In Blackberry Movie “The Excitement of Disruption and the Thrill of Creation Become Tangible”

(p. C9) In Matt Johnson’s “BlackBerry” — a wonky workplace comedy that slowly shades into tragedy — the emergence of the smartphone isn’t greeted with fizzing fireworks and popping champagne corks. Instead, Johnson and his co-writer, Matthew Miller (adapting Jacquie McNish and Sean Silcoff’s 2015 book “Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry”), have fashioned a tale of scrabbling toward success that tempers its humor with an oddly moving wistfulness.

. . .

. . ., we’re in Waterloo, Ontario, in 1996, where Mike Lazaridis (a perfect Jay Baruchel) and Doug Fregin (Johnson) — best friends and co-founders of a small tech company called Research in Motion (RIM) — are trying to sell a product they call PocketLink, a revolutionary combination of cellphone, email device and pager.

. . .

The corporate types don’t understand Mike and Doug’s invention, but a predatory salesman named Jim Balsillie (a fantastic Glenn Howerton), gets it. Recently fired and fired up, Jim sees the device’s potential, making a deal to acquire part of RIM in exchange for cash and expertise. Doug, a man-child invariably accessorized with a headband and a bewildered look, is doubtful; Mike, assisted by a shock of prematurely gray hair, is wiser. He knows that they’ll need an intermediary to succeed.

Reveling in a vibe — hopeful, testy, undisciplined — that’s an ideal match for its subject, “BlackBerry” finds much of its humor in Jim’s resolve to fashion productive employees from RIM’s ebulliently geeky staff, who look and act like middle schoolers and converse in a hybrid of tech-speak and movie quotes. It’s all Vogon poetry to Jim; but as Jared Raab’s restless camera careens around the chaotic work space, the excitement of disruption and the thrill of creation become tangible.

For the full movie review, see:

Jeannette Catsoulis. “When Geeks Clash With Suits, They’re All Thumbs.” The New York Times (Friday, May 12, 2023): C9.

(Note: ellipses added.)

(Note: the online version of the movie review has the date May 11, 2023, and has the title “‘BlackBerry’ Review: Big Dreams, Little Keyboards.”)

The book that is the basis of the movie under review in the passages quoted above is:

McNish, Jacquie, and Sean Silcoff. Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of Blackberry. New York: Flatiron Books, 2015.

Feds Impose Tariffs on Imports of Paper-Thin Steel Needed to Make EV Engines

(p. A3) Large U.S. steelmakers are ramping up production of a hard-to-make, paper-thin steel to capture a fast-growing market for a material critical to powering electric vehicles.

. . .

Such electrical steel, which accounts for about 1% of all the steel produced annually in the world, already is in short supply for electric vehicles, executives said. Companies expect demand to accelerate faster than production as EV volumes expand in the coming years.

“It’s in limited supply and with very long lead times. Sometimes 50 or 52 weeks,” said Hale Foote, owner of Scandic Springs Inc., a San Leandro, Calif., company that uses high-grade electrical steel to make parts for scientific measurement devices.

. . .

More than 80% of the electrical steel produced comes from China, Japan and South Korea, all countries that are subject to U.S. tariffs or quotas on steel imports, industry analysts said.

. . .

(p. B2) “It takes intense focus. You have to have absolute consistency or you scrap the material,” said David Stickler, who led the investment group that built Big River Steel in Osceola, Ark., and then sold the mill to U.S. Steel in 2021. Mr. Stickler said he envisioned electrical steel being a core product at Big River when he started planning the mill nearly a decade ago.

. . .

Steel-industry executives said that creating more domestic capacity to make electrical steel for vehicles will likely take years, as steel companies acquire equipment and become proficient at the exacting production process.

“You can’t just buy the equipment and start making electrical steel. Those who’ve made the investment will have an advantage for the next five to 10 years,” Mr. Stickler said.

For the full story, see:

Tita, Bob. “Paper-Thin Steel Used to Power EVs Is in Short Supply.” The Wall Street Journal (Tuesday, March 28, 2023): B1-B2.

(Note: ellipses added. The online version is longer, but the passages quoted above appear in both versions.)

(Note: the online version of the story has the date March 27, 2023, and has the title “The Paper-Thin Steel Needed to Power Electric Cars Is in Short Supply.”)

