Has China Hacked All Our Corporations?

Episode 1529 (02:46)

According to Bloomberg, China added a tiny chip, about the size of a grain of rice, to network motherboards that would allow China to Spy on corporations. The chip was discovered by Amazon Security, which notified federal authorities. The servers were created by Chinese company Elemental, and are on everything from network business servers to NAVY WARSHIPS. Investigators have discovered that the chips were installed by the PRC at the manufacturing plant. But here's the twist ... everyone is now denying it. Amazon (which bought Elemental) says that the breach isn't really accurate because they claim these appliances aren't designed for exposure to the internet, which Leo says is patently untrue.