AI Server Smuggling: Taiwan Charges Nine

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.

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.

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)

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)

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.