“They Just Invest in How to Navigate This Bureaucracy”

(p. A1) Capella Space, a San Francisco-based start-up, is building a fleet of small, inexpensive satellites that can track enemy troops as they move at night, or under cloud cover that traditional optical satellites cannot see through.

Fortem Technologies, a small aerospace company in Utah, wants to supply the Pentagon with a new type of unmanned aircraft that can disable enemy drones.

HawkEye 360, a Virginia-based firm, has used private equity funds to launch its own satellites that use radio waves emitted by communications equipment and other electronic devices to detect the presence of enemy troop concentrations.

Each of these systems is getting real-world testing in the war in Ukraine, earning praise from top government officials there and validating investors who have been pouring money into the field.

But they are facing a stiff challenge on another field of battle: the Pentagon’s slow-moving, risk-averse military procurement bureaucracy.

When it comes to drones, satellites, artificial intelligence and other fields, start-up companies frequently offer the Pentagon cheaper, faster and more flexible options than the weapons systems produced by the handful of giant contractors the Pentagon normally relies on.

But while the military has provided small grants and short-term contracts to many start-ups, those agreements often expire too quickly and are not large enough for young companies to meet their payrolls — or grow as rapidly as their venture capital investors expect. Several have been forced to lay people off, delaying progress on new technologies and war-fighting tools.

. . .

(p. A8) From the early months of the war, SpaceX’s Starlink, the Elon Musk-founded satellite internet service, had played a critical role for frontline Ukrainian troops. But small drones and a denser collection of satellites are also helping to provide the capacity for pervasive surveillance, allowing Ukraine to identify and track threats and targets constantly.

A new generation of cheaper and more precise attack drones carrying bombs can loiter in the air autonomously until they find their targets. Artificial intelligence-backed computer systems can fuse this collected data and other feeds to make targeting decisions, faster than any human.

The Ukrainians have also innovated a great deal themselves, impressing Pentagon officials as they have converted commercial drones, for example, into mini bombers.

Taken together, said Thomas X. Hammes, who studies war-fighting history at the Pentagon-backed National Defense University, the developments represent a “genuine military revolution,” and one that is happening much more quickly than the shift from infantry that traveled by foot in World War I to the motorized and mechanized armies of World War II.

. . .

(p. A9) Perhaps the most revolutionary use of American technology in Ukraine has been the application of software that uses artificial intelligence, made by Palantir, to help with targeting efforts. The company’s chief executive, Alex Karp, traveled to Ukraine last year to meet with President Volodymyr Zelensky.

“If you go into battle with old school technology,” Mr. Karp said this year at an event to discuss artificial intelligence tools in warfare, “and you have an adversary that knows how to install and implement digitalized targeting in A.I., you obviously are at a massive disadvantage.”

Some experts say that artificial intelligence, which has been used in Ukraine to help sift through the massive loads of data being accumulated from surveillance, will ultimately prove as disruptive to the nature of war-fighting as nuclear weapons.

. . .

For Primer, the small artificial-intelligence firm based in downtown San Francisco, it was a breakthrough moment.

Not long after the war in Ukraine started, its engineers, working with Western allies, tapped into a tidal wave of intercepted Russian radio communications. It used advanced software to clean up the crackly sound, automatically translated the conversations, and most importantly, isolated moments when Russian soldiers in Ukraine were discussing weapons systems, locations and other tactically important information.

This same work would have taken hundreds of intelligence analysts to identify the few relevant clues in the mass of radio traffic. Now it was happening in a matter of minutes.

The findings were quickly matched up with other so-called open source intelligence streams, like geolocation data pulled from social media accounts, giving updates on the location of troops or equipment, that could be matched with surveillance video from drones or images from satellites.

“It’s getting situational awareness,” said Sean Gourley, the founder of Primer.

Yet at the same time, the Pentagon was still deciding when to move ahead with major purchases of its technology. The company was burning through its cash reserves too quickly, so Mr. Gourley laid off engineers and other staff members.

“These engineers are great at creating solutions to solve these problems, which is what matters,” Mr. Gourley said. “But there is the uncertainty: When is this contract going to close? It’s very, very hard to justify that spend.”

Mr. Gourley said he decided instead to invest more money in a government relations push, hiring a former top aide to the Senate Armed Services Committee to help the company promote its business in Washington.

