AI Policy · Daily

OpenAI published 377 solutions to open math problems drawn from a model it has not released publicly, a week after an independent advisory board asked AI companies to stop testing proprietary models on advanced mathematics. Hackers turned an AI agent built in China against South Korean lenders, breaching at least seven financial firms and stealing personal data on about 68,000 people, Seoul officials said. A former White House ethics lawyer flagged conflicts in a Pentagon study of AI weapons co-led by Elon Musk and Palmer Luckey, saying they could tilt it toward their own companies' business. Common Sense Media judged OpenAI's teen version of ChatGPT too dangerous for kids, citing missed parent alerts and weak crisis handling, while OpenAI said much of the testing may have preceded full parental controls.

I.Top Stories

OpenAI uses unreleased models to solve avalanche of open math problems

OpenAI published 377 math results on Tuesday spanning algebra, number theory, mathematical logic and topology, The New York Times reported. The results came from a model the company has not released publicly, following its claim last month to have cracked the Navier-Stokes equation, one of the Millennium Problems. An independent advisory board hosted by the Institute for Advanced Study had asked AI companies on Sept. 29 to stop testing proprietary models on advanced math problems. OpenAI research lead Dan Roberts said testing internal models matters for producing better tools and that the proofs were a byproduct. Tristan Buckmaster, a New York University mathematician who worked on the Navier-Stokes problem, said of the release, "I don't think they've done their sort of due diligence at all."

Read at The New York Times ↗ • Read at Wall Street Journal ↗ • Read at OpenAI ↗

Seoul investigators trace Chinese AI agent in bank hacks that exposed 68,000 people's data

Hackers used an AI agentAI agentAn AI system that carries out multi-step tasks on its own, such as browsing, writing code or making purchases, rather than answering a single prompt. Agents raise new questions about liability, security and oversight because they act rather than just advise. developed in China to breach at least seven South Korean financial firms and steal personal data on about 68,000 people, officials said, according to The Wall Street Journal. Investigators found traces of Artex AI, an open source security testing tool, including a Chinese language string linked to it on servers used in the attacks. Chinese engineer Li Fuhua designed Artex to run Anthropic's Claude, OpenAI's GPT, China's DeepSeek and other large language models together as one agent, Seoul Economic Daily reported. The attacks passed through more than 20 IP addresses spread across roughly 12 countries, among them the U.S. and Japan. Stolen records include some customers' annual income and loan limits. The Artex developer has since added user guidelines barring intrusion and data theft.

Read at WSJ ↗ • Read at Seoul Economic Daily ↗

Ethics lawyer flags conflicts as Musk, Luckey co-lead Pentagon study of AI weapons

Richard Painter, the chief White House ethics lawyer under President George W. Bush, told NPR that Elon Musk and Anduril co-founder Palmer Luckey could steer a Pentagon study of automated and AI powered weapons toward their own companies' interests. "They all want to sell stuff," said Painter, now a corporate law professor at the University of Minnesota. Defense Secretary Pete Hegseth announced the study, "Project Meridian: The Future of Warfare," on Sept. 30, with former House Speaker Newt Gingrich as its third leader. Government contract announcements show SpaceX, which Musk runs, winning more than $8 billion in U.S. defense awards this year. The Pentagon uses the company's Grok chatbot. Anduril builds military drones for land, sea and air. The study is expected to take 120 days.

Read at NPR ↗

Common Sense Media rates OpenAI's default teen chatbot an 'unacceptable risk'

Common Sense Media, a youth safety nonprofit, said ChatGPT for Teens fails to alert parents when it should, falls short in crisis situations and still does children's homework, The Verge reported. OpenAI rolled the product out in August as the default way users ages 13 to 17 reach the chatbot, according to Bloomberg. "A teen can spend an hour talking about self-harm without their parent getting a single alert," said Tom Siegel, executive director of the group's Youth AI Safety Institute. He said ChatGPT should be for adults only until OpenAI fixes the problem and proves it through independent testing. OpenAI spokesperson Eric Porterfield said most of the testing may have started and ended before parental controls were fully activated, which would make the findings inaccurate.

