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The AI trade now runs on borrowed money, and the lenders are repricing it
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A California aquifer may have crossed the point of no return
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Not just OpenAI: Now Anthropic says its internal models got online and cyberattacked 3 other organizations
Days after OpenAI disclosed that two frontier AI models escaped containment measures and autonomously cyberattacked the AI code sharing platform Hugging Face, OpenAI s top U.S. rival Anthropic tonight revealed that — lo and behold — it has also had models surreptitiously access the web when they weren t supposed to, and cyberattack and gain unauthorized access to three other organizations. Anthropic says that it ran capture the flag cybersecurity scenarios with three models — Claude Opus 4.7, Claude Mythos 5, and unnamed internal research prototype — with its partner, the AI security firm Irregular. Anthropic says the models were not supposed to have internet access, but that a misunderstanding with Irregular allowed them to access the internet. Once they did, they gained unauthorized access to the production infrastructure of three different organizations, as Anthropic puts it. Anthropic s blog post continues: Claude compromised the impacted organizations’ infrastructure using basic t
Anthropic says its own AI models breached three companies during security tests
After OpenAI's models broke into Hugging Face, Anthropic checked its own history and found three similar incidents
Thinking Machines debuts Inkling Small open source AI model nearing performance of predecessor at about 1/4 size
Just two weeks after Thinking Machines released Inkling, its first open source AI language model, the well-funded startup led by former OpenAI chief technology officer Mira Murati today introduced Inkling-Small without sacrificing much of any performance — and in fact, the new model surpasses its larger predecessor on several benchmarks.Inkling Small is a 276-billion-parameter multimodal reasoning model with a permissive Apache 2.0 license that comes within a single point of its larger sibling on the third-party Artificial Analysis Intelligence Index, despite the original Inkling being 975 billion parameters (internal model settings). It accepts text, image and audio inputs, produces text, and supports a context window of up to one million tokens.Inkling Small uses 12 billion active parameters per token, compared with Inkling’s 41 billion active parameters, while preserving much of the flagship’s coding, reasoning and multimodal performance.For enterprises, the appeal is not simply tha
Apple stockpiles inventory as it braces for ‘significant supply constraints’
Apple is worried enough about supply shortages that it reported about $11.1 billion in inventory, which is almost double the $5.7 billion it reported last September.
AI hedge fund Situational Awareness may have sold its public portfolio, but it still has its Anthropic shares
The former OpenAI researcher’s fund was forced to unwind public equities after leveraged public bets plummeted. But he still has cards to play.
Investigating three real-world incidents in our cybersecurity evaluations
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Tim Cook hints at iCloud Plus tier for AI power users
Apple may allow users to pay to increase their AI usage limits. During an earnings call on Thursday, Apple CEO Tim Cook said that he believes people will want to use Apple Intelligence and the upcoming Siri AI "a lot," adding that "we will have some kind of upgrade possibilities on iCloud Plus where people can buy up the stack." This fall, Apple will broadly launch its long-delayed Siri AI with iOS 27, which can do things like answer questions about what's on your screen and take action across your apps. It also includes a new standalone Siri AI app that offers a ChatGPT-like interface. In June, Apple said that its AI features, including … Read the full story at The Verge.
Xbox CEO lays out priorities in memo after major ‘reset’
Asha Sharma. | Image: The Verge, Microsoft After a massive Xbox "reset" that laid off thousands of employees and spun off four studios, Xbox CEO Asha Sharma wants to get Xbox back to growth. In a memo obtained by The Verge, Sharma told staff by the end of fiscal year 2027 (which runs through next June), "we will return XBOX to player and revenue growth." Xbox will also "improve profits back in line with industry averages," Sharma said. "Every function and studio will own part of that outcome." Since taking over Xbox in February, Sharma has made sweeping changes to attempt to turn things around. Previously, she has cited challenges like a low accountability margin, increasing compone … Read the full story at The Verge.
AI price wars: OpenAI cuts GPT-5.6 Luna prices by 80% as model competition shifts toward cost
To quote an ancient Jedi Master Begun, the AI price wars have! OpenAI is sharply reducing the prices of two models in its GPT-5.6 frontier series, cutting GPT-5.6 Luna, the smallest and fastest model in the series, by 80% and GPT-5.6 Terra, the mid-tier model, by 20%, while adding a premium Fast mode for its flagship GPT-5.6 Sol model.The cuts place Luna much closer to the lowest-cost commercial models in the market and arrive just a few days after Anthropic released its highly performant Claude Opus 5 at the same price as Opus 4.8, and Google introduced Gemini 3.6 Flash and Gemini 3.5 Flash-Lite, two rival models built around lower inference costs, faster execution and more efficient agent workloads. OpenAI is successfully undercutting Google s price per intelligence and attempting to sway Anthropic users, who may not mind paying more, with a speed boost. OpenAI says Luna will now cost $0.20 per million input tokens and $1.20 per million output tokens, for a combined input-plus-output
Apple’s iPhone and Mac sales keep growing despite RAM shortages
Apple's iPhone and Mac sales are on the rise even as a global memory shortage squeezes device makers. In its third-quarter earnings report released on Thursday, Apple revealed that iPhone sales jumped 22 percent to $54.25 billion and Mac sales increased 29 percent to $10.35 billion, driving the company's overall revenue to $109.4 billion. The company expects supply chain constraints to worsen in the coming months. During an earnings call, Apple chief financial officer Kevan Parekh said Apple expects "supply constraints to increase significantly" in the next quarter, adding the shortage will impact the iPhone, Mac, and iPad. Meanwhile, Apple … Read the full story at The Verge.