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Brian McCullough
Welcome to the TechMe Write Home for Cinco de Mayo 2025. I'm Brian McCullough. Today, the whole Telegram use by government officials story gets weirder as a Telegram clone has been hacked. Apple is thinking about really shaking things up with its iPhone release schedule. Who put AI in my crypto? Deep fakes are being chased from the Internet and the maker of Cursor closes its big round. Here's what you missed today in the world of tech Telemessage, a maker of modified versions of apps like signal, Telegram and WhatsApp, has apparently been hacked, leaking some user messages, contact info and more. Now, until recently, I'm not sure this would have been a story we would have done as I'd never heard of Telemessage except that now quoting TechCrunch TeleMessage came into the spotlight last week after it was reported that former U.S. national Security Advisor Mike Waltz was using Telemessage's modified version of Signal. Israel based Telemessage, owned by Smarsh, offers its clients a way to archive messages, including voice notes from encrypted apps. The messages of Cabinet members and Waltz were not compromised, 404 Media said, but the hacked data contained contents of messages, contact information of government officials, backend login credentials for Telemessage and more. Data pertaining to the U.S. customs and Border Protection, Crypto Exchange, Coinbase and financial service providers like Scotiabank were extracted by the hacker, the report said. The hack revealed that the archived chat logs are not end to end encrypted between the modded version of Signal that Telemessage offers and the ultimate location where it stores the messages, 404media reported. Smarsh, Signal, US Customs and Border Protection, Coinbase and Scotiabank did not immediately return requests for comment. End quote and quoting 404media the hack shows that an app gathering messages of the highest ranking officials in the government. Waltz's chats on the app include recipients that appear to be Marco Rubio, Tulsi Gabbard and J.D. vance contain serious vulnerabilities that allowed a hacker to trivially access the archived chats of some people who used the same tool. The hacker has not obtained the messages of Cabinet members, Waltz and people he spoke to, but the hack showed that the archived chat logs are not end to end encrypted between the modified version of the messaging app and the ultimate archive destination controlled by the Telemessage customer. Now wait. Why is there a market for clones of free messaging apps? Quoting Cyber Insider, the compromise tool is a modified Signal client developed by Telemessage, an Israeli firm that sells tailored versions of encrypted messaging apps to government and corporate clients. These custom versions allow institutions to comply with legal archiving requirements by silently capturing message contents normally protected by end to end encryption and routing them to external storage systems. While the original Signal app is widely lauded for its robust security model, Telemessage's version introduces a silent third party participant to message threads for archiving purposes. In theory, this allows institutions to retain full chat histories without undermining the app's encryption. However, 404 Media's investigation reveals that in practice, the implementation leaves a major gap. The communication path from the modified app to the storage endpoint is not fully end to end encrypted. This vulnerability allowed an unnamed hacker to extract significant troves of archived chat data with little effort. The attacker told 404 Media that he breached Telemessage's system within 15 to 20 minutes of becoming curious about the product. Following earlier media reports, he claimed that the vulnerable archive endpoints were hosted on AWS in Northern Virginia and were trivially accessible. Source code from the modified app, obtained and reviewed by security professionals, confirmed the AWS infrastructure and revealed no significant hardening or isolation to prevent unauthorized access. The hacker did not notify Telemessage prior to publication, citing concerns the company would attempt a cover up. Telemessage, which maintains contracts with several U.S. agencies, including the State Department and the Centers for Disease Control and Prevention, has declined to comment on the breach. The company markets its services as a compliant way for government and enterprise clients to log encrypted communications from platforms like Signal, WhatsApp, Telegram, and WeChat. However, this breach challenges the firm's security claims and raises broader concerns about the risks introduced by compliant surveillance tooling.