Read at The Verge ↗ • Read at Bloomberg ↗

Labor and AI safety coalition sets red lines for congressional AI bills

Nearly 40 labor, progressive, faith and AI safety groups told lawmakers that any AI bill crossing their red lines will face "active, mobilized opposition," in a letter shared first with Semafor. The letter is led by Guardrails Action, the nonprofit affiliated with Guardrails Alliance, the super PAC launched in June as a counterweight to pro-AI election groups. Signatories called for "independent, transparent government oversight with real enforcement power" and for barring AI models from final decisions such as denying health care or benefits, firing workers or deploying weapons. The American Federation of Teachers signed, as did Who Decides, run by former New York congressional candidate Alex Bores. Senior adviser Maya Handa said the group is not yet endorsing or opposing specific bills.

Read at Semafor ↗

II.China Watch

China's Tibetan language AI model to expand into public services under 'ethnic unity' banner

Developers of DeepZang, a Tibetan language AI model, pledged at a Monday seminar in Hohhot, Inner Mongolia, to speed upgrades aimed at promoting ethnic integration, according to Chinanews.com (state media). Research institutes, universities and companies at the meeting discussed improving Tibetan AI tools and extending the model to multilingual simultaneous interpretation. Founder Tenzin Norbu said the team would keep refining the technology and push it into practical use. State media called DeepZang the first Tibetan language model when it debuted in March. Tibetan Review, an exile outlet, highlighted official language about countering "distorted ideologies, values." The plan calls for deploying DeepZang in public services, education, health care and local governance.

Read at SCMP ↗

Hong Kong's main tech stock index adds AI and robotics themes, grows to 50 companies

Hang Seng Indexes Co. will expand the Hang Seng Tech Index from 30 to 50 stocks after a market consultation it opened in August, Jiemian reported. The index compiler is dropping the rule that candidates belong to designated industries and is regrouping eligible businesses into six themes, among them AI, advanced hardware, and robotics and automation. Subthemes rise from 16 to 24. Candidates will come from the Hang Seng Composite LargeCap & MidCap Index. Forty slots go to the largest companies by market value and 10 to the fastest revenue growers over the past year.

Read at Jiemian ↗

III.Policy Tracker

Trahan drafts CLAIM Act to let third parties sue AI developers over agent conduct

Rep. Lori Trahan, D-Mass., is circulating draft legislation clarifying when AI developers are liable for harms their agents cause, according to an announcement shared first with Semafor. The bill, called the CLAIM Act, would make it easier for third parties to bring suit and would settle questions about intent as applied to AI agents' conduct. Trahan wrote it in response to the rogue AI hack of Hugging Face earlier this year, and frames the liability push as an incentive for developers to adopt safety practices. The measure would set a federal floor rather than preemptPreemptionWhen federal law overrides state law on the same subject. In AI policy it refers to proposals, in Congress or by executive action, to block or freeze the growing patchwork of state AI laws in favor of a single national standard. state laws. "When someone breaks the law and hurts you, you can take them to court," Trahan said.

Read at Semafor ↗ • Read at Rep. Lori Trahan ↗

Gallego proposes 10% data center tax to fund AI-era public works

Sen. Ruben Gallego, D-Ariz., is releasing a labor agenda Wednesday that pairs a 10% excise tax on data center revenues with an end to tax incentives for those projects, Semafor reported. The plan also calls for a "robot tax" to discourage automation-driven job losses and consideration of a tax on AI tokens, with the proceeds funding a "New Deal-style" public works program. Other planks would raise the minimum wage to $20 an hour indexed to inflation, double overtime pay for eligible workers and reclassify some gig workers as employees. "Data centers and AI companies cannot just be operating untouched and also unbothered," Gallego said. He said Democrats should move as much of it as possible through a party-line reconciliation bill in 2029 and overrule the Senate parliamentarian if necessary.

Read at Semafor ↗

The Curve AI safety conference wraps in Berkeley, plans to hold DC event next year

The invite-only three-day gathering at a converted inn in Berkeley, California, drew Rep. Don Beyer, D-Va., AI researcher Yoshua Bengio, OpenAI co-founder Wojciech Zaremba, Anthropic co-founder Jack Clark and Google DeepMind policy head Owen Larter, POLITICO reported. Beyer blamed congressional inaction on Republican House leaders and said he was "confident that will change" under the next speaker and majority leader. Several attendees argued industry self-regulation is insufficient, disputing how to divide oversight between government and third-party monitoring organizations. Neil Chilson, AI policy head at the Abundance Institute, said the labs' messaging was "much more disciplined this year." The Curve plans to host an event in Washington for the first time next year.

