Spy Agency Ducks Questions About 'Back Doors' in Tech Products

FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
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Spy Agency Ducks Questions About 'Back Doors' in Tech Products

FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo
FILE PHOTO: FILE PHOTO: An aerial view of the National Security Agency (NSA) headquarters in Ft. Meade, Maryland, US January 29, 2010. REUTERS/Larry Downing/File Photo/File Photo

The NSA has long sought agreements with technology companies under which they would build special access for the spy agency into their products, according to disclosures by former NSA contractor Edward Snowden, Reuters reported.

These so-called back doors enable the NSA and other agencies to scan large amounts of traffic without a warrant. Agency advocates said the practice has eased collection of vital intelligence in other countries, including interception of terrorist communications.

The agency developed new rules for such practices after the Snowden leaks in order to reduce the chances of exposure and compromise, three former intelligence officials told Reuters. But aides to Senator Ron Wyden, a leading Democrat on the Senate Intelligence Committee, say the NSA has stonewalled on providing even the gist of the new guidelines.

“Secret encryption back doors are a threat to national security and the safety of our families – it’s only a matter of time before foreign hackers or criminals exploit them in ways that undermine American national security,” Wyden told Reuters.

“The government shouldn’t have any role in planting secret back doors in encryption technology used by Americans.”

Three former senior intelligence agency figures also told Reuters that the NSA now requires that before a back door is sought, the agency must weigh the potential fallout and arrange for some kind of warning if the back door gets discovered and manipulated by adversaries.

The continuing quest for hidden access comes as governments in the United States, the United Kingdom and elsewhere seek laws that would require tech companies to let governments see unencrypted traffic. Defenders of strong encryption said the NSA’s sometimes-botched efforts to install back doors in commercial products show the dangers of such requirements.

Critics of the NSA’s practices said they create targets for adversaries, undermine trust in US technology and compromise efforts to persuade allies to reject Chinese technology that could be used for espionage, since US gear can also be turned to such purposes.

In at least one instance, a foreign adversary was able to take advantage of a back door invented by US intelligence, according to Juniper Networks Inc, which said in 2015 its equipment had been compromised.

In a previously unreported statement to members of Congress in July seen by Reuters, Juniper said an unnamed national government had converted the mechanism first created by the NSA. The NSA told Wyden staffers in 2018 that there was a “lessons learned” report about the Juniper incident and others, according to Wyden spokesman Keith Chu.

“NSA now asserts that it cannot locate this document,” Chu told Reuters. NSA and Juniper declined to comment on the matter.

The NSA has pursued many means for getting inside equipment, sometimes striking commercial deals to induce companies to insert back doors, and in other cases manipulating standards - namely by setting processes so that companies unknowingly adopt software that NSA experts can break, according to reports from Reuters and other media outlets.

The tactics drew widespread attention starting in 2013, when Snowden leaked documents referencing these practices.

Tech companies that were later exposed for having cut deals that allowed backdoor access, including security pioneer RSA, lost credibility and customers. Other US firms lost business overseas as customers grew wary of the NSA’s reach.

According to Reuters, all of that prompted a White House policy review.

“There were all sorts of ‘lessons learned’ processes,” said former White House cybersecurity coordinator Michael Daniel, who was advising then-president Barack Obama when the Snowden files erupted. A special commission appointed by Obama said the government should never “subvert” or “weaken” tech products or compromise standards.

The White House did not publicly embrace that recommendation, instead beefing up review procedures for whether to use newly discovered software flaws for offensive cyber operations or get them fixed to improve defense, Daniel and others said.

The secret government contracts for special access remained outside of the formal review.

“The NSA had contracts with companies across the board to help them out, but that’s extremely protected,” said an intelligence community lawyer.

The starkest example of the risks inherent in the NSA’s approach involved an encryption-system component known as Dual Elliptic Curve, or Dual EC. The intelligence agency worked with the Commerce Department to get the technology accepted as a global standard, but cryptographers later showed that the NSA could exploit Dual EC to access encrypted data.