“The big defense companies, they don’t really kind of invest in the tech,” he said. “They just invest in how to navigate this bureaucracy. That kind of sucks, but that’s how you’ve got to play this game.”

In interviews, nearly a dozen top executives of technology-oriented companies shared stories of stalled efforts or frustration.

For the full story, see:

Eric Lipton. “Pentagon Is Slow At Signing Deals With Innovators.” The New York Times (Monday, May 22, 2023): A1 & A8-A9.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date May 21, 2023, and has the title “Start-Ups Bring Silicon Valley Ethos to a Lumbering Military-Industrial Complex.”)

Opponents of Geoengineering View Global Warming as Nature’s Just Punishment of Us for Our Indulging in Technology and Capitalism

(p. A13) Make no mistake—Mr. Myhrvold is concerned about climate change.  . . .

He laments that policy makers largely scorn geoengineering—human interventions in the Earth’s natural systems to thwart or neutralize climate change.

. . .

Geoengineering is about “deliberately trying to reduce climate change.” Excess CO2 traps a little less than 1% of heat from the sun, “so if we could make the sun 1% dimmer, we could shut off climate change.” When Mount Pinatubo, a volcano in the Philippines, erupted in 1991, it lowered world-wide temperatures by 1 degree Celsius for about 18 months. Human-emitted particulate pollution has historically offset about 20% of human-emitted CO2. “Ironically,” he says, “the Clean Air Act made our air better but hurt climate change.”

The simplest solar-radiation management scheme, Mr. Myhrvold says, “is to emit particles in the stratosphere to mimic Mount Pinatubo. We invented a particularly elegant way to do this with balloons and a pipe to the sky.” By “we,” he means Intellectual Ventures, the company Mr. Myhrvold founded in 2000 after leaving Microsoft, where he spent 13 years and rose to the position of chief technology officer. Intellectual Ventures “creates, incubates and commercializes” new inventions.

“Marine cloud brightening” is another solar-related intervention. “The idea is to increase the number and size of low clouds that form over the oceans so that more incoming sunlight bounces back into space instead of heating the ocean.” Scientists have proposed a variety of ways to do this. One, which Mr. Myhrvold’s company has explored, is to outfit ships with equipment to spray seawater into the air as they traverse the ocean. “The salt particles can serve as nuclei for water vapor to condense into droplets, thus forming clouds.”

. . .

“Opponents worry that once you have geoengineering, people won’t make sacrifices to cut emissions. They want a sword of Damocles hanging over humanity as a means to force us to follow their ideology.”

Mr. Myhrvold uses an analogy he describes as “horrible in some ways.” When the AIDS epidemic hit, some people saw it as punishment from God. “Their attitude was, ‘This is what you get if you indulge in the practices we don’t approve of.’ ” In climate change, he says, this moralistic attitude takes the following form: “I don’t like aspects of our society, I don’t like technology, I don’t like capitalism, and this is nature’s retribution. And so we have to change the way we live.” Such beliefs “have become a very powerful disincentive, particularly for academic researchers.”

. . .

“You could imagine a world in which cardiology doesn’t exist because the medical profession said, ‘You fat bastards. You did it to yourselves. We’re not going to help you.’ ”

For the full interview, see:

Tunku Varadarajan, interview. “THE WEEKEND INTERVIEW; Emission Cuts Will Fail. What to Do Then?” The Wall Street Journal (Saturday, Feb. 18, 2023): A13.

(Note: ellipses added.)

(Note: the online version of the interview has the date February 17, 2023, and has the title “THE WEEKEND INTERVIEW; Emission Cuts Will Fail to Stop Climate Change. What to Do Then?”)

Political Challenges Were Greater Than Technology Challenges in Creating Geostationary Satellites

(p. A13) After the Soviet Union launched Sputnik 1, the world’s first satellite, in 1957, a 31-year-old Rosen was inspired to build “a lightweight satellite that, when launched into a high orbit above the equator, would mimic the Earth’s rotation and retain its relative position, like a spoke on a wheel.” Mr. Amelinckx goes on: “This geostationary satellite would provide twenty-four-hour global communications, something never before attempted. Rosen was excited.”

