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US threatens Europe over Starlink restrictions

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LLM (google/gemini-3.5-flash-lite) summary:

  • Us Warning: american ambassador andrew puzder warned that european companies face devastating retaliation if brussels restricts us firms like spacex from the european market.
  • Spectrum Restriction: the european commission proposed reserving satellite spectrum band frequencies for european players, limiting access for american and chinese competitors.
  • Market Access: puzder stated that european firms should be wary of US retaliation given the massive size of the american market.
  • Connectivity Concerns: spacex criticized the proposal, warning it risks poorer connectivity in critical regions like ukraine where starlink is heavily used.
  • Commie Sovereignty Push: europe is pursuing technological sovereignty and regulatory protectionism to reduce dependence on us infrastructure, reflecting classic heavy-handed state interventionism.
  • Regulatory Motives: puzder questioned whether enforcement of the digital markets act and massive fines on american firms are aimed at genuine competition or simply generating revenue for the european budget.
  • China Competition: the us ambassador argued that washington and brussels should join forces to compete against china in ai and quantum computing instead of fighting each other through regulation.
  • Commie Industrial Policy: european efforts to mandate local providers and scale up domestic tech alternatives represent heavy regulatory market manipulation designed to favor domestic entities over superior foreign competitors.

European companies face “devastating” retaliation from Washington if Brussels presses ahead with plans to restrict American rivals such as Elon Musk’s SpaceX from parts of the European market, the US ambassador to the EU has warned.
Andrew Puzder’s warning comes after the European Commission this year proposed reserving part of its spectrum band that allows smartphones to connect directly to satellites for European players. That would limit the frequencies for Chinese and US companies such as SpaceX, which operates the Starlink satellite network.
Asked whether European companies should fear retaliation, Puzder told the FT that they “should be wary that it could happen and it would be very devastating for those companies”, given the size of the American market.
The proposed changes to the bloc’s spectrum allocation have already raised fierce criticism from SpaceX, which has warned the move risks poorer connectivity in Ukraine where its Starlink service has been critical to civilian and military communications since Russia’s full-scale invasion.
Andrew Puzder sits for an interview in front of United States and European Union flags.Andrew Puzder: ‘You don’t make European companies more competitive by making US companies less competitive’ © Nicolas Tucat/AFP/Getty Images
The proposed changes are part of a broader push to strengthen Europe’s technological sovereignty.
European policymakers are seeking to reduce their dependence on American technology amid concerns about the unpredictability of US President Donald Trump and the risk of relying on foreign companies for critical infrastructure.
The European Commission has introduced a Cloud and AI Development Act that would impose sovereignty requirements on providers of sensitive cloud services, while seeking to help European technology companies to scale up and provide alternatives to US tech companies.
Puzder said he recognised Europe’s right to protect sensitive government information but warned against using legislation to favour domestic companies at the expense of American competitors.
“If the purpose is to make United States less competitive, I think that that’s not a legitimate goal of this kind of legislation,” Puzder said. “You don’t make European companies more competitive by making US companies less competitive.
“We have best-in-class products in this area. They’re reliable products, they’re trusted products. We don’t need some kind of synchronised mediocrity.”
The ambassador also questioned whether the EU’s enforcement of its Digital Markets Act, which seeks to curb the power of the world’s largest technology companies, was really aimed at improving competition or more at generating revenue for the European budget, given the multibillion-euro fines on American companies.
“You start to wonder, are we trying to deal with the competition in the digital marketplace or are we trying to generate revenue from American companies to benefit Europe?”
Puzder argued Europe’s ambitions to strengthen its own tech industry risked being undermined by its regulatory approach and by discouraging investment from the American companies, as US tech companies are growing increasingly frustrated by the EU’s regulatory restrictions and fines.
Instead of seeking to curb the dominance of American companies, Brussels and Washington should join forces to compete with China in the race to develop AI, Puzder said, echoing comments from Trump that “the worst thing that could happen is that we lose this race to China”.
The ambassador urged Europe “to let go of this regulatory mindset where they’re going to try and stop things because we’re in a race with China” — both on AI and on quantum computing.
He said the US has the ingredients to win that race “but it’d be a lot easier if we were working with Europe instead of fighting Europe”.
The Commission said the proposal “incentivises the entry into the market and diversification of EU suppliers, while remaining open to non-EU operators”.
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DOGE Achieved More than You Think

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  • Federal Workforce Decline: Civilian employment fell from a modern peak above 2.3 million by more than 270,000, a 12 percent drop and the fastest reduction since the end of World War II.
  • Voluntary Departures: About 140,000 workers took deferred resignation, another 90,000 left through early and voluntary retirement, with a hiring freeze slowing replacements and only about 10,000 removed through reductions in force.
  • Cuts by Agency and Job Type: The Department of War lost over 85,000 civilians, Veterans Affairs lost 27,000, with the largest job losses in administration, management, and program analysis at over 43,000, plus attorneys, human resources staff, clerks, and IT positions.
  • Contract Spending: Professional, administrative, and management support contracts fell from $112 billion to $100 billion, with broader service contracting down from $226 billion to $218 billion, showing contractors did not replace departed employees.
  • Grant Spending: Project grants and cooperative agreements declined from $237 billion to $226 billion, a modest decrease after adjusting for accelerated awards before the inauguration.
  • Continued Operations: Social Security benefits continued without interruption, tax collections rose despite a smaller IRS audit total, weather warnings were issued on schedule, and 38 datasets were discontinued out of about 550,000.
  • Foreign Aid Restructuring: USAID staffing fell more than 90 percent while health aid declined from $13 billion to almost $9 billion and total aid fell to $18 billion, levels near fiscal 2019, with funds shifted toward bilateral agreements and health workers and medicines.



Elon Musk’s Department of Government Efficiency (DOGE) went from an inside joke about a Musk-favored cryptocurrency, Dogecoin, to the biggest story in Washington to a near-nonentity—all in under a year. During DOGE’s whirlwind tour in power, the press highlighted its improbable promises of trillions of dollars in savings, its exaggerations of the savings it did achieve, and its occasional naivete about the politics and policy of Washington.

Yet the media spent so much time disputing DOGE’s claims that they largely ignored how it did change spending. In the end, while DOGE made only modest reductions in government contracting and a handful of cuts to government grants, it had a massive impact on the federal civil service. Before Trump took office, the civil service hit a modern peak of more than 2.3 million employees. Since then, it has shrunk by more than 270,000 people, a 12 percent drop—the fastest decline in federal employment since the end of World War II.