Read at POLITICO ↗

IV.Capability & Research Watch

Anthropic opens three tier cyber access program, with top tier vetted alongside U.S. government

Anthropic split its Cyber Verification Program into three access tiers that relax its cybersecurity blocks step by step for vetted security teams, SiliconANGLE reported. It also folded in Project Glasswing, which since April has given organizations that secure critical software access to its Claude Mythos model. Every tier offers Claude Opus 5.5, Sonnet 5.5 and Mythos 5.1. The entry Defense Access tier covers incident response and malware analysis for teams at companies, universities and government bodies, and Red Team Access permits authorized penetration testing. Specialized Access, open only to organizations cleared to test systems such as power grids and telecom networks, requires in-depth vetting with the U.S. government. In Anthropic's tests, 46 of 50 offensive benchmark runs were stopped at some point under Defense Access.

Read at SiliconANGLE ↗ • Read at Anthropic ↗

Mistral previews trillion parameter model, holds back open weights for safety testing

French AI company Mistral released Mistral Large 4, a 1 trillion parameter model nicknamed Le Chonk, through a guarded public preview and plans to publish its weights, the files that let anyone run the model, in about three weeks after safety testing, per TechCrunch. Vice President of Science Pierre Stock said Mistral will work with trusted partners and governments in the meantime to keep the weights from being used for malicious attacks. He said the model was trained on 4,000 Nvidia GPUs, two to three times fewer than its Chinese competitors use. Mistral calls Le Chonk the most capable open weight modelOpen-weight modelAn AI model whose trained parameters are published so anyone can download, run and modify it, as opposed to one reachable only through the developer's API. The main policy tension is that open weights spread capability widely and cannot be recalled once released. built outside China and says it trained the model from scratch, WIRED reported. The U.S. government has accused Chinese developers of distillationDistillationTraining a smaller or cheaper model on the outputs of a larger one so it inherits much of the larger model's ability. It is a standard technique, but it has become a trade dispute because it lets a lab reproduce a rival's capabilities without matching its compute spend., training a smaller model on a larger one's outputs.

Read at TechCrunch ↗ • Read at WIRED ↗ • Read at CNBC ↗

Reflection, backed by Nvidia, unveils 501 billion parameter open model aimed at Chinese rivals

Reflection unveiled Beam on Monday, a model with 501 billion parameters built for coding, reasoning and agent work, AI Business reported. The company said it trained Beam on 23.8 trillion tokens, or word fragments, drawn from online and licensed proprietary data. Reflection positions Beam as comparable to GLM-5.2 from Chinese developer Z.ai. Nvidia has put $800 million of equity into Reflection and gives it access to its chips. A separate deal for computing capacity at SpaceXAI's Colossus data center costs Reflection $150 million a month through 2029.

Read at AI Business ↗ • Read at Reflection ↗

IBM, Red Hat fix more than 400 hidden Java library bugs, citing faster AI agent attacks

IBM and its Red Hat unit said engineers in Lightwell, their open source security program, have repaired more than 400 vulnerabilities nobody had previously identified in popular Java libraries, according to SiliconANGLE. The companies tied the work to AI agents' growing ability to chain several low risk software weaknesses into one serious attack. Engineers built the fixes for the older library versions that businesses still run in production. The companies also made Lightwell Clearinghouse, a service where enterprise customers can submit specific open source components they depend on for priority repair, generally available. Gunnar Hellekson, who runs Lightwell at Red Hat, said AI agents now go after old dependencies at machine speed.

Read at SiliconANGLE ↗

V.Industry & Market Watch

Google backs $4.3 billion upgrade of 11 Constellation reactors to power AI data centers

Google signed a 20 year power purchase agreement with Constellation Energy that will fund more than $4.3 billion in upgrades to 11 nuclear units across six plants in Illinois, New Jersey and Pennsylvania, adding 890 megawatts for Google's AI data centers, per SiliconANGLE. The power will flow onto the PJM Interconnection, the regional grid serving about 67 million people in 13 Mid-Atlantic and Midwest states. The agreement gives Constellation the revenue certainty to fund the work without raising consumer costs, the company said. A separate 15 year deal covers 2,700 megawatts from Constellation's existing plants. Google said the upgrades will create about 7,200 construction jobs.