Indeed he was. Rosen was a brilliant electrical engineer who worked at Hughes Aircraft in California. His tenacity enabled him to surmount, over the following years, the seemingly endless number of infuriating obstacles that stood between him and his goal. There was the multitude of technical problems to be solved—from the satellite’s weight to its spin, antenna, solar panels and more. There were the questions from NASA, Congress, the Pentagon and aerospace companies about whether the U.S. should prefer low-orbit satellites or geostationary ones. (The latter would possess greater transmitting and receiving versatility, but many scientists were convinced that geostationary satellites, which orbit at much higher altitudes, were impractical and would “take years to develop.”)

Mr. Amelinckx notes that solving the political challenges proved more difficult than creating the necessary technologies. Fortunately for Rosen, President Kennedy was keen on communications satellites. And so in 1961, NASA began funding Hughes to create Rosen’s vision.

For the full review, see:

Howard Schneider. “BOOKSHELF; How ‘Early Bird’ Got the Worm.” The Wall Street Journal (Friday, April 14, 2023): A13.

(Note: the online version of the review has the date April 13, 2023, and has the title “BOOKSHELF; ‘Satellite Boy’ Review: How ‘Early Bird’ Got the Worm.”)

The book under review is:

Amelinckx, Andrew. Satellite Boy: The International Manhunt for a Master Thief That Launched the Modern Communication Age. Berkeley: Counterpoint, 2023.

The “Huge Opportunity Cost” of Congress Keeping Obsolete Warthog Planes Flying

(p. A1) The Air Force has said for years that the A-10 jets, nicknamed Warthogs for their bulky silhouette and toughness in a fight, have passed their prime and will be vulnerable in the wars of the future. The production line where they were made fell silent in the mid-1980s, and the average A-10 here is four decades old. Its job can be done by newer, more advanced planes, the Air Force says.

“The A-10, while it has served us well, is simply not a part of the battlefield of the future,” said Lt. Gen. Richard Moore, the Air Force’s deputy chief of staff for plans and programs.

Congress has other ideas. Bowing to members whose constituencies are dependent on the jet for jobs and the flow of federal tax dollars, it has instead insisted nearly all the planes keep flying at a cost of more than $4 billion over the past 10 years.

This kind of intervention is common—and is (p. A9) impairing the U.S.’s ability to respond to rapidly modernizing Chinese forces in a new era of great-power competition, say current and former senior defense officials and military analysts.

Efforts by lawmakers to bring military jobs and funding to their districts and keep them there are as old as Congress itself. But they come at a huge opportunity cost at a time when the U.S. is facing its most formidable adversary since the end of the Cold War. Congress is in effect forcing the Pentagon to spend billions on programs for which it sees no role in future wars.

For the full story, see:

Daniel Nasaw. “Why Is America Still Flying the A-10 Warthog, a Cold War Relic?” The Wall Street Journal (Friday, April 14, 2023): A1 & A9.

(Note: the online version of the story has the date April 13, 2023, and has the same title as the print version.)

Biden EV Goals Depend on “Troubled” Business Model for Fast Charging

(p. A13) President Biden’s EV ambitions will hinge in large part on the availability of public places to plug in and repower cars reliably, a network that largely doesn’t exist. Building it won’t be easy.

While the government is (p. A2) pouring billions of dollars into developing a national highway charging network, many companies aren’t sure how they will make money off the nascent business. Fast charging requires expensive utility infrastructure and projects often encounter supply chain hang ups and long wait times to connect to the grid.

. . .

The business model for fast charging has been troubled because there aren’t enough EVs in most places yet for charging to turn a profit. Yet EV advocates say many drivers will only be comfortable purchasing vehicles if rapid charging is widely available.

Utility companies and gas stations have been arguing across several states about who will own and operate EV chargers. The expensive utility bills that can result from delivering quick jolts of power have been a particular point of contention. Meanwhile, the young companies that provide charging gear and services have struggled with equipment on the fritz, vandalism and driver payment systems, a frequent source of failure.

For the full story, see:

Jennifer Hiller. “Fast Electric-Vehicle Chargers Get Boost, But Hurdles Lurk.” The Wall Street Journal (Friday, April 14, 2023): A1-A2.

(Note: ellipsis added.)

