[Applause] hello sphere my name is Miko I've been working in this field forever in fact I've been working in this field so long that one of the first maler I analyzed looked like this this is 1992 piece of malver called Phantom made somewhere in Russia spreading on well as you probably know one of these sort of becoming a mandatory tradition that I have to show a floppy on stage wherever I am and throughout these years that I've been working in this field I've been thinking about the technology change how our society is changed by technology because nothing shapes our society more and nothing shapes our society faster than technology revolutions technology changes our world more and faster than anything else all the way from the Industrial Revolution which I think about as the the age of artificial power where we invented that we can have machines do the things we used to do with muscles or the revolution of electricity revolution of connectivity which we call the internet or now the revolution of AI or maybe generative AI nothing changes the world as much and as quickly and these are all tradeoffs we get great things from these Innovations we get great things from these technology revolutions but we also always every single time we get downsides get upsides and downsides and when we invent something when we make a technological innovation it's with us forever whether we like it or not because we cannot make things go away we cannot uninvent Things We cannot put the cat back into the bag once it's out of the bag Innovations don't go away even if you want them to go away and in many cases we don't want them to go away so if we for example think about one of the biggest inventions of time internet I was born in 1969 the TCP I protocol well actually the IP protocol TCP came a little bit later was invented in 1969 so if you ever wonder how old is the Internet it's this old that's that's how old it is an internet is the best thing I love it I'm in love with the internet it has brought us so much good so many benefits so many new business opportunities so many new forms of entertainment so many forms of connectivity it's the best thing ever it's also the worst thing ever it's brought us online crime online risks online War we we can't just take the upsides we will get the downsides whether we like them or not so internet is a prime example of this internet is great and awful at the same time and this is an example of an innovation we don't want to go away because the upsides are clearly bigger than the downsides we just have to accept the downsides one of the main reasons why internet is so good one of the main reasons why it's so durable is the protocol itself the one invented in 196 69 IP well when it was combined with TCP IP we got a protocol which moves data from point A to point B and if there is a problem on the way like cut connectivity or something it will automatically reroute the packet it doesn't matter how complex the route is from point A to point B if there is a route it will find it that's great that's why internet works so well works surprisingly well for a 50-year old Technology Innovation it's amazing how well it works it's also awful because it has turned out to be surprisingly hard to keep things off the internet if you want to keep things off the internet that's surprisingly hard we see this all the time factories power generators ski lifts connected to the Internet by accident originally whatever Factory or plant or energy generation system that gets exposed originally it was offline and things are yeah they are much safer if they're on offline but it's hard to keep them offline especially it's hard to keep them offline for extended periods of time like years whenever we scan public IP ranges and find factories and similar pieces of infrastructure online and we investigate why they are exposed to public internet the story is almost always the same but it was offline for many years it was offline fine then something happened the company bought another company which bought another company the networks were joined together and reconfigured and that's the problem tcpip will find a way it will find a way it reroutes if it wants to get a packet from point A to point B no matter how complex the route is if there is a way it will find the way it's great and it's awful another example of the changes the internet brought to us was social media every year the Time Magazine selects the person of the year in 2006 the person of the year was you the cover of Time Magazine actually had a mirror so if you were looking at the magazine you saw yourself and the reason why they selected you as person of the year was that this was the time that social media started becoming mainstream YouTube had been released two years earlier Myspace was the number one social media and Facebook was starting to become more common and this really did change everything you I mean Time Magazine was absolutely correct to pick up on this trend they noticed that things are changing we used to be getting our information from Central sources like TV or radio or newspapers and suddenly we had a two-way route we had social media now everybody and anybody could publish their thoughts for everyone else it used to be top down now it was peer-to-peer this seems like a good idea turns out it's an awful idea social media is an awful idea isn't it well yes it has its upsides but also the downsides are very clear all kinds of nut cases get their messaging out there as well we get this polarization of opinions and social media is the prime reason why conspiracy theories Thrive better today than ever before another example encryption Technologies not too long ago roughly 30 years ago we invented