Technology
T-Mobile hacked by Chinese cyber espionage in major attack on US telecoms
The telecom industry is one of cybercriminals’ favorite targets, likely because of the sensitive data it stores. Your carrier knows what you search for on the web, which websites you visit, who you call and what you text. This type of information is valuable not only to hackers but also to governments. That’s probably why U.S. phone giant T-Mobile was hacked as part of a broad cyberattack on domestic and international phone and internet companies in recent months.
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T-Mobile booth (T-Mobile) (Kurt “CyberGuy” Knutsson)
What you need to know
T-Mobile’s network was compromised in a major Chinese cyber-espionage operation targeting multiple U.S. and international telecommunications companies, according to a report that cited sources familiar with the matter.
The report revealed that hackers connected to a Chinese intelligence agency breached T-Mobile as part of a monthslong effort to spy on the cellphone communications of high-value intelligence targets. However, the report did not specify when the attack occurred, and it remains unclear whether any information about T-Mobile customers’ calls or communication records was stolen.
The U.S. government also confirmed this month that Chinese hackers breached multiple U.S. telecommunications service providers to access wiretap systems used by law enforcement for surveillance of Americans. Wiretap systems allow law enforcement agencies to monitor phone calls, text messages and internet communications as part of investigations, typically with a warrant.
CISA (Cybersecurity and Infrastructure Security Agency) and the FBI issued a joint statement revealing “a broad and significant” cyber espionage campaign. The statement disclosed that PRC-affiliated hackers had breached networks at “multiple telecommunications companies” across the United States. While CISA and the FBI did not name the organizations affected, multiple reports suggest that T-Mobile, AT&T, Lumen (formerly CenturyLink) and Verizon are likely on the list.
WSJ reported in October that Chinese hackers had access to the networks “for months or longer,” enabling them to collect “internet traffic from internet service providers that count businesses large and small and millions of Americans as their customers.”
Illustration of a hacker at work (Kurt “CyberGuy” Knutsson)
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T-Mobile’s many data breaches
T-Mobile has faced several hacks in recent years. In 2021, a malicious actor breached T-Mobile’s lab environment by posing as a legitimate connection to an unidentified piece of equipment. The hacker guessed passwords for multiple servers and moved laterally through the network, ultimately stealing personal data, including names, addresses, Social Security numbers and driver’s license IDs, from tens of millions of customers.
In 2022, T-Mobile experienced another breach when a malicious actor used SIM-swapping, phishing and other tactics to infiltrate the company’s internal platform for managing mobile resellers who serve T-Mobile customers.
The troubles continued into 2023. Early in the year, hackers used phished credentials from dozens of T-Mobile retail employees to access a sales application originally set up during the COVID-19 pandemic for remote viewing of customer data. Then, in January 2023, a misconfigured application programming interface exposed personal data for 37 million current customers, marking yet another significant security lapse.
Illustration of a hacker at work (Kurt “CyberGuy” Knutsson)
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T-Mobile’s response
When CyberGuy reached out to T-Mobile regarding the latest security incident, a spokesperson provided the following statement: “T-Mobile is closely monitoring this industry-wide attack. Due to our security controls, network structure and diligent monitoring and response we have seen no significant impacts to T-Mobile systems or data. We have no evidence of access or exfiltration of any customer or other sensitive information as other companies may have experienced. We will continue to monitor this closely, working with industry peers and the relevant authorities.”
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5 ways to stay safe amid the rise in telecom data breaches
1) Change your passwords regularly: Make it a habit to update your passwords every few months, especially for your telecom accounts and related services. Use strong, unique passwords that include a mix of letters, numbers and symbols. Password managers can help you generate and store these securely.
2) Invest in personal data removal services: Consider services that scrub your personal information from public databases. This reduces the chances of your data being exploited in phishing or other cyberattacks after a breach. Check out my top picks for data removal services here.
3) Use identity theft protection: Identity theft protection services monitor your accounts for unusual activity, alert you to potential threats and can even assist in resolving issues if your data is compromised. See my tips and best picks on how to protect yourself from identity theft.
4) Enable two-factor authentication (2FA): Add an extra layer of security to your telecom accounts with 2FA. This requires a second form of verification, like a text code or an app-based prompt, making it harder for hackers to access your accounts even if they have your password.
5) Guard against phishing scams with strong antivirus software: Be cautious about unsolicited calls, texts or emails that ask for personal information or account access. Legitimate companies won’t ask for sensitive details this way. If something seems off, contact your telecom provider directly through official channels. Whatever you do, don’t click on links, as they can lead to scams or malware.
The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have strong antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android and iOS devices.
Telecom providers like T-Mobile and AT&T are frequent targets for hackers. Over the last two years, millions of Americans have had their data stolen, things like call records, text messages and even personal details. The issue got so bad that the FCC stepped in, warning T-Mobile to step up its cybersecurity efforts. The company was fined about $30 million, split between a $15 million penalty and a mandatory $15 million investment in better security. Unfortunately, if the companies handling your data keep getting breached, there’s only so much you can do.