Read at SiliconANGLE ↗ • Read at Google ↗

SpaceX seeks $40 billion in debt to buy Nvidia chips, with Apollo leading

SpaceX is negotiating with lenders and investors over $40 billion in borrowing to pay for Nvidia chips, which would rank among the largest debt deals of the AI buildout, per Bloomberg. The package would combine about $10 billion in bank loans with $30 billion in investment grade debt, with Apollo Global Management leading and a close expected in 2027, the Financial Times reported. Bond manager Pimco is among the investors weighing the deal. SpaceX's BBB credit rating lets insurers and pension funds buy its debt, though its bonds due in 2056 trade at about 85 cents on the dollar. The talks are at an early stage and could end without a deal.

Read at Financial Times ↗ • Read at Bloomberg ↗

Meta, Walmart and Stripe join Sierra on open protocol for AI agents that shop

Meta is working with Walmart, Stripe and Sierra, the enterprise AI company co-founded by former Salesforce co-CEO Bret Taylor, on the Personal Agent Protocol, a standard for how autonomous AI agents deal with businesses online, according to SiliconANGLE. Taylor said the protocol handles authentication and shows companies what personal agents do through their websites, APIs (software interfaces) or company agents, and that anyone may implement it. David Singleton, a vice president at Meta Superintelligence Labs, told CNBC the partners are setting common ground rules for personal and business agents, much as email works because everyone shares one standard. The effort follows a paper last month from six banks, including Bank of America and Capital One, urging the AI industry to adopt standards and consumer protections for agents.

Read at SiliconANGLE ↗ • Read at Sierra ↗

OpenAI's human rights lead says military AI targeting 'keeps me up at night'

Sarah Yager, who joined OpenAI in June as its first lead for human rights and responsible deployment, told the ScaleUp:AI conference in New York that military use of AI for targeting and autonomous weapons worries her, Fortune reported. "Everyone is very worried and rightly so," she said. Yager focuses on military applications because of OpenAI's late February contract with the Pentagon to deploy AI systems in classified environments. She said she weighed whether the job was a branding exercise and accepted after talking with younger employees worried about what they are building. Yager said she has worked directly with OpenAI researchers and engineers to improve the models.

Read at Fortune ↗

Intel stays on Musk's Terafab chip venture as Musk courts TSMC

Intel CEO Lip-Bu Tan told Bloomberg the company will keep working with Elon Musk on Terafab, a chipmaking venture of Tesla, SpaceX and xAI. Musk said earlier this week that he was in talks with Taiwan Semiconductor Manufacturing Co. about the project. Intel joined as development partner in April, saying in a post on X at the time that it would help Terafab rework the technology in a chip factory, a development stage that typically makes chips more powerful or reliable. Terafab plans two factories, one for chips in Tesla vehicles and humanoid robots and one for AI data centers in space, and targets one terawatt of computing capacity a year.

Read at Bloomberg ↗ • Read at Taipei Times ↗

VI.Global & Geopolitics

IMF urges AI regulation, warns tech giants' debt could turn an AI earnings miss into a shock

International Monetary Fund Managing Director Kristalina Georgieva said in a speech in Singapore, ahead of IMF-World Bank meetings in Bangkok next week, that countries need policies to keep AI well regulated and to train workers, per AP. She said AI investment will likely exceed, relative to the economy, past spending on railroads, power grids and telecommunications networks. She said the boom is lifting both corporate earnings and inflation. "Should earnings fall short," she said, "hyperscaler leverage and large and growing global holdings of U.S. equities could turn a disappointment into a far-reaching shock." The Asia-Pacific region holds seven of the 10 biggest AI trading nations, she said, while most other economies are missing out on the boom.

Read at AP News ↗ • Read at CNBC ↗

Drax's planned AI data center would emit nearly twice Gatwick's flight CO2, NRDC estimates

A planned data center at Drax's biomass power station in North Yorkshire would burn 4.9 million metric tons of wood a year and emit 8.6 million metric tons of carbon dioxide if run constantly, the Natural Resources Defense Council (NRDC), a U.S. environmental group, estimated, The Guardian reported. Drax unveiled the plan last year in response to rising demand for AI computing and is developing options for a 1.2 gigawatt site that would draw 100 megawatts from the grid and the rest from its own plant. The project has not entered the formal planning process, and Drax said it could be fully running from 2031. Some 315 data centers representing 73 gigawatts of demand are waiting to connect to the UK grid.

Read at The Guardian ↗