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Infosec Decoded Season 5 #81: Circular Financing

With Doug Spindler and sambowne@infosec.exchange

Recorded Tue, Oct 14, 2025

AI

'It's going to be really bad': Fears over AI bubble bursting grow in Silicon Valley
OpenAI is at the centre of a tangled web of deals involving Nvidia, AMD, Microsoft, and Oracle. Some people call these deals "circular financing" or even "vendor financing" - where a company invests in or lends to its own customers so they can continue making purchases.

People I've spoken to keep bringing up Nortel - the Canadian telecom equipment-maker that borrowed prolifically to help finance deals for their customers (and thereby artificially boost demand for their wares).

AI Data Centers Are an Even Bigger Disaster Than Previously Thought
AI data centers can't possibly earn enough to justify their cost before they become obsolete.
Top AI Industry Figures Secretly Hoping AI Will Wipe Out Humankind
People can’t be trusted on this topic because they are infested with a reprehensible mind virus which causes them to favor people over AI when clearly what we should do is get out of the way.
The More Scientists Work With AI, the Less They Trust It
Scientists expressed less trust in AI than they did in 2024, when it was decidedly less advanced. Concerns include hallucinations, security, and privacy.
OpenAI Says It Will Move to Allow Smut
The company announced it will soon open the floodgates for “mature apps,” as soon as it rolls out its equally-long-awaited age verification system.

Politics

Trump Offers All Colleges Preferential Funding Plan Rejected by MIT
“Higher Education has lost its way, and is now corrupting our Youth and Society with WOKE, SOCIALIST, and ANTI-AMERICAN Ideology,” Trump posted Sunday on Truth Social. “My Administration is fixing this, and FAST, with our Great Reform Agenda in Higher Education.”

Ken Marcus, who served as assistant secretary for civil rights at the Education Department during Trump’s first term, said refusal would almost certainly be seen as a “sign of defiance” by administration officials, and colleges should expect heightened federal scrutiny.

Trump’s Takeover Of Canadian Rare Earths Miners Raises Major Concerns
Canadian rare earths developer, Trilogy Metals (NYSE:TMQ), rocketed nearly 140% last Monday after the U.S. government purchased a 10% stake in the company with warrants to purchase an additional 7.5% stake.
Supreme Court conservatives poised to further gut the Voting Rights Act
The court may be on the brink of forbidding the consideration of race in redistricting. This will allow southern states to make every congressional district a likely Republican district.
‘Everyone’s just getting destroyed’: MTG calls on Johnson to bring House back to DC and rails on GOP handling of health care
FAQ: Why America just bailed out Argentina with a $20 billion lifeline
The bailout would deliver a major windfall to Rob Citrone, a billionaire hedge fund manager with significant investments in Argentina.

Infosec

Hackers can steal 2FA codes and private messages from Android phones
A malicious app without system privileges can read data off the phone screen, by drawing over that content and measuring the timing of the GPU's graphical data compression. The attack may be too slow to collect a useful 2FA token within its 30 second lifetime. Google ias issued a patch which partially mitigates this behavior.
Satellites are leaking your data worse than coffee shop WiFi: Researchers
Geosynchronous satellites are broadcasting sensitive data unencrypted that anyone with about $600 worth of equipment can intercept. This includes cellular communication encryption keys, citizens’ SMS and even traffic for military systems and critical infrastructure. The researchers recommend that users take precautions by using services like VPNs, or encrypted apps like Signal or Telegram.
DDoS Botnet Aisuru Blankets US ISPs in Record DDoS
The world’s largest and most disruptive botnet is now drawing a majority of its firepower from compromised Internet-of-Things (IoT) devices. It siphons Internet bandwidth from an estimated 300,000 compromised hosts worldwide, mostly consumer-grade routers, security cameras, digital video recorders and other devices operating with insecure and outdated firmware, and/or factory-default settings.

By late September, Aisuru was publicly flexing DDoS capabilities topping 22 Tbps. Then on October 6, its operators heaved a whopping 29.6 terabits of junk data packets each second at a targeted host.

How ultrasound is ushering a new era of surgery-free cancer treatment
Why Signal’s post-quantum makeover is an amazing engineering achievement
The ML-KEM-768 quantum-resistant algorithm uses a large key, 1000 bytes long. Signal's new protocol uses a "double ratchet" system to achieve forward secrecy, changing the secret key for each message.
FIPS 203: Module-Lattice-Based Key-Encapsulation Mechanism Standard
See page 39 for key sizes.