strong un trackable encryption algorithms a little bit more than that maybe 35 years ago and that's great these Technologies using keys which are so long that computing power of the planet cannot crack them or it will take hundreds of millions of years to crack them that technology is the technology which has provided us all of us with security and privacy we all use strong uncrackable encryption every day all the time we use it every time we go online to do anything just surfing on the web or definitely when you're making purchases or doing online banking or sending messages and this is great we want to keep our messages and our purchases safe and secure and private but it's also awful when bad people use these Technologies bad people like criminals or terrorists or what have you and we cannot make this Innovation go away even if we want even if you would want it to go away we couldn't we couldn't make it disappear because the invention has been done we cannot uninvent it even if we would destroy every single secure encryption app and messaging system and all of that anybody with even basic programming skills could walk to the nearest library and lend a basic math book which would contain instructions on how to implement uncrackable encryption we cannot make this idea disappear the best we could do is that we could make it illegal which we certainly could do obviously we could pass laws which would say that using strong encryption is bad and it's outlawed you must not use it that would solve the problem wouldn't it then if strong encryption would be outlawed it wouldn't be used except by the ones who break the laws and you know who breaks the laws criminals break the laws so if he would pass a law like this the only ones using strong encryption the only ones with strong security and strong privacy would be the criminals the ones who would lose out would be you and me this is what I mean by being unable to get rid of Innovations once we've invented them strong encryption has many other ways of harming us as well of course ransomware is a great example of that ransomware gangs wouldn't have a job if strong encryptions wouldn't or strong encryption Technologies wouldn't enable them to encrypt the files of the victims in a way that they can't recover them without paying that's a problem and of course this particular problem of rans over is very tightly connected to another thing which is great and awful at the same time cryptocurrencies it's easy to find bad sides of Bitcoin clearly criminals use it all the time so how is it great what are the upsides well Bitcoin is a real genuine Innovation or let me put it like this the blockchain running Bitcoin is a very real and very genuine major Innovation how can you tell when an innovation is a major Innovation well you can tell because it seems pretty obvious after it has been invented that's how you can tell whenever someone invents something and it he explains it to you or she explains it to you and you go like huh well that's that's obvious that's a mark of a big innovation because if it's obvious after it has been invented then it's a big innovation and that's exactly what blockchain is the Bitcoin blockchain is very simple it's a ledger of transactions a list of transactions with two features feature number one every transaction in this list is public forever feature number two every entry in this list is UN changeable forever that's it that's the Innovation and when you explain it like that it seems pretty obvious that's it a list of transactions which is public forever and unchangeable forever that doesn't sound like a very big innovation at all that's pretty obvious well yes it's obvious now but it wasn't obvious in 2009 when it was invented and you can do tons of things with a new innovation like this certainly move money that's what Bitcoin is all about but you can do tons of other things as well like smart contracts or you can build programmable finances any transaction where you have parties who don't know each other and don't trust each other can benefit from an innovation like this but I don't need to tell you about the downsides because clearly this is one of the reasons why we see so much online crime this right here has enabled unlimited amounts of online fif Bitcoin is the equivalent of cash to the online world and just like real world crime runs with cash online crime runs with Bitcoin that's Bitcoin anybody want a Bitcoin there CCH here we go and he dropped it oh my God take good care of it it might become valuable one day and this cryptocurrency world and innovation of virtual currencies has been the fuel which has been firing up the largest online crime gangs in the world gangs which I call cyber crime unicorns the biggest gangs gangs like loit or Akira gangs which make millions and millions with their attacks and to make matters worse they've kept their wealth in cryptocurrencies like Bitcoin for years and years which meant that because of the valuations have grown these gangs have become wealthy almost automatically and if something is worse than an organized cyber crime gang a wealthy organized cyber crime gang is even worse because now they can invest into their attacks they can run their own data centers they can start to hire more they have HR teams they have lawyers they have physical offices physical data centers that's what we don't want them to have another thing that these gangs do when they become powerful enough and Rich wealthy enough is that they start to do branding they start to Brand themselves that's why they have names that's why they have logos think about this organized crime gangs that do branding organized crime gangs that have logos that run websites that are trying