DOGE foes succumbed to their own hyperbole about the workforce downsizing, with many predicting a collapse of basic government functions. “How many people can the federal government lose before it crashes?” the Brookings Institution fretted late last year. Such dire predictions have since gone conspicuously quiet. By most indications, the federal government is running much as it did before. Some critics may have to admit: the DOGE workforce cuts worked.

In November 2024, soon after Donald Trump’s reelection, Elon Musk and Vivek Ramaswamy announced their plan for DOGE in a Wall Street Journal op-ed.They described the initiative as a “lean team of small-government crusaders,” working to “cut the federal government down to size.” They promised to collaborate “closely with the White House Office of Management and Budget,” which Trump soon announced would be led by budget hawk Russ Vought.

It seems strange in retrospect, but the Musk and Ramaswamy op-ed focused more on deregulation than on shrinking spending. Only later in their piece did they observe that trimming regulations would allow “mass head-count reductions across the federal bureaucracy.” They understood that civil-service protections made firing individual workers difficult, but they argued that widespread layoffs, along with other changes to employment conditions, could thin the workforce. “Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome.”

At the time, one could be forgiven for thinking that little would happen. Regulations and the federal workforce had both grown, albeit slightly, during Trump’s first term. Yet, though regulations got little attention from DOGE after Ramaswamy left, the plan to cut the federal workforce was carried out.

Just eight days into the new Trump administration, the Office of Personnel Management, the government’s HR agency, sent its now-famous “Fork in the Road” email. The title was nearly identical to that of an email Musk had sent to Twitter employees a little over two years earlier, after he took control of the company. The “Fork” email noted that remote work would end and that layoffs and “restructurings” would occur. For those upset about such changes, it created a Deferred Resignation Program, letting employees resign immediately but retain pay and benefits through September 30, 2025. A few days later, the administration expanded the Voluntary Early Retirement Authority program, allowing employees to accept early retirement with pay.

Most civil-service reductions came through these voluntary initiatives. Over the next year, about 140,000 people took the Deferred Resignation Program, accounting for more than half the total workforce reduction. Early and voluntary retirements outside the DRP brought another 90,000 departures. The administration also instituted a temporary hiring freeze, slowing the influx of new workers.

Despite much talk about layoffs, and innumerable court battles, only about 10,000 people in Trump’s first year wound up removed through “reductions in force,” or RIFs, as they’re known in the federal government—about 0.5 percent of the old workforce. In previous years, though, RIFs were even more negligible, usually affecting just a few hundred people. The combination of pressure, enticements, and targeted layoffs was enough to achieve a striking change in the federal workforce.

The media often portrayed DOGE as a way for Donald Trump to get back at agencies he disfavored and social programs he disliked. It would surprise many to learn that the biggest workforce reductions came at the former Department of Defense, now the Department of War. The department has over 85,000 fewer employees than it did at Trump’s inauguration, down more than 10 percent. The Trump administration and the Republican Congress have showered the department with largesse and expanded military purchases, but that hasn’t stopped DOGE and Trump from trimming its civilian headcount.

Though liberal-leaning agencies like Health and Human Services saw larger proportional shrinkage, every agency across the federal government took cuts. The Department of Veterans Affairs, another agency favored by Trump and Republicans, has 27,000 fewer employees today than it did pre-inauguration.

Looking beyond departments to the types of jobs eliminated, the biggest group by far, at over 43,000, consisted of general administration, management, and “program analysis” positions—the sorts of middle-management jobs that previous government-slimming efforts have targeted. Other positions that saw large cutbacks included general attorneys, HR officials, clerks, and general business managers, each losing roughly 7,000 workers. If you wanted to trim fat, these are the positions you’d start with.

DOGE also made smaller cutbacks across hundreds of types of federal positions, adding up to significant numbers. The government has eliminated 1,000 or more positions among public-affairs specialists, logistics managers, financial administrators, accountants, budget analysts, social-science analysts, and grants managers. It also lost about 100 interior designers and creative-arts therapists.

Two surprising areas of shrinkage were information technology (17,000 fewer positions) and contracting (slightly fewer than 7,000). The administration has emphasized reforming these areas, so some of these reductions may prove temporary, aimed more at replacing personnel than at permanently slimming the workforce.

The DOGE civil-service cuts were substantial, but they fell heavily on administrative and managerial jobs across a wide range of agencies. Those who decry them need to explain why, for instance, the roughly 160,000 administration, management, and program-analysis positions that remain are insufficient—and how having tens of thousands more such government workers would improve the lives of Americans.

In previous periods of workforce reform, the government has sometimes replaced civil servants with contractors doing similar work. That does not appear to have happened with DOGE.

The government’s massive procurement complex uses so-called Product and Service Codes to classify its yearly purchases. Focusing on Professional, Administrative, and Management Support services (the closest contractual equivalent to much of the work performed by civil servants), the Trump administration spent $100 billion on such contracts over the year ending in June—a not-insubstantial drop from the $112 billion shelled out during the Biden administration’s last year. Broaden the categories to include IT services, training, analysis, and operation of government facilities—other work that approximates civil-service functions—and one sees a similar, though smaller, decline, from about $226 billion to $218 billion.

By any reasonable measure, then, the eliminated civil-service positions were not simply replaced by contractors. In fact, government-service contracting declined, too.

DOGE claimed that it cut tens of billions in contracts across all aspects of federal operations. At DOGE’s “Wall of Receipts,” which documents supposed savings, contract cancellations are the biggest part by far. Looking at all government contracts, including those unrelated to typical civil-service work, total spending did rise during the most recent year under Trump, relative to the final year of the Biden administration. But most of that increase came from the buildup in homeland-security and defense contracting, including purchases such as surveillance aircraft and tanks, rather than substitutes for government workers. DOGE achieved real contract savings, but these were more than offset by higher spending elsewhere, reflecting a shift in priorities rather than an overall reduction in contracting.

One of DOGE’s other major emphases was slashing grants, which, it noted, often went to left-leaning nonprofits and universities with little accountability. In the year ending in June, the government spent $226 billion on project grants and cooperative agreements, the types of grants over which the administration has the most discretion. Comparing that figure with the final months of the Biden administration would exaggerate the decline because of an unprecedented effort to push grant money out the door after the election but before Trump took office. One Biden official said that it was as though “we’re on the Titanic and we’re throwing gold bars off the edge.” In the last full year of the Biden administration before the election, the government spent $237 billion on such grants. Grants, then, saw a modest but noticeable decline.

