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The unoccupied space-facing port on the International Space Station’s Harmony module is pictured several hours before the SpaceX Dragon Freedom spacecraft would relocate there after undocking from Harmony’s forward port.

NASA Johnson Space Center

In the race to conquer the cosmos, the greatest challenge to space exploration might be the vastness of the unknown, but that distance from planet Earth isn’t dissuading the invisible hands of cybercriminals aiming to sabotage missions from thousands of miles below.

Spacecraft, satellites, and space-based systems all face cybersecurity threats that are becoming increasingly sophisticated and dangerous. With interconnected technologies controlling everything from navigation to anti-ballistic missiles, a security breach could have catastrophic consequences.

“There are unique constraints to operating in space where you do not have physical access to spacecraft for repairs or updates after launch,” said William Russell, director of contracting and national security acquisitions at the U.S. Government Accountability Office. “The consequences of malicious cyber activities include loss of mission data, decreased lifespan or capability of space systems or constellations, or the control of space vehicles.”

Critical space infrastructure is susceptible to threats across three key segments: in space, on the ground segment and within the communication links between the two. A break in one can be a cascading failure for all, said Wayne Lonstein, co-founder and CEO at VFT Solutions, and co-author of Cyber-Human Systems, Space Technologies, and Threats. “In many ways, the threats to critical infrastructure on Earth can cause vulnerabilities in space,” Lonstein said. “Internet, power, spoofing and so many other vectors that can cause havoc in space,” he added.

AI risks in mission critical systems

The integration of artificial intelligence into space projects has heightened the risk of sophisticated cyber attacks orchestrated by state actors and individual hackers. AI integration into space exploration allows more decision-making with less human oversight.

For example, NASA is using AI to target scientific specimens for planetary rovers. However, reduced human oversight could make these missions more prone to unexplained and potentially calamitous cyberattacks, said Sylvester Kaczmarek, chief technology officer at OrbiSky Systems, which specializes in the integration of AI, robotics, cybersecurity, and edge computing in aerospace applications.

Data poisoning, where attackers feed corrupted data to AI models, is one example of what could go wrong, Kaczmarek said. Another threat, he said, is model inversion, where adversaries reverse-engineer AI models to extract sensitive information, potentially compromising mission integrity. If compromised, AI systems could be used to interfere with or take control of strategically important national space missions.

“AI systems may be susceptible to unique types of cyberattacks, such as adversarial attacks, where malicious inputs are designed to deceive the AI into making incorrect decisions or predictions,” Lonstein said. AI could also enable adversaries to “carry out sophisticated espionage or sabotage operations against space systems, potentially altering mission parameters or stealing sensitive information,” he added.

The Quetzal-1 CubeSat is seen as it deploys from the JEM Small Satellite Orbital Deployer aboard the International Space Station.

NASA Johnson Space Center

Worse yet, AI can be weaponized — used to develop advanced space-based weapons or counter-space technologies that could disrupt or destroy satellites and other space assets.

The U.S. government is tightening up the integrity and security of AI systems in space. The 2023 Cyberspace Solarium Commission report stressed the importance of designating outer space as a critical infrastructure sector, urging enhanced cybersecurity protocols for satellite operators.

Lonstein recommends rigorous testing of AI systems in simulated space conditions before deployment, and redundancy as a way to safeguard against an unexpected breach. “Implement redundant systems to ensure that if one AI component fails, others can take over, thus maintaining mission integrity and functionality,” he said.

Use of strict access controls, authentication, and error correction mechanisms can further ensure that AI systems operate with accurate information. There are reactive measures for when even these defenses have been breached, through the design of AI systems with fail-safe mechanisms that can revert to a “safe state” or “default mode” in the event of a malfunction or unexpected behavior, Lonstein said. Manual override is important, too. “Ensure that ground control can manually override or intervene in AI decision- making, when necessary, providing an additional layer of safety,” he added.

U.S.-China competition

The rivalry between the U.S. and China includes the new battleground of space. As both nations ramp up their space ambitions and militarized capabilities beyond Earth’s atmosphere, the threat of cyberattacks targeting critical orbital assets has become an increasingly pressing concern.

“The competition between the U.S. and China, with Russia as a secondary player, heightens the risk of cyberattacks as these nations seek to gain technological superiority,” Kaczmarek said.

Though they don’t garner as much attention in the mainstream press as consumer, crypto or even nation-state hacks against key U.S. private and government infrastructure on the ground, notable cyberattacks have targeted critical space-based technologies in recent years. With the U.S., China, Russia and India intensifying their push for space dominance, the stakes have never been higher.

There were repeated cyberattacks this year on Japan’s space agency JAXA. In 2022, there were hacks on SpaceX’s Starlink satellite system, which Elon Musk attributed to Russia after the satellites were supplied to Ukraine. In August 2023, the U.S. government issued a warning that Russian and Chinese spies were aiming to steal sensitive technology and data from U.S. space companies such as SpaceX and Blue Origin. China has been implicated in numerous cyber-espionage campaigns dating back as far as a decade, such as the 2014 breach of the U.S. National Oceanic and Atmospheric Administration weather systems, jeopardizing space-based environmental monitoring.

