China Bans Critical Mineral Exports, OpenAI Partners with Anduril, and Defence Tech Testing in Ukraine

China is responding to the tech war by banning exports of critical minerals and opening an antitrust investigation against Nvidia.

OpenAI’s technology will be deployed on the battlefield. The first stop is a partnership with Anduril.

But first, the war in Ukraine is reshaping the tech sector in Eastern Europe. Startups in nearby countries have pivoted from consumer products to tech for the battlefield. The products are tested directly on the battlefield, free from the laws and regulations of the EU. Kaspar Pollaks from LMT Defence visits Ukraine offen:

The Big Story

China Bans Critical Mineral Exports and Starts a Case Against Nvidia

China has banned exports of gallium, germanium, and antimony to the United States. Critical minerals are needed to make advanced semiconductors, among many other equipment used for consumer goods and military purposes. Beijing also tightened controls on graphite exports used in EV and grid storage batteries. China has motivated the ban with the potential use of military technology. China is the largest source of most of these materials and dominates refining. Experts project that tungsten, magnesium and aluminium alloys will come next.

“Critical mineral security is now intrinsically linked to the escalating tech trade war,” Gracelyn Baskaran and Meredith Schwartz of the Center for Strategic International Studies wrote in a report on Beijing’s decisions.

The announcement came just a day after the US said it would expand the list of Chinese companies subject to export controls on advanced technology.

China’s dominance over the mining and refining of rare-earth metals needed to manufacture advanced technology has long been identified as a key source of leverage Beijing could use against the United States.

China also opened an antitrust investigation into Nvidia, the world’s largest provider of processors that power AI, over suspicions that the US chipmaker broke anti-monopoly laws around a 2020 deal.

The Chinese government believes Nvidia’s purchase of Israeli networking company Mellanox could violate the country’s anti-monopoly laws. Beijing gave approval for the deal four years ago, on the condition that Nvidia should not discriminate against Chinese companies.

According to its most recent financial report, Nvidia gets around 15% of its revenue from customers in China. Shares of Nvidia fell as much as 3.7% to $137.13 on Monday in New York trading.

Bloomberg also published a report this week on the effects of the tech war: it is seeding tech centres in Southeast Asia. Malaysia and Vietnam saw more than $100 billion in foreign direct investment from 2020 through 2023, with tens of billions more to come. The growth results in job gains and rising incomes, but property prices and demand for power are increasing, and many of the best jobs are going to foreign workers.

“The US-China tensions under Trump 1.0 increase incentives for multinationals to have a China+1 strategy,” said Ong Kia Ming, a former Malaysian trade and investment deputy minister.

OpenAI Partners with Anduril for CAUS Systems

Last week, OpenAI announced that its technology will be deployed directly on the battlefield. At the same time, OpenAI partnered with Anduril to develop and deploy advanced AI solutions for national security missions.

The partnership will focus on helping the US and allied forces defend against drone attacks. It will start by improving the US’s counter-unmanned aircraft systems and their ability to detect, assess, and respond to potential lethal aerial threats in real time. The CAUS is designed to help defend against drone strikes by detecting and intercepting them.

According to the announcement, OpenAI will help build AI models that “rapidly synthesize time-sensitive data, reduce the burden on human operators, and improve situational awareness” to take down enemy drones.

“This partnership is consistent with our policies and does not involve leveraging our technology to develop systems designed to harm others,” Liz Bourgeois, OpenAI’s spokesperson, said.

In the News

As War Rages, Tech Workers Are Protesting

Tech workers in Silicon Valley increasingly resist using their labour for military applications, reminiscent of historical protests against corporate complicity in unethical practices. Recent revelations about AI being used in conflict zones, such as Gaza, have sparked calls for technology to serve communities rather than perpetuate violence. Workers at companies like Google have faced backlash and dismissals for their activism, reflecting the growing tension between ethical tech development and military funding priorities. This movement raises critical questions about the societal role of technological progress.
Read more at the New York Times.

Europe’s Newest Startup Trend: Making AI-Powered Weapons

European defence startups are pivoting towards AI-powered weapons, driven by the Ukraine conflict and reduced reliance on US support. Companies like Helsing and Quantum Systems are developing advanced drones and missiles, while startups such as Frankenburg Technologies focus on affordable precision weaponry. This shift highlights Europe’s efforts to modernise defence capabilities amid growing regional instability.
Read more at Bloomberg.

Palantir and Anduril Partner to Advance AI for National Security

Palantir and Anduril are collaborating to develop AI solutions for US national security. Their partnership focuses on processing and managing tactical-edge data at scale, leveraging Palantir’s AI platform and Anduril’s software infrastructure. The initiative aims to bolster the US’s leadership in AI-driven defence technologies while inviting further collaboration with industry partners.
Read more at Wall Street Journal.

Between Tech Policy and Foreign Policy: The UN Cybercrime Convention

The UN Cybercrime Convention, backed by Russia, China, and several Global South countries, challenges established frameworks like the Budapest Convention. Critics argue it undermines human rights and Western values, with potential implications for digital freedom. The US has engaged in the negotiation process to influence the treaty, reflecting its geopolitical importance. This treaty exemplifies shifting dynamics in international tech governance, where developing nations are asserting more influence over digital policy.
Read more at Circleid.

Soldiers Turned Tech Visionaries

Munich-based ARX Robotics has introduced the ARX Mithra OS, the first independent AI-based operating system for military vehicles. This innovation modernises legacy fleets by integrating intelligent, autonomous capabilities without the need for new equipment. Designed by former soldiers, the system supports unmanned operations, fleet interconnectivity, and situational awareness. ARX Robotics is tackling NATO’s technological shortfalls with scalable solutions that enhance operational flexibility and reduce human risk, solidifying Europe’s defence modernisation goals.
Read more at Tech Funding News.

How Conflict with China Might Play Out in the Cyber Realm

US officials warn that Chinese cyber threat groups, including Volt Typhoon, have infiltrated critical infrastructure and could launch disruptive attacks during a conflict. Such attacks, potentially targeting power grids, telecommunications, and financial systems, would aim to weaken US responses. Experts stress the importance of robust cybersecurity measures, information sharing, and contingency planning to safeguard against such threats. Comparisons are drawn to cyberattacks in the Russia-Ukraine war, underlining the need for proactive resilience strategies.
Read more at Information Week.

Is Open Source a Threat to National Security?

Open-source software offers innovation and exposes vulnerabilities, as bad actors exploit its transparency to inject malicious code. With increasing reliance on open-source tools for critical infrastructure, national security risks are growing. Experts urge better governance, proactive vulnerability management, and collaborative threat intelligence. Open-source AI is also highlighted as a double-edged sword, fostering accessibility but raising risks of misuse in cyberattacks and misinformation campaigns.
Read more at Information Week.