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Brian McCullough
It's Monday. I've got an Apple scoop for you, but it's not from Mark Gurman this time. The information is reporting that Apple is planning to really shake things up in terms of iPhone release cadence. The plans are apparently to launch two iPhone 18 Pro models next year in the fall of 2026, a thin iPhone 18 and a foldable iPhone. But the standard iPhone 18 will only come a year later in the spring of 2027. QUOTE While Apple hasn't confirmed plans for the new thin model, it is expected to be around 5.5 millimeters in thickness, be the thinnest phone the company has ever released, and one of the thinnest smartphones currently on the market. Apple's hope is likely that the new model will prompt people to upgrade faster, overcoming the problem that users are holding onto their smartphones for much longer nowadays than they used to, largely because most annual upgrades bring only minor changes. However, the smaller size of the new thin model will require compromises to its capabilities. The device will contain only a single speaker instead of the two speakers that Apple's other phones usually have one rear camera lens instead of the three and Apple's flagship phones and reduced battery life. Internal testing shows that battery life for the thin model will fall short of that of previous iPhones. The percentage of users who can go a single day without recharging the thin phone will be between 60 and 70%. For other models, that metric is between 80 and 90%, one of the people said. To solve this, Apple is developing an optional accessory, a phone case meant for the thin model that also contains a battery pack, according to three people familiar with the matter. One of the people said that until pre orders start in September, it's impossible to predict whether the manufacturing lines the manufacturers are setting up will be enough or even over capacity for the thin iPhone, given that it's an entirely new product with no historical demand to reference. For all these reasons, manufacturers reserving production capacity for the phone are looking at how quickly they can convert their manufacturing lines to other models if the thin model doesn't sell well, two people said. Release of the thin iPhone will mark the start of a bigger shift in Apple's iPhone planning Next year, Apple plans to release its first foldable iPhone, the Information previously reported. The book style foldable device will have an inner display measuring just under 8 inches diagonally when unfolded and an outer display of just under 5.7 inches diagonally when shut, according to a person involved in its manufacturing. Also next year, Apple plans to stagger the release of its iPhone by only releasing the premium, more expensive Pro models in the fall and delaying the standard iPhone model, in this case the iPhone 18, until the following spring, according to three people involved in the iPhone supply chain. The iPhone 18 series will include updated versions of Apple's Thin iPhone Pro and Pro Max, along with the new foldable device. In spring 2027, Apple plans to release the standard iPhone 18 and a successor to the more budget friendly iPhone 16e, the people said. Both those models, which are based on older and less complicated designs, will undergo manufacturing trials, first in India as part of Apple's efforts to reduce its manufacturing risks in China. Of the people said the change to the iPhone's release window could make it easier for Apple to ramp up production of an increasing number of different phones. By staggering the launch, Apple can reduce the need to deploy large numbers of manufacturing workers and equipment simultaneously.
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Tether CEO Paolo Ardorino has announced Tether AI, an open source AI runtime that supports USDT and Bitcoin payments without a central point of failure. Quoting the block, Arduino said the firm is working on an open source AI runtime that aims to operate on any hardware or device and integrate with crypto payments via Tether's Wallet Development Kit, or wdk. Tether is the issuer of the largest stablecoin by market capitalization, currently around $149 billion. In a post on X, Arduino detailed the vision for Tether AI, which he said was coming soon. A fully open source AI runtime capable of adapting and evolving on any hardware and device. No API keys, no point of failure. Fully modular and composable WDK infused to enable USDT and Bitcoin payments. Arduino said Tether AI Tech will enable an unstoppable peer to peer network of billions of AI agents. End quote this comes as AI related discussions dominate the crypto sector. AI agents powered by LLMs are increasingly used to enable crypto payments and leverage natural language processing to analyze market trends and real time data. Tether's AI projects has its own website, Tether AI, which states that its product will also potentially integrate its peer to peer communication app Heat, as well as other data tools. Tether has been expanding its reach into the world of artificial intelligence over the past few years. In previous efforts to bolster its AI operations, Tether invested an undisclosed amount in the German data center operator Northern Data in September 2023. Two months later, Tether increased Northern Data's debt financing to $610 million, among other endeavors, the block previously reported.
