As 2025 kicks off with a new administration and the 119th Congress, the intersection of technology, policy, and national security is already dominating tech news in Washington. From escalating AI-driven phishing scams and Chinese cyberattacks on U.S. infrastructure to the future of TikTok hanging in the balance before the Supreme Court, we have highlighted all the major news of the week. Meanwhile, Elon Musk’s deepening influence in Washington raises questions about regulatory oversight in the tech sector. This week’s newsletter dives into the key developments shaping 2025’s tech policy landscape and what they mean for the months ahead. Don’t miss these critical insights.

In this week’s Nimitz Tech:

• Tick Tock: Trump vows to "save TikTok" as the Supreme Court prepares to weigh its future in the U.S.

• Cyber: Chinese-linked hackers infiltrated major U.S. telecoms, exposing critical vulnerabilities in national infrastructure.

• Elon: As Elon Musk gains influence in Trump's administration, federal probes into his businesses face an uncertain future.

WHO’S HAVING EVENTS THIS WEEK?

TECH NEWS DRIVING THE WEEK

In Washington

• President-elect Trump reaffirmed his support for TikTok, citing the platform’s role in amplifying his message, as the app faces a Supreme Court hearing on a law requiring its parent company, ByteDance, to divest or face a U.S. ban. Trump, who has garnered billions of views across his TikTok accounts, asked the Court to delay the law’s implementation until after his inauguration, arguing he could negotiate a resolution that addresses national security concerns without banning the app. The law, passed under the Biden administration with bipartisan support, has been challenged by TikTok as a violation of the First Amendment. With oral arguments set for Jan. 10 and a ruling likely before the Jan. 19 deadline, the case highlights the intersection of national security, free speech, and the growing influence of social media in American politics.

• The U.S. has imposed sanctions on China's Integrity Technology Group, alleging the company is linked to the hacking group "Flax Typhoon," which targets critical infrastructure globally under Beijing's direction. Western nations, including the U.S., U.K., Canada, Australia, and New Zealand, reported that Integrity compromised over 250,000 devices worldwide. The FBI has previously accused the company of aiding Chinese intelligence operations. Chinese officials have denied the allegations, calling them baseless, as scrutiny intensifies on other Chinese cyberespionage groups like "Volt Typhoon" and "Salt Typhoon." Recently, an unnamed Chinese group breached U.S. Treasury Department systems, raising further concerns about escalating cyber threats.

• In the closing days of the Biden administration, the SEC pressured Elon Musk to settle alleged securities violations from his $44 billion Twitter acquisition, sparking public accusations from Musk of politically motivated harassment. With Donald Trump’s return to the presidency, Musk’s ties to the incoming administration raise concerns over the fate of over 20 ongoing federal investigations into his companies, including Tesla, SpaceX, and Neuralink. These probes address allegations ranging from misleading claims about Tesla’s self-driving technology to environmental violations by SpaceX. Musk's new role as co-leader of Trump’s “Department of Government Efficiency” further solidifies his influence, raising questions about regulatory enforcement under Trump-appointed officials, though legal experts remain divided on the risk of political interference.

National

• Corporate executives are facing an escalation of hyper-personalized phishing scams fueled by artificial intelligence, as advanced tools enable cybercriminals to craft convincing and targeted attacks. Companies like Beazley and eBay report scams leveraging AI to analyze online profiles and mimic communication styles, making fraudulent emails more effective and harder to detect. Experts, including eBay’s Nadezda Demidova, warn that AI’s accessibility has lowered the barrier for advanced cybercrime, contributing to a surge in polished phishing attempts. These attacks, which often bypass traditional email filters, have driven the global average cost of data breaches to $4.9 million in 2024. AI’s role in crafting business email compromise scams has further exacerbated losses, with victims worldwide losing over $50 billion since 2013. As hackers use AI to exploit vulnerabilities in both systems and human behavior, the threat of increasingly sophisticated phishing scams continues to grow.

International

• A Chinese hacking campaign has compromised U.S. telecommunications giants, including Charter Communications, AT&T, Verizon, T-Mobile, and others, using unpatched devices from Fortinet and Cisco. The Wall Street Journal reports that hackers gained the capability to disrupt critical infrastructure, such as ports and power grids, prompting urgent security measures. Companies like Verizon and T-Mobile have confirmed the breaches but stated customer data was protected and their networks are now secure. U.S. National Security Adviser Jake Sullivan reportedly warned executives in 2023 of the scope of these intrusions, tied to the Salt Typhoon cyberespionage group. While China denies involvement and accuses the U.S. of spreading disinformation, the attacks highlight the persistent vulnerability of key American systems.

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