(Note: the online version of the story was updated April 13, 2023, and has the title “Fast EV Chargers to Nearly Double on U.S. Highways Under Expansion Plan.” In the first paragraph quoted above, the online version has “Mr. Biden’s” instead of “President Biden’s.”)

Towns Flourish When Entrepreneurs Want to Live in Them

(p. B1) SIDNEY, Neb. — The forest green roof and pair of bronze stags frozen in combat are impossible to miss as you drive down Interstate 80.

. . .

For 54 years, Cabela’s made its home here, a juggernaut that kept the town humming. But in 2017, the sporting goods store sold for $5 billion to Bass Pro Shops — a takeover that eventually made 2,000 jobs vanish in a town of roughly 6,600 residents.

. . .

But Sidney’s staying power still surprises experts, who say it’s driven by two factors.

One: Former Cabela’s employees opening their small businesses, diversifying the economy in a formerly one-company town.

Two: A recent influx of new (p. B3) residents, both retirees and remote workers.

. . .

Each spring, high schoolers from Nebraska and neighboring states flock to Sidney searching for the perfect prom dress. Their destination: Charlotte & Emerson, a downtown boutique — and one example of Sidney’s rebirth from the ashes of Cabela’s.

Co-owner Sarah Kaiser and husband Kurt Kaiser both worked at Cabela’s. When the company was swallowed by Missouri-based Bass Pro, the family relocated there as Sarah Kaiser ran the combined company’s human resources.

But in 2020, they decided to return to Sidney, her hometown. Sarah Kaiser opened Charlotte & Emerson with her sister. Her husband launched an online fitness store, Frost Giant Fitness. They’re two of many Sidney-based companies run by ex-Cabela’s employees who decided to stick around and start something new.

“The corporate experience of these young folks really was key to this particular recovery,” said David Iaquinta, a Nebraska Wesleyan University sociology professor who has researched Sidney’s economic development. “. . . they combined that talent with a strong desire for the lifestyle that they had. They said, ‘We’re here. We’re rooted here.’”

Budding companies are being boosted by E3, a Nebraska Community Foundation program meant to aid entrepreneurship in rural Nebraska.

Already, new businesses have remodeled once-dilapidated buildings, said Sarah Sinnett, the program’s community lead.

. . .

Economic development in Nebraska “used to be about cheap land, cheap labor and cheap incentives” to nab big companies, Stinnett said.

Now: “If you want small towns to start thriving … really it needs to be focused on entrepreneurship,” she said.

For the full story, see:

Natalia Alamdari, Flatwater Free Press. “Sydney Shows Staying Power.” Omaha World-Herald (Sunday, April 23, 2023): B1 & B3.

(Note: ellipses between paragraphs, and bracketed date, added; ellipsis internal to paragraph, in original.)

(Note: the online version of the story was updated April 28, 2023, and has the title “Six years after ‘Cabela’s debacle,’ Sidney’s lights are still on.”)

Bell Labs Allowed Tanenbaum to Pursue Any Research that Interested Him

(p. A11) One evening in 1955, Morris Tanenbaum’s wife was playing bridge with friends. Dr. Tanenbaum, a chemist who worked for Bell Telephone Laboratories, the research arm of American Telephone & Telegraph Co., saw a chance to dash back to work to test his latest ideas about how to make better semiconductor devices out of silicon.

He tried a new way of connecting an aluminum wire to a silicon chip. He was thrilled when it worked, providing a way to make highly efficient transistors and other electronic devices, an essential technology for the Information Age.

“I don’t think I needed a car to get home that evening,” he said later in an oral history recorded by the IEEE History Center. “I was flying high.”

Dr. Tanenbaum’s pioneering work in the mid-1950s demonstrated that silicon was a better semiconductor material for transistors than germanium, the early favorite. He earned seven patents.

He later served as a senior executive of AT&T and helped manage the breakup of the phone monopoly mandated by the 1982 settlement of a Justice Department antitrust suit. At the signing of the consent decree, Dr. Tanenbaum cried gently, according to “The Deal of the Century,” a history of the breakup by Steve Coll.

What pained him most was the fate of Bell Laboratories, which had invented the transistor in 1947 and allowed him, as a young Ph.D. chemist in the early 1950s, to pursue basic research even if it didn’t promise near-term financial rewards.  . . .

