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Italy’s Defence Minister Denies Any Agreement with Starlink for Secure Communications

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Italy’s Defence Minister, Guido Crosetto, sought to calm political tensions on Wednesday following reports that Italy was in talks with Elon Musk’s Starlink to supply secure communications for the military. Crosetto clarified to parliament that no contracts or agreements had been signed with SpaceX, the company behind Starlink, and that the defence ministry had not approved any such deal.

Musk had earlier indicated his willingness to assist Italy, mentioning that Starlink’s satellite-based system could provide secure communications for Italian diplomats and defence officials operating in sensitive Mediterranean regions. A reported €1.5 billion ($1.6 billion) deal over five years has drawn sharp criticism from opposition parties, raising concerns about entrusting such an important service to a private company owned by Musk.

Crosetto emphasized that Italy was still evaluating various technical solutions for encrypted communications and suggested that the country could develop its own equipment if necessary. He also referred to Musk’s comments about other European countries potentially using the system once it was in place in Italy.

Opposition lawmaker Nicola Fratoianni expressed concern over Crosetto’s stance, arguing that national security should not be entrusted to a private monopolist. The possibility of Starlink offering a quicker solution compared to the EU’s IRIS2 satellite constellation has added urgency to the debate.

Ferdinando Nelli Feroci, former Italian ambassador and head of a foreign policy think tank, advised that the matter should be approached with transparency and an open public tender process. He noted that if multiple bidders were involved, and Musk’s proposal emerged as the best option in terms of cost, benefits, and quality, it could be considered.

 

Quantum Computing Stocks Drop After Nvidia CEO’s Dismal Outlook

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Quantum computing stocks experienced a significant decline on Wednesday, halting a year-long rally, after Nvidia CEO Jensen Huang predicted that practical quantum computers are still two decades away. This stark timeline casts doubt on the future of the sector, which had seen optimism due to early-stage breakthroughs but is still far from achieving widespread commercial success.

Huang suggested that while the technology shows potential, “very useful quantum computers” are likely 15 to 30 years away, with 20 years being the most plausible estimate. This forecast contrasts with the rapid growth of the quantum computing industry in recent years, driven by high-profile developments like Google’s December breakthrough in the field.

Stocks of companies like Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ plunged by more than 40%, collectively losing over $8 billion in market value. The decline reflects the industry’s current struggle with niche applications and the massive investment needed for future progress. Despite the steep drop, Ivana Delevska, chief investment officer of Spear Invest, which holds shares in Rigetti and IonQ, stated that the 15 to 20-year timeline seems realistic, mirroring the trajectory Nvidia followed in developing accelerated computing.

Despite the long road ahead, quantum computing remains a key area for national security, with governments counting on its potential for military applications, particularly in decryption technology. However, the current revenues of these companies are minimal, with IonQ, valued at over $10 billion, projecting $41.6 million in revenue for fiscal 2024, and Rigetti, valued at $4.4 billion, expected to generate just $11 million in the same period.

Analysts, like Richard Shannon from Craig-Hallum, suggest that while these companies are far from profitable, their future revenue growth, particularly from government contracts, is crucial to their long-term potential. Shannon also noted that while quantum computing may disrupt traditional computing, it could ultimately benefit Nvidia, a major player in the accelerated computing space.

 

TikTok’s Fate Divides Republicans as Supreme Court Case Looms

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The upcoming U.S. Supreme Court case involving TikTok has split opinions among Republicans, with former President Donald Trump opposing a ban on the app, while many of his party allies support the government’s position on national security concerns. The case, set to be argued on Friday, raises critical issues about the balance between free speech and national security.

At the heart of the case is a law passed by Congress last year, with bipartisan support, that mandates TikTok’s China-based parent company, ByteDance, either sell the platform or face a U.S. ban by January 19. The law, signed by President Joe Biden, is driven by fears that China could use TikTok to spy on U.S. users by accessing their data, from personal messages to location information. The Justice Department argues that the app poses a security threat, citing its vast user data and the potential for content manipulation.

TikTok, along with ByteDance, has pushed back against these national security claims, arguing that the law infringes upon First Amendment protections. The company asserts that such a law would allow the U.S. government to ban any speech deemed to be influenced by a foreign entity, undermining free speech rights.

Trump has taken an unexpected stance, stating he has a “warm spot” for TikTok and opposing the ban, which he believes could harm his base, given the platform’s role in boosting his campaign visibility. His lawyer, John Sauer, has filed a request to delay the law’s enforcement until he can address the issue through political means after taking office.

In contrast, many Republican state attorneys general, led by Montana’s Austin Knudsen, have filed briefs supporting the ban, citing national security risks. They argue that allowing TikTok to operate without severing ties with the Chinese Communist Party could expose Americans to data exploitation.

The Supreme Court’s decision is expected to have far-reaching implications for both digital platforms and internet freedom, with some experts warning that a favorable ruling for the government could pave the way for further regulatory action against other platforms with foreign ties, such as Telegram.

The stakes are high for TikTok, which has approximately 170 million active monthly users in the U.S. If the court upholds the law, it could lead to TikTok’s removal from app stores, although users with the app already downloaded may still have access. However, without updates, the app could become increasingly unusable.