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Microsoft’s Push For Commercial Quantum Computing By 2029 Faces Renewed Scrutiny

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Microsoft’s ambitious push to build a commercially useful quantum computer by 2029 is facing renewed scrutiny after a fresh critique published in the journal Nature challenged key elements of the company’s scientific claims.

The debate goes beyond an academic disagreement. It strikes at the heart of Microsoft’s strategy to leapfrog rivals such as IBM and Quantinuum by pursuing a radically different approach based on elusive particles known as Majoranas.

The controversy comes at a time when quantum computing has become a strategic priority for governments and technology companies. The Trump administration recently committed $2 billion to accelerate quantum research and set a goal of achieving a scientifically useful quantum system by 2028. The technology is viewed as a potential game changer capable of solving problems in materials science, drug discovery, logistics, artificial intelligence, and cryptography that remain beyond the reach of even the most powerful conventional computers.

At the center of the dispute is Microsoft’s long-running effort to build what are known as topological qubits. Unlike the qubits used by competitors, Microsoft’s design relies on Majorana particles, theoretical quantum states that could potentially produce more stable and less error-prone quantum systems. If successful, the approach could dramatically reduce one of quantum computing’s biggest challenges: error correction.

The problem is that Microsoft’s scientific journey toward proving the existence and practical usefulness of Majoranas has been controversial for years. Several earlier papers connected to Majorana research were retracted after questions emerged about the interpretation of experimental data. Critics have noted that those setbacks have left significant gaps in the scientific foundation supporting Microsoft’s current roadmap.

The latest challenge comes from Henry Legg, a quantum physicist at the University of St. Andrews, whose peer-reviewed critique in Nature focuses on a February 2025 paper that remains central to Microsoft’s quantum program. That paper did not directly claim the discovery of a Majorana particle. Instead, it described software designed to identify a tiny energy gap in a highly conductive wire, a signal Microsoft believes helps identify conditions suitable for creating Majorana-based quantum devices.

Legg’s critique questions whether the evidence presented in the paper adequately supports Microsoft’s interpretation of the results. While the paper itself has not been retracted, the challenge adds to broader skepticism among some researchers who argue that Microsoft has not yet provided definitive experimental proof that its topological approach works as advertised.

The debate is growing because Microsoft used the February paper as part of the scientific foundation for subsequent announcements, including its recent assertion that it expects to have a working quantum system by 2029.

Microsoft has strongly defended its work.

In its formal response published by Nature, the company argued that the software described in the paper serves as a practical tool for configuring quantum devices and identifying optimal operating conditions. Microsoft maintains that the tool is already being used in its laboratories to support functioning quantum operations.

Chetan Nayak, who leads Microsoft’s quantum hardware program, pushed back against critics in comments to Reuters, arguing that the technology is already delivering practical results inside the company’s research facilities.

“It’s almost like arguing, is flight possible or not? And then you’re standing next to an airplane,” Nayak said. “Well, why don’t you hop in and take a ride?”

His defense is part of Microsoft’s broader position that the discussion has moved beyond theoretical possibility toward engineering execution. However, the defense has failed to quell skepticism, which remains widespread within parts of the quantum research community.

Sergey Frolov, a physicist at the University of Pittsburgh and one of Microsoft’s most prominent, believes that Microsoft’s approach lacks the extensive experimental validation accumulated by competing technologies. According to Frolov, companies such as IBM and Quantinuum have spent years steadily demonstrating progress through a series of increasingly sophisticated experiments, creating a more transparent path toward scalable quantum systems.

“Neither Microsoft nor anyone else has laid a foundation where it is clear that these (Majorana-based) advances are plausible, through a series of reliable experiments,” Frolov said. “On the contrary, we have a series of papers that keep being challenged at the very basic level, by different people.”

IBM, Quantinuum, and several other major players rely on more established qubit architectures that have demonstrated measurable performance improvements over time, even though they require extensive error correction. Microsoft is betting that a riskier but potentially more transformative topological approach could ultimately produce more reliable systems with fewer engineering challenges.

