AI Server Smuggling: Taiwan Charges Nine

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Hello. Taiwan prosecutors charged nine people, including former employees of Nvidia and Super Micro Computer, with aiding the shipment of dozens of advanced AI servers to China.

Washington is trying to block China from getting access to the latest Nvidia chips and has imposed export controls. Two of those charged made false claims to secure approval for the purchase of 130 AI servers from Super Micro equipped with high-end Nvidia chips, including by saying the hardware would remain at a facility in Taiwan, prosecutors said Monday. Read more from WSJ .

More news below.

More Cyber News

Suspected pro-Iran hackers are part of 'economic D-Day.' The U.S. Treasury Department designated four Iranians for sanctions for hacks of critical infrastructure dating to 2023. Targets of the group, which the U.S. said is linked to Iran's Ministry of Intelligence and Security, include energy, tech, financial, defense and healthcare companies, Treasury said Monday.

The four people are among 17 whom the Federal Bureau of Investigation has charged with threatening U.S. national security, supporting terrorists and committing human rights abuses, according to an indictment unsealed last week.

U.K. energy CEOs received a briefing from British officials about boosting cybersecurity after an Iran-linked cyberattack disrupted a small power provider for four days last month. "To be clear: there was no threat to the wider grid and nobody lost power," Minister for Energy Michael Shanks posted on X. (Reuters)

A subpoena to OpenAI from Alabama's attorney general demands more details about the Hugging Face hack. OpenAI disclosed last month that its agents autonomously hacked into systems at AI developer platform Hugging Face. (CNN)

Among the materials the subpoena seeks are all OpenAI documents related to the intrusion or the testing that led to it. It also requests identifying information about "every employee, officer, and agent of OpenAI who was involved" and those who have "raised any concern or complaint relating to the safety or security of any model testing."

Number of license plates captured a month by Flock's 120,000 AI cameras situated in 49 states. The AI surveillance company is running into the same bipartisan anger that engulfed data centers as worries about artificial intelligence rise. (WSJ)

Cyber company ReliaQuest is dueling online with hacking group ShinyHunters. ReliaQuest has been tracking ShinyHunters exploits for months. The group has recently turned its attention to the company, launching social-engineering attacks and fake domains, attempting to harvest employee credentials. (Bleeping Computer)

Battlefield data: The U.K. will get access to Ukrainian battlefield data to train military AI systems under a joint-development deal signed by British Prime Minister Andy Burnham and Ukraine President Volodymyr Zelensky. Ukraine's Avengers Labs uses ?details from cameras and sensors on the country's front lines. (Reuters)

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The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

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