Monday, Feb 24, 2025 // (IG): BB // GITHUB // SN R&D
China Pushes for AI Dominance as Alibaba Announces Massive AGI Investment
Bottom Line Up Front (BLUF): China’s government is urging its tech giants to accelerate innovation, with Alibaba responding by investing more in artificial general intelligence (AGI). President Xi Jinping met with significant tech leaders, including Huawei’s Ren Zhengfei and Alibaba’s Jack Ma, to stress the importance of self-reliance in key technologies like semiconductors and AI. Meanwhile, China is tightening regulations on AI-generated content to maintain control over digital narratives.
Analyst Comments: Alibaba’s commitment to outspending its previous decade-long infrastructure investments signals a strong national push toward AI leadership. However, Beijing’s simultaneous crackdown on AI-generated misinformation highlights the tension between fostering innovation and maintaining state control. If Alibaba and other Chinese tech firms achieve significant progress in AGI, it could disrupt global AI leadership currently dominated by U.S. firms like OpenAI and Google DeepMind.
FROM THE MEDIA: Chinese President Xi Jinping recently met with leaders from China’s top technology firms, including Alibaba and Huawei, urging them to accelerate innovation in key areas such as AI, semiconductors, and digital infrastructure. Alibaba announced a substantial increase in investment over the next three years, explicitly targeting artificial general intelligence (AGI). The company believes AGI could impact or even replace 50% of global GDP. Huawei’s CEO, Ren Zhengfei, assured Xi that China’s progress in semiconductor and OS development is reducing reliance on foreign technology, citing Huawei’s HarmonyOS and self-developed Arm processors as evidence. Meanwhile, China’s Cyberspace Administration announced stricter regulations on AI-generated content, requiring clear labeling of synthetic materials and imposing penalties for misinformation. The new policy also targets “water armies”—paid groups manipulating online discourse.
READ THE STORY: The Register
Anne Arundel County Government Shuts Down Buildings After Cyber Incident
Bottom Line Up Front (BLUF): Anne Arundel County government buildings will remain closed on Monday following a cyber incident that began disrupting county services on Saturday. While the county has not confirmed whether it was a cyberattack, officials described the incident as "external origin." Emergency services, including 911 and 311, remain operational, and public schools are unaffected. The county is restricting internet access as a precaution while investigating the breach.
Analyst Comments: The lack of details on the nature of the cyber incident suggests officials are still assessing the scope and impact. Given the trend of ransomware attacks on municipal governments, this could be an early-stage containment response. Limiting internet access aligns with best practices to prevent further compromise. If this turns out to be ransomware, the county may face prolonged disruptions, potentially affecting financial and administrative services. Organizations in the region should monitor for potential fallout, including phishing attempts or data leaks.
FROM THE MEDIA: Anne Arundel County officials first reported service disruptions on Saturday, later confirming an "ongoing cyber incident of external origin." While government buildings will be closed, public libraries and schools remain open. Essential workers are expected to report in person, while other employees are instructed to work remotely using internet-based systems. Some online county services, such as utility bill payments, experienced errors on Sunday evening. The county has not provided a timeline for full restoration but pledged to share updates via social media.
READ THE STORY: Baltimore Sun
Analyst Note: The cyber targeting of counties around the NSA isn’t random—it points to a deliberate strategy by adversaries looking to exploit proximity to national security operations. These areas are home to NSA employees, defense contractors, and key infrastructure, making them prime targets for cyber espionage. Rather than going after the NSA directly, attackers may be trying to gain access through less secure networks in the surrounding ecosystem—whether it’s government suppliers, local businesses with classified contracts, or even personal devices used by those with security clearances. This kind of targeting fits a broader pattern from sophisticated threat actors who focus on supply chains and third-party access points to gather intelligence while avoiding confrontation with hardened federal systems.
Zelenskyy Offers to Resign if It Secures NATO Membership or Peace for Ukraine
Bottom Line Up Front (BLUF): Ukrainian President Volodymyr Zelenskyy has stated for the first time that he is willing to step down if his resignation guarantees Ukraine’s NATO membership or lasting peace. His remarks come amid increasing pressure from the Trump administration, which is pushing a peace deal with Moscow that excludes NATO accession for Ukraine. Zelenskyy also rejected a U.S. proposal to give American companies control Ukraine’s mineral resources in exchange for postwar economic support.