Do fines and penalties for telecom companies feel like enough of a deterrent, or should they face stricter consequences? Let us know by writing us at Cyberguy.com/Contact.
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Kurt’s key takeaway
Technology
Xbox is now XBOX
Xbox just allcapsmaxxed: Meet XBOX. This isn’t a joke; Microsoft appears to be actually rebranding Xbox to XBOX. Asha Sharma, Xbox CEO, ran a poll on X earlier this week, asking fans whether Microsoft should use Xbox or XBOX. The results were in favor of XBOX, and the company has now renamed its X account.
Curiously, the Threads and Bluesky accounts for Xbox haven’t been renamed yet, but if Microsoft is going ahead with a rebranding then I expect those will change soon. I asked Microsoft to comment on this potential Xbox rebranding and the company simply referred me to Sharma’s post.
The use of all caps for Xbox is a return to original form, though. Microsoft’s first Xbox logo for its console was all caps, and the company has favored using similar capped versions for the Xbox 360, Xbox One, and Xbox Series X / S console logos.
The apparent rebranding comes just a few weeks after Sharma scrapped Microsoft Gaming and renamed Microsoft’s gaming division back to Xbox. It’s part of Sharma’s continued promise of a “return of Xbox,” which has involved fan-focused console updates, a new Xbox logo, Game Pass pricing changes, and lots more in recent weeks.
Technology
AI data centers may soon ride ocean waves
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Artificial intelligence (AI) already shows up in your phone, your searches and plenty of apps you use every day. Now, some Silicon Valley investors are betting the machines behind those AI answers could one day run at sea.
A company called Panthalassa has raised $140 million in new funding to develop and deploy autonomous, floating AI computing nodes powered by ocean waves. The Series B round brings Panthalassa’s total funding to $210 million, a sign that investors are taking this ocean-based AI idea seriously. The round was led by Peter Thiel, the Palantir co-founder, and the company says the money will help complete a pilot manufacturing facility near Portland, Oregon. Panthalassa also plans to deploy its Ocean-3 pilot node series in the northern Pacific Ocean later in 2026.
Instead of building another giant AI data center on land, Panthalassa wants to place computing power out at sea. Ocean waves would generate electricity. Seawater would help with cooling. Onboard computing systems would process AI prompts and send the results back to land through low-Earth-orbit satellites.
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Panthalassa’s Ocean-2 prototype rides in open water during testing, giving a real-world look at the kind of floating wave-energy system behind the company’s ocean AI plan. (Panthalassa)
How AI data centers at sea could work
Panthalassa’s floating nodes are designed to capture wave motion and turn it into electricity. The company says it has spent a decade developing the technology behind its power generation, onboard computing and autonomous ocean operations. Its earlier Ocean-1, Ocean-2 and Wavehopper prototypes were tested in 2021 and 2024. Think of each node like a floating power station with AI hardware inside. Waves move the system. That motion helps drive a generator. The power then feeds the onboard chips.
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The company’s plan is to use those chips for AI inference. That is the part of AI where a model responds to your prompt after it has already been trained. In simple terms, it is what happens when you ask a chatbot a question and get an answer back. That makes the ocean plan a little easier to understand. Training massive AI models requires huge data movement and tight coordination. Answering prompts may be more realistic for a floating node, at least in some situations.
Why AI data centers are moving offshore
AI data centers need huge amounts of electricity. They also need space, cooling systems and local support from communities that may not want a massive facility nearby. Those problems have pushed companies to look for unusual answers. Ocean-based computing is one of them.
Panthalassa says its nodes would operate far from shore in wave-rich parts of the ocean. The goal is to use that wave energy directly onboard instead of sending the power back to land. “We’ve built a technology platform that operates in the planet’s most energy-dense wave regions, far from shore, and turns that resource into reliable clean power,” said Garth Sheldon-Coulson, Panthalassa’s co-founder and CEO.
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The ocean also offers cold surrounding water. That could help cool the chips onboard. Cooling is a major issue because data centers produce a lot of heat. Panthalassa is taking a different path from traditional land-based data centers. Instead of pulling more power from the grid, it wants floating nodes that generate their own electricity from waves.
A SUPERCOMPUTER CHIP GOING TO SPACE COULD CHANGE LIFE ON EARTH
The Ocean-2 prototype sits inside a coastal facility, showing the size and shape of Panthalassa’s floating node before deployment at sea. (Panthalassa)
The satellite problem for ocean AI data centers
The ocean may help with power and cooling, but it creates another problem: connection. Traditional data centers rely on high-capacity fiber-optic connections because they need to move huge amounts of data fast. A floating node far out at sea may depend on low-Earth-orbit satellite links. That can work for some AI responses, but it may be slower and more limited than fiber.
