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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.

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Visa says new AI shopping tool has helped customers with hundreds of transactions

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Visa says new AI shopping tool has helped customers with hundreds of transactions

Mustafa Hatipoglu | Anadolu | Getty Images

Visa said on Thursday that it successfully completed hundreds of AI transactions as part of a pilot program that kicked off after the company’s product event in April.

The credit card issuer and rivals across the fintech industry are racing to build tools that allow consumers to task artificial intelligence agents with completing certain transactions.

“This is going to be the year we see an enormous amount of material adoption, and consumers really starting to get comfortable in a bunch of different agentic environments,” said Rubail Birwadker, Visa’s head of growth products and partnerships, in an interview.

AI is transforming the e-commerce experience for shoppers, changing how customers purchase and browse for goods.

Mastercard said in April it was testing a feature called Agent Pay that allows AI agents to shop online for customers. Amazon began testing a “Buy For Me” offering that same month, while PayPal and Perplexity have joined forces on agentic shopping tools. Earlier in December, a survey from Visa found that nearly half of U.S. shoppers are using AI with purchases.

While the data is limited, Birwadker said the tools could be useful for consistent purchases made by consumers or events like concert tickets.

Visa said it plans to launch pilot programs in Asia and Europe next year, and is working with over 20 partners on AI agent tools.

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CNBC Daily Open: Oracle’s debt seems to be affecting data center funding

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CNBC Daily Open: Oracle's debt seems to be affecting data center funding

A view of Oracle headquarters on September 11, 2023 in Redwood Shores, California. 

Justin Sullivan | Getty Images

The apprehension investors have surrounding Oracle has spilled over from manifesting in its stock price — which has fallen nearly 50% from its all-time high on Sept. 10 — to affecting its projects.

Asset management firm Blue Owl Capital reportedly pulled out from Oracle’s $10 billion data center project over unfavorable debt terms, according to the Financial Times, as concerns about the tech giant’s high level of debt mount.

The latest development adds fuel to worries that Oracle could delay the completion of data centers for OpenAI, which were first flagged by Bloomberg on Friday, though the cloud company has denied the report.

Shares of Oracle fell 5.4% Wednesday, putting its month-to-date losses more than 11%. They weighed down related names, such as Broadcom Nvidia and Advanced Micro Devices.

As a result, major U.S. indexes fell. The S&P 500 retreated 1.16% and the Dow Jones Industrial Average dropped 0.47%, while the Nasdaq Composite lost 1.81% in its worst day in nearly a month.

Despite the recent pullback in artificial intelligence stocks, the Bank of America thinks “the AI trade may still have room to run into 2026” — with the important caveat that shares going up does not mean a bubble isn’t forming.

“In our view, such progression validates our thesis that a larger AI bubble continues to build,” analysts at Bank of America wrote.

The trouble, as always, is pinpointing the exact moment before the bubble pops — if that’s even possible.

— CNBC’s Jaures Yip contributed to this report.

What you need to know today

Major U.S. indexes fall on AI weakness. The S&P 500 and Dow Jones Industrial Average had their fourth consecutive losing session. Asia-Pacific markets mostly slid Thursday. Japan’s Softbank lost around 3.7%, paring earlier losses, with the Nikkei 225 trading in the red.

China’s chipmakers are challenging Nvidia. MetaX Integrated Circuits, a Chinese semiconductor firm, soared nearly 700% in its market debut on Wednesday. It’s a sign of how investors are growing enthusiastic over Chinese chipmakers and their progress in catching up with Nvidia.

Netflix deal is ‘superior’ to Paramount’s, Warner Bros. says. Samuel Di Piazza, chair of the Warner Bros. board, separately told CNBC on Wednesday that the board would have appreciated more involvement from Paramount Skydance CEO David Ellison’s father, Oracle co-founder Larry Ellison.

U.S. approves arms sale to Taiwan, reportedly the biggest ever. The $11.15 billion transaction, which was given the green light on Thursday, reportedly comprises HIMARS rocket artillery systems, self-propelled howitzer systems and Javelin and TOW anti-tank missiles, according to Reuters.

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And finally…

People walk past a Starbucks Reserve in the Huangpu district in Shanghai on April 11, 2025.

Hector Retamal | Afp | Getty Images

Correction: An earlier version of this report stated the wrong date of the U.S. government’s approval of its arms sale to Taiwan. This has been rectified.

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SoftBank leads decline in Japanese tech stocks as worries over AI spending spill over to Asia

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SoftBank leads decline in Japanese tech stocks as worries over AI spending spill over to Asia

TOKYO, JAPAN – FEBRUARY 03: SoftBank Group CEO Masayoshi Son delivers a speech during an event titled “Transforming Business through AI” in Tokyo, Japan, on February 03, 2025. SoftBank and OpenAI announced that they have agreed a partnership to set up a joint venture for artificial intelligence services in Japan.

Tomohiro Ohsumi | Getty Images News | Getty Images

Japanese tech stocks took a tumble on Thursday as AI infrastructure spending worries on Wall Street crossed the ocean into the Asian markets, with AI-related stocks declining.

Softbank Group Corp was among the top losers in the benchmark Nikkei 225, falling as much as 7.25%, with the index leading losses in Asia, down 1.23%. The group pared some losses and was last trading 3% lower.

This decline comes as the tech-heavy Nasdaq Composite fell 1.81% overnight, dragged by losses in Oracle, Broadcom, Nvidia and other AI plays.

The losses in Oracle came after the Financial Times reported on Wednesday that Blue Owl Capital’s plans to finance the cloud infrastructure company’s $10 billion Michigan data center had stalled. The company last week had refuted a report that said it had delayed some projects for AI major OpenAI to 2028.

Tech-focused SoftBank has seen sharp volatility in its stock over the past month as fears over AI-related spending have gripped the market.

At the start of the year, the group had revealed plans to invest $500 billion in AI infrastructure in the U.S. along with OpenAI, Oracle and other partners, and in September it announced five new U.S. AI data center sites under Stargate, OpenAI’s overarching AI infrastructure platform.

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Other Japanese tech stocks also fell. Semiconductor equipment supplier Advantest, dropped as much as 5%. Counterparts Lasertec, Renesas Electronics and Tokyo Electron declined between 3% and 4%.

Jesper Koll, expert director at Tokyo-based financial services firm Monex Group, said much of what goes into data centers, power centers, and AI hardware enablers is “Made in Japan, and can only be made in Japan.” That makes Japanese tech, especially AI-related stocks more vulnerable to any worries around U.S. tech spending.

On Wednesday, Japan’s trade numbers showed that exports of electrical machinery jumped 7.4%, and semiconductor-related exports surged 13% year on year. Koll said the U.S.-led boom in tech spending was translating into growing exports of specialized machinery and equipment.

Losses were less pronounced in South Korean chip heavyweight Samsung Electronics at 0.93%, while SK Hynix reversed course to gain 0.73%. Taiwan’s TSMC, the world’s largest contract chip manufacturer, was marginally down.

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