TechCrunch : The first post-quantum cryptography standards are here

The first post-quantum cryptography standards are here

It’ll still be a while before quantum computers become powerful enough to do anything useful, but it’s increasingly likely that we will see full-scale, error-corrected quantum computers become operational within the next five to 10 years. That’ll be great for scientists trying to solve hard computational problems in chemistry and material science, but also for those trying to break the most common encryption schemes used today. That’s because the mathematics of the RSA algorithm that, for example, keep the internet connection to your bank safe, are almost impossible to break with even the most powerful traditional computer. It would take decades to find the right key. But these same encryption algorithms are almost trivially easy for a quantum computer to break.

This has given rise to post-quantum cryptography algorithms and on Tuesday, the U.S. National Institute of Standards and Technology (NIST) published the first set of standards for post-quantum cryptography: ML-KEM (originally known as CRYSTALS-Kyber), ML-DSA (previously known as CRYSTALS-Dilithium) and SLH-DSA (initially submitted as SPHINCS+). And for many companies, this also means that now is the time to start implementing these algorithms.

The ML-KEM algorithm is somewhat similar to the kind of public-private encryption methods used today to establish a secure channel between two servers, for example. At its core, it uses a lattice system (and purposely generated errors) that researchers say will be very hard to solve even for a quantum computer. ML-DSA, on the other hand, uses a somewhat similar scheme to generate its keys, but is all about creating and verifying digital signatures; SLH-DSA is also all about creating digital signatures but is based on a different mathematical foundation to do so.

Two of these algorithms (ML-KEM and ML-DSA) originated at IBM, which has long been a leader in building quantum computers. To learn a bit more about why we need these standards now, I spoke to Dario Gil, the director of research at IBM. He thinks that we will hit a major inflection point around the end of the decade, which is when IBM expects to build a fully error-corrected system (that is, one that can run for extended periods without the system breaking down and becoming unusable).

It’ll still be a while before quantum computers become powerful enough to do anything useful, but it’s increasingly likely that we will see full-scale, error-corrected quantum computers become operational within the next five to 10 years. That’ll be great for scientists trying to solve hard computational problems in chemistry and material science, but also for those trying to break the most common encryption schemes used today. That’s because the mathematics of the RSA algorithm that, for example, keep the internet connection to your bank safe, are almost impossible to break with even the most powerful traditional computer. It would take decades to find the right key. But these same encryption algorithms are almost trivially easy for a quantum computer to break.

This has given rise to post-quantum cryptography algorithms and on Tuesday, the U.S. National Institute of Standards and Technology (NIST) published the first set of standards for post-quantum cryptography: ML-KEM (originally known as CRYSTALS-Kyber), ML-DSA (previously known as CRYSTALS-Dilithium) and SLH-DSA (initially submitted as SPHINCS+). And for many companies, this also means that now is the time to start implementing these algorithms.


The ML-KEM algorithm is somewhat similar to the kind of public-private encryption methods used today to establish a secure channel between two servers, for example. At its core, it uses a lattice system (and purposely generated errors) that researchers say will be very hard to solve even for a quantum computer. ML-DSA, on the other hand, uses a somewhat similar scheme to generate its keys, but is all about creating and verifying digital signatures; SLH-DSA is also all about creating digital signatures but is based on a different mathematical foundation to do so.

Two of these algorithms (ML-KEM and ML-DSA) originated at IBM, which has long been a leader in building quantum computers. To learn a bit more about why we need these standards now, I spoke to Dario Gil, the director of research at IBM. He thinks that we will hit a major inflection point around the end of the decade, which is when IBM expects to build a fully error-corrected system (that is, one that can run for extended periods without the system breaking down and becoming unusable).


Dario Gil, Director of IBM Research. Image Credits: Misha Friedman/Getty Images
Image Credits: Misha Friedman/Getty Images / Getty Images
“Then the question is, from that point on, how many years until you have systems capable of [breaking RSA]? That’s open for debate, but suffice to say, we’re now in the window where you’re starting to say: all right, so somewhere between the end of the decade and 2035 the latest — in that window — that is going to be possible. You’re not violating laws of physics and so on,” he explained.