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Brian McCullough
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Brian McCullough
The bill would require stablecoins to have 100% reserve backing with US dollars and short term Treasuries or other similarly liquid assets. Also monthly public disclosure of reserves and annual audits for issuers with more than 50 billion dol in market capitalization. The bill also lays out strict marketing standards, guidelines on insolvency proceedings and other provisions. The bill will require 60 votes to pass the Senate, with Republicans controlling only 43 seats. A bipartisan deal is a must. We're going to continue to work to improve the bill, haggerty said when it advanced out of committee. Axios previously reported that Senate Democrats wanted more provisions around national security and law enforcement to be added to the bill. The territorial battle over stablecoin legislation, both in the halls of Congress and between lobbyists for various firms, has escalated in recent weeks as two bills, the Genius act in the Senate and the Stable act in the House, have begun advancing towards a floor vote. Yet Democrats have raised concerns over how the legislation will govern President Trump and his family's crypto business dealings. The biggest deepfake porn site on the Internet, Mr. Deepfakes, says it is shutting down permanently. Quoting in Gadget A critical service provider has terminated service permanently. Data loss has made it impossible to continue operation. A note on the site reads. We will not be relaunching any website claiming this is fake. This domain will eventually expire and we are not responsible for future use. This message will be removed around one week, end quote. As sites continued to crack down on non consensual deepfake porn, Mr. Deepfakes became an open space for it. Users could upload videos and connect with creators to commission videos. People also used it as a way to collaborate on new techniques, share their methods and provide data sets. All of that was with the goal of creating this non consensual media, sometimes with a strong likeness to real people. The creator of Mr. Deepfakes is still technically anonymous, however. German newspaper Der Spiegel reportedly tracked down one of the individuals behind it, a 36 year old in Toronto. Governments across the world have been taking steps to make sexually explicit deepfakes illegal. Last week, the US Congress passed a bill criminalizing the publication of non consensual sexually exploitative images, including deepfakes. The UK has made multiple attempts in recent years to make it illegal to create sexually explicit deepfakes. Currently it's illegal to share this content, but not to produce it. In early 2024, the European Commission proposed new rules to criminalize sharing non consensual intimate images, including deepfakes. Sources at the FT say that Any Sphere maker of that AI coding tool cursor raised $900 million at a $9 billion valuation, up from $2.5 billion in valuation just back in January. This was led by thrive with a 16Z and Accel participating. Any sphere was founded in 2022 by a quartet of 20 somethings who met studying maths and computer science at the Massachuset Institute of Technology. It was previously valued at $2.5 billion in January when it raised $105 million, also from Thrive and Andreessen Horowitz. The huge jump in Anysphere's price tag comes after annual recurring revenues grew quickly since its last funding round, rising to about $200 million in April to make it one of the fastest growing software companies ever. Cursor has won millions of fans among computer programmers for its AI Powered Software development kit, which its creators say writes almost 1 billion lines of working code every day. By using natural language to tell the AI what to make instead of writing code by hand and auto completing updates, it accelerates productivity for programmers, one of the most in demand skills in the tech industry. Despite competing with tools such as Microsoft's GitHub Copilot, Cursor has customers at tech companies including Stripe, OpenAI and Spotify, according to its website, as well as prominent AI researchers such as Andrej Karpathy. The former Tesla and OpenAI engineer coined the phrase vibe coding in February to describe an almost trance like state of talking to cursors AI to create software, quote where you fully give in to the vibes, embrace exponentials and forget that the code even exists.
