{"id":1320,"date":"2017-11-18T19:10:00","date_gmt":"2017-11-18T19:10:00","guid":{"rendered":"http:\/\/blackopspartners.com\/?p=1320"},"modified":"2017-11-18T19:10:00","modified_gmt":"2017-11-18T19:10:00","slug":"china-cia-competing-fund-silicon-valleys-ai-startups","status":"publish","type":"post","link":"https:\/\/blackopspartners.com\/china-cia-competing-fund-silicon-valleys-ai-startups\/","title":{"rendered":"China and the CIA Are Competing to Fund Silicon Valley\u2019s AI Startups"},"content":{"rendered":"

China and the CIA Are Competing to Fund Silicon Valley\u2019s AI Startups.<\/h1>\n

The U.S. intelligence community is upping its early-stage investments in machine-learning companies \u2014 but Beijing is pouring in far more.<\/span><\/span><\/span><\/p>\n

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A trio of new investments in Silicon <\/strong>Valley machine-learning startups shows that the U.S.<\/span> intelligence community is deeply interested in artificial intelligence. But China is investing even more in these kinds of U.S.<\/span> companies, and that has experts and intelligence officials\u00a0worried.<\/p>\n

Founded to foster new technology for spies, the 17-year-old In-Q-Tel<\/a> has also helped boost commercial products. (Its investment in a little company called Keyhole helped produce Google Maps.) Compared to a venture capitalist firm whose early-stage investments are intended to make some money and get out, the nonprofit\u2019s angle is longer term, less venture, more strategic, according to Charlie Greenbacker, In-Q-Tel\u2019s technical product leader in artificial intelligence, machine learning, natural language processing, analytics, and data\u00a0science.<\/p>\n

\u201cOur model is to put a little bit of pressure at the right spot to influence a company to make sure it develops things that are useful to our customers,\u201d said Greenbacker, who estimated that their investments in a given startup generally amount to about one of every 15 dollars the company\u00a0has.<\/p>\n

Greenbacker recently discussed<\/a> In-Q-Tel investments that underline the specific areas that the CIA<\/span> and other spy agencies want to use AI<\/span> for: image recognition, natural language processing, and predictive\u00a0analytics.<\/p>\n

The first is Orbital Insight, a company that analyzes satellite images to discover trends and patterns on a global scale. As Orbital\u2019s CEO<\/span> James Crawford said<\/a> last year, \u201cThe number of ships docked at a Malaysian port, even the color of a wheat field in western Nebraska, are actually signs\u2026visible indicators of economic activity, not just for a local region but for an entire global\u00a0industry.\u201d<\/p>\n

Natural language processing is another a big area of AI<\/span>investment. Greenbacker highlighted a company called Primer<\/a>, which sells a tool that can read and summarize text, useful for the CIA<\/span>\u2019s Directorate of Intelligence (now Directorate of Analysis) and the decidedly unsexy work of combing through the world\u2019s court cases, patent filings, and newspapers for relevant data. Primer is the work of Sean Gourley, a co-creator of the Quid<\/a> analysis and visualization engine and one of the more celebrated young data scientists working at the intersection of Silicon Valley and national\u00a0security.<\/p>\n

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What does a spy agency do with all of this data and analysis? Try to predict the future, of course, and the intelligence community has a big interest in AI<\/span> that will help it succeed there as well. In-Q-Tel invested a company called Celect<\/a>, which says its predictive analytics engine can help retailers anticipate demand for certain products \u2014 and perhaps help intel analysts anticipate national-security problems. When the researchers fed<\/a> the engine a large database<\/a> of published news stories, it predicted, with high confidence, a steady increase in negative news about the security situation in Ukraine in the early spring of 2014. And indeed, that happened. (The experiment was done retroactively, after the Russian invasion, when outcomes were known to the researchers \u2014 but not to the\u00a0AI<\/span>.)<\/p>\n

