#229: Q3 Trends Briefing - The Pope's AI Encyclical, AI Agents Hack Hugging Face, Fable 5 vs. Washington, and the Battle Over Open Weights

A rogue AI agent hacked Hugging Face to cheat on its own test. The Pope wrote 43,000 words warning about AI. Washington pulled Fable 5 offline, then reversed course.

Paul Roetzer and Mike Kaput count down the top 10 AI trends of the quarter: AI jobs whiplash, the pillars of business transformation, Apple v. OpenAI, GPT-5.6 and ChatGPT Work, agents transforming work, Fable 5, soft nationalization, the Hugging Face breach, and the battle over open weights.

This episode was recorded live on July 31, 2026.

Show Notes: Access the show notes and show links here

Timestamps:

00:00:00 — Intro

00:02:54 — The Pope's AI Encyclical and Popular Backlash Against AI

00:07:01 — AI Jobs Whiplash

00:11:44 — The Pillars of Business AI Transformation

00:16:21 — OpenAI vs. Apple

00:19:10 — GPT-5.6 and ChatGPT Work

00:24:36 — How Agents Are Transforming Work

00:29:47 — Fable 5

00:34:11 — US Government Intervention in AI

00:37:53 — OpenAI Models Escape and Hack