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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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Intel is getting a $2 billion investment from SoftBank

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Intel is getting a  billion investment from SoftBank

Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp., speaks during the company’s annual general meeting in Tokyo, Japan, on Friday, June 27, 2025.

Bloomberg | Bloomberg | Getty Images

Intel and SoftBank announced on Monday that the Japanese conglomerate will make a $2 billion investment in the embattled chipmaker.

SoftBank will pay $23 per share for Intel’s common stock, which closed on Monday at $23.66. The shares rose about 6% in extended trading to $25.

The investment makes SoftBank the fifth-biggest Intel shareholder, according to FactSet. It’s a vote of support for Intel, which hasn’t been able to take advantage of the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that’s yet to secure a significant customer.

“Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” Intel CEO Lip-Bu Tan said in a statement, referring to SoftBank founder Masayoshi Son.

Intel shares lost 60% of their value last year, their worst performance in the company’s more than half-century on the public market. The stock is up 18% in 2025 as of Monday’s close.

Tan took over as Intel CEO in March after his predecessor, Pat Gelsinger, was ousted in December.

Intel has been a major topic of discussion in Washington of late, due to the company’s role as the only American company capable of manufacturing the most advanced chips.

However, Intel’s foundry business, which is designed to manufacture chips for other companies, has yet to secure a major customer, a critical step towards stabilization and expansion. Last month, Intel said it would wait to secure orders before committing to certain future investment in its foundry.

Tan met with President Donald Trump last week after the president had called for the CEO’s resignation. The U.S. government is considering taking an equity stake in Intel, according to reports.

SoftBank, meanwhile, has become an increasingly large player in the global chip and AI markets.

In 2016, SoftBank acquired chip designer Arm in a deal worth about $32 billion at the time. Today the company is worth almost $150 billion. Arm-based chips are part of Nvidia’s systems that go into data centers.

And in March of this year, SoftBank announced plans to acquire another chip designer, Ampere Computing, for $6.5 billion.

SoftBank was also part of President Trump’s Stargate announcement in January, along with OpenAI and Oracle.

The three companies committed to invest an initial $100 billion and up to $500 billion over the next four years in the AI infrastructure project. Two months later, SoftBank led a $40 billion investment into OpenAI, the largest private tech deal on record.

“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” Son said in a statement.

WATCH: Intel’s message to Washington

Intel's message to Washington

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Palo Alto Networks reports earnings beat, says founder Nir Zuk retiring from company

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Palo Alto Networks reports earnings beat, says founder Nir Zuk retiring from company

Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City on March 25, 2025.

Jeenah Moon | Reuters

Palo Alto Networks reported better-than-expected quarterly results and issued upbeat guidance for the current period. The cybersecurity software vendor said Nir Zuk, who founded the company in 2005, is retiring from his role as chief technology officer.

The stock rose about 6% in extended trading.

Here’s how the company did compared to LSEG estimates:

  • Earnings: 95 cents adjusted vs. 88 cents expected
  • Revenue: $2.54 billion vs. $2.5 billion expected.

Revenue in the fiscal fourth quarter rose 16% from about $2.2 billion last year, the company said in a statement. Net income fell to about $254 million, or 36 cents per share, from about $358 million, or 51 cents per share, in the year-ago period.

The company also issued upbeat guidance for the fiscal first quarter. Earnings per share will be between 88 cents and 90 cents, Palo Alto said, topping an 85-cents estimate from StreetAccount.

For the full year, Palo Alto said revenue will range from $10.48 billion to $10.53 billion on adjusted earnings of $3.75 to $3.85 per share. Both estimates exceeded Wall Street’s projections.

Palo Alto said that for the fiscal first quarter, remaining purchase obligations, which tracks backlog, will range between $15.4 billion and $15.5 billion, surpassing a $15.07 billion estimate.

Last month, the company announced plans to buy Israeli identity security provider CyberArk for $25 billion. It’s the largest deal Palo Alto has made since its founding, and most ambitious in an acquiring spree that ramped up after CEO Nikesh Arora took the helm of the company in 2018.

Shares sold off sharply after the news broke and have yet to recover previous highs. The stock is down about 3% this year as of Monday’s close.

“We look for great products, a team that can execute in the product, and we let them run it,” Arora told CNBC following the announcement. “This is going to be a different challenge, but we’ve done well 24 times, so I’m pretty confident that our team can handle this.”

Lee Klarich, the company’s product chief, will replace Zuk as CTO and fill his position on the board.

WATCH: Power check on Palo Alto, Viking Holdings and Estee Lauder

Power Check: Palo Alto Networks, Viking Holdings, and Estee Lauder

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Musk’s Starlink suffers apparent outage as SpaceX launches more satellites

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Musk's Starlink suffers apparent outage as SpaceX launches more satellites

Jakub Porzycki | Nurphoto | Getty Images

Satellite internet service Starlink, which is owned and operated by Elon Musk‘s SpaceX, appeared to suffer a brief network outage on Monday, with thousands of reports of service interruptions on Downdetector, a site that logs tech issues.

The outage marked the second in two weeks for Starlink. SpaceX did not immediately respond to a request for comment.

The network’s July 24 outage lasted for several hours, with SpaceX Vice President of Starlink Engineering Michael Nicolls blaming the matter on “failure of key internal software services that operate the core network” behind Starlink.

That outage followed the launch of T-Mobile‘s Starlink-powered satellite service, a direct-to-cell-phone service created to keep smartphone users connected “in places no carrier towers can reach,” according to T-Mobile’s website.

SpaceX provides Starlink internet service to more than six million users across 140 countries, according to the company’s website, though churn and subscriber rates are not publicly reported by the company.

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The SpaceX Starlink constellation is far larger than any competitor. It currently features over 7,000 operational broadband satellites, according to research by astronomer Jonathan McDowell.

On Monday, Musk’s SpaceX successfully launched another group of satellites to add to its Starlink constellation from the Vandenberg Space Force Base in Southern California.

SpaceX is currently aiming to increase the number of launches and landings from Vandenberg from 50 to about 100 annually.

On Thursday last week, the California Coastal Commission voted unanimously to oppose the U.S. Space Force application to conduct that higher volume of SpaceX launches there.

The Commission has said that SpaceX and Space Force officials have failed to properly evaluate and report on potential impacts of increased launches on neighboring towns, and local wildlife, among other issues.

President Donald Trump recently signed an executive order seeking to ease environmental regulations seen by Musk, and others, as hampering commercial space operations.

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