Subsea sabotage

Hi from New York. In the past few years, bad things have been happening to some of the subsea fiber optic cables linking up the global inter [View in browser]( [Bloomberg]( [by Drake Bennett]( Hi from New York. In the past few years, bad things have been happening to some of the subsea fiber optic cables linking up the global internet, especially ones located in North Atlantic waters. But first... Three things you need to know today: • TSMC’s earnings beat [lofty estimates for profit and margins]( • Damaged internet cables in the Red Sea are [finally being repaired]( • A retirement tech startup notched [a $1.33 billion valuation]( Cutting the cord Even in the age of satellites and 5G, international communication still relies on cables at the bottom of the ocean, just as it did in the age of the telegraph. The wireless internet is, in fact, built on some thick — and usually hardy — wires draped across ocean floors. In multiple recent instances, subsea cables have been damaged or cut clean through, rendering them useless, at least temporarily. Jordan Robertson and I tried to figure out what’s going on in [a new feature in]([Bloomberg Businessweek](. Most of the time when an undersea cable is damaged, it’s due to an underwater seismic event or some kind of accident. Anchors and bottom-dragging fish nets are frequent culprits. But the events we looked at raise suspicions of something more deliberate. In two incidents in particular, Russian fishing trawlers spent an unaccountably long time lingering over the cables at the precise moment when they met their untimely demise. These incidents happen against a backdrop of growing evidence — gathered by Russia’s apprehensive Scandinavian neighbors — that Russian fishing boats, which are permitted to move in and out of other countries’ national waters, are being deputized to perform military and intelligence roles. We go into that evidence in our story. Attacking undersea infrastructure, if that is indeed what happened, takes things to a new level. One of the questions we address in our story is what point it might have served — the damaged cables did have some military uses, but that wasn’t their primary purpose. Katarzyna Zysk, a professor of international relations and contemporary history at the Norwegian Institute for Defence Studies in Oslo, suggested that the attacks might have been training exercises for how Russia could disable communications and undersea sensors in the event of a conflict. Or, she says, “they were sending a signal: ‘We are able to conduct this kind of operation.’” There’s a long history of this kind of gamesmanship. It’s a bit like sending fighter planes to “stray” ever so slightly into an adversary’s national airspace to see what the response will be. In essence, it’s trolling: we’re doing this to remind you, and everyone else, that we can. Subsea cables present serious temptation for anyone pondering such shenanigans, as does climate change, which creates the potential for new territorial conflicts as the ice in the northern seas retreats. Expect a lot more geopolitical trolling.—[Drake Bennett](mailto:dbennett35@bloomberg.net) The big story By Communist Party standards, the Cyberspace Administration of China’s rise has been nothing short of breathtaking. In just over 10 years, the regulator has morphed from a singularly minded online censor into one of the country’s most powerful administrators — with oversight of both data and AI. But the CAC’s rapidly expanding portfolio has also [left some of its bureaucrats overwhelmed.]( One to watch VC investors Marc Andreessen and Ben Horowitz plan to donate to Donald Trump’s campaign for president, according to a person familiar with their plans, making the famous duo the latest tech investors to throw their support behind the Republican. Bloomberg's Lizette Chapman joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology." Get fully charged Design software maker Figma Inc. conducted a secondary share sale [at a $12.5 billion valuation.]( Menlo Ventures is starting a $100 million AI fund with the help of Anthropic, [whose chatbot Claude will recommend potential deals.]( Hong Kong plans to introduce a licensing regime for stablecoins that [track the value of fiat currencies.]( More from Bloomberg Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Like getting this newsletter? 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