to create name recognition for themselves sounds pretty wild but then again if we forget the cyber world for a moment and think about the real world well one of the strongest brands in the world is hil's Angels everybody knows hil's angels very big brand very recognizable brand also very strong brand in the sense that it's scary strong and scary brand exactly what an organized crime gang would need because everybody knows that Hell's Angels is scary you don't mess around with the Hell's Angels or with the pidos or with the Los Zetas or MS13 or Triads or yakas or kras they've build Brands and that's exactly what ransomware gangs are doing as well they're building Brands scary Brands brands that we would know and we do know them exactly in the same way as it's bad news if you end up in trouble with Hell's Angels or Bandidas it's trouble if you end up having a problem with Akira or other major ransomware gangs they've been in operation for years and they've built a scary bre it enables them to recruit better and it enables them to scare their victims better the good news in the world of cyber crime unicorns in 2024 is that we've seen more law enforcement action than in a good while not necessarily sentences not even arrests but we've seen lot of disruption law enforce agencies from the West have taken down and hacked multiple tour hidden websites run by these unicorns and many of the biggest leaders have been indicted like Mi matv who was indicted in December or dri corev who was indicted two weeks ago three weeks ago kosev who lives in the city of vonesh right on the Ukrainian border but on the Russian side both kosev and matv are linked to the lock bit gang gang which has been disrupted but is still in operation today they have a new darket website and they're still posting victims last victims were posted last week so how did mikil react to the news when he heard the news that he's been indicted well he's in Russia he's been indicted by Federal Bureau of Investigation from the United States USA has no jurisdiction FBI cannot come up and arrest him Russian law enforcement probably doesn't care because his victims are not in Russia these gangs take great care to make sure their victims are everywhere else except in Russia there might be some bribery going on as as well he probably believes he's protected how can we tell because when he was indicted mile tweeted about this he posted a tweet of his working space with the message cuckoo and the space contained the T-shirt he had made out of the indictment nice guy his whereabouts are unknown he hasn't been arrested by any law enforcement if we've accomplished anything with these actions it is that these Russian criminals will not be leaving Russia during their lifetime no more holidays in uh in the Mediterranean for these guys linked to these rans gangs and other unicorns is of course Tor or Tor hidden service which is once again the same thing it's great and it's awful right now I would say t is more awful than great but it is used for good uses as well the history of Tor comes from a project funded by United States Air Force to build a network that could be used inside aoran uh Societies or inside totalitarian states by uh people who would like to change their society people who need to be able to access outside internet and communicate inside their country securely and safely that's what it originally built for however if you go to tour especially tour hidden service today to look at the content it's pretty nasty because what tour does is that it hides the physical location of the servers normal servers in the normal web or normal internet you can always figure out where they are they have addresses domain names IP addresses you can figure out where they are which operator is running this and if there's something illegal on the site law enforcement calls the operator they shut down the side and if it if there's a crime they get a copy of the server for investigation purposes and this is the thing you cannot do in tour because we don't know where the servers are that's what tour does it hides the physical layer we have no idea if the server is in your city or across the world cops can find the servers that's the problem end result when you go to Tor hidden service you'll find sites selling guns or any other illegal things sites selling Hitman services and of course tons and tons of drug trade drug trade has largely moved from The Real World to tour hidden service especially consumer drug trade people go online buy MDMA or cocaine pay with Monero or other cryptocurrency and get their drugs shipped to them in mail like normal postal mail that's how most of the drug trade today works all this is enabled by crypto currencies and T hidden service and we cannot make this invention go away can't uninvented so what about more modern developments like quantum computers well they're also great and awful at the same time I actually visited a quantum computer Factory last year I've touched a quantum computer I can tell you that they're really cool like literally cool quantum computers run at minus 273 degrees celius so really cool and that's great because they are unlocking whole new levels of computing capability they will change the way we do Computing we don't exactly know when this revolution will start for real but it's getting closer so what's the downside well the downside is very big part of the encryption algorithms we use can be broken by quantum computers so how do quantum computers work I'm not going to explain it to you instead I will have the prime minister of Canada explain it to you I was going to ask you to explain Quantum Computing but um when do you expect uh Canada's Isel mission to begin again and are