The debate has piqued the interest of investors and policymakers, given the enormous stakes. Quantum computing is increasingly viewed as the next major computing platform after artificial intelligence. Success could unlock trillion-dollar economic opportunities while reshaping national security, particularly in cryptography and defense. Governments in the United States, China, and Europe are racing to secure leadership in the field.

The renewed scrutiny does not mean Microsoft’s quantum program is in immediate jeopardy. The February paper remains published, the company continues to invest heavily in the technology, and no formal scientific body has rejected its latest findings. However, the controversy underpins a persistent challenge facing Microsoft: convincing a skeptical scientific community that its unconventional path can deliver on promises that have remained elusive for more than a decade.

Anthropic Accuses Alibaba of Massive AI Extraction Scheme as U.S.-China Technology Rivalry Deepens

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Anthropic has accused Chinese technology giant Alibaba of carrying out what it describes as the largest known attempt to illicitly extract its artificial intelligence capabilities, escalating tensions in the increasingly fierce global battle over advanced AI models and intellectual property.

In a letter sent to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, the AI company alleged that operators linked to Alibaba and its AI research division conducted a large-scale “distillation attack” aimed at replicating Anthropic’s technology through millions of interactions with its models.

The allegations follow Alibaba’s recent lawsuit against the U.S. Department of Defense over its designation as a company linked to China’s military, and add another layer to growing concerns in Washington that Chinese firms are seeking to accelerate AI development by leveraging American breakthroughs.

The June 10 letter, addressed to Senate Banking Committee Chairman Sen. Tim Scott and ranking member Sen. Elizabeth Warren, accused Alibaba of attempting to extract proprietary capabilities from Anthropic’s frontier AI systems through what the company described as a coordinated and fraudulent operation.

According to Anthropic, operators affiliated with Alibaba and its AI laboratory conducted approximately 28.8 million exchanges with Anthropic models between April 22 and June 5 using roughly 25,000 fraudulent accounts.

The company characterized the activity as “brazen” and “illicit,” describing it as the largest distillation effort it has identified to date.

Distillation is a widely used AI development technique in which a smaller model is trained using outputs generated by a larger and more advanced model. While distillation itself is a legitimate machine-learning practice, AI developers increasingly distinguish between authorized distillation conducted with permission and unauthorized efforts designed to replicate proprietary capabilities.

Anthropic argues that the alleged activity crossed that line.

Why Distillation Has Become a Major Battleground

The dispute highlights one of the most significant challenges facing leading AI companies. Training frontier AI models requires enormous investments in computing infrastructure, talent, and data. Companies such as Anthropic, OpenAI, and Google spend billions of dollars developing advanced systems.

Once released, however, those models can potentially be queried repeatedly to generate training data for competing systems.

Industry executives increasingly fear that unauthorized distillation could allow competitors to reproduce key model capabilities at a fraction of the original cost. The issue has become particularly sensitive as Chinese and American firms race to dominate artificial intelligence development.

Several AI companies have privately warned policymakers that model extraction and distillation could become one of the most important intellectual property battles of the AI era, potentially rivaling disputes over semiconductors and advanced manufacturing technologies.

Anthropic used the letter not only to detail its allegations but also to urge policymakers to take a more active role in protecting U.S. AI leadership.

“We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the Administration to maintain American AI leadership,” an Anthropic spokesperson said.

The appeal reflects growing pressure from leading AI firms for stronger legal protections and clearer enforcement mechanisms against model theft and unauthorized replication. Unlike traditional intellectual property disputes, AI model extraction can be difficult to detect and prove, particularly when interactions occur through publicly accessible interfaces and cloud services.

Alibaba Faces Mounting Scrutiny

Alibaba has not publicly responded to the allegations. A representative for the company did not immediately provide comment following publication of the report.