“Nations like China and Russia target U.S. space assets to disrupt operations or steal intellectual property, potentially leading to compromised missions and a loss of technological edge,” Kaczmarek said.

Space-based systems increasingly support critical infrastructure back on Earth, and any cyberattacks on these systems could undermine national security and economic interests. Last year, the U.S. government let hackers break into a government satellite as a way to test vulnerabilities that could be exploited by the Chinese. That came amid growing concerns at the highest levels of the government that China is attempting to “deny, exploit or hijack” enemy satellites — revelations that became public in the leak of classified documents by U.S. Air National Guardsman Jack Teixeira in 2023.

“The ongoing space race and the associated technologies will continue to be impacted by Viasat-like cyberattacks,” said GAO’s Russell, referring to a 2022 cyberattack against the satellite company attributed by U.S. and U.K. intelligence to Russia as part of its war against Ukraine.

Big Tech’s space-based cloud

Private companies and the government will need to use all the cybersecurity tools at their disposal, including encryption, intrusion detection systems, and collaboration with government agencies like the Cybersecurity and Infrastructure Security Agency for intelligence sharing and coordinated defense.

“These collaborations can also involve developing cybersecurity frameworks specifically tailored to space systems,” Kaczmarek said.

At the same time, Silicon Valley-based tech companies have been making rapid advancements in the field of cybersecurity, including those designed to secure space technologies. Companies like Microsoft, Amazon, Google, and Nvidia are increasingly being enlisted by the U.S. Space Force and Department of Defense for their specialized resources and advanced cyber capabilities.

Notably, Microsoft is a founding member of the Space Information Sharing and Analysis Center and has been an active participant since its formation several years ago. “Microsoft has partnered with the U.S. Space Force to support their growth as a fully digital service, bringing the latest technologies to ensure Space Force Guardians are prepared for space-based conflicts,” said a Microsoft spokesperson via email.

As part of the $19.8 million contract, Microsoft provides its Azure cloud computing infrastructure, simulations, augmented reality, and data management tools to support and secure a wide range of Space Force missions. “Microsoft is playing a key role in defending against cyber threats in space,” the spokesperson wrote.

Google Cloud, Amazon Web Services and defense contractor General Dynamics also offer cloud infrastructure for storing and processing vast amounts of data generated by satellites and space missions.

Nvidia‘s powerful GPUs can be used for processing and analyzing satellite imagery and data. According to Lonstein, the chipmaker’s AI chips can enhance image processing, anomaly detection, and predictive analytics for space missions. But there is a limit to reliance on technology in space operations as a safety benefit rather than added layer of risk.

“High dependency on automated systems can lead to catastrophic failures if those systems malfunction or encounter unexpected scenarios,” Lonstein said.

A single point of failure could compromise the entire mission. Moreover, extensive use of technology could be detrimental to human operators’ skills and knowledge, which might atrophy if not regularly exercised.

“This could lead to challenges in manual operation during emergencies or system failures,” Lonstein added.

Andreessen Horowitz's Katherine Boyle talks deregulating space

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Okta shares pop 18% on earnings beat, strong guidance

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Okta shares pop 18% on earnings beat, strong guidance

File photo of Todd McKinnon, chief executive officer of Okta Inc.

Bloomberg | Bloomberg | Getty Images

Shares of Okta popped more than 18% in extended trading Tuesday after the identity management company released third-quarter results that beat analysts’ estimates and offered rosy guidance.

Here’s how the company did:

  • Earnings per share: 67 cents adjusted vs. 58 cents expected by LSEG
  • Revenue: $665 million vs. $650 million expected by LSEG

Okta helps companies manage employees’ access to applications or devices with features such as single sign-on and multifactor authentication. The company swung to profitability, reporting net income of $16 million, or 9 cents per share, during the quarter, compared with a net loss of $81 million, or 49 cents per share, in the same period last year.

Revenue increased 14% from $569 million a year ago, according to a release. The company reported $651 million in subscription revenue for the quarter, beating the $635 million average analyst estimate, according to Street Account.

“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The focused investments we’ve made in our partner ecosystem, the public sector vertical, and large customers are materializing in our business with each of these areas contributing meaningfully to top-line growth.”

For the fourth quarter, Okta said it expects to report revenue between $667 million and $669 million, topping the $651 million average estimate, according to LSEG. The company expects to report earnings of 73 cents to 74 cents per share for the period, which also exceeded estimates.

Prior to the close, Okta shares were down 10% for the year, while the Nasdaq is up 30% over that stretch.

Okta will host its quarterly call with investors at 5 p.m. ET. 

