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
Easy returns cause big trouble for Amazon sellers, but return rates show signs of slowing
Meta approached artificial intelligence startup Perplexity AI about a potential takeover bid before ultimately investing $14.3 billion into Scale AI, CNBC confirmed on Friday.
The two companies did not finalize a deal, according to two people familiar with the matter who asked not to be named because of the confidential nature of the negotiations.
One person familiar with the talks said it was “mutually dissolved,” while another person familiar with the matter said Perplexity walked away from a potential deal.
Bloomberg earlier reported the talks between Meta and Perplexity. Perplexity declined to comment. Meta did not immediately respond to CNBC’s request for comment.
Meta’s attempt to purchase Perplexity serves as the latest example of Mark Zuckerberg‘s aggressive push to bolster his company’s AI efforts amid fierce competition from OpenAI and Google parent Alphabet. Zuckerberg has grown agitated that rivals like OpenAI appear to be ahead in both underlying AI models and consumer-facing apps, and he is going to extreme lengths to hire top AI talent, as CNBC has previously reported.
Meta now has a 49% stake in Scale after its multibillion-dollar investment, though the social media company will not have any voting power. Scale AI’s founder Alexandr Wang, along with a small number of other Scale employees, will join Meta as part of the agreement.
Earlier this year, Meta also tried to acquire Safe Superintelligence, which was reportedly valued at $32 billion in a fundraising round in April, as CNBC reported on Thursday.
Daniel Gross, the CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman are joining Meta’s AI efforts, where they will work on products under Wang. Gross runs a venture capital firm with Friedman called NFDG, their combined initials, and Meta will get a stake in the firm.
OpenAI CEO Sam Altman said on the latest episode of the “Uncapped” podcast, which is hosted by his brother, that Meta had tried to poach OpenAI employees by offering signing bonuses as high as $100 million with even larger annual compensation packages.
“I’ve heard that Meta thinks of us as their biggest competitor,” Altman said on the podcast. “Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things.”
–CNBC’s Kate Rooney contributed to this report
Omar Marques | Lightrocket | Getty Images
Ether ETFs have finally come to life this year after some started to fear they may be becoming zombie funds.
Collectively, the funds tracking the price of spot ether are on pace for their sixth consecutive week of inflows and eight positive week in the last nine, according to SoSoValue.
The second largest cryptocurrency has become more attractive to institutions in recent weeks largely due to recent regulatory momentum in the U.S. around stablecoins – many of which run on the Ethereum network – the successful IPO of Circle, the issuer of the second-largest stablecoin; and new leadership at the Ethereum Foundation.
“What we’re seeing is institutional recalibration,” said Ben Kurland, CEO at crypto charting and research platform DYOR. “After the initial ETH ETF approval fizzled without a price pop, smart money started quietly building positions. They’re betting not on price momentum but on positioning ahead of utility unlocks like staking access, options listings, and eventually inflows from retirement platforms.”
The first year of ether ETFs, which launched in July 2024, has been characterized by weak demand. While the funds have had spikes in inflows, they’ve trailed far behind bitcoin ETFs in both inflows and investor attention – amassing about $3.9 billion in net inflows since listing versus bitcoin ETFs’ $36 billion in their first year of trading.
“With increasing acceptance of crypto on Wall Street, especially now as a means for payments and remittances, investors are being drawn to ETH ETFs,” said Chris Rhine, head of liquid active strategies at Galaxy Digital.
Additionally, he added, the CME basis on ether – or the price difference between ether futures and the spot price – is higher than that of bitcoin, giving arbitrageurs an opportunity to profit by going long on ether ETFs while shorting futures (a common trading strategy) and contributing to the uptrend in ether ETF inflows.
Ether (ETH) 1 month
Despite the uptrend in inflows, the price of ether itself is negative for this month and flat over the past month.
For the year, it’s down 25% as it’s been suffering from an identity crisis fueled by uncertainty about Ethereum’s value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility driven by geopolitical uncertainty this year has not helped.
In March, Standard Chartered slashed its ether price target by more than half. However, the firm also said the coin could still see a turnaround this year.
Since last week’s big spike in inflows, they’ve “slowed but stayed net positive, suggesting conviction, not hype,” Kurland said. “The market looks like a heart monitor, but the buyers are treating it like a long-term infrastructure bet.”
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