In the new space race, hackers are hitching a ride into orbit
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.
Technology
Bitcoin sinks to $115,000 after hitting its newest record, as macro concerns spark liquidation wave
A worsening macroeconomic climate and the collapse of industry giants such as FTX and Terra have weighed on bitcoin’s price this year.
STR | Nurphoto via Getty Images
The crypto market tumbled to begin the week as heightened macro concerns triggered more than $500 million in forced selling of long positions.
The price of bitcoin was last lower by 2% at $115,255.70, after touching a new all-time high last week – its fourth one this year – at $124,496. At one point, it fell as low as $114,706. Ether slid 4% to $4,283.15 after coming within spitting distance of its roughly $4,800 record last week. Both coins rolled over after higher-than-expected July wholesale inflation data raised questions over a Federal Reserve rate cut in September.
Investors’ profit-taking triggered a wave of liquidations across the crypto market.
In the past 24 hours, sales from 131,455 traders totaled $552.58 million, according to Coin Metrics. That figure includes about $123 million in long bitcoin liquidations and $178 million in long ether liquidations. This happens when traders are forced to sell their assets at market price to settle their debts, pushing prices lower.
Bitcoin briefly dropped below $115,000 after reaching nearly $125,000 last week
Adding to investor disappointment were comments from Treasury Secretary Scott Bessent, who clarified Thursday that the strategic bitcoin reserve President Donald Trump established back in March will be confined to bitcoin forfeited to the federal government, as it explores “budget-neutral pathways to acquire more bitcoin.”
The top cryptocurrencies by market cap fell with the blue-chip coins, with the CoinDesk 20 index, a measure of the broader crypto market, down 3.7%. Crypto related stocks were under pressure premarket, led by ether treasury stocks. Bitmine Immersion was down 6% and SharpLink Gaming fell 3%. Crypto exchange Bullish, which made its public trading debut last week, was also lower by 3%.
This week, investors are keeping an eye on the Fed’s annual economic symposium in Jackson Hole, Wyoming for clues around what could happen at the central bank’s remaining policy meetings this year. Crypto traders also will be watching Thursday’s jobless claims data.
Last week’s test of bitcoin and ether highs surprised traders who expected an August pullback for cryptocurrencies, expecting macro concerns to steal focus from recent momentum around crypto’s institutional and corporate adoption – especially in what has historically proven a weak trading month for many markets – until the September Fed meeting.
Many see pullbacks this month as healthy and strategic cooldowns rather than reactions to crisis, thanks largely to support from crypto ETFs as well as companies focused on aggressively accumulating bitcoin and ether. Although ETFs tracking the price of bitcoin and ether posted net outflows on Friday, they logged net inflows of $547 million and $2.9 billion, respectively, for the week. For ETH funds it was a record week of inflows as well as their 14th consecutive week of inflows.
OpenAI Co-Founder and CEO Sam Altman speaks at Snowflake Summit in San Francisco on June 2, 2025.
Justin Sullivan | Getty Images News | Getty Images
OpenAI CEO Sam Altman thinks the artificial intelligence market is in a bubble, according to a report from The Verge published Friday.
“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told a small group of reporters last week.
“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,” he was quoted as saying.
Altman appeared to compare this dynamic to the infamous dot-com bubble, a stock market crash centered on internet-based companies that led to massive investor enthusiasm during the late 1990s. Between March 2000 and October 2002, the Nasdaq lost nearly 80% of its value after many of these companies failed to generate revenue or profits.
His comments add to growing concern among experts and analysts that investment in AI is moving too fast. Alibaba co-founder Joe Tsai, Bridgewater Associates’ Ray Dalio and Apollo Global Management chief economist Torsten Slok have all raised similar warnings.
Last month, Slok stated in a report that he believed the AI bubble of today was, in fact, bigger than the internet bubble, with the top 10 companies in the S&P 500 more overvalued than they were in the 1990s.
In an email to CNBC on Monday, Ray Wang, CEO of Silicon Valley-based Constellation Research, told CNBC that he thought Altman’s comments carry some validity, but that the risks are company-dependent.
“From the perspective of broader investment in AI and semiconductors… I don’t see it as a bubble. The fundamentals across the supply chain remain strong, and the long-term trajectory of the AI trend supports continued investment,” he said.
However, he added that there is an increasing amount of speculative capital chasing companies with weaker fundamentals and only perceived potential, which could create pockets of overvaluation.