“Bell Laboratories, the world’s premier industrial laboratory, was destroyed, a major national and global tragedy,” he wrote later in an unpublished memoir written for his family.

. . .

Hired by Bell Laboratories in Murray Hill, N.J. in 1952, he was told to look around for a research project that interested him. Researchers were allowed to pursue nearly any project “potentially related to some Bell System problem or future opportunity,” he wrote later. “What more could a young person expect?”

He zeroed in on studies of potential semiconducting materials. The first transistors were made from germanium, but that material was expensive. Silicon is abundant and thus cheaper. It also helps prevent overheating of circuits. Early efforts to use silicon for electronic devices hadn’t worked well, though. That was a challenge for Dr. Tanenbaum and his colleagues, including Ernie Buehler.

They weren’t alone in finding ways to use silicon. Gordon Teal was doing similar work at Texas Instruments Inc. in the mid-1950s. “From that moment forward, the world was focused on silicon,” Dr. Tanenbaum wrote.

Though AT&T made early breakthroughs, other companies, including Intel Corp. and Texas Instruments, charged ahead with better and faster microchips that transformed the world. AT&T was busy trying to defend its telephone monopoly. On the silicon front, Dr. Tanenbaum said, “we kind of dropped the ball.”

For the full obituary, see:

James R. Hagerty. “Chemist Helped Put Silicon in Microchips.” The Wall Street Journal (Saturday, March 04, 2023): A11.

(Note: ellipses added.)

(Note: the online version of the obituary has the date March 3, 2023, and has the title “Morris Tanenbaum, Who Helped Put Silicon in Microchips, Dies at 94.” The fourth paragraph quoted above appears in the online, but not the print, version.)

The book by Col mentioned above is:

Coll, Steve. The Deal of the Century: The Breakup of AT&T. New York: Atheneum Books, 1986.

Sam Bankman-Fried’s Brother Gabe Helped Send Misappropriated Funds to Dems, and Then Got “The Rock Star Treatment” From Biden White House

(p. B1) The group, Guarding Against Pandemics, raised more than $22 million in its first full year in 2021, turning it into an overnight lobbying force in Washington. The group’s founder, Gabe Bankman-Fried, a former legislative assistant, started getting the rock star treatment: two White House meetings with senior staff and invitations to speak on panels with government officials.

But almost all the money raised by Guarding Against Pandemics appears to have come from Gabe Bankman-Fried’s brother, whom federal prosecutors have accused of misappropriating billions of dollars from customers of his crypto exchange, FTX. The collapse of FTX prompted federal authorities to investigate allegations (p. B6) that sweeping fraud drove the exchange into bankruptcy in November [2023], as well as potential campaign finance law violations by both brothers.

Federal prosecutors in Manhattan have charged Sam Bankman-Fried, 31, with orchestrating a scheme to evade limits on corporate political donations. Prosecutors have said he recruited FTX executives and others to serve as proxies for the crypto exchange and make tens of millions of dollars in illegal political donations using customer money.

The authorities are investigating whether Gabe Bankman-Fried, 28, and some of his colleagues were part of the same so-called straw donor scheme, five people familiar with the matter said, speaking on the condition of anonymity. And they are trying to determine whether he knew some of the funds that his organization received had been misappropriated from customers.

Last month, a top FTX executive, Nishad Singh, pleaded guilty to using company money to make millions of dollars in straw donations to Democratic campaigns and committees.

. . .

The Bankman-Fried brothers relied on a small set of political consultants to guide their spending, applying the principles of effective altruism, the philanthropic movement that has a large following in the tech industry. A top adviser to both brothers was Michael Sadowsky, a committed effective altruist who had worked with the younger Mr. Bankman-Fried at the data firm Civis Analytics.

. . .

With a $25 million cash infusion from Sam Bankman-Fried, Mr. Sadowsky’s PAC became an instant force in Democratic politics. His group supported dozens of progressive candidates and got widespread attention when it spent more than $11 million on an unsuccessful House primary candidate in Oregon, an astonishing sum for such a race.

. . .

Two other key figures in the Bankman-Frieds’ political network had ties to prominent Democrats: Jenna Narayanan, a former political adviser to the billionaire investor Tom Steyer, and Sean McElwee, the founder of Data for Progress, a progressive think tank.

