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The Wall Street Journal's Morning Risk Report says companies are struggling with cyberattacks as hackers increasingly use artificial intelligence tools to boost their effectiveness. The same roundup notes the FTC has alleged Amazon tripled advertising prices around Black Friday, and highlights China's growing efforts to assert control over AI development.
Footage circulating online shows workshops in China desoldering GB202 GPUs and GDDR7 memory from new GeForce RTX 5090 cards, then rebuilding them with blower-style coolers for server racks. The operations reportedly process both custom partner cards and Nvidia Founders Edition units, repackaging them for shipment to data centers or AI labs.
The U.S. Department of Homeland Security has directed federal civilian agencies to strip DeepSeek and any third-party products built on its technology from their IT systems, according to a notice dating from late July that was made public this week. The order also bars agencies from procuring DeepSeek products going forward, citing concerns that the Chinese company's servers could expose sensitive U.S. data to Chinese authorities. Beijing responded through Foreign Ministry spokesperson Mao Ning, who said China would defend its companies' rights and accused Washington of politicizing technology issues under the guise of national security.
The Department of Homeland Security has directed US federal civilian agencies to remove DeepSeek's AI products from government systems and barred future purchases, including third-party tools built on DeepSeek's models. The order, dated late July but disclosed publicly on October 19, cites the Federal Acquisition Supply Chain Security Act of 2018 and concerns about DeepSeek's China-based servers and potential vulnerabilities. China's Foreign Ministry called the move a politicization of trade and technology.
The Department of Homeland Security publicized a directive requiring US federal civilian agencies to strip DeepSeek-related technology from their IT systems and halt future procurement of its products and services, including third-party tools built on the Chinese company's technology. Issued July 24, the order covers agencies like Treasury, State and Justice, but exempts the Pentagon, which already restricts the AI models.
The Department of Homeland Security has ordered all civilian federal agencies, including Treasury, State and Justice, to remove DeepSeek's AI models and any technology built using them. The order became effective at the end of July but was only publicly disclosed this week; Defense Department systems are exempt from the ban.
The Financial Times reports that Chinese tech companies purchased more than one million Nvidia gaming and workstation GPUs over the past year to cover a shortfall in AI computing capacity. Citing industry insiders, the report says domestic AI chip output has roughly doubled but still falls nearly 1.5 million units short of demand exceeding 5 million chips. Buyers are reportedly repurposing export-compliant Nvidia models like the RTX Pro 6000D, RTX Pro 5000 and RTX 5090 for simpler AI workloads such as prefilling.
Bloomberg reports that open-weight AI models, which can be run locally and stripped of safety guardrails, are increasingly being used to produce child sexual abuse material. According to the report, these models can be trained on existing CSAM and generate new content offline, making detection by law enforcement difficult, and have spawned large dark web communities around this practice. Child safety expert Rebecca Portnoff told Bloomberg that over 500 open source models are now implicated, up from fewer than a dozen two years ago, while NCMEC-reported incidents of AI-generated CSAM jumped from 67,000 to more than 1.5 million in a year.
French AI startup Mistral released a new open-weight model, which it says performs competitively against leading open-source models developed in China. The company positioned the release as part of its effort to offer a European alternative in the global open-source AI race.
US prosecutors arrested Greg Lui for allegedly smuggling servers containing $300 million worth of NVIDIA AI chips to China, violating export controls, according to Bloomberg. The report also details an earlier case involving a red hair dryer used to strip serial numbers off NVIDIA server boxes, and describes new data centers in western China believed capable of housing 115,000 restricted NVIDIA processors.
A growing discussion highlights how open-weight AI models can be modified—or 'abliterated'—to remove built-in safety restrictions, allowing users to bypass content moderation. Commentators note this concern extends beyond models originating from China to open-source AI broadly, raising questions about how the industry and regulators should respond.
At the UN General Assembly opening on September 22, 2026, twenty countries issued a joint statement demanding that artificial intelligence remain under human direction, oversight and control. The United States did not join the group in signing the statement.