we not doing anything in the interim uh while we prepare okay uh very simply normal computers work uh by uh no no don't don't interrupt me when you walk out of here you will know more no some of you will know far less about Quantum Computing but most of you normal computers work either there's power going through a wire or not it's one or a zero they're binary systems uh what Quantum states allow for is much more complex information to be encoded into a single bit regular computer bit is either a one or zero on or off a quantum State can be much more complex than that because as we know things can be both particle and wave at the same times and the uncertainty around Quantum uh States uh allows us to encode more information into a much uh smaller computer so uh that's what's exciting about Quantum Computing and that's what we're going um yes that's exactly what's exciting about Quantum Computing but the downside is big part of the encryption systems that we use for our security and privacy can be broken once we have enough cubits including well practically all of the web all online uh stores online banking most of the messaging systems we use not everything for ex example latest version of signal has a Quantum safe algorithm in use same thing with latest version of iMessage in iPhone also if you use SSH for terminal connections they started supporting Quantum safe algorithms late last year and also Bitcoin if you use a new transaction for every or new address for every transaction it is quantum safe or considered to be Quantum safe however we have tons of things to still change and make them Quantum safe it is going to be a massive undertaking to make everything safe in time before Quantum hits us because we don't really only need to change every web browser and every every laptop and maybe every phone we also have to update every smartw watch every television every car and if you think about the ipv4 to IPv6 change we've been doing that for three decades now and we're not ready this is going to be a much bigger undertaking so we really should start now because Quantum like everything else is great and awful at the same time and that brings us to well you know what AI yes I think we all know it it is great and it is awful at the same time and the main reason why this revolution is happening right now is the computing power it's the introduction of new machine learning algorithm which were being run not on CPUs but on gpus that right there an Nvidia H1 100 is really what changed the game that enabled us to start the AI Revolution for real this right here this is what was used to teach GPT and Gemini and Claud and mid journey and stable diffusion and sunno and udio and music LM and any of the other generative AI systems you use whether they are large language models or image generators or anything else and this right here is the hardest thing to build in the world it's so hard to build there's only one Factory in the world which can make these it's easier to put a man on the moon than to build one of these and that's why we get these crazy valuations right now in stock exchanges if you look at sales statistics of Nvidia you look at how many h100s they shipped last year they shipped around half a million of those Google bought 50,000 Microsoft bought 150,000 000 meta bought another 150,000 and after these figures were made public Mark zberg actually called OMD research which made these statistics to correct them that no we actually didn't buy 150,000 we bought 600,000 what's the price €40,000 for one we're speaking about billions and billions being invested into the computing power which is used us to teach the systems you use every day there's also very clear environmental cost because these use hundreds of wats of power where is open AI why isn't on the list well the rumors say that just the video generation algorithm used by open AI uses 750,000 h100s but it's a little bit unclear how many of those they own themselves and how many of those they use from their Partners mostly from Microsoft's um uh collection of age 100s but this is really the main reason why this revolution is happening right now so last year here in sphere I was speaking about AI I actually watched The Talk two weeks ago when I Was preparing for this talk some of the things had already uh very different for example one slide I showed at sphere 2023 was this I was speaking about the hottest summer in AI history clearly I was wrong right now it's the hottest summer just go outside and see the hottest summer by yourself I was complaining about how it was hard to keep up with the Innovations even if you want to because there's so many new Innovations coming out so many new products so many new protocols and I showed an example music LM I gave a prompt to a music generator like this and it generated a song a rising synth is playing on our Peto with a lot of Reverb and I believe I said to the audience 12 want ago that yeah it's not going to be a a hit but you know it could be playing background in an elevator but it's going to get better all right 12 months later and we end up with systems like sunna and audio music gener generators are better I gave a prompt like this hey audio give me a rock song about a group of cyber security nerds that's you here at the Cable Factory in Finland udio went to work 30 seconds later it had composed a tune arranged the tune played the instruments then it wrote the lyrics and then it sang the song would you like to hear the song [Music] cyber Warriors break the C in hink unfold late night C in our ve hunting down the digital chains fire walls and encryption keys defending networks with [Music] expertise C Warriors where the guard of the united in a mission we