Many Fears of an AI bubble had hit a fever pitch at the start of this year when Chinese start-up DeepSeek released a competitive reasoning model. The company claimed one version of its advanced large language models had been trained for under $6 million, a fraction of the billions being spent by U.S. AI market leaders like OpenAI, though these claims were also been met with some skepticism.
Earlier this month, Altman told CNBC that OpenAI’s annual recurring revenue is on track to pass $20 billion this year, but that despite that, it remains unprofitable.
The release of OpenAI’s latest GPT-5 AI model earlier this month had also been rocky, with some critics complaining that it had a less intuitive feel. This resulted in the company restoring access to legacy GPT-4 models for paying customers.
Following the release of the model, Altman has also signaled more caution about some of the AI industry’s more bullish predictions.
Speaking to CNBC, he said that he thought the term artificial general intelligence, or “AGI,” is losing relevance, when asked whether the GPT-5 model moves the world any closer to achieving AGI.
AGI refers to the concept of a form of artificial intelligence that can perform any intellectual task that a human can — something that OpenAI has been working towards for years and that Altman previously said could be achieved in the “reasonably close-ish future.“
Regardless, faith in OpenAI from investors has remained strong this year. CNBC confirmed Friday that the company was preparing to sell around $6 billion in stock as part of a secondary sale that would value it at roughly $500 billion.
In March, it had announced a $40 billion funding round at a $300 billion valuation, by far the largest amount ever raised by a private tech company.
In The Verge article on Friday, the OpenAI CEO also discussed OpenAI’s expansion into consumer hardware, brain-computer interfaces and social media.
Altman also said that he expects OpenAI to spend trillions of dollars on its data center buildout in the “not very distant future,” and signaled that the company would be interested in buying Chrome if the U.S. government were to force Google to sell it.
Asked if he would be CEO of OpenAI in a few years, he was quoted as saying, “I mean, maybe an AI is in three years. That’s a long time.”
Nvidia CEO Jensen Huang, right, speaks alongside President Donald Trump about investing in America, at the White House in Washington, on April 30, 2025.
Jim Watson | AFP | Getty Images
Six Senate Democrats on Friday released an open letter asking President Donald Trump to reconsider his decision to allow tech giants Nvidia and Advanced Micro Devices to sell AI semiconductor chips to China in exchange for 15% of revenue from the sales.
The letter — signed by Senators Chuck Schumer, D-N.Y.; Mark Warner, D-Va.; Jack Reed, D-R.I.; Jeanne Shaheen, D-N.H.; Christopher Coons, D-Del.; and Elizabeth Warren, D-Mass. — was in response to an Aug. 11 announcement by Trump that Nvidia and AMD would pay the U.S. government a 15% cut of revenue from chip sales to China in exchange for export licenses.
“Our national security and military readiness relies upon American innovators inventing and producing the best technology in the world, and in maintaining that qualitative advantage in sensitive domains. The United States has historically been successful in maintaining and building that advantage because of, in part, our ability to deny adversaries access to those technologies,” the letter states.
“The willingness displayed in this arrangement to ‘negotiate’ away America’s competitive edge that is key to our national security in exchange for what is, in effect, a commission on a sale of AI-enabling technology to our main global competitor, is cause for serious alarm,” the letter continues.
Senators also warned that selling advanced AI chips — specifically Nvidia’s H20 and AMD’s MI308 chips — to China could help strengthen its military systems, a claim that Nvidia denies.
In a statement to CNBC, a Nvidia spokesperson said: “The H20 would not enhance anyone’s military capabilities, but would have helped America attract the support of developers worldwide and win the AI race. Banning the H20 cost American taxpayers billions of dollars, without any benefit.”
The letter from Senate Democrats also requests a detailed response from the administration by Friday, Aug. 22, regarding the current deal involving Nvidia and AMD, as well as any similar arrangements being made with other companies.
“We again urge your administration to quickly reverse course and abandon this reckless plan to trade away U.S. technology leadership,” the letter states.
A request for comment from the White House and AMD was not immediately returned.
Despite Trump allowing chip sales to resume, it has already become clear that China isn’t welcoming Nvidia back with open arms, instead urging tech companies to avoid buying U.S. companies’ chips, according to a Bloomberg report.
“We’re hearing that this is a hard mandate, and that [authorities are actually] stopping additional orders of H20s for some companies,” Qingyuan Lin, a senior analyst covering China semiconductors at Bernstein, told CNBC.
In a separate report, The Information said regulators in China have ordered major tech companies, including ByteDance, Alibaba, and Tencent, to suspend Nvidia chip purchases until a national security review is complete.
— CNBC’s Kristina Partsinevelos contributed to this report
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