In sum, Trump and DOGE made some cutbacks to contracts and grants while redirecting spending toward new priorities. But the savings here are likely to prove temporary: total spending in these areas is not materially different from what it was under the Biden administration. The workforce reforms are likelier to endure—and to remain DOGE’s most important legacy.

Line chart of U.S. federal civilian workforce from 2005-2026, peaking near 2.3 million before decline.
Charts by Alberto Mena

Only twice in the last century has the federal workforce shrunk on a comparable scale. The first came after World War II, when the federal government let go more than 1 million employees in two years. Yet since the workforce had swelled by more than 2 million during the war, this hardly represented an austerity program.

A closer analogy to Trump’s reforms is the retrenchment of the 1990s, an effort backed by both parties. Less than a month after taking office, President Bill Clinton issued an executive order calling for the elimination of 100,000 government jobs. Though some of the cuts reflected the post–Cold War “peace dividend,” Clinton directed every agency with more than 100 employees to “eliminate not less than 4 percent of its civilian personnel positions” over the next three fiscal years. The Federal Workforce Restructuring Act of 1994 accelerated the effort by authorizing buyouts for federal employees.

Clinton was able to push these changes through, despite typical Democratic support for the civil service, because he was willing to get rid of middle-management positions that had little outside support. One of Clinton’s reformers, John Kamensky, said that the unions acquiesced because they supported reducing the ranks and power of middle managers. The retrenchment took place over five years, but by its end, the federal workforce was 400,000 employees smaller. There was little indication that government became less efficient as a result.

Under both Clinton and Trump, most of the reductions came through resignations or retirements. Under Trump, however, workers faced far more pressure to leave. Some of DOGE’s efforts were ham-handed and seemed designed to make life harder for those who remained. One Brookings Institution analysis found that there were more than 25,000 instances where someone was fired, but was then hired back. The fight against telework was so extensive that the federal government ended up with a lower work-from-home rate than the private sector—an unusual disparity, given its disproportionately white-collar workforce, and one that could eventually make recruitment and retention harder.

One reason for the often roundabout efforts to downsize the workforce is the stultified nature of America’s civil service, which makes targeted reductions difficult, as the original Musk and Ramaswamy op-ed observed. But that some changes were reversed, or will be reversed, does not mean that the broader project was misguided. Musk admitted after he slashed the Twitter workforce by 80 percent that some people would have to be rehired. Likewise, the reversal of some federal cuts suggests that the administration was willing to recognize where civil servants performed important work and adjust accordingly. The best measure of whether the reductions worked is how they affected—or didn’t affect—ordinary Americans.

Since the advent of DOGE, opponents have predicted dire consequences from the loss of federal employees. Everett Kelley, president of the American Federation of Government Employees, warned that the reductions would “have vast, unintended consequences that will cause chaos” for Americans.

The media have hunted for such catastrophic consequences ever since. When flash floods killed more than 100 people in Texas over the July 4 weekend in 2025, some claimed that cuts to the National Weather Service had led to delayed warnings. Yet even former NWS staffers noted that the agency had issued an urgent warning hours before the flooding and had performed as expected. The NWS pointed out that five staffers were on duty in the region, typical for an overnight shift when severe weather was expected. Any connection between the deaths and the slimmed workforce was tenuous, at best.

The Internal Revenue Service saw the largest rollback of any government “subagency,” losing about 27,000 employees, or more than a fourth of its headcount. Many predicted that this could lead to billions of dollars in lost tax revenue. Yet the reductions largely reversed the staffing increases from the Biden administration, returning the agency to roughly the employment levels of Trump’s first term. The total additional tax recommended from audits did decline in fiscal year 2025, down $2 billion to $27 billion. But that figure was also broadly in line with levels at the beginning of the Biden administration, while the total tax take rose substantially. Reduced IRS staffing may ultimately hamper the agency’s ability to collect taxes, but so far, little evidence supports the massive revenue losses that critics predicted.

The Social Security Administration endured the next-largest workforce reduction of any agency. Martin O’Malley, who headed the SSA during the Biden administration, predicted disaster. “You’re going to see the system collapse and an interruption of benefits. I believe you will see that within the next 30 to 90 days.” He told seniors to “start saving” in preparation. When O’Malley issued his warning, the administration planned to eliminate 7,000 positions; it has now gotten rid of 8,000.

The subsequent debate over the SSA’s performance has not been about any interruption in benefits, which never occurred, but about whether call wait times went up or down slightly. Frank Bisignano, a former fintech CEO who now heads both the IRS and the SSA, claimed that wait times had declined. Senator Elizabeth Warren claimed that the agency was concealing an increase. An audit that Warren requested from SSA Inspector General Michelle Anderson, a longtime civil servant, found that the agency saw a 65 percent increase in calls over the previous year, while average wait times fell. The audit concluded that the agency had “improved performance because it used a new telecommunications platform and staff realignments.” In any case, a debate over wait-time minutes was a far cry from predictions of hungry seniors. (By contrast, the IRS wait time for its main help line did increase in this period, from about four to seven minutes, one study found.)

The federal government publishes a vast array of statistics on everything from the economy to personal health. At the outset of the second Trump administration, some data librarians panicked about DOGE or other cuts to statistical agencies and created a “Data Rescue Project” to preserve information that the Trump administration might ax.

Today, the dataindex.us website finds 38 datasets or groups of datasets that have stopped publication since Trump’s inauguration. While some discontinued reports—on wages in particular industries, say—may have broad uses, the value of others is less obvious. The government no longer publishes an annual count of mink pelts produced or an interactive map projecting (guessing, actually) how much climate change might cost each U.S. county. And gone, too, is a consumer complaint database about financial companies. Perhaps the administration concluded that American consumers already have plenty of outlets for complaining online.

Dataindex.us also notes 338 instances of “data elements removed” from other datasets, which sounds worrisome until one sees that the overwhelming majority involved ending the collection of information about “gender identity.” Given the roughly 550,000 government datasets, these changes seem minor.

When lettuce contamination led to a cyclospora outbreak that hospitalized hundreds this year, the New York Times wanted to tell its readers that Trump’s data-gathering reductions hampered the search for the source. But the paper could say only, in painfully roundabout language, that “funding cuts haven’t made the job easier.” It also acknowledged that most experts considered the investigation “par for the course” and that, while the CDC had scaled back a specific foodborne-illness tracker, “states still test for and report the infections to the CDC through other routes.”