Analyst Comments: While largely symbolic, his statement underscores Kyiv’s frustration with Washington’s growing concessions to Russia. The Trump administration’s reported demand for control over Ukrainian mineral wealth raises ethical and geopolitical concerns, as it risks positioning Ukraine as a resource colony rather than an independent state. If NATO membership remains off the table, Kyiv will need to explore alternative security guarantees to prevent future Russian aggression.
FROM THE MEDIA: At a press conference in Kyiv, Zelenskyy stated that he is willing to step down immediately if it would secure Ukraine’s NATO membership or a lasting peace agreement. However, NATO accession appears unlikely, as U.S. officials, including Defense Secretary Pete Hegseth, have dismissed the possibility as part of any negotiated settlement. The Trump administration is also pressuring Kyiv to accept a controversial economic deal granting the U.S. control over Ukrainian mineral extraction revenues—an offer Zelenskyy firmly rejected. Meanwhile, Russia launched its most significant drone attack against Ukraine on Sunday, deploying 267 drones across multiple targets. Despite diplomatic and economic pressures, Zelenskyy insisted that Ukraine would not accept a peace deal without solid security guarantees.
READ THE STORY: FT
Trump Administration Freezes Wind Power Permits, Halting Industry Growth
Bottom Line Up Front (BLUF): President Trump has halted federal permits and leasing for wind power projects, bringing the U.S. wind industry to a standstill. The move has caused significant energy companies, including Shell and Orsted, to write down billions in investments. While existing projects continue, the future of wind energy remains uncertain amid potential tax credit cuts and regulatory hurdles.
Analyst Comments: This policy shift represents a significant setback for renewable energy in the U.S., potentially reversing years of progress in the wind sector. The halt aligns with Trump’s long-standing opposition to wind power and his push for fossil fuel dominance. However, the move introduces uncertainty for investors and developers, potentially stalling innovation and job creation in the sector. If the pause extends indefinitely, the U.S. may fall behind in global clean energy competition, with long-term implications for energy security and economic growth.
FROM THE MEDIA: Following his re-election, President Trump signed an executive order pausing all federal permits and leasing for wind projects on land and offshore. This decision has led companies like Shell and Orsted to take financial impairments exceeding $2.7 billion. The Lava Ridge Wind Project in Idaho is one of the most notable projects affected, facing an indefinite review by the Interior Department. Industry experts report widespread confusion over the freeze’s implications, as most land-based wind farms still require federal permits for grid connections and environmental approvals. Trump’s administration also reviews existing leases and tax incentives tied to wind energy. While some projects that began construction before the freeze continue, new developments face uncertainty. The offshore wind sector was already struggling with inflation, supply chain issues, and financing challenges. With over four gigawatts of offshore wind projects under construction, industry advocates fear that regulatory uncertainty could undermine further investment. The American Clean Power Association and industry leaders are urging the administration to clarify the future of wind energy in the U.S.
READ THE STORY: WSJ
Apple Disables iCloud End-to-End Encryption for UK Users Amid Government Pressure
Bottom Line Up Front (BLUF): Apple has decided to disable its Advanced Data Protection (ADP) feature—which provides end-to-end encryption (E2EE) for iCloud backups and data—for UK users. This decision follows demands from the UK government under the Investigatory Powers Bill, which reportedly sought a backdoor for law enforcement access. Apple stated it remains committed to user privacy and will not introduce backdoors but has opted to remove ADP entirely in the UK.
Analyst Comments: By refusing to introduce a backdoor, Apple maintains its stance against weakening security, yet its alternative—removing E2EE—leaves UK users with weaker protections. This decision may push privacy-conscious users toward alternative cloud storage solutions or local backups. Furthermore, Apple’s response could set a precedent for how it handles similar demands from other governments in the future.
FROM THE MEDIA: Following reports that the UK Home Office requested access to user data under the Investigatory Powers Bill, Apple announced it will disable ADP for iCloud users in the UK. While some data—such as health records, iMessages, and FaceTime calls—will remain encrypted, other sensitive information, including iCloud backups, photos, and notes, will now be accessible if requested via legal orders. Users with ADP enabled will be required to turn it off within a limited timeframe or lose access to iCloud. Apple reiterated that it has never and will never create backdoors but expressed disappointment in reducing security for UK customers.
