ALFA Field Notes

The Internet Race from Space

China is in the satellite internet race. The CCP-backed internet satellite provider, SpaceSail has a long term plan to launch 43,000 low-earth orbit (LEO) satellites, and is aggressively courting Global South nations as the provider of critical internet services. While Elon Musk's Starlink currently dominates the market with 7,000 satellites, the battlefield is rapidly expanding. SpaceSail's ambition to deploy 15,000 satellites by 2030, backed by nearly $1 billion in state funding, signals China's determination to scale digital soft power.

But this is also about more than internet access:

• Chinese satellite networks expanding globally create potential surveillance vectors and censorship capabilities that extend Beijing's digital authoritarianism far beyond its borders.

• Chinese military researchers are already working to track and potentially neutralize Starlink, while developing their own alternatives. Ukraine demonstrated how critical satellite communications are in modern warfare.

• America’s technological supremacy is not guaranteed. As we’ve talked about with the Biden AI diffusion rule, China is relentlessly working to capture market share in technology sectors that will shape the future.

The race for satellite internet dominance has become a strategic imperative and we cannot afford to become complacent.

Mapping the Future

Building on one of the core themes ALFA is focused on, Interior Secretary Doug Burgum is laying the groundwork to secure our resource destiny. Last week, he shared the U.S. Geological Survey’s (USGS) updated plan to properly value the deposits of oil, gas, and minerals that sit on federal lands. Bloomberg reported Burgum said: The USGS has “got a job to actually go out and map those resources to find out how many trillions or hundreds of trillions of dollars of assets belong to all of you, the public.”

For our Congress watchers, this is could have significant budgetary implications.

From compute-clusters to resources that power them, our federal lands policy is emerging as a top determining factor to our country’s technological success and Secretary Burgum is making sure we don’t fall behind.

Apple’s American Investment

Apple’s announced $500 billion investment is an industrial commitment that will reinforce domestic manufacturing at a critical inflection point in global technology competition. Here are three moves associated with the announcement that matter:

• AI Hardware Comes Home: Apple's Houston facility will produce the servers powering Apple Intelligence and the secure extension of devices into their own cloud servers – bringing critical infrastructure back from overseas. The 250,000-square-foot factory creates thousands of jobs while securing our AI supply chain precisely when data centers face unprecedented demand.

• Silicon De-Risking Accelerates: By doubling its Advanced Manufacturing Fund to $10 billion and directing billions to TSMC's Arizona facility is physical proof that semiconductor repatriation is happening.

• Manufacturing Skills Gap Addressed: The new Apple Manufacturing Academy in Detroit isn't just about factories – it's about rebuilding America's manufacturing knowledge base. Free courses in AI implementation and process optimization will help small manufacturers compete in the technological arms race.

The AI revolution requires immense physical infrastructure – data centers, chips, and specialized hardware. Apple's investment acknowledges that capturing AI's transformative potential means rebuilding American industrial capacity.

The future of Apple’s technology supply chain is being built in Houston, Detroit, and Arizona. Apple's $500 billion vote of confidence isn't just about one company – it's about securing America's place in the AI-powered future.

Thanks for reading and have a great week.

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