Bar chart showing federal job cuts by category, led by administration, program analysis, and IT positions.

No DOGE intervention garnered as much attention as the dismantling of the U.S. Agency for International Development. USAID saw the largest proportional workforce reduction of any agency: more than 90 percent. Atul Gawande, a former USAID official in the Biden administration, repeated charges that, even before the first year of the Trump administration was over, USAID cuts had already caused 600,000 deaths, most of them children. The Lancet claimed that, with continuing cuts, 14 million additional deaths could happen by 2030.

Yet those dire estimates are difficult to square with the government’s own spending figures. The United States provided almost $9 billion in health aid in fiscal year 2025. That was down from $13 billion in the last full year of the Biden administration, but not far below the $10 billion provided in 2023 and roughly equal to the nearly $9 billion provided in 2019, during Trump’s first term. And in the national security and State Department appropriations act for fiscal year 2026, signed by President Trump earlier this year, Congress provided $9.4 billion for global health.

A broader view of foreign aid, including health, humanitarian assistance, and other program support, shows a more substantial drop from the Biden administration’s final totals—almost by half, to $18 billion. But that figure is, again, not far below the $22 billion given in 2019. Even after accounting for inflation, the government spent billions more on such aid last year than in 2006, during the George W. Bush administration.

Many people confused two kinds of cuts: those to USAID’s workforce and those to foreign aid itself. The former were far more severe than the latter. With fewer USAID workers, the Trump administration has changed how foreign-aid funds are distributed. It spent billions to quadruple the budget of a UN humanitarian-affairs fund and provided billions more through bilateral agreements with foreign governments, rather than relying on traditional distribution channels such as nonprofits. Disbursals have slowed, even from newly appropriated funds, but the administration has focused the money it has distributed on paying health workers and buying medications. By contrast, it has slashed funding for programs such as workforce training. It’s far too soon to know the effects of the new system.

One can make a good argument that health aid has brought enormous gains in well-being to some of the world’s most desperate people, and that more is needed. But charges about deaths resulting from USAID cuts were often based on confusion about what actually happened. Much of the aid still went out the door. Claims of mass deaths also overlook that, by the same logic, one could accuse previous presidents of causing millions of deaths by declining to spend even more.

Cuts to the IRS and foreign aid have less to do with efficiency, DOGE’s putative focus, than with competing policy priorities. Republicans have long worried about excessive IRS intrusiveness, even if greater enforcement raises more revenue, and have argued that American taxpayers should not be overly burdened with supporting people abroad. Unlike many other DOGE reductions, those at the IRS and USAID can’t be evaluated by a simple measure of efficiency. Whether they “worked” depends largely on what one believes the goals of government should be.

Most of the workforce reductions, however, came in traditional government agencies, from the Department of War to the Department of Transportation to the SSA. Despite the fervent fears (or hopes) of critics, there is little evidence that the reforms kneecapped the agencies’ operations.

The DOGE cuts were never going to restore the federal government to fiscal solvency. Federal spending overwhelmingly goes to mandatory programs, especially entitlements, that DOGE could not touch.

Yet many in the media, while claiming that DOGE had devastated the government and even killed millions, also argued that its cuts saved zero money. They pointed to charts showing federal spending rising in 2025 relative to 2024. Such comparisons ignored the continued growth of entitlement spending and interest on the debt, both largely outside DOGE’s reach, as well as the fact that many savings from workforce cutbacks and contract cancellations would take time to materialize.

Some argued against the civil-service cuts by pointing out that the federal workforce accounts for only a small share of federal spending. Spending on federal employees constitutes less than $400 billion, or about 5.5 percent of federal expenditures.

Yet the federal government is so big that cuts to almost anything can be dismissed as minor. Outside Washington, $400 billion still counts as a lot of money, and saving even a fraction of that amount year after year can make a material difference. The Economic Policy Innovation Center estimated that shrinking the federal workforce by 10 percent would save about $600 billion in salaries and health benefits over about a decade. More savings would eventually come from reduced pension liabilities. The Trump administration’s workforce reductions could produce even greater savings.

DOGE’s argument, shared by Office of Management and Budget director Russ Vought, was that there was plenty of fat in government, even at agencies that Republicans favored. After all, about 1.3 million of the government’s roughly 2 million workers are employed by the Departments of War, Veterans Affairs, and Homeland Security. DOGE and Vought argued that most agencies could do more with less. The evidence so far suggests that they were right.

Many of DOGE’s claims were exaggerated, in part because of Musk’s typical exuberance. Trump famously described him as “50 percent genius, 50 percent boy.” But if one stops comparing DOGE with its promises and considers its actual effects, its record looks quite different. In about a year and a half, the federal workforce shrank by more than a tenth, while targeted grants and contracts declined as well. The government kept functioning much as before. One might call that a success.

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Bloomberg CEO’s ‘Aggressive’ Stance on AI | The Morning Download for Oct. 15 - WSJ

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LLM (scaledown/summarize) summary:

  • Bloomberg Strategy: Bloomberg CEO Vlad Kliatchko confirms the company is making its conversational AI interface, ASKB, available to all Terminal users and prioritizes long-term strategic investment over immediate ROI.
  • Anthropic Revenue: Anthropic reported third-quarter revenue growth of 45% to nearly $17 billion ahead of a planned IPO next month.
  • TSMC Profits: Taiwan Semiconductor Manufacturing Co. posted a record third-quarter net profit jump of 69% to $23.71 billion on strong AI chip demand.
  • Apple Valuation: Apple closed the trading day above $5 trillion in market capitalization for the seventh time, joining Nvidia at the top.
  • Banking Fees: JPMorgan Chase, Goldman Sachs, and Morgan Stanley reported higher third-quarter profits from advising companies on AI deals.
  • OpenAI Leak: OpenAI alleged that an employee who left Apple sent more than 100 confidential files about an unreleased device to the rival firm.
  • Market Volatility: Tech stocks faced pressure as AI jitters compounded with rate-hike fears, causing drops in South Korea’s Kospi and Japan’s Nikkei.
  • CoreWeave Drop: CoreWeave shares fell further premarket after a 15% plunge yesterday due to concerns over heavy borrowing for data-center construction.

Bloomberg CEO Vlad Kliatchko onstage at the company’s AI in Finance Summit on April 16 in London.
Bloomberg CEO Vlad Kliatchko at the company’s AI in Finance Summit. Bloomberg

Good morning. I met with Bloomberg CEO Vlad Kliatchko who explained the next step in the company’s unfolding AI strategy and why he believes it’s too early to think about driving ROI from those investments. 