READ THE STORY: The Register
Germany’s CDU Wins Election as Merz Pushes for European Independence from US
Bottom Line Up Front (BLUF): Germany’s center-right Christian Democrats (CDU/CSU) won the federal election with 28.5% of the vote, shifting the country’s political landscape to the right. Party leader Friedrich Merz has pledged to strengthen Europe’s autonomy from the United States, citing concerns over US foreign policy under Donald Trump. The far-right Alternative for Germany (AfD) made significant gains, coming in second with 21%, while coalition talks are expected to be complex.
Analyst Comments: Merz’s victory signals a shift in Germany’s strategic outlook, with his calls for European self-reliance reflecting broader concerns over transatlantic relations. The rise of the AfD, which has historically been marginalized in mainstream politics, could pressure the CDU’s policymaking, particularly on immigration and EU integration. The election outcome may also impact NATO cohesion, especially given Merz’s skepticism about Germany’s dependence on US security guarantees. Moving forward, coalition negotiations will determine how much of Merz’s agenda can realistically be implemented, especially given fiscal constraints.
FROM THE MEDIA: Germany’s federal election on Sunday saw the CDU/CSU emerge as the largest party, securing 28.5% of the vote but falling short of an outright majority. The far-right AfD doubled its previous vote share, reaching 21%, while Chancellor Olaf Scholz’s Social Democratic Party (SPD) suffered its worst result since 1887 with just over 16%. Merz has ruled out working with the AfD but faces limited coalition options, with the SPD being the most viable partner. Merz emphasized the need for Germany to reduce its reliance on the US, citing concerns over Donald Trump’s stance on Europe and NATO. The election saw record voter turnout (84%), reflecting growing dissatisfaction with Germany’s economic stagnation and immigration policies.
READ THE STORY: FT
Starlink Faces Growing Competition from China and Bezos’ Kuiper Project
Bottom Line Up Front (BLUF): Elon Musk’s Starlink faces intensified competition in the satellite internet sector, particularly from China’s state-backed SpaceSail and Jeff Bezos’ Project Kuiper. China is rapidly expanding its low-Earth orbit (LEO) satellite network, with plans to launch 15,000 satellites by 2030. Beijing has also ramped up military research focused on tracking and countering Starlink. Meanwhile, Brazil is negotiating with SpaceSail, Kuiper, and Telesat for high-speed internet services, further challenging Starlink’s dominance.
Analyst Comments: Starlink’s early lead in LEO satellite internet is being challenged by aggressive global expansion efforts, particularly from China. SpaceSail’s rapid deployment, backed by state funding, signals China’s strategic push into digital and military space dominance. Potential geopolitical conflicts, such as concerns over China using its satellites for surveillance or censorship, could lead to regulatory roadblocks for Chinese providers in Western markets. Meanwhile, Amazon’s Project Kuiper presents a commercial threat that could drive competition and lower consumer prices. Starlink must now navigate regulatory, geopolitical, and market pressures to maintain its dominance.
FROM THE MEDIA: China’s SpaceSail has expanded its satellite internet services to Brazil and Kazakhstan and plans to launch 648 LEO satellites this year, with an ultimate goal of 15,000 by 2030. Beijing has committed to launching 43,000 satellites over the next few decades, positioning itself as a major player in the sector. Meanwhile, Brazil is in discussions with Project Kuiper, SpaceSail, and Canada’s Telesat for internet services. U.S. policymakers are concerned about China’s growing presence in space, fearing an extension of Beijing’s digital influence. Additionally, Chinese military researchers are actively developing tools to track and monitor Starlink’s satellite constellation, viewing it as a security threat.
READ THE STORY: CyberNews
Nippon-U.S. Steel Deal Still in Play Despite Political Opposition
Bottom Line Up Front (BLUF): Despite strong opposition from President Trump and a prior executive order by President Biden blocking the deal, Nippon Steel’s $14.1 billion bid to acquire U.S. Steel remains a possibility. The Japanese company and U.S. Steel are challenging the decision in court, arguing that the government acted on political grounds rather than national security concerns. A potential Cleveland-Cliffs bid and Trump’s history of policy reversals add further uncertainty to the outcome.