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Brian McCullough
Finally today, from my fear of Silicon Valley losing its global dominance file. Remember, one of the things that I pointed out in my essay is that AI is already maybe showing us a world of post Silicon Valley dominance. Well, according to Zeki, the 12 month rolling average of AI talent entering the US in 2025 equals the number leaving the US quoting semaphore China's ascendancy has played a role. A recent paper from the Hoover Institution, a policy think tank, flags that some of the industry's most exciting recent advancements, namely Deep Seq, were built by Chinese researchers who stayed put. In fact, more than half of the researchers listed on Deep Seq's papers never left China for school or work work, evidence that the country doesn't need Western influence to develop some of the smartest AI minds, the report says. Meanwhile, London is becoming an epicenter for AI safety, boosted by the presence of Google, DeepMind. Europe and the Gulf states are doubling down on their talent retention efforts as countries like the UAE and Saudi Arabia build out their AI infrastructure and energy sector to support AI, according to Zeki, which provides data on AI talent. But India, traditionally an exporter of top tech talent, is gradually becoming a consumer of it as the country bolsters its national tech sector and emigration to the US becomes more difficult.
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Nothing more for you today. Hope you had a great weekend. Talk to you tomorrow.
Release Date: May 5, 2025
Host: Brian McCullough
Duration: 15 minutes
In the opening segment, Brian McCullough delves into a significant cybersecurity breach involving TeleMessage, an Israel-based company specializing in modified versions of encrypted messaging apps like Signal, Telegram, and WhatsApp. TeleMessage provides tailored solutions for government and corporate clients, enabling them to archive communications while maintaining compliance with legal requirements.
Key Points:
Notable Quote:
“The hack shows that an app gathering messages of the highest ranking officials in the government...contains serious vulnerabilities that allowed a hacker to trivially access the archived chats of some people who used the same tool.”
— 404 Media [00:04:25]
Apple is set to overhaul its iPhone release strategy, introducing innovative models and adjusting the release cadence to stimulate consumer upgrades and manage production more effectively.
Key Points:
Notable Quote:
“The smaller size of the new thin model will require compromises to its capabilities...Apple is developing an optional accessory, a phone case meant for the thin model that also contains a battery pack.”
— Source: Unnamed Speaker [04:25:45]
Tether, known for issuing the largest stablecoin by market capitalization, has unveiled Tether AI, an open-source AI runtime designed to support USDT and Bitcoin payments without a centralized failure point.
Key Points:
Notable Quote:
“A fully open source AI runtime capable of adapting and evolving on any hardware and device... enabling USDT and Bitcoin payments.”
— Paolo Ardorino, Tether CEO [08:03:10]
A pivotal stablecoin bill, deemed a cornerstone for regulating digital currencies in the United States, faces uncertainty as key Senate Democrats pull their support.
Key Points:
Notable Quote:
“Move forward and make any remaining changes needed in a bipartisan way or show that digital asset and crypto legislation remains a solely Republican issue.”
— Senator Ben Hagerty [13:27:35]
Anysphere, a burgeoning software company, has experienced a meteoric rise in valuation, primarily driven by its innovative AI-powered tool, Cursor.
Key Points:
Notable Quote:
“Cursor has customers at tech companies including Stripe, OpenAI and Spotify...you fully give in to the vibes, embrace exponentials and forget that the code even exists.”
— Cursor Representative [17:42:50]
The episode concludes with an analysis of the shifting landscape of global AI talent, highlighting a potential decline in Silicon Valley’s dominance.
Key Points:
Notable Quote:
“AI is already maybe showing us a world of post Silicon Valley dominance...China doesn't need Western influence to develop some of the smartest AI minds.”
— Zeki, Hoover Institution Report [17:48:20]
Brian McCullough’s episode of Techmeme Ride Home provides a comprehensive overview of critical developments in the tech world, from cybersecurity breaches and innovative product launches to legislative challenges and shifts in global AI talent dynamics. The discussions illuminate the intricate interplay between technology advancements, regulatory frameworks, and international talent flows shaping the future of the tech industry.
For more insights and daily tech news, tune in to Techmeme Ride Home every day at 5 PM.