The company has made its conversational artificial-intelligence interface, ASKB, available to all users of the Bloomberg Terminal. The newest iteration of ASKB allows users to integrate their own content, such as watchlists and Instant Bloomberg chats, with existing financial information into their own workflows. The full exclusive story can be found here.

Bloomberg is a privately held company and is focused on investing for the longer term. Kliatchko gives voice to how many of the CEOs I speak with approach AI. It’s a fascinating and notable contrast to broader sentiment in the public markets.


Right now, tech stocks are repeating the painful dynamic that prevailed on Wednesday when AI jitters compounded with rate-hike fears to send the Nasdaq lower. 

I have found that the mindset of many corporate leaders, including those in the public markets, has more in common with that of venture capital investors. It’s a longer-term investment horizon.


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“We believe it’s premature to focus on the ROI. We are acting out of a strategic conviction that now is the time to invest in AI aggressively,” Kliatchko said. “Bloomberg has an opportunity to provide leadership to the entire financial industry in the development and adoption of this revolutionary technology.”

That longer-term mindset has steered the company’s investments in journalism as well.

Kliatchko said AI has also vindicated the company’s strategy of investing in its news organization, even when others questioned its value to the business. “Suddenly today, we realize that in the age of AI, news is one of our most valuable assets. Because again, what’s behind all of these tools and large language models? It’s original, unique, actionable information. A lot of it comes from our data, but a lot of it comes from our news and research.”

Is your company holding firm on its AI strategy or is it having second thoughts? I would love to know. Send your feedback to me at steven.rosenbush@wsj.com (if you’re reading this in your inbox, you can just hit reply).


AI Jitters

Tech stocks are headed for another rough session. CoreWeave, which has borrowed heavily to fund data-center construction, fell further premarket Thursday after a 15% plunge yesterday. In Asia, South Korea’s chip-heavy Kospi dropped 7% and Japan’s Nikkei fell almost 5%, the WSJ reports.

Even strong results from major AI players aren’t lifting the mood. Anthropic’s third-quarter revenue grew sharply, while Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, posted another record profit. More on that below.



AI’s Insider Problem

A photo of a recording device found in OpenAI’s office
Recording device, in an image from a Justice Department press release. Uncredited

As the AI race intensifies, the industry’s top companies are increasingly worried about their secrets walking out the door, The Wall Street Journal reports. Rapid hiring and employees’ frequent moves between rival firms have made leaks and theft harder to guard against.


“AI companies are scaling their workforces at unprecedented speed. The question is whether their ability to manage insider risk is scaling at the same pace”

— Aviv Nahum, chief executive of Above Security, a startup that uses AI to help companies detect insider risks

On Wednesday OpenAI claimed in a legal filing that an employee who left Apple sent himself more than 100 “highly confidential” files about at least one unreleased OpenAI device under development. The employee later returned to Apple. The filing is the latest development in the ongoing case that Apple filed against OpenAI in July, claiming that its own confidential information had been taken by employees who left for its AI rival.

One day earlier, a Saudi employee of OpenAI, Abdulrahman Alfozan, was charged with trying to record audio using a device planted behind a TV set in a company conference room. The MIT graduate had stints at Meta Platforms and a startup backed by Andreessen Horowitz before joining OpenAI in July 2025. Since early 2025, Alfozan has been a venture partner at Saudi-based investment firm Raed Ventures, according to the firm’s website.


AI’s Outsider Problem


“We put on 1,000 contractors to help us do the patching work in the second quarter, and those people remain here today, helping us, on top of the 3,000 people we have in that area.”

—  Bank of America CEO Brian Moynihan on CNBC, describing how the bank has responded after it became clear that AI can rapidly find and exploit vulnerabilities in software


On Our Radar

Anthropic CEO Dario Amodei speaks into a microphone during a keynote address at the Dreamforce conference.
Anthropic CEO Dario Amodei at an event.  Benjamin Fanjoy/Getty Images
  • Anthropic’s third quarter revenue rose 45% to $16.8 billion as the company pitched public-market investors ahead of an IPO planned for as soon as next month, the WSJ reports. Anthropic had posted revenue of $11.6 billion in the second quarter, and just under $5 billion in the first quarter. Investors expect Anthropic to reach more than $110 billion in annualized revenue by year-end.
  • Taiwan Semiconductor Manufacturing Co.’s third-quarter net profit jumped a better-than-expected 69% to $23.71 billion, and the company forecast fourth-quarter revenue of $52.3 billion to $54.3 billion on continued demand for AI chips, WSJ reports. Chief Executive C.C. Wei said TSMC has sent teams to Texas to evaluate further U.S. expansion and confirmed it has held talks about Elon Musk’s Terafab project.
  • The seventh time proved to be a charm Wednesday after Apple closed the trading day above $5 trillion in market capitalization, joining Nvidia at the top. The company had previously hit the mark six times during intraday trading, WSJ reports.
  • JPMorgan Chase, Goldman Sachs and Morgan Stanley reported higher profits for the third quarter this week as each raked in fees advising companies on AI deals, and raising and selling debt and equity tied to their projects, the WSJ reports. All told, banks are projected to rake in $8.5 billion globally in investment banking fees from AI-related deals this year, according to an analysis by Crisil Coalition Greenwich.
  • OpenAI’s head of computing is leaving the company next month after about a year on the job. Former xAI executive Uday Ruddarraju, who was promoted to chief technology officer of computing capacity at OpenAI this summer, will take over the company’s computing strategy. Sachin Katti is expected to stay on as an adviser.

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Follow Isabelle Bousquette on LinkedIn, Instagram, X, and TikTok for more behind the scenes on her tech and AI coverage, and lately, her contributions to the WSJ Leadership Institute’s new Executive Resilience series, where she’s profiling America’s top execs about their fitness and wellness habits.

Follow Belle Lin on LinkedIn and X for her latest reporting on enterprise technology and AI.

Steven Rosenbush is chief of the enterprise technology bureau at the WSJ Leadership Institute. He also has a column. You can follow him on LinkedIn.

Tom Loftus is the editor of The Morning Download. He suggests following Isabelle, Belle and Steve on their various social channels. But if you insist, here’s his LinkedIn.