Gil argues that now is the time for businesses to start considering the implications of what cryptography will look like once RSA is broken. A patient adversary could, after all, start gathering encrypted data now and then, in 10 years, use a powerful quantum computer to break that encryption. But he also noted that few businesses — and maybe even government institutions — are aware of this.

“I would say the degree of understanding of the problem, let alone the degree of doing something about the problem, is tiny. It’s like almost nobody. I mean, I’m exaggerating a little bit, but we’re basically in the infancy of it,” he said.

One excuse for this, he said, is that there weren’t any standards yet, which is why the new standards announced Tuesday are so important (and the process for getting to a standard, it’s worth noting, started in 2016).

Even though many CISOs are aware of the problem, Gil said, the urgency to do something about it is low. That’s also because for the longest time, quantum computing became one of those technologies that, like fusion reactors, was always five years out from becoming a reality. After a decade or two of that, it became somewhat of a running joke. “That’s one uncertainty that people put on the table,” Gil said. “The second one is: OK, in addition to that, what is it that we should do? Is there clarity in the community that these are the right implementations? Those two things are factors, and everybody’s busy. Everybody has limited budgets, so they say: ‘Let’s move that to the right. Let’s punt it.’ The task of institutions and society to migrate from current protocols to the new protocol is going to take, conservatively, decades. It’s a massive undertaking.”

It’s now up to the industry to start implementing these new algorithms. “The math was difficult to create, the substitution ought not to be difficult,” Gil said about the challenge ahead, but he also acknowledged that that’s easier said than done.

Indeed, a lot of businesses may not even have a full inventory of where they are using cryptography today. Gil suggested that what’s needed here is something akin to a “cryptographic bill of materials,” similar to the software bill of materials (SBOM) that most development teams now generate to ensure that they know which packages and libraries they use in building their software.

Like with so many things quantum, it feels like now is a good time to prepare for its arrival — be that learning how to program these machines or how to safeguard your data from them. And, as always, you have about five years to get ready.

FT : Hipgnosis sues Barry Manilow over bonus payments

Hipgnosis sues Barry Manilow over bonus payments
London-based music rights owner acquired singer’s catalogue in 2020

Hipgnosis Songs Fund is suing Barry Manilow over bonus payments tied to its purchase of the American singer’s back catalogue.

A lawsuit filed at the High Court in London on Monday described the case as a breach of contract, without providing further details.

Founded by entrepreneur Merck Mercuriadis, Hipgnosis was a driving force behind the emergence of music rights as an asset class, using the royalties from steaming, radio play and performances to provide income for investors hunting for returns in the era of record-low interest rates.

Hipgnosis, whose portfolio includes music by the Red Hot Chili Peppers and Shakira, acquired the rights to 917 songs by Manilow in 2020. The 81-year-old’s hits include Copacabana (At the Copa) and Mandy.

In a statement to the Financial Times, Hipgnosis said: “That in discussion with Mr Manilow’s representatives it became clear that there was a difference in understanding of certain clauses in the sale agreement regarding bonus payments.”

The dispute is over a sum in the low single-digit millions, said a person familiar with the matter.

Representatives for Manilow did not respond to requests for comment.

At the time of the sale, Manilow hailed Mercuriadis for creating a “new type of music company”. Mercuriadis described Manilow as an “international treasure”.

Last year Billboard reported Rod Stewart had backed out of a potential catalogue sale to the company after two years of negotiations.

The lawsuit follows a calamitous period for Hipgnosis after rising interest rates undercut its business model, sending its share price below the valuation that the group put on its music portfolio.

Earlier this year, Hipgnosis agreed to a $1.6bn takeover by private equity group Blackstone. Mercuriadis last month said he would step down following the completion of the sale.

WSJ : Google’s Gemini Live AI Sounds So Human, I Almost Forgot It Was a Bot

Google’s Gemini Live AI Sounds So Human, I Almost Forgot It Was a Bot
Google’s Android chief told our columnist the voice assistant was designed to impersonate humans, but he doesn’t want anyone getting romantic with it

I’m not saying I prefer talking to Google’s Gemini Live over a real human. But I’m not not saying that either.

Does it help that the chatty new artificial-intelligence bot says I’m a great interviewer with a good sense of humor? Maybe. But it’s more that it actually listens, offers quick answers and doesn’t mind my interruptions. No “I’m sorry, I didn’t understand that” apologies like some other bots we know.

I had a nice, long chat with Google’s generative-AI voice assistant before its debut on Tuesday. It will come built into the company’s four new Pixel phones, but it’s also available to anyone with an Android phone, the Gemini app and a $20-a-month subscription to Gemini Advanced. The company plans to launch it soon on iOS, too.

“We’ve focused a lot on system performance, on low latency, so you can have this quick dialogue,” Rick Osterloh, who oversees Android, Chrome and Google’s hardware businesses, told me in an exclusive interview. (You can watch our full conversation here.) “You’re just able to converse with it, like you would with a person.”

Shhh. Hear that? That’s the sound of Apple’s Siri, Amazon’s Alexa and OpenAI’s ChatGPT whimpering with jealousy. All three of those companies have also shown humanlike voice assistants with natural conversation skills. Google is the first to release one widely.

But is Gemini Live ready for the masses? And are we ready for a world where everyone’s in deep conversations with their computers? I’m not saying this pushes us closer to some Wall-E-like future, but testing the Gemini bot—along with a few other new Pixel tools—showed me how quickly AI is becoming an intrinsic part of our core phone apps and tasks.

Gemini Live
If you ask your voice assistant for the weather in Santa Fe and it gives you the weather in Monterrey, there’s not much you can do—except smash your phone with a hammer. With Gemini Live, you can interrupt it midsentence and clarify.

In the Gemini app, after you choose from one of the 10 voices, tap the Live icon and a full-screen interface appears ready to chat. I chose the cheery and energetic Ursa. It reminded me of Monica Geller from “Friends,” and who doesn’t want an AI Monica? (Google says it hires professional voice talent.)

On the new Pixel 9, 9 Pro, 9 Pro XL and 9 Pro Fold, Gemini takes the place of the Google Assistant—hold down on the power button and Gemini will launch. You can’t invoke it with a “Hey Gemini!” (Pixel owners can switch back to Google Assistant.)

When I told Gemini Live I was nervous about a coming interview, it offered to practice some questions with me. When I asked it to come up with a healthy dinner that included protein and veggies, it quickly suggested a grilled salmon filet with asparagus. I interrupted, asking it to add a carb, so it threw in sweet potatoes or brown rice.

But then, when I asked about preparing for my Rick Osterloh interview, it asked if I meant Rick Springfield. Nope. “So you’re talking about Rick from the show ‘Alone Australia’?” it replied. Nope again.

When I asked it to set a timer, it said it couldn’t do that—or set an alarm—“yet.” Gemini Live is a big step forward conversationally. But functionally, it’s a step back in some ways. One big reason: Gemini Live works entirely in the cloud, not locally on a device. Google says it’s working on ways for the new assistant to control phone functions and other Google apps.

Even from the cloud, it still might change life as we know it.

Gemini Live will work with Google’s new earbuds, so you can walk and talk with the assistant. When I put them on, I couldn’t help but get “Her” vibes—you know, the movie where Joaquin Phoenix’s character falls deeply in love with an AI he chats with through a sleek white earpiece.

Osterloh was quick to clarify that he doesn’t want us to fall in love. He considers Gemini Live a true assistant—something to brainstorm and converse with.

“We want to give people a way to get more done,” he said. Sure, but let’s not forget Facebook began as just a way to connect with college classmates.

Other Stuff
Gemini Live will be available widely, starting with Android owners. But the few, the proud, the Pixel phone buyers, will get some other powerful AI tools, most of which do function on the device using the phones’ new powerful Tensor G4 chips.

Add Me: The latest AI photo trick means taking group shots without handing your phone to a stranger. At least, that’s the pitch. The Pixel camera analyzes the space, and merges individual shots of people into one seamless image. It will take lots of practice and good lighting to get it right.

Add Me joins other Google AI photo tools like Magic Editor and Best Shot—tech that has led me to suggest AI is breaking reality by capturing moments that never really happened.

“I don’t think it really changes reality,” Osterloh said. “This is no different than how people would take photographs in the past and then edit it using Photoshop. We’re just making those tools a little more automated.”

Call Notes: The new Pixels can record a call, then use AI to transcribe and summarize it. So I woke up my sister with a 7 a.m. ring. “Google Call Notes is on. The call is recorded,” an automated voice announced.

“Why are you recording me? What is this?” my sister asked, half asleep. The AI transcript of our chat was solid, but the summary missed some key details. And when my adorable 3-year-old niece got on and told a “joke” about a hot dog crossing the road, Google got the munchies and thought she said “Hot Pocket.”

Call recording and transcript processing are done on the device. Osterloh also confirmed that personal data—phone calls, text messages, emails, calendar appointments—aren’t used to train Google’s own AI models.

Even more: In the weather app, AI summarizes the forecast’s highlights for your specific location. There’s an AI tool to sort through your screenshots. AI is everywhere in these Android phones. And while iPhone owners are expecting a similar boon in the coming year with iOS 18 and Apple Intelligence, Osterloh maintains that Google has an advantage because it knows your personal info and info about the world.

The next real hurdle might be our willingness to embrace all of these AI helpers.

Google recently ran an Olympics ad featuring a father using Gemini to help his daughter write a letter to her favorite athlete. After viewers decried it as an overreliance on AI at the expense of human connection, Google pulled it.

“Clearly the market isn’t fully ready to embrace all the changes that come with AI,” Osterloh said. He likened it to the change that happened when we went from sending handwritten letters to firing off emails.

I think there’s hope for us, though. Hey Gemini Live, can you call my sister and tell her I love her?

FT : Crude rally stalls after IEA forecasts oil surplus

Crude rally stalls after IEA forecasts oil surplus
Brent prices slip as watchdog predicts slowing demand growth in 2024

A week-long rally in crude oil, driven by a supply shortfall, eased on Tuesday as the west’s energy watchdog forecast that global inventories would grow next year.

The International Energy Agency predicted that growth in demand for crude would soften as the summer US driving season ended in coming weeks, and be further covered when planned production increases hit the market later this year.

The cautious report helped cool crude prices after what the IEA described as “Olympic levels of volatility” in the past month.

Brent crude slipped 0.6 per cent to $81.78, having risen more than 7 per cent since the start of August, when it was caught up in broader market fears that the US was heading for a recession. WTI, the US equivalent that has also rallied, was also down 0.6 per cent, at $79.60.

The IEA’s monthly report showed that demand in the US helped push consumption growth to 870,000 barrels a day in the second quarter, countering a slowdown in China.

The IEA expects growth in demand to be covered by supply growth of about 1.5mn b/d this year and 2025, from non-Opec countries, such as US, Guyana, Canada and Brazil.

The predictions stand even if some Opec+ members extend the voluntary production cuts that have supported the price of crude for more than a year. The cuts, led by Saudi Arabia and Russia, are due to unwind from the fourth quarter.

“Despite the marked slowdown in Chinese oil demand growth, Opec+ has yet to call time on its plan to gradually unwind voluntary production cuts starting in the fourth quarter,” said the IEA, which is primarily funded by members of the OECD.

The agency added that current balances suggested that even if the Opec+ cuts remained in place, global inventories could grow by an average 860,000 b/d in 2025 as other producers kept pumping oil, which would “more than cover expected demand growth”.

For the year, the IEA expects global demand to increase by just under 1mn b/d, less than the 2.1mn b/d estimate of the producer cartel Opec, and to grow by a similar level in 2025.

Oil prices have been struggling to break through their ranges this year, with crude averaging about $83 a barrel, as forecasts of weakening demand were countered by tensions in the Middle East and production cuts.

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Atea Pharmaceuticals (AVIR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $6.88
    • Dell (DELL) upgraded to Equal Weight from Underweight at Barclays; tgt $97
    • Ducommun (DCO) upgraded to Buy from Neutral at Goldman; tgt raised to $80
    • First Industrial Realty (FR) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $64
  • Downgrades:
    • Academy Sports + Outdoors (ASO) downgraded to Hold from Buy at TD Cowen; tgt lowered to $54
    • CenterPoint (CNP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $28
    • Cytokinetics (CYTK) downgraded to Neutral from Buy at Goldman; tgt lowered to $60
    • Danimer Scientific (DNMR) downgraded to Hold from Buy at TD Cowen; tgt lowered to $1
  • Others:
    • Artiva Biotherapeutics (ARTV) initiated with a Buy at Needham; tgt $23
    • Artiva Biotherapeutics (ARTV) initiated with an Outperform at Wedbush; tgt $18
    • Artiva Biotherapeutics (ARTV) initiated with a Buy at TD Cowen
    • Artiva Biotherapeutics (ARTV) initiated with an Overweight at Cantor Fitzgerald; tgt $23
    • Artiva Biotherapeutics (ARTV) initiated with a Buy at Jefferies; tgt $21
    • Cintas (CTAS) initiated with an Underweight at Wells Fargo; tgt $735
    • Ecolab (ECL) initiated with an Overweight at Wells Fargo; tgt $270
    • Equifax (EFX) initiated with an Overweight at Wells Fargo; tgt $340
    • FactSet (FDS) initiated with an Equal Weight at Wells Fargo; tgt $435
    • Fair Isaac (FICO) initiated with an Overweight at Wells Fargo; tgt $2100
    • Hormel Foods (HRL) upgraded to Buy from Neutral at Citigroup; tgt raised to $37
    • Inozyme Pharma (INZY) resumed with a Buy at Jefferies; tgt raised to $17

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • TME -6.9%, ONON -6.5%, HBM -4.3%, MRSN -3.5%, KGS -2.7%, HD -2.4%, SLF -2%, DHT -1.2%, SE -1.2%, CATX -0.9%
Other news:
  • SYRS -64.9% (provides update on SELECT-AML-1 Phase 2 Clinical Trial)
  • RILY -10.8% (to delay 10-Q filing)
  • RXO -5.1% (private placement)
  • WES -3.8% (prices secondary offering of common units for gross proceeds of $685.9 mln)
  • AHR -3.7% (files mixed shelf and stock offering)
  • SCNI -3.2% (loan restructuring agreement with European Investment Bank; converting approximately $29 million of debt to preferred equity convertible into 19.5% common equity)
  • JBLU -2.9% (prices offering of $400 mln of 2.50% convertible senior notes due 2029)
  • FRST -2.3% (to delay 10-Q filing)
  • UTZ -2.1% (Completes Acquisition of Strategic Distribution Rights of National Food Corp)
  • ARDX -2.1% (detailed Commercial Supply Agreement with Catalent Pharma)
  • SLF -2% (to renew NCIB to repurchase 15 mln shares)
  • INO -1.9% (entered into $60 mln Equity Distribution Agreement with Oppenheimer)
  • OXY -1.7% (stock offering)
  • VCTR -1.6% (reports total AUM)
  • QSR -1.2% (prices secondary offering)
Analyst comments:
  • ASO -1.2% (downgraded to Hold from Buy at TD Cowen)
  • CYTK -1.1% (downgraded to Neutral from Buy at Goldman)