of issuing a digital token that represents something such as a deposit.

Bank of New York Mellon, for example, is exploring tokenized deposits. HSBC has already launched a tokenized deposit service.

Visa’s stablecoin pilot could turn a narrative headwind into a tailwind, says Mizuho’s Dan Dolev

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OpenAI expands budget-friendly ChatGPT Go to 16 more countries in Asia

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OpenAI expands budget-friendly ChatGPT Go to 16 more countries in Asia

OpenAI’s ChatGPT Go has expanded to a total of 18 countries across Asia, according to an announcement made yesterday.

Nurphoto | Nurphoto | Getty Images

OpenAI has expanded its lower-cost subscription plan, ChatGPT Go, to 16 more countries across Asia, company head Nick Turley announced Thursday.

“Making ChatGPT more affordable has been a key ask from users,” said Turley in a post on social media platform X in August.

The artificial intelligence company launched ChatGPT Go in India and Indonesia earlier this year.

The rollout brings OpenAI’s cheapest plan to users across a total of 18 Asian countries: Afghanistan, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, India, Indonesia, Laos, Malaysia, Maldives, Myanmar, Nepal, Pakistan, Philippines, Sri Lanka, Thailand, Timor-Leste (East Timor) and Vietnam.

The expansion aims to increase the accessibility of the company’s latest model GPT-5, OpenAI said on its website.

ChatGPT Go includes all features in the free version, as well as extended access to image generation, file uploads, advanced data analysis and other functions. It also includes higher usage limits than the free plan for core chat and tools, according to OpenAI.

Why Jefferies declared ChatGPT its winner of the battle of AI chatbots

ChatGPT Go launched in India and Indonesia at a monthly fee of 399 rupees (about $4.50) and 75,000 rupiah (about $4.53), respectively — which are a fraction of the price of the company’s other subscription plans. The cost of the plan in other Asian markets may differ.

OpenAI currently has two other paid personal plans: ChatGPT Plus, which is offered at $20 a month and ChatGPT Pro, which is offered at $200 a month. The company also offers a business plan for $25 a month.

The use of ChatGPT has grown rapidly across the globe since its launch in late 2022. According to data from OpenAI, adoption growth rates of the AI chatbot in the lowest income countries were over four times those in the highest income countries by May 2025.

OpenAI noted that the budget-friendly plan is gradually being made available to all users. For those in Cambodia, Laos and Nepal, ChatGPT Go is already available on web and Android subscriptions, but not yet in the iOS app.

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