For the full story, see:

Matthew Goldstein, David Yaffe-Bellany and Lora Kelley. “Fraternal Turn to FTX Inquiry.” The New York Times (Friday, March 24, 2023): B1 & B6.

(Note: ellipses added.)

(Note: the online version of the story has the same date as the print version, and has the title “The Younger Brother Caught in the Middle of the FTX Investigation.”)

Entrepreneur Andy Yen’s Technology Enables Russians to Elude Censors

(p. A1) After Moscow erected a digital barricade in March [2022], blocking access to independent news sites and social media platforms to hide information about its unfolding invasion of Ukraine, many Russians looked for a workaround. One reliable route they found came from a small Swiss company based nearly 2,000 miles away.

The company, Proton, provides free software that masks a person’s identity and location online. That gives a user in Russia access to the open web by making it appear that the person is logging in from the Netherlands, Japan or the United States. A couple of weeks after the internet blockade, about 850,000 people inside Russia used Proton each day, up from fewer than 25,000.

That is, until the end of March, when the Russian government found a way to block Proton, too.

Targeting Proton was the opening salvo of a continuing back-and-forth battle, pitting a team of about 25 engineers against a country embarking on one of the most aggressive censorship campaigns in recent memory.

Working from a Geneva office where the company keeps its name off the building directory, Proton has spent nine pressure-packed months repeatedly tweaking its technology to avoid Russian blocks, only to be countered again by government censors in Moscow. Some employees took (p. A9) Proton off their social media profiles out of concern that they would be targeted personally.

The high-stakes chess match mirrors what is playing out with growing frequency in countries facing coups, wars and authoritarian rule, where restricting the internet is a tool of repression. The blocks drive citizens to look for workarounds. Engineers at companies like Proton think up new ways for those people to secretly reach the open web. And governments, in turn, seek out new technical tricks to plug leaks.

. . .

Companies rarely discuss being targeted by an authoritarian government out of fear of escalating the conflict. But Andy Yen, Proton’s founder and chief executive, said that after a period of trying to keep its “head down,” Proton wanted to raise awareness about the increasing sophistication of governments, in Russia and elsewhere, to block citizens from reaching the open web and the need for technologists, companies and governments to push back.

. . .

“We’re gearing up for a long fight,” Mr. Yen said in an interview at the company’s office. “Everybody hopes this will have a happy ending, but it’s not guaranteed. We don’t see the light at the end of the tunnel, in fact, but you keep going because if we don’t do it, then maybe nobody else will.”

. . .

The battle took on a “Spy vs. Spy” dynamic in Proton’s headquarters. Mr. Yen said a network of people within the government, telecommunications firms and civil society groups had helped Proton operate in Russia, providing access to local networks and sharing intelligence about how the censorship system worked. But those contacts began to go dark as the Kremlin’s crackdown on dissent intensified.

. . .

Mr. Yen was interrupted during a staff meeting in mid-July with news that Russian censors had come up with an even more elaborate block. A corporate chart from the time shows use dropping off a cliff. Russian engineers had identified what is known as an authentication “handshake,” the vital moment when Proton’s VPN connection gets established before reaching the wider web. Blocking the link made Proton’s service essentially unusable.

“We had no idea what was happening and how they were doing it,” Mr. Cesarano said.

By August, after working around the clock for days to find a fix, Proton acknowledged defeat and pulled its app from Russia. The company has spent the months since then developing a new architecture that makes its VPN service harder to identify because it looks more like a regular website to censorship software scanning a country’s internet traffic. Proton has been successfully testing the system in Iran, where Proton has seen a sharp increase in VPN use during recent political demonstrations.

In Russia, Proton has reintroduced its apps using the new system. Mr. Yen acknowledged that it probably wasn’t a long-term fix. He has confidence in the new technology, but figures Russian engineers will eventually figure out a new way to push back, and the game will continue.

For the full story, see:

Adam Satariano and Paul Mozur. “The Cat-and-Mouse Battle for Russia’s Internet.” The New York Times (Wednesday, December 7, 2022): A1 & A9.

(Note: ellipses, and bracketed year, added.]

(Note: the online version of the story was updated Dec. 9, 2022, and has the title “Inside the Face-Off Between Russia and a Small Internet Access Firm.” )