The accusations arrive at a difficult moment for the Chinese technology giant. Just days earlier, Alibaba filed a lawsuit against the U.S. government seeking removal from a Pentagon list of companies allegedly connected to China’s military. The company has argued that the designation has no factual basis and unfairly damages its reputation and business relationships.

Now, the Anthropic allegations risk reinforcing concerns among U.S. lawmakers about Chinese access to advanced American AI technologies.

Washington has already imposed restrictions on advanced semiconductor exports to China and tightened controls on access to high-performance computing technologies needed to train frontier AI systems. As those restrictions expand, concerns are increasingly shifting from hardware access to model access.

U.S. officials fear that Chinese firms could narrow the AI gap through model extraction techniques rather than through direct access to advanced chips. For AI companies, the concern is that if frontier models can be replicated through large-scale distillation efforts, the economics underpinning billions of dollars in AI investment could be undermined.

Bitcoin’s weakest feature

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What happens if Bitcoin falls below $40,000 per coin? This question is becoming increasingly important because Bitcoin does not have an earnings report, cash flow statement, or productive output that can fundamentally alter its trajectory.

In the world of productive assets, there is usually a mechanism for changing the narrative. A company’s share price may be collapsing, but then it reports exceptional revenue growth, introduces a breakthrough product, or delivers strong profits, and suddenly the market reprices the business. Fundamentals can change the direction of the asset.

For Bitcoin, however, the principal driver remains belief and collective conviction. There is no quarterly earnings report, no dividend, no new factory, and no productive activity that directly influences its valuation. Its value is primarily anchored on what market participants believe it should be worth.

Unfortunately, in the economics many of us learned from A. O. Lawal’s textbooks, belief by itself is not directly recognized as a factor of production. Land, labour, capital, knowledge, and entrepreneurship create economic output and provide the basis for valuation. Bitcoin’s challenge is that its valuation is much more dependent on sustained confidence than on productive fundamentals.

That does not mean Bitcoin cannot rise again. It simply means that when confidence weakens, there is no earnings report waiting around the corner to reset the narrative. And that is BTC’s weakest point.

 

Alibaba Sues U.S. Pentagon Over Military Blacklist Designation, Escalating Washington-Beijing Tech Clash

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Alibaba has launched a legal challenge against the U.S. government after being added to a Pentagon list of companies allegedly linked to China’s military, marking the latest flashpoint in the intensifying technological and geopolitical rivalry between Washington and Beijing.

The Chinese e-commerce and cloud computing giant filed a lawsuit in federal court in San Jose, California, on Tuesday seeking to overturn its inclusion on the U.S. Department of Defense’s list of “Chinese military companies,” arguing that the designation is unsupported by facts, damaging to its reputation, and harmful to its business interests.

The case comes as the United States continues expanding restrictions on Chinese technology firms amid growing concerns over national security, supply chains, artificial intelligence, semiconductor leadership, and China’s military modernization efforts.

Alibaba was added to the Pentagon’s blacklist on June 8 when the Defense Department expanded the roster to 188 entities. The company was designated as what the Pentagon described as a “military-civil fusion contributor to the Chinese defense industrial base.”

According to the lawsuit, U.S. officials based the designation on Alibaba’s alleged affiliation with China’s Ministry of Industry and Information Technology as well as an indirect relationship with China’s State-owned Assets Supervision and Administration Commission (SASAC), the powerful agency that oversees state-owned enterprises.

Alibaba strongly rejected those claims.

“The determinations have no basis in fact or law,” the company said in its complaint.

“Alibaba is governed by an independent board, none of whom has any military affiliation.”

The company added that its operations are focused on commercial services.

“Its products and services are built for retail, logistics, and enterprise information technology — not weapons, defense, or intelligence.”

The lawsuit seeks a court order compelling the Pentagon to remove Alibaba from the list.

A Pentagon spokesperson declined to comment, citing the ongoing litigation.

Why the Designation Matters

While inclusion on the Pentagon’s military-company list does not automatically trigger economic sanctions, it carries significant consequences. Under recently enacted U.S. legislation, federal agencies are prohibited from entering into contracts with companies on the list beginning this month.