WATCH: CNBC’s full interview with Okta CEO Todd McKinnon

Watch CNBC's full interview with Okta CEO Todd McKinnon

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Salesforce shares rise after earnings beat on revenue, fourth-quarter guidance

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Salesforce shares rise after earnings beat on revenue, fourth-quarter guidance

Marc Benioff, chief executive officer of Salesforce, speaks during the World Economic Forum in Davos, Switzerland, Jan. 18, 2024.

Halil Sagirkaya | Anadolu | Getty Images

Salesforce shares were up 9% on Tuesday after the company’s fiscal third-quarter earnings report showed revenue and fiscal fourth-quarter guidance that exceeded analysts’ expectations.

Here’s how the company did compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: $2.41 adjusted vs. $2.44 expected
  • Revenue: $9.44 billion vs. $9.34 billion expected

The company’s revenue grew 8% year over year during the fiscal third quarter, which ended Oct. 31. Its net income was $1.5 billion in the quarter, up 25% from $1.2 billion a year ago.

Salesforce said it is expecting fiscal fourth-quarter sales of between $9.90 billion and $10.10 billion. Analysts were projecting $10.05 billion in fourth-quarter sales.

The company said it expects earnings per share of between $2.57 and $2.62 in the fourth quarter, compared with analysts’ expectations of $2.65.

Salesforce also raised the low end of its revenue guidance, expecting a range of $37.8 billion to $38 billion for its fiscal 2025. That’s up slightly from $37.7 billion to $38 billion previously. The new range puts the midpoint for Salesforce’s fiscal 2025 revenue guidance at $37.9 billion, ahead of analysts’ expectations of $37.86 billion.

“We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO,” Salesforce CEO Marc Benioff said in a statement. “Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation.”

In a call with analysts, Benioff boasted about Salesforce’s latest artificial intelligence push, including the company’s AI-powered chatbots dubbed Agentforce, which investors are closely monitoring for growth. Salesforce’s Agentforce product is an example of so-called AI agent technology. Several companies have said they believe that these advanced chatbots represent the next logical step from ChatGPT and other related tools powered by large language models.

“We’re delivering these incredible Agentforce capabilities as well,” Benioff said. “This is a bold leap in the future of work, where AI agents let humans unite to transform all of our customer interactions.”

Benioff also revealed that he ruptured his achilles tendon on a recent birthday scuba-diving trip to Fakarava, an atoll in French Polynesia. Benioff expressed disappointment that the hospital that treated him couldn’t schedule his follow-up appointments using AI agents.

“That is the message to our customers, which is how are you going to give some of your people a break, let them get back to their strategic work, let them focus on what really matters,” Benioff said.

The company in August announced that Amy Weaver would step down from her role as chief financial officer but remain in the position until the company appoints a successor, after which she will become an advisor. That same month, activist investor Starboard Value revealed that it boosted its position in Salesforce by roughly 40% in the second quarter following the firm issuing a letter earlier in the year saying that Salesforce was continuing to move “in the right direction” in regard to improving its profit margin.

Starboard Value released a presentation in October in which it noted that Salesforce “can continue to become more efficient and more profitable.”

Watch: Salesforce has been short-term overbought, says Bespoke’s Paul Hickey

Salesforce has been short-term overbought, says Bespoke's Paul Hickey

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Peter Thiel’s Founders Fund loses one of first partners to emeritus role

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Peter Thiel's Founders Fund loses one of first partners to emeritus role

Entrepreneur Brian Singerman (R) and Noelle Moseley arrive at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024. 

Etienne Laurent | Afp | Getty Images

Brian Singerman, one of the earliest employees of Peter Thiel’s Founders Fund, said on Tuesday that he’s stepping down as a general partner.

Singerman, who joined the firm 17 years ago and became a partner four years later, wrote in a post on X that he’s moving into the role of partner emeritus and will stay on as an “investor and strategic advisor.” Singerman is best known for supporting the firm’s investments in Elon Musk’s SpaceX and defense-tech companies like Anduril.

In exiting the partner ranks, Singerman leaves Founders Fund with three general partners: Thiel, Napoleon Ta and Trae Stephens.

Thiel helped launch Founders Fund in 2005 and has since turned it into one of the leading venture firms in the country, thanks to early bets on Facebook, SpaceX and Palantir, which he co-founded. Keith Rabois left the firm earlier this year and returned to Khosla Ventures, where he worked before joining Thiel.

“From its inception and still today, FF is the place where talented, unconventional thinkers are encouraged to follow their convictions and make world-changing bets,” Singerman wrote in his post.

It’s been a tough few years for the venture industry, with IPOs virtually drying up in late 2021 due, at the time, to rising inflation and interest rates. There have been signs of life of late, with a few companies indicating plans to go public next year, but the highest-valued private companies have yet to indicate when they’ll test out the market.

Bloomberg reported on Monday that SpaceX is considering a tender offer that would value the rocket company at $350 billion, up from $210 billion earlier this year.

WATCH: SpaceX launches sixth test of Starship rocket

SpaceX launches 6th test of Starship rocket

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