Analyst Comments: The fate of the Nippon-U.S. Steel deal is now entangled in political and economic considerations. While Biden’s executive order cited national security risks, the Committee on Foreign Investment in the U.S. (CFIUS) disagreed. Trump’s opposition aligns with his “America First” trade policies, but his past unpredictability leaves room for a possible reversal. Cleveland-Cliffs may step in if the deal fails, though its bid could face antitrust scrutiny. The lack of a resolution for U.S. Steel prolongs uncertainty, delaying much-needed capital investments and modernization efforts.
FROM THE MEDIA: President Trump has stated that U.S. Steel should not be foreign-owned, echoing Biden’s earlier decision to block the Nippon Steel acquisition on national security grounds. However, U.S. Steel and Nippon Steel have challenged the order in court, claiming it was politically motivated rather than based on legitimate security risks. The legal battle places the Trump administration in the position of defending a Biden-era decision. Meanwhile, Trump’s recent remarks about Nippon Steel investing in, rather than owning, U.S. Steel have fueled speculation about a potential compromise. If the sale is ultimately blocked, Cleveland-Cliffs remains a potential buyer, though antitrust concerns could complicate its bid.
READ THE STORY: WSJ
Items of interest
China Tightens Control on AI-Generated Content and Internet “Water Armies”
Bottom Line Up Front (BLUF): China is ramping up oversight of AI-generated content and paid online manipulation groups known as “Internet water armies.” The Cyberspace Administration of China (CAC) has announced stricter regulations to enforce transparency in AI-generated materials and penalize the spread of misinformation. This move comes as Alibaba and other Chinese tech giants commit to massive AI investments, aligning with Beijing’s push for technological self-reliance.
Analyst Comments: China’s increased regulation of AI-generated content signals its intent to control the digital landscape amid rapid advancements in artificial intelligence. While the country aggressively pursues AI innovation, including artificial general intelligence (AGI), its leadership is also wary of AI-driven misinformation. The crackdown on water armies reflects Beijing’s broader strategy to shape online narratives, particularly as AI-generated content becomes more prevalent. This regulatory tightening may impact global companies operating in China, requiring stricter compliance measures for AI applications. Furthermore, these developments could set a precedent for other nations considering similar controls over AI-driven content.
FROM THE MEDIA: The Cyberspace Administration of China (CAC) announced new measures targeting AI-generated content, requiring clear labeling of synthetic materials and imposing penalties on the spread of misinformation. The policy also includes a crackdown on “water armies”—paid groups that flood social media with coordinated posts to manipulate public opinion. At the same time, China is doubling down on AI innovation. Alibaba recently pledged to invest more in digital infrastructure over the next three years than in the past decade, specifically focusing on AGI development. The company believes AGI could influence or even replace 50% of global GDP. Meanwhile, Huawei CEO Ren Zhengfei assured President Xi Jinping that China significantly reduces its dependence on foreign technology, highlighting advancements in homegrown semiconductors and operating systems like HarmonyOS. These developments follow Xi Jinping’s recent meeting with Chinese tech leaders, where he urged them to accelerate innovation while ensuring alignment with the country’s broader economic and political objectives.
READ THE STORY: Wiley // The Register // RG
Who are the internet army and 50-cent trolls? How will they affect Japanese elections? (Video)
FROM THE MEDIA: China’s internet army and 50-cent trolls, aka Wumao, rescue the CCP from various existential crises while creating headaches for it at the same time. They have created more controversies than Xi Jinping wants to see at the Tokyo Olympics when Chinese athletes lost to Japanese. Chinese regimes wants use Tokyo Olympics as a platform to promote Beijing Winter Olympics. But the nationalist trolls’ irrational behavior is embarrassing and counterproductive. One psychiatrist said that they are suffering from Stockholm syndrome.
Taiwan: China using internet water army (Video)
FROM THE MEDIA: Journey with us into the heart of China's Great Firewall. Understand how the sources familiar with Taiwan's national security affairs said that the Chinese Communist Party (CCP) has been behind a scheme of using an "internet water army" to attack President Tsai Ing-wen's and former Premier Su Tseng-chang's Facebook accounts.
The selected stories cover a broad array of cyber threats and are intended to aid readers in framing key publicly discussed threats and overall situational awareness. InfoDom Securities does not endorse any third-party claims made in its original material or related links on its sites; the opinions expressed by third parties are theirs alone. For further questions, please contact InfoDom Securities at dominanceinformation@gmail.com.