RSA accepted a $10 million contract to incorporate Dual EC into a widely used web security system, Reuters reported in 2013. RSA said publicly that it would not have knowingly installed a back door, but its reputation was tarnished and the company was sold.

Juniper Networks got into hot water over Dual EC two years later. At the end of 2015, the maker of internet switches disclosed that it had detected malicious code in some firewall products. Researchers later determined that hackers had turned the firewalls into their own spy tool by altering Juniper’s version of Dual EC.

Juniper said little about the incident. But the company acknowledged to security researcher Andy Isaacson in 2016 that it had installed Dual EC as part of a “customer requirement,” according to a previously undisclosed contemporaneous message seen by Reuters. Isaacson and other researchers believe that customer was a US government agency, since only the US is known to have insisted on Dual EC elsewhere.

Juniper has never identified the customer, and declined to comment for this story.

Likewise, the company never identified the hackers. But two people familiar with the case told Reuters that investigators concluded the Chinese government was behind it. They declined to detail the evidence they used.

The Chinese government has long denied involvement in hacking of any kind. In a statement to Reuters, the Chinese foreign ministry said that cyberspace is “highly virtual and difficult to trace. It is extremely irresponsible to make accusations of hacker attacks without complete and conclusive evidence. At the same time, we also noticed that the report mentioned that it was the US intelligence agency - the National Security Agency - that created this backdoor technology.”

Wyden remains determined to find out exactly what happened at Juniper and what has changed since as the encryption wars heat up.

This July, in previously unreported responses to questions from Wyden and allies in Congress, Juniper said that an unidentified nation was believed to be behind the hack into its firewall code but that it had never investigated why it installed Dual EC in the first place.

“We understand that there is a vigorous policy debate about whether and how to provide government access to encrypted content,” it said in a July letter.

“Juniper does not and will not insert back doors into its products and we oppose any legislation mandating back doors.”

A former senior NSA official told Reuters that many tech companies remain nervous about working covertly with the government. But the agencies’ efforts continue, the person said, because special access is seen as too valuable to give up.



AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP
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AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP

British scientists said Thursday that a world-first AI tool to catalogue and track icebergs as they break apart into smaller chunks could fill a "major blind spot" in predicting climate change.

Icebergs release enormous volumes of freshwater when they melt on the open water, affecting global climate patterns and altering ocean currents and ecosystems, reported AFP.

But scientists have long struggled to keep track of these floating behemoths once they break into thousands of smaller chunks, their fate and impact on the climate largely lost to the seas.

To fill in the gap, the British Antarctic Survey has developed an AI system that automatically identifies and names individual icebergs at birth and tracks their sometimes decades-long journey to a watery grave.

Using satellite images, the tool captures the distinct shape of icebergs as they break off -- or calve -- from glaciers and ice sheets on land.

As they disintegrate over time, the machine performs a giant puzzle problem, linking the smaller "child" fragments back to the "parent" and creating detailed family trees never before possible at this scale.

It represents a huge improvement on existing methods, where scientists pore over satellite images to visually identify and track only the largest icebergs one by one.

The AI system, which was tested using satellite observations over Greenland, provides "vital new information" for scientists and improves predictions about the future climate, said the British Antarctic Survey.

Knowing where these giant slabs of freshwater were melting into the ocean was especially crucial with ice loss expected to increase in a warming world, it added.

"What's exciting is that this finally gives us the observations we've been missing," Ben Evans, a machine learning expert at the British Antarctic Survey, said in a statement.

"We've gone from tracking a few famous icebergs to building full family trees. For the first time, we can see where each fragment came from, where it goes and why that matters for the climate."

This use of AI could also be adapted to aid safe passage for navigators through treacherous polar regions littered by icebergs.

Iceberg calving is a natural process. But scientists say the rate at which they were being lost from Antarctica is increasing, probably because of human-induced climate change.

 


AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
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AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)

Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it ​can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

The lackluster prediction comes despite an unexpected boost from sales of certain artificial intelligence chips to China, which began in the last quarter after the Trump administration approved a license for orders that AMD received in early 2025.