Starting in 2027, the U.S. government will also be barred from purchasing products or services from those companies through third-party intermediaries. The designation can also create broader commercial challenges by increasing scrutiny from investors, financial institutions, customers, and business partners.

For companies with extensive international operations, reputational damage may prove as costly as the direct regulatory restrictions.

Alibaba argued precisely that point in its filing.

“For many American businesses, Alibaba is the principal gateway to the Chinese market,” the company stated.

“To label Alibaba a ‘Chinese military company’ is to brand it an instrument of the Chinese military and a threat to U.S. national security.”

The company further argued that the designation “directly impugns Alibaba’s reputation and casts a shadow over every U.S. relationship the company maintains.”

Alibaba is not alone. Several prominent Chinese companies were added to the blacklist in the Pentagon’s latest update, reflecting the increasingly broad scope of Washington’s scrutiny of Chinese corporate ties.

Among the newly listed firms are:

  • Baidu
  • BYD
  • NIO
  • WuXi AppTec

WuXi AppTec has already filed its own lawsuit challenging the designation, highlighting a growing legal pushback from Chinese corporations that argue they are being unfairly swept into Washington’s national security campaign.

The Pentagon’s list has become a key instrument in U.S. efforts to limit China’s access to strategic technologies and reduce potential military advantages arising from collaboration between Chinese private firms and state institutions.

Military-Civil Fusion at the Heart of the Dispute

The legal battle centers on one of Washington’s most significant concerns regarding China: the country’s “military-civil fusion” strategy.

Chinese policymakers have long encouraged closer cooperation between civilian technology companies, research institutions, and military organizations to accelerate technological advancement.

U.S. officials argue that this framework makes it difficult to separate purely commercial activities from those that could ultimately benefit China’s armed forces. Chinese companies, however, have frequently argued that the U.S. government applies the concept too broadly, effectively treating major private-sector firms as extensions of the Chinese state without sufficient evidence.

Alibaba’s lawsuit directly challenges that interpretation, contending that the Pentagon failed to establish any meaningful military connection.

The legal fight comes at a critical time for Alibaba. The company has spent the past several years navigating regulatory pressure from both Beijing and Washington while trying to reposition itself as a major player in cloud computing and artificial intelligence. Its cloud division remains one of China’s most important AI infrastructure providers, serving businesses, developers, and government agencies across multiple industries.

Any restrictions affecting Alibaba’s international operations could have implications far beyond its e-commerce business, particularly as competition intensifies in AI and cloud services.

The lawsuit also underscores an emerging shift: Chinese technology companies are increasingly choosing to challenge U.S. government actions in court rather than relying solely on diplomatic channels.

China Strikes Back in the AI-Cyber Arms Race: 360 Security Unveils Domestic “Mythos” Challenger as U.S.-China Tensions Escalate

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In a pointed declaration of technological self-reliance, Chinese cybersecurity powerhouse 360 Security Technology has rolled out what it describes as a homegrown counterpart to Anthropic’s powerful Mythos AI system, framing the U.S. model as a strategic capability that Beijing simply cannot allow to remain a one-sided advantage.

Speaking at the ISC.AI 2026 cybersecurity conference in Beijing on Wednesday, 360 founder Zhou Hongyi unveiled two new AI-driven security tools under the banner “Yitian Tulong” — a reference to legendary weapons from a classic Chinese martial arts novel, evoking themes of unmatched power and national defense.

The announcement underpins China’s accelerating push to close the gap in offensive and defensive cyber tools amid deepening U.S. restrictions on advanced AI technologies.

One tool, dubbed “Tulongfeng,” is designed to automatically discover software vulnerabilities, which Zhou boldly called “China’s version of Mythos.” A second system, “Yitianzhen,” focuses on automating cyber defense and incident response. Together, they represent 360’s bid to build a comprehensive AI-powered security arsenal capable of both identifying weaknesses and mounting rapid countermeasures.

