Anthropic's most restricted AI model — one deliberately kept from the public due to its ability to exploit vulnerabilities across every major operating system and browser — has reportedly been accessed by unauthorized users, and the implications are severe. Meanwhile, Senator Elizabeth Warren is drawing alarming comparisons between the AI industry's reckless spending and the conditions that preceded the 2008 financial crisis, as Tesla announces a jaw-dropping $25 billion capex plan and AI startups sign multi-billion dollar infrastructure deals. SpaceX has made an extraordinary move on AI coding startup Cursor with an offer that could reach $60 billion, signaling that developer trust and distribution may be worth just as much as the models themselves. On the open-source front, Alibaba and Xiaomi both dropped new models this week that are rapidly closing the efficiency gap with expensive proprietary systems. Google unveiled a new memory framework called ReasoningBank that could make AI agents genuinely smarter over time, while also rolling out sweeping AI upgrades across Workspace, Chrome, and Google Meet. And the Pentagon's 2027 budget just revealed a 24,000 percent increase in funding for autonomous warfare — a seismic shift that few saw coming. Sony's robot Ace also made history in an unexpected arena, defeating elite human competitors in a domain that has long resisted machine mastery.
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