And without those sales to China which generated $390 million, AMD's data-center segment would have missed estimates for the fourth quarter.

AMD said it expects revenue of about $9.8 billion this quarter, plus or minus $300 million. That's down from $10.27 billion in the fourth-quarter which was up 34% year-on-year and ahead of LSEG ‌estimates for $9.67 billion.

PALES ‌NEXT TO NVIDIA

Though AMD is seen as one of the ‌few ⁠contenders ​that can seriously ‌challenge Nvidia, investors noted the stark contrast between the two companies' performances. AMD expects an adjusted gross margin of 55% this quarter. Nvidia has said it expects adjusted gross margin in the mid-70% range during its fiscal 2027.

"The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for," said Bob O'Donnell, president of TECHnalysis Research.

The forecast for the current first quarter includes $100 million from sales to China, where the situation remains "dynamic," AMD CEO Lisa Su said on a conference call with investors.

The US government ⁠has placed restrictions on the exports of advanced chips to China, but AMD received licenses to sell modified versions of its MI300 series ‌of AI chips there. Its MI308 chip competes with Nvidia's H20 ‍chip in China.

OPENAI SALES

AMD has accelerated its ‍product launches and is moving into selling full AI systems to better compete against Nvidia, which now ‍provides "rack-scale" systems that combine GPUs, CPUs and networking gear.

Last year, it entered into a multi-year deal to supply AI chips to ChatGPT-owner OpenAI, which would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.

Su reiterated on Tuesday that the company ​expects sales of a new flagship AI server to OpenAI and others to rise rapidly in the second half of this year, saying a global memory-chip crunch will not ⁠slow its plans.

"I do not believe that we will be supply-limited in terms of the ramp that we put in place," Su said.

BEYOND OPENAI

As Big Tech and governments across the globe double down on investing in AI hardware, shares in Santa Clara, California-based AMD have doubled since the start of 2025, outperforming a 60% bump in the broader chip index.

But analysts remain concerned that AMD's success remains tied to a handful of customers that rivals such as Nvidia could try to poach. Reuters reported this week that Nvidia made a $20 billion move to hire most of chip startup Groq's founders after OpenAI held chip supply discussions with the startup.

"Growth appears concentrated in large deployments and specific regions, and China shipments are significant enough to influence a quarter," said eMarketer analyst Gadjo Sevilla.

Revenue in AMD's key data-center segment grew 39% to $5.38 billion in the ‌fourth quarter. But excluding sales of the MI308, which is a data-center chip, that revenue would have been $4.99 billion, below estimates of $5.07 billion.


Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
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Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)

The runaway success of the Switch 2 console drove up Nintendo's net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday.

But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.

The Switch 2 became the world's fastest-selling games console after launching to a fan frenzy last summer.

It is the successor to the original Switch, which soared in popularity during the pandemic when games such as "Animal Crossing" struck a chord during long lockdowns.

Both are hybrid devices that can be connected to a TV or used on-the-go.

In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said.

But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.

"Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season," the company said.

Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added.

"Maintaining momentum is certainly a big focus for Nintendo," Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told AFP.

A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as "Resident Evil Requiem" should help fill the gap, she said.

Nintendo said Tuesday it planned to release "Mario Tennis Fever" this month and "Pokemon Pokopia" in March.

While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business.

The Switch 1 has now sold 155.37 million units -- overtaking the Nintendo DS console to be its best-selling hardware of all time.

But soaring prices for memory chips, used in gaming consoles as well as phones, laptops and other electronics, will likely be a headwind for the company.

Their prices have been pushed up as chipmakers focus on producing the advanced memory chips in huge demand to power AI data centers.

"Nintendo and other console manufacturers are publicly keeping quiet about the impact of the shortage," gaming industry consultant Serkan Toto told AFP.

But "users can forget the past when consoles always became cheaper in tandem with component costs falling over time", with price hikes potentially on the way in 2026, he said.

Yang said she thought a price increase for the Switch 2 "is not out of the question" but added that Nintendo "would likely exhaust all other options" before doing so.