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The challenge grows when multiple nodes need to work together. AI systems often depend on fast communication between chips, servers and storage. If those parts are floating in the ocean and talking by satellite, coordination gets harder. That means AI data centers at sea may not replace land-based data centers anytime soon. They may be better suited for certain AI tasks where the model can live onboard, and the response does not require constant back-and-forth with other machines.
Repairing floating AI nodes could be difficult
There is another practical question: What happens when something breaks? A land-based data center can send in technicians. A floating AI node in rough seas may need a ship, special equipment and the right weather window. That adds cost and delay.
Panthalassa says it is developing autonomous systems meant for harsh ocean conditions. Its press release says Ocean-3 testing is meant to demonstrate AI inference and refine manufacturing before commercial deployments in 2027. Still, the ocean is brutal. Saltwater eats away at equipment. Storms can turn a routine repair into a major operation. Constant motion also puts stress on the hardware. For this plan to work, Panthalassa will have to show that each node can keep running for years in harsh ocean conditions without frequent human repairs.
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Panthalassa’s Ocean-2 prototype is transported by barge, a reminder that building AI infrastructure at sea also means solving major deployment and maintenance challenges. (Panthalassa)
Ocean data centers have been tested before
Ocean data centers are not new. Microsoft experimented with underwater data center servers through Project Natick, including tests in 2015 and 2018. Those tests showed that sealed underwater servers could run reliably while using seawater for cooling, with Microsoft reporting a lower failure rate than comparable land-based systems. Microsoft later ended the project.
Chinese companies have also reportedly pushed ahead with underwater data center projects near Hainan and Shanghai. Keppel has explored floating data center designs in Singapore, where land constraints make the concept especially attractive. Panthalassa’s plan goes in a different direction. It combines wave power with onboard AI chips and satellite-based results. It also depends on floating nodes that would need to operate far from the kind of support a normal data center gets. That is why the idea is getting attention. It is also why skepticism is fair.
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What AI data centers at sea mean for you
For now, this will not change how your phone or computer works. You will not suddenly see a “powered by ocean waves” label on your favorite AI app. But the bigger picture affects everyone. AI needs an incredible amount of electricity. As more companies add AI tools to their products, they need more places to run those systems. That pressure can affect energy grids, water use, local battles over new data centers and even your utility bills over time.
Panthalassa argues its approach could reduce the need for new data centers and power plants on land. That could ease pressure on local communities and the grid, but the company still has to prove the system can work reliably at sea. If ocean-based AI moves beyond testing, it could also raise fresh questions about marine maintenance, environmental oversight and who controls computing infrastructure in international waters.
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Kurt’s key takeaways
Everyone is using AI on their phones and computers these days, but the heavy lifting often happens in huge data centers behind the scenes. That is why Panthalassa’s ocean plan is getting attention. The company wants to use waves for power and seawater for cooling. The hard part is proving that floating AI nodes can survive rough seas, limited satellite links and complicated maintenance. If Panthalassa can pull it off, ocean-based AI could become part of the tech we use every day. If it cannot, it may show just how difficult it is to keep feeding AI’s growing demand for power.
If this kind of ocean-powered AI takes off, would you worry about what these floating nodes could mean for our oceans? Let us know by writing to us at Cyberguy.com
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Copyright 2026 CyberGuy.com. All rights reserved.
Technology
OpenAI keeps shuffling its executives in bid to win AI agent battle
OpenAI announced yet another reorganization Friday, consolidating certain areas and making company president Greg Brockman the official lead of all things product.
In a memo viewed by The Verge, Brockman wrote that since OpenAI’s product strategy for this year is to go all-in on AI agents, the company is combining its products to “invest in a single agentic platform and to merge ChatGPT and Codex into one unified agentic experience for all.”
To do this, the company is making a suite of org chart changes, although it’s still operating under some of the same ones from last month. That’s when AGI boss Fidji Simo went on medical leave and OpenAI announced that Brockman would be in charge of product strategy and CSO Jason Kwon, CFO Sarah Friar, and CRO Denise Dresser would take control of business operations.
It’s all part of OpenAI’s recent strategic shift to focus on key revenue drivers like coding and enterprise and stop pouring resources into “side quests” ahead of its potential IPO later this year and amid investor pressure to turn a profit.
In Simo’s continued absence, Brockman’s role leading product strategy is now official, as well as the company’s “scaling” arm. Under Brockman will be four different pillars. The first is core product and platform, led by Thibault Sottiaux, who has been OpenAI’s engineering lead for Codex, and the second is critical enterprise industries, led by ChatGPT head Nick Turley. Third is the consumer pillar, such as health, commerce, and personal finance, which will be led by Ashley Alexander, who has been its healthcare products VP. The fourth pillar — core infrastructure, ads, data science, and growth — will be led by Vijaye Raji, who has been OpenAI’s CTO of applications.
Brockman wrote in the memo that OpenAI’s goal is now to “bring agents to ChatGPT scale, in order to give individuals and organizations significantly more value and utility from our products.”
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