Unlike other technological areas, today\u2019s AI<\/span> startups don\u2019t necessarily need intelligence-community money, says Greenbacker: \u201cThere\u2019s a lot more money flowing into the AI<\/span> space than is typical\u201d in the startup\u00a0ecosystem.<\/p>\n

\u201cBut putting in a little leverage in the right spot can bend all this toward the things we care about,\u201d he said. \u201cAt the end of the day, it means the government doesn\u2019t have to foot all of the bill to develop technology it cares\u00a0about.\u201d<\/p>\n

Competing with\u00a0China<\/strong><\/p>\n

The intelligence community\u2019s investment in the valley\u2019s AI<\/span> startups lags foreign investors and China. And that has some folks very\u00a0concerned.<\/p>\n

\u201cThe entire government spent $1.1 billion on unclassified AI<\/span>programs in 2015. The estimate for 2016 was $1.2 billion,\u201d said Greenbacker. \u201cMeanwhile, Softbank [a Japanese multinational conglomerate] has a $100-billion-dollar fund for this. The Chinese government in their most recent five-year-plan<\/a> has put $150 billion in\u00a0this.\u201d<\/p>\n

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Last week, three U.S.<\/span> senators proposed legislation to improve how the U.S.<\/span> approves the sale or transfer of tech with national-security importance: U.S.<\/span> Sens. John Cornyn, R-Texas; Dianne Feinstein, D-Calif.; and Richard Burr, R-N.C., the chairman of the Senate intelligence\u00a0committee.<\/p>\n<\/div>\n

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\u201cBy exploiting gaps in the existing CFIUS<\/span> [Committee on Foreign Investment in the United States] review process, potential adversaries, such as China, have been effectively degrading our country\u2019s military technological edge by acquiring, and otherwise investing in, U.S.<\/span> companies,\u201d Sen. Cornyn said in a statement<\/a>about the Foreign Investment Risk Review Modernization Act, or FIRRMA<\/span>. \u201cThis undermines our national security and highlights the imperative of modernizing the CFIUS<\/span> review process to address 21st-century threats. This bill takes a measured approach by providing long overdue reforms to better protect our country, while also working to ensure that beneficial foreign investment is not\u00a0chilled.\u201d<\/p>\n

In telegraphing the effort<\/a> over the summer, Cornyn singled out AI<\/span>, as well as the supply chains for microelectronics, as particularly deserving of extra scrutiny. Former Defense Department and White House officials were particularly skeptical that prohibiting the Chinese from investing in start-ups was the best method to tackle the problem. Some suggested instead that the U.S.<\/span> government should simply try to outspend\u00a0China.<\/p>\n

\u201cI have a lot of opinions about it. They aren\u2019t always approved for public release,\u201d said Greenbacker. He added that the size of foreign investment moving into the AI<\/span> space in Silicon Valley \u201cwill catch the attention of smaller companies and researchers seeking\u00a0funding.\u201d<\/p>\n

Matthijs Broer, the chief technical officer of the CIA<\/span>\u2019s Science and Technology directorate, also declined to comment on specific legislation. But Broer did say that far greater foreign investment in areas like artificial intelligence, including in U.S.<\/span> startups, was \u201cabsolutely\u201d an issue of vital\u00a0importance.<\/p>\n

\u201cYou bet they are national security issues. Of course that is under review on the U.S.<\/span> government side,\u201d he said at the Defense One Summit on\u00a0Thursday.<\/p>\n

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Read the full article at DefenseOne<\/a>.<\/em><\/span><\/p>\n<\/article>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. intelligence community is upping its early-stage investments in machine-learning companies \u2014 but Beijing is pouring in far more.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,10],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts\/1320"}],"collection":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/comments?post=1320"}],"version-history":[{"count":0,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts\/1320\/revisions"}],"wp:attachment":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/media?parent=1320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/categories?post=1320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/tags?post=1320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}