In the ever-evolving realm of technology, rapid advancements in artificial intelligence heighten concerns over data privacy, and emerging cybersecurity threats are converging to reshape the legislative landscape. Key developments suggest a pressing need for comprehensive frameworks that balance innovation with ethical considerations and national security. This week, we follow the push and pull of Congress as it grapples with this reality and attempts to proactively address the challenges and opportunities at the intersection of technology and policy.

In this week’s Nimitz Tech:

• Congressional Hearings: Congress will hold three hearings this week examining the Crowdstrike failure, cybersecurity in an authoritarian age, and preparing workers for AI in the workplace.

• Elon Musk: SEC seeks to sanction Musk for no-show in Twitter probe: SpaceX launch or spaced our excuse?

• LinkedIn: A sneaky AI move: Your data's fueling their robots - know how to pull the plug!

• The Gulf: Oil money fuels AI revolution: Middle East's trillion-dollar bet on Silicon Valley's brain race

WHO’S HAVING EVENTS THIS WEEK?

Tuesday, September 24th

• 👾 HEARING: “Cyberspace under threat in the era of rising authoritarianism and global competition..” Senate Foreign Relations, Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. Hearing scheduled for 10:00 AM in 419 Dirksen SOB. Watch here.

• 💻 HEARING: “An Outage Strikes: Assessing the Global Impact of CrowdStrike’s Faulty Software Update” House Homeland Security, Cybersecurity and Infrastructure Protection Subcommittee. Hearing scheduled for 2:00 PM in 310 Canon HOB. Watch here.

Wednesday, September 25th

• 👷🏽 HEARING: “Reading the Room: Preparing Workers for AI.” Senate Health, Education, Labor, and Pensions, Subcommittee on Employment and Workforce Safety. Hearing scheduled for 2:00 PM in 562 Dirksen SOB. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• The U.S. Commerce Department is set to propose a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns. This move is driven by worries over data collection by Chinese firms and potential foreign manipulation of internet-connected vehicles. The proposed regulation would prohibit the import and sale of Chinese vehicles equipped with certain communications and automated driving systems. This marks a significant escalation in the U.S. restrictions on Chinese automotive technology, following recent tariff increases on Chinese imports, including a 100% duty on electric vehicles.

  Commerce Secretary Gina Raimondo has highlighted the risks posed by Chinese technology in U.S. vehicles, noting the catastrophic potential if software were to fail in millions of cars. President Biden initiated an investigation in February into the national security risks posed by Chinese vehicle imports, expressing determination to prevent any flooding of the U.S. market with such vehicles.

• The U.S. Securities and Exchange Commission (SEC) plans to seek sanctions against Elon Musk for failing to appear for court-ordered testimony regarding his $44 billion takeover of Twitter. Musk notified the SEC only three hours before the scheduled September 10 appearance, citing his presence at a SpaceX launch in Florida as the reason for his absence. The SEC contends that Musk was aware of the launch plans prior to his notice and views his actions as a form of "gamesmanship." Musk's attorney, Alex Spiro, argued that sanctions are excessive, claiming the situation constituted an "emergency" and stating that Musk's testimony has been rescheduled for October 3.

  The SEC's investigation focuses on whether Musk violated securities laws by delaying the disclosure of his Twitter stock purchases, which he eventually revealed after amassing a 9.2% stake. Musk has faced criticism for not disclosing his ownership within the required timeframe. He previously stated that any delays were unintentional and misunderstood the SEC's disclosure requirements. This latest incident is part of Musk's ongoing conflict with the SEC, which has included a past lawsuit related to his Twitter posts about taking Tesla private, resulting in a $20 million settlement.

• Senate Majority Leader Chuck Schumer and Senator Ed Markey have called for all federal agencies using artificial intelligence (AI) for significant decisions to establish civil rights offices to address algorithmic discrimination. In a letter to the White House, they acknowledged President Biden’s efforts to tackle AI bias, including the Blueprint for an AI Bill of Rights and an executive order from October 2023, but stressed that additional oversight is necessary. The senators warned that unregulated AI systems could exacerbate existing discrimination against marginalized communities.

  They proposed that the Office of Management and Budget (OMB) require these civil rights offices to be staffed with experts in technology and algorithmic discrimination, as well as direct federal agencies to report annually on efforts to mitigate civil rights harms in AI. While they praised the requirement for agencies to have a chief AI officer, they emphasized the need for adequate resources and expertise to address civil rights issues.

National

• Google CEO, Sundar Pichai, announced a $120 million Global AI Opportunity Fund aimed at enhancing AI education and training worldwide at the UN Summit of the Future on Saturday. He highlighted AI's potential in four areas: improving access to information, accelerating scientific discovery, aiding in climate disaster management, and driving economic growth. Pichai acknowledged the risks associated with AI, such as deep fakes, but did not address its environmental impact. He emphasized the need for smart regulation to prevent a widening AI divide and to ensure equitable access to its benefits, advocating collaboration with local nonprofits and NGOs to implement the fund effectively.

• LinkedIn has recently opted users into a new privacy setting that permits the platform to use personal data for training generative AI models, doing so without explicit consent. This change was part of an updated privacy policy, and LinkedIn states that user data may be utilized to enhance services and develop AI. Users can opt out by adjusting their settings under the "Data privacy" tab, but opting out only prevents future data usage for AI training and does not affect data already used. LinkedIn asserts it employs privacy-enhancing technologies to redact personal data and does not train models on users in the EU, EEA, or Switzerland. Additionally, for other machine learning tools not related to generative AI, users must complete a separate Data Processing Objection Form. This development follows Meta's admission of using non-private user data for model training since 2007, raising ongoing concerns about data privacy in the tech industry.

International

• Middle Eastern sovereign wealth funds, particularly from oil-rich nations like Saudi Arabia, the UAE, Kuwait, and Qatar, are increasingly backing Silicon Valley's AI companies as part of their strategy to diversify their economies away from oil reliance. Funding from these nations for AI investments has surged fivefold in the past year, fueled by rising energy revenues. Major players include the Saudi Public Investment Fund (PIF), which has over $925 billion in assets and is actively investing as part of Crown Prince Mohammed bin Salman’s "Vision 2030," along with UAE’s Mubadala and Qatar Investment Authority. Recently, the new UAE-based fund MGX sought to invest in OpenAI’s fundraising, potentially valuing the company at $150 billion, and has partnered with BlackRock and Microsoft to raise up to $100 billion for AI infrastructure. However, concerns about Saudi Arabia's human rights record may impact investment decisions from Western partners. This trend of increased sovereign investment in AI is not limited to the Middle East, as countries like France and Singapore are also expanding their commitments. In Silicon Valley, there are worries about the "SoftBank effect," where excessive funding could inflate valuations and lead to failures. Additionally, the U.S. sees these investments as a way to counter flows of capital to rivals like China, viewing these Middle Eastern nations as "geopolitical swing states."

QUOTE OF THE WEEK

FOR FUN

• 🛍️ Mid-Autumn Night Market, Wednesday 9/25/24, 5 - 10 p.m. *Free* Union Market Register here.

ADD TO THE NIMITZ NETWORK

Know someone else who would enjoy our updates? Feel free to forward them this email and have them subscribe here.

Additionally, if you are interested in our original publication on veterans affairs policy, check it out below: