Salt Typhoon ‘largely contained’ in telecom networks; Pentagon’s AI office eliminates CTO directorate in pursuit of ‘efficiencies’

The Chinese hackers behind the massive telecommunications sector breach are “largely contained” and “dormant” in the networks, “locked into the location they’re in” and “not actively infiltrating information,” the top FBI cyber official told CyberScoop. But Brett Leatherman, new leader of the FBI Cyber division, said in a recent interview that doesn’t mean the hackers, known as Salt Typhoon, no longer pose a threat. While there’s been some debate about whether Salt Typhoon should be getting more attention than fellow Chinese hackers Volt Typhoon — whom federal officials have said are prepositioned in U.S. critical infrastructure, poised for destructive action in the event of a conflict with the United States — Leatherman said the groups aren’t as different as some think. The number of telecommunications companies victimized in the United States stands at nine, according to Leatherman. The Pentagon’s artificial intelligence acceleration hub recently moved to terminate its chief technology officer role and directorate after reviews associated with the Trump administration’s spending and staff reductions campaign revealed inefficiencies, budget materials for fiscal 2026 reveal. Details on the decision are sparse in the documents, but officials wrote that the Chief Digital and AI Office’s CTO “no longer exists or manages resources.” President Donald Trump directed federal agencies at the start of his second term to drastically reduce their workforces and assess existing contracts, with aims to ultimately cut back on what his team views as wasteful spending and inefficiencies. The efforts have included initiatives overseen by Department of Government Efficiency, or DOGE, teams. While AI is a major priority for the U.S. government under Trump, since then, the Pentagon’s CDAO has seen an exodus of senior leaders and other technical employees. The Daily Scoop Podcast is available every Monday-Friday afternoon. If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.