won't forget our will [Applause] [Music] never cyber security the best [Music] [Applause] what can I say what the hell first attempt it's pretty amazing isn't it it's crazy it's insane and you could ask it okay great now change the song same song but sing it in finish and it's going to sing in Finish change it to a Tango change it to death metal change it to gangster rap and it's going to do that and all of them are decent actually better than decent I've played around with sunno and udio a little bit and I find myself Weeks Later humming to the tune yeah which song is this oh God so when you ask AI to make a catchy tune it makes a catchy it knows what's catchy to us humans and it optimizes for that and it ends up with Tunes which are surprisingly good I tweeted a couple of weeks ago that I'm forecasting that we will have a top 40 hit during this year straight out of one of these generators who's going to get the royalties I have no idea I don't really know how it works but it is this is a little bit unnerving because we used to think that we humans are the ones that create art and clearly this is Art and imagine how good it will be next year 10 years 20 years think about the change from last year and what what we're seeing now it's insane I especially like the lyrics where it wrote that but U keyboards as our sorts I really like the idea of something like this other things are becoming practical as well earlier this month when I was at the RSA conference I ordered a taxi instead of uber I used Veo exactly the same thing mobile app where are you where do you want to go and the car comes over picks you up and drives away except there is no driver and it is freaky like that's me sitting on the passenger side scared to my wits about this car driving itself in the middle of Russia or traffic in San Francisco no problems there's actually a small sign at the wheel which says don't touch the wheel so these are pretty cool a yeah is pretty awesome isn't it it's great it's also awful we are seeing attacks already we've seen the first first examples of malware using large language models and of course we're seeing plenty of these deep fakes although typically the Deep fakes today are deep fakes of celebrities used in consumer scamps not to fool corporate audiences but consumers typically to buy a cryptocurrency token in a cryptocurrency scam hello everyone I'm here to tell you about the new Orland crypto token the new cryptocurrency that will change the world forever with with this token you have a unique opportunity to invest in the future of brain machine interfaces no bad idea do not invest in these interfaces especially do not invest through neurolink token it scam so what about cases that we've heard of cases where companies Get Fooled by Deep fakes where the financial clerk gets a call from the CFO over teams and it's a realtime chat with the CFO who turns out to be a deep fake well this hasn't happened or if it has we have no evidence clearly we do already have the technology to pull off oneoff scams with real-time deep fakes of real people but we have no evidence of that happening it's going to happen but we haven't seen it yet what we have seen what we have evidence of is audio deep fakes even those we haven't seen in real time use but for example three months ago we had a case where CEO of a Nordic company sent a voicemail to the WhatsApp of financial clerk in the Danish Office of the same company he sent a message and then continued the scam by chatting over WhatsApp let's listen to the voicemail as well I need you to manage and disclose deal for the from the company from Sweden please let me know when you're available I need you to manage and disclose the deal with the company from Sweden please let me know when you're available the CEO confirmed that yes that is my voice no I did not say that this is real happened three months ago I have two cases like this similar cases where CEO voice was stolen for a pre-rendered attack not not video not real time but nevertheless it's happening but I only have two cases I don't have 200 I don't have 2,000 cases I'm trying to calm down a little bit about the hype around AI attacks we do have the technology to do all kinds of attacks but we aren't seeing massive amounts of attacks yet is it going to get worse I'm afraid it will but it's not a huge problem yet at the moment so let me give you a practical tip regarding risks with AI we've all seen images made with AI generators and we know that AI has problems when it makes pictures it has problems with hands for some reason many of the generators whether it's mid Journey or stable diffusion or something else they have problems with human hands human hands are hard hard so the Practical tip I have is that you can do what I've done go online and order yourself an extra finger like this it's a finger made out of rubber I paid €3 for it looks real enough and every time you're in a photo someone wants to take a selfie with you you wear an extra finger here we go yeah hey let's go and then later you can deny I wasn't there I wasn't at Carell I've never heard of this place who are these people that's a deep fake just count the fingers okay maybe not a very practical tip but a tip nevertheless and that means my friends that means that there's only one thing left to do there's only one thing we must do because we are the guardians of the [Music] [Applause] [Music] [Applause] net ladies and gentlemen M hoop thank you that concludes sphere 2024 thank you all so much for coming we hope you enjoyed it did you enjoy it because you are the guardians of the [Applause] net let sway see you next year thank you bye ladies and gentlemen thank you thank you [Music] he [Music] [Music] down