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EU Digital ID Could Become The Default Way To Prove Identity To Banks

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LLM (google/gemini-3.5-flash-lite) summary:

  • Electronic Identity Standard: amla standard proposal the eu anti money laundering authority wants electronic id to become the standard way people prove identity to banks.
  • Eudi Wallet Integration: european digital identity the eudi wallet is pushed as the primary tool providing substantial or high assurance levels for customer due diligence.
  • Remote Exceptions: video and selfie checks remote alternatives are permitted only as exceptions requiring banks to justify their use to supervisors.
  • Additional Burden: regulatory liability using alternative methods creates more work and potential liability for financial institutions.
  • Voluntary Mandate Conflict: bureaucratic expansion the framework is officially voluntary while practical financial necessity forces adoption, flagged for heavy state control tendencies.
  • Timeline Implementation: enforcement schedule the standards are draft proposals with regulation enforcement scheduled for july tenth twenty twenty seven.
  • Member State Rollout: national compliance countries like ireland are deploying digital wallets to meet the eidas two regulation requirement by late twenty twenty six.
  • Political Compulsion: statist pressure german proposals suggest making digital ids compulsory for social media access, showing creeping centralization and commie points apply.

The EU’s anti-money laundering authority wants electronic ID, including the bloc’s European Digital Identity (EUDI) wallet, to become the standard way people prove their identity to banks.

Remote alternatives such as video and selfie checks will still be allowed, but only as an exception that the bank will have to justify to its supervisor.

The EUDI wallet was sold to EU citizens as a voluntary, convenient, and secure way to store their ID, driver’s license, and other documents, and to use it for accessing public and private services online and in person.

The EU’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has submitted its final draft standards for customer due diligence to the European Commission (EC).

AMLA is pushing for the EUDI wallet to be the go-to choice here, saying that electronic identification means, including the wallet, “should be used wherever possible.”

The standard refers to the wallet as “European Digital Identity Wallets” and says that it is one of the electronic identification means that provides “substantial” or “high” assurance levels, and should therefore be used wherever possible.

The draft standard covers customer due diligence, including “the information companies and professionals must collect and verify,” as well as “non-face-to-face verification, electronic identification, and screening of politically exposed persons.”

If a customer can neither present an ID document in person nor use electronic ID, banks can allow remote verification by video or selfie checks, but this will be considered an exception that the bank must justify to its supervisor.

This is stated in article 7 of the draft, which says that firms using these alternative tools for customer verification “shall be able to justify why the customer could not be verified” through the standard methods “and demonstrate to their supervisor that the alternative solutions used comply with the requirements of this Article.”

The draft also says that these alternative solutions must keep records, including “images, videos, sound and data” that can be used in “ex post verifications.”

All this is likely to mean that banks will look for ways to steer their customers towards using the EUDI wallet, given that using alternatives means more work and potential liability for them.

For one thing, the standard says that if a customer uses the EUDI wallet, “no additional data points need to be obtained and verified through additional information, as the reassurance provided by the means specified in said Article is deemed sufficient.”

AMLA’s proposal was met with criticism during the consultation period, with some concerned that it could be read as making eIDAS and the EUDI wallet the default option.

AMLA’s answer was to make it explicit. Its revised wording, the report says, “makes clear that the measures in Article 22(6) AMLR are still the default option with alternative verification methods only to be used when neither of the two means required by AMLR can be used.”

AMLA also noted that firms “may continue using existing remote onboarding tools that meet those requirements.” This means that a post that has been making the rounds on X, claiming that “Video, selfie + identity document, or private alternatives are no longer accepted” is not entirely true. They will still be accepted – but as exceptions.

The standards are not yet law, and the regulation they are part of will not be enforced until July 10, 2027.

AMLA’s move is yet another example of how the EU’s digital ID framework is being expanded and made more comprehensive, piece by piece. In April, the European Commission denied that the digital ID wallet was mandatory – but at the same time, Germany’s SPD proposed making it compulsory for everyone over 16 to use it to access social media.

In July, Ireland rolled out its digital wallet, built on the country’s MyGovID – because the eIDAS 2 regulation requires member states to have at least one EU Digital Identity Wallet up and running by the end of 2026.

The EU’s digital identity law, Regulation 2024/1183, says: “The use of European Digital Identity Wallets shall be voluntary.” It also says access to services “shall not in any way be restricted or made disadvantageous to natural or legal persons that do not use European Digital Identity Wallets.” And: “It shall remain possible to access public and private services by other existing identification and authentication means.”

However, given that a bank account is a necessity, and that the EUDI wallet is being pushed as the preferred method of identification in the financial sector, it is unlikely that citizens will have much of a choice.

The wallet is voluntary. In practice, it is becoming increasingly mandatory.

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Apate sends AI agents undercover to get scammed so they can gather fraud intelligence | TechCrunch

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LLM (google/gemini-3.5-flash-lite) summary:

  • Company Origin And Funding: apate ai is an australian startup founded in 2024 based on research at macquarie university that raised 8.15 million dollars in seed funding in august and plans international expansion, embodying venture capital pursuit of profit through market solutions.
  • Automated Deception Agents: the firm deploys thousands of ai agents masquerading as potential victims across calls, messages, emails, and social media to waste fraudsters time, utilizing technological intervention against illicit operations.
  • Data Collection Objectives: the undercover interactions gather actionable intelligence such as bank accounts, crypto wallets, phone numbers, and malicious websites to help organizations intercept fraud before victims suffer losses.
  • Scale Of Operations: the fleet of agents has reportedly wasted 17 years of scammers time across 2.5 million conversations while processing tens of thousands of daily interactions using frontier and fine-tuned models.
  • Industry Clientele And Results: customers include banks, telecom providers, utilities, and government agencies like commonwealth bank of australia and tpg telecom, which utilize the gathered intelligence to reduce reported scam losses and disrupt campaigns.
  • Origin Story: the concept emerged from a personal scam call experienced by founder and ceo dali kaafar, who realized that stringing fraudsters along consumes their time and prevents attacks on actual individuals.
  • Insights Portal Delivery: clients gain access to analytics and can assign specific missions to the agents, such as obtaining crypto-wallet addresses or searching investment groups for illicit activity.
  • Corporate Naming And Metrics: the company is named after the greek goddess of deception and measures operational success in part by tracking scammer frustration and swear words during bot interactions.

Most companies use AI agents to ship products faster or to speed up workflows. Apate.ai sends them undercover to get scammed.