“This kind of powerful weapon that can change the landscape of cyber offence and defense cannot be held only by others,” Zhou said in his speech, according to a transcript published by the company. “We cannot afford to wait.”

Mythos, previewed by Anthropic in April, has sparked alarm in Washington and beyond for its ability to rapidly uncover vulnerabilities in operating systems, browsers, and other critical software. In a dramatic move earlier this month, the U.S. government ordered Anthropic to suspend exports of a less powerful version of the model worldwide, citing national security risks. Cybersecurity experts have warned that such tools could dramatically amplify the speed and scale of cyberattacks if they fall into the wrong hands.

Zhou argued that allowing the U.S. to maintain exclusive access to Mythos-like capabilities would create “one-way transparency,” where American entities could scan Chinese systems while Beijing lacked comparable tools. His remarks echo a growing sentiment in Chinese state media and policy circles that the country must match or surpass Western advances in AI-driven cyber tools to protect critical infrastructure and maintain strategic parity.

A Calculated Response to U.S. Export Controls

360’s development is believed to be part of China’s broader strategy of circumventing U.S. export restrictions on advanced chips and frontier AI models. Since 2022, Washington has tightened controls on high-end semiconductors, arguing they could enhance Chinese military capabilities. While domestic models still lag U.S. counterparts by an estimated 20-30% in base capability, according to Zhou, Chinese firms are increasingly turning to “agent”-based architectures that combine existing models with specialized security expertise, vulnerability databases, and automated workflows.

Objectively speaking, domestic models still have a 20%-30% gap in base capability,” Zhou acknowledged. “China cannot wait until model capabilities have fully caught up before starting vulnerability discovery.”

He contrasted the U.S. approach, relying on the “strongest model, the strongest computing power and the strongest chips”, with 360’s method of building a complete, reliable system.

“If Mythos is a top-end chip, what we are building is a complete machine that can run stably, work 24 hours a day and make fewer mistakes. If the U.S. route is to cultivate a genius hacker, 360’s route is to organize a professional attack-and-defense team,” he said.

The development comes against a backdrop of mutual accusations between Washington and Beijing over offensive cyber operations targeting critical infrastructure. Last year, Anthropic reported that hackers had exploited vulnerabilities in its Claude AI to attack around 30 global organizations. A separate IBM and Palo Alto Networks survey found that 67% of executives had been targeted by AI-enhanced attacks in the past year.

For China, the stakes are existential. With its economy and military increasingly digitized, vulnerability to advanced AI-driven reconnaissance or attacks could have devastating consequences. Zhou, a veteran entrepreneur and member of China’s top political advisory body, framed the issue in stark national security terms, reflecting Beijing’s view that AI cybersecurity tools are no longer optional luxuries but strategic necessities.

360’s move also illustrates a growing trend in China: leveraging “agentic” AI systems that integrate multiple tools and domain expertise rather than depending solely on raw model scale. This pragmatic approach may help narrow the capability gap faster than attempting to match U.S. frontier models head-on under export control constraints.

Implications for Global Cybersecurity and Tech Competition

However, the emergence of a credible Chinese response to Mythos is expected to accelerate an AI-driven cyber arms race, with both sides racing to develop tools that blur the lines between defense and offense. For global companies and governments, this raises difficult questions about supply chain security, vulnerability disclosure, and the dual-use nature of advanced AI systems.

Against that backdrop, Western nations may view 360’s tools with suspicion, similar to how they regard other Chinese cybersecurity offerings. At the same time, the development underscores the challenges of containing AI proliferation in a world of fragmented technology supply chains and competing national interests.

However, the announcement reinforces 360’s evolution from a consumer antivirus provider to a major player in enterprise and government security. Founded by Zhou, the company gained prominence through antivirus software before expanding into broader digital defense solutions. With the ability to deliver “Mythos-equivalent capabilities” through integrated agent systems,  the company’s position in China’s domestic market and potentially in friendly international markets wary of full U.S. alignment is expected to be strengthened.