… the Defense Department is signaling its intent to ramp up a range of aggressive covert activities abroad — potentially including cyberattacks, supply chain disruptions and disinformation operations. Many of the people who spoke to POLITICO argued that the aggressive new initiative is needed to help the Pentagon counter foreign adversaries they say are harnessing artificial intelligence and advanced commercial technologies, such as drones, in creative ways that could erode America’s military advantage…

While TSO lacks the legal authority to conduct clandestine operations directly, it works closely with senior U.S. military and intelligence officers to develop cutting-edge tools and strategies to disrupt adversaries’ access to critical defense technologies — or subvert them from afar. TSO is staffed with engineers, special operators and intelligence officers, and its work spans everything from building bespoke hacking tools to planning elaborate deception operations that trick adversaries into installing faulty components — likely designed by TSO — in key foreign weapons platforms. TSO’s overarching goal is to “buy time or stop adversaries from developing technologies” that would most threaten the U.S. military in a major conflict, said a former U.S. intelligence official who worked closely with the agency… A second former Pentagon official and a former U.S. national security official said the agency has told some defense contractors it’s interested in offensive hacking capabilities. The former senior Pentagon intelligence official estimated that its budget for classified contracts alone is likely north of $1.5 billion.

They are seeking contractors on “the leading edge of technology,” that official said, and hope to procure “a whole host of tools wherever your imagination can go.”