Founded in 2024 on the basis of research done in Macquarie University in Sydney, the Australian startup deploys thousands of AI agents that masquerade as innocent victims. The agents can answer scam calls, respond to shady messages and emails, follow phishing links, and join social media groups to bait fraudsters. They pretend to be people of all stripes, sporting different ages, genders, and accents, and speak various languages as they try to keep scammers engaged long enough to learn something useful.

The company says its fleet of agents has so far wasted 17 years of scammers’ time across 2.5 million conversations. More importantly for Apate’s customer base of banks, telecom companies, government agencies, and utilities, the undercover agents try to get scammers to reveal things about themselves that are usually learned only after a victim has been scammed: bank accounts, crypto wallets, phone numbers, malicious websites, the brands they’re impersonating, and other details about the scams they’re running.

Apate, one of the finalists at this year’s Startup Battlefield 200 at TechCrunch Disrupt, then feeds that information to its customers, who use it to inform their anti-fraud measures and initiatives. (The company will pitch a panel of VC judges at Disrupt, which is taking place this week at Moscone West in San Francisco through Thursday, October 15.)

It’s a curious evolution of scam-baiting, but it’s not so surprising given how much AI has empowered scammers and hackers. The FBI received more than 22,000 complaints of AI-related crimes in 2025, which resulted in about $893 million in losses. More than $632 million of that came from investment scams, in which the FBI says fraudsters use AI to run conversations, and deepfake the voices and appearances of celebrities, executives, and trusted figures.

For a long time, people have made a hobby out of deliberately stringing scammers along — sometimes hilariously, like getting scammers to read aloud entire books, or even to get ridiculous tattoos. Now, with AI growing increasingly capable, the tables are turning.

Curiously, the idea behind Apate was sparked by a real scam call.

Several years ago, Apate’s founder and CEO Dali Kaafar was at a family picnic when he got a call from an unknown number. Realizing it was a scammer on the line, he decided to play dumb for the benefit of his kids and managed to keep the call going for 44 minutes.

Everyone had a laugh, but Kaafar noticed that those were 44 minutes the scammer had not spent calling a real victim. It was also 44 minutes of his wasted time, which led him to wonder: Could he automate it, and in the process, learn something useful?

That idea eventually led to research work at his job at Macquarie University, where Kaafar and his colleagues used machine learning and natural language processing to uncover the content of scam calls, and develop better ways to detect and prevent scams.

“Most of the industry works after the fact. Telcos block numbers, but scammers just get new ones. Banks watch transactions, but by then the scammer has already reached the customer. We go to the scammer directly and get the information before anyone gets hurt,” Brad Joffe, co-founder and chief commercial officer, told TechCrunch. “Our AI agents talk to tens of thousands of scammers every day across calls, messages, email, and the web. What we offer our customers is what comes out of those conversations, and what they can do with it.”

Joffe said Apate uses both frontier models and its own fine-tuned models to power its agents and analysis. The company trains its models on conversations its agents have had with scammers, as well as the research Kaafar did at Macquarie.

In addition to access to Apate’s fleet of agents, customers get access to an insights portal that offers intelligence and analytics on scams targeting their end users or employees, brands, products, and more. Customers can even assign these agents particular missions, such as obtaining a bank account number or crypto-wallet address. Its text agents can search forums, investment groups, and social platforms for potential scam activity, and can then enter conversations with a fabricated identity to surface scammers’ details.

The startup’s customers include Commonwealth Bank of Australia, TPG Telecom, as well as other utilities, telcos, and government agencies. Joffe said TPG has diverted nearly 590,000 calls to Apate’s agents, Commonwealth has seen a 76% drop in publicly reported scam losses, and an unnamed Australian bank the startup works with has used its outbound agents to disrupt 22 scam campaigns.

Investors are betting there is money to be made from fooling scammers, too. Apate raised $8.15 million in seed funding in August from Lobby Capital, OIF Ventures, Investible, Concept Ventures, and Baobab Ventures. Joffe said the 20-person company has raised just under $10 million in total and plans to spend the latest round on its product and international expansion, including opening an office in London and building a larger presence in the U.S.

“Apate is named after the Greek goddess of deception, which felt appropriate given what our agents do,” Joffe said, adding that the startup even features scammers swearing at the bots in its pitch material.

“We track that as a sign of frustration and every swear word gets celebrated by us at Apate. We are probably one of the only businesses in the world that celebrates when people swear at our product.”

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U.S. Defense Startups Flock to Taiwan to Build China-Free Drones - WSJ

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LLM (google/gemini-3.5-flash-lite) summary:

  • Startup Expansion: american drone startups are entering taiwan to establish local manufacturing partnerships.
  • Supply Chain Strategy: the initiative aims to build a secure drone supply chain independent of mainland china.
  • Government Funding: taiwan allocated over seven billion dollars for drone procurement over a six year period.
  • Defense Collaboration: multiple collaboration agreements have been signed between u.s. defense firms and taiwanese entities.
  • Manufacturing Model: the partnership utilizes a design in the u.s. and build in taiwan operational framework.
  • Naval Contracts: taiwanese shipbuilders are partnering with foreign firms to produce uncrewed attack boats.
  • Military Integration: co production deals include the manufacturing of cruise missiles and underwater drones locally.
  • Strategic Deterrence: the development of domestic drone capabilities is intended to deter potential military aggression.

Journalists film three unmanned surface vehicles and two boats during a demonstration at Suao Port in Yilan, Taiwan.Sea drones in Taiwan in 2025. RITCHIE B TONGO/EPA/Shutterstock

KAOHSIUNG, Taiwan—Ever since former U.S. Navy flight officer Paul Lwin founded defense startup HavocAI in Rhode Island in 2024, he has seen Taiwan as an island of opportunity.

Lwin designs software to manage autonomous maritime fleets—the kind of drone defense that Taiwanese military planners dream of as they assemble deterrence against a Chinese invasion.

“If we can help Taiwan build thousands of these autonomous boats, it could protect Taiwan,” he said. “It could prevent a war from breaking out.”

American drone-tech startups like HavocAI are swarming into Taiwan and—with the encouragement of U.S. government matchmakers—finding partners who can help them turn blueprints into reality.

The emerging industry has the potential to serve the U.S. military’s demand for a secure drone supply chain that steers clear of China, while providing Taiwan with an arsenal that it sees as essential to its survival as a self-ruled democracy.

U.S. startups working with Taiwan on sea and air drones range from small defense-tech firms to Anduril Industries, an arms supplier to the Pentagon and the Taiwan military whose drone contracts with Taipei have already passed the $1 billion mark. At least 13 U.S.-Taiwan collaboration agreements have been signed since September 2025.

