National Security

.Senator Elizabeth Warren condemned President Trump’s decision to let Nvidia sell its high‑performance H200 AI chips to “approved” Chinese customers, calling it a breach of national security and demanding congressional action to tighten export controls. She urged Nvidia CEO Jensen Huang and Commerce Secretary Howard Lutnick to testify before Congress. Nvidia argued the sales need licenses and would generate significant royalties for the U.S., but critics warn the move could erode America’s AI lead, undermine supply‑chain security, and harm domestic chip innovation. bipartisan legislation may soon reshape export policy.

President Trump approved Nvidia’s sale of its H200 AI chips to China for a 25 % U.S. revenue share, sparking fierce Republican backlash over potential AI and military advantages for Beijing. Senators Graham, Hawley, and others warn the advanced hardware could narrow the U.S. compute gap, aid Chinese surveillance, and be reverse‑engineered. While some Republicans, like Tillis, seek limited exports, bipartisan bills aim to block high‑performance AI chip licenses for at least 30 months. Democrats criticize the policy as risky to America’s AI leadership.

Senator Mark Warner warned that China’s genomics giant BGI could surpass Huawei’s strategic impact by amassing vast DNA data worldwide, creating a “DNA arms race” with implications for surveillance, bio‑engineered soldiers and national security. He highlighted BGI’s global labs, links to the Chinese Communist Party and the PLA, and the U.S.’s slow intelligence response, urging bipartisan action such as the BIOSECURE Act. Warner also warned that China’s aggressive push in AI, quantum computing, biotech and standards‑setting threatens U.S. technological leadership and democratic values.

U.S. Senators Warren and Reed are urging investigations into World Liberty Financial (WLF), a crypto firm with Trump family ties, citing potential links to illicit actors in North Korea and Russia. Concerns stem from a report alleging WLF’s tokens were sold to entities connected to sanctioned groups. Senators highlight the Trump family’s significant financial stake in WLF, raising conflict of interest concerns and questioning the adequacy of WLF’s anti-money laundering controls and its expansions. Congress has been asked for enforcement actions by December 1st.

Concerns are rising within the cybersecurity community about declining US cyber defense capabilities, particularly with the rise of AI-powered attacks. Budget cuts to key agencies like CISA and the lapse of information-sharing legislation are hindering preparedness. Experts cite a lack of federal leadership, stalled appointments, and a shift of responsibility to under-resourced private entities. The rollback of software security regulations and fragmented industry coordination exacerbate vulnerabilities. Experts warn of a “death by a thousand papercuts” and emphasize the need for stronger government support and coordination.

The U.S. Commerce Department denies reports of negotiating equity stakes in quantum computing firms like IonQ, Rigetti, and D-Wave in exchange for federal funding, despite market reactions to the initial Wall Street Journal report. The denial follows earlier government investments in strategic sectors like semiconductors and rare earth mining, fueling debates about government involvement in private enterprise. Potential applications span various industries, while military implications drive further interest. The sector faces challenges including revenue generation, long development cycles, and a skilled labor shortage. Nonetheless, advancements like Google’s “quantum advantage” attract investment.

Reports of imminent government equity stakes in quantum computing companies like IonQ, Rigetti, and D-Wave have spurred market speculation, though the Commerce Department downplays immediate acquisitions. While acknowledging ongoing funding discussions, particularly regarding national security, companies remain mostly silent. Potential support contrasts with recent semiconductor deals, as quantum firms lack substantial revenue and face intense competition from hyperscalers like Google and IBM. The structure of government intervention, balancing national security needs with taxpayer risk and private investment, remains critical.

The U.S. government is reportedly exploring equity stakes in quantum computing firms in exchange for federal funding, signaling a strategic push to secure leadership in this critical technology. While denied by the Commerce Department, the initial report spurred market gains for companies like IonQ, D-Wave, and Rigetti. This potential move aligns with Washington’s trend of acquiring stakes in companies deemed vital to national security, reflecting concerns about technological competition, particularly with China, and the need to bolster domestic capabilities in strategic sectors like rare earths and semiconductors.

Govini, an AI-driven defense tech startup, has surpassed $100 million in ARR, fueled by demand for innovative solutions in the defense industry. Backed by a $150 million investment from Bain Capital, Govini aims to expand its team and product suite, addressing escalating security demands. CEO Tara Murphy Dougherty emphasizes data-driven insights for optimized resource allocation, highlighting their AI-powered Ark software for modernizing the defense tech supply chain. Govini competes with both legacy defense giants and emerging disruptors amid rising global tensions.