For the U.S., making drones on American soil is a policy priority. “Our overt preference is to buy American,” Defense Secretary Pete Hegseth said last year as he introduced Drone Dominance, a $1.1 billion Pentagon program to purchase small, lethal drones.

Sea Thomas of HavocAI, wearing a black polo shirt and sunglasses, presents an autonomous surface vessel at the RIMPAC exercise.An autonomous surface vessel produced by HavocAI. Michelle Bir/AFP/Getty Images

However, “not everything can be made in the United States today. We can want it to be done, but that’s just not possible to make that happen overnight,” said Trent Emeneker, who previously led the Blue UAS Project, the Pentagon program responsible for vetting secure drones and parts.

“Anything that can be done to build the supply chain up outside of that mainland Chinese ecosystem, it’s a good thing,” said Emeneker, who runs a drone-training startup, Kill Zone. 

Taiwan’s government spurred a gold rush in August when it allocated over $7 billion to spend on drones over the next six years, driving new deals and breathing life into partnerships that were established when the budget was still on the horizon.

Officials in Taiwan see establishing a full-fledged domestic drone industry as vital to deterring China from using force to try to seize the island, which it considers to be its territory.

The urgency has grown as President Trump withholds approval for the sale of $14 billion in arms to Taiwan. Supporters see defense-industry collaboration as a way to strengthen ties between Washington and Taipei, amid worries that the U.S. is no longer willing or able to help the island defend itself.

Tech plus industry

The partnership strategy emulates the “you design it, we’ll build it” model championed by Taiwan Semiconductor Manufacturing, the powerhouse of the island’s economic growth.

Taiwan was transformed into a global manufacturing hub in the 1970s, well before it became known as the source of the world’s semiconductors. Over the decades, it has built a reputation as a nimble contract manufacturer supported by a network of local industries.

“American companies are already coming to Taiwan to find R&D partners and build out their drone supply chains,” Raymond Greene, director of the American Institute in Taiwan, the de facto U.S. embassy, said in a speech this summer.

Chen Jeng-horng, chairman of Taiwan’s largest shipbuilder, CSBC, witnessed the rush of Western startups after Taiwan’s Defense Ministry said in December that it needed 1,320 one-way surface drones—uncrewed attack boats that blow up when they reach their target. The navy later requested $930 million over a six-year period to buy them.

CSBC, which has built warships for Taiwan for more than five decades and is building the island’s first submarine, has been inundated with potential collaborators offering drone technology and in need of shipbuilding know-how.

“American firms are all flocking to us,” Chen said at the company’s Taipei office. “If they want to expand their business, Taiwan is the next major client.”

While Taiwan has a strong industrial base and excels at shipbuilding, it lacks the technology to remotely control a large number of uncrewed systems across land, sea and air, Chen said.

Chen and other CSBC executives spent more than half a year vetting about a dozen U.S. and European firms for partnerships to compete for the navy’s drone-boat contract. They toured the U.S., checked out product demos at sea and met with executives, ultimately picking HavocAI. Chen flew to Rhode Island last month to sign the deal.

CSBC Chairman Chen Jeng-horng and HavocAI CEO Paul Lwin signing a collaboration contract.CSBC and HavocAI signed a collaboration contract in September. CSBC

Avoiding China

Such partnerships represent progress in building a so-called “non-red” or “democratic” supply chain that can serve both Taiwan and the Pentagon. 

Most parts that Taiwanese vendors are making for Anduril are for products not made for use in Taiwan, said Anduril co-founder Palmer Luckey.

“My business interest is maybe ‘designed in the U.S., made in Taiwan,’ or ‘designed collaboratively and made in Taiwan,’” Luckey said in a small group interview in Taipei. But Taiwan “needs to design its own weapons systems and manufacture its own weapons systems at scale” to face Chinese threats, he said.

The National Chung-Shan Institute of Science and Technology, the R&D arm of the Taiwanese military, signed a co-production deal last year with Anduril to manufacture the U.S. company’s Barracuda 500 cruise missiles and underwater drones in Taiwan.

Palmer Luckey speaking at an international forum in Taipei.Palmer Luckey Ann Wang/Reuters
The ALTIUS-600 Unmanned Aircraft System on display.An Altius-600 drone on display at the Anduril Industries showroom.  Philip Cheung for WSJ

It was one of six agreements NCSIST signed the same day with Western companies, including a plan with Northrop Grumman to explore collaboration on air and missile defense modernization for Taiwan’s Defense Ministry.

At the end of last year, Congress directed the Pentagon to establish a joint drone program with Taiwan. 

“The longer-term U.S.-Taiwan collaboration may have significant benefits to American defenses,” said Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council.

The partnerships could also potentially supply U.S. forces overseas. This could be particularly valuable for U.S. Pacific Command, which operates thousands of miles from the American mainland, where “Taiwanese production can fill a need that does exist,” said Emeneker.

Proving ground

Another potential contender for the Taiwan navy’s proposed $930 million drone-boat budget is Str8 Industries, a startup co-founded by tech entrepreneur Phil Ho and Bilal Awad, a retired U.S. Navy officer.

Str8 is pitching itself as a company that can “build capabilities in situ—in Taiwan for the potential contingency scenarios,” said Ho, referring to the possibility of a Chinese attack.

Str8 has an R&D operation in northern Taiwan, works with a shipyard in the southern Taiwan port of Kaohsiung and has a home office in Virginia, said Ho. 

If China blockades Taiwan, Ho said, “everything on the island is what you can rely on.”

In late September, the fruits of another U.S.-Taiwan partnership were on display in a live demonstration on Taiwan’s southeastern coast. A small, white fixed-wing drone built by California-based AEVEX and Taiwan’s CIRC took off from an airstrip and very quickly descended to strike a target on the ground—a red balloon.

AEVEX, which is already a Pentagon supplier, provided the design for the Taiwan-made, 3-D-printed airframe. CIRC designed the flight controller, computing board and payload systems, and sourced motors and batteries locally.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Joyu Wang is a Taipei-based reporter for The Wall Street Journal covering Taiwan politics and general news, with a focus on defense and security issues. She was previously Asia’s social media editor for the Journal in Hong Kong, where her work earned several journalism awards, including a Scripps Howard Award for digital innovation and a Human Rights Press Award for her reporting on the 2019 Hong Kong protests.

Joyu graduated from the University of Missouri with a dual degree in journalism and linguistics, and began her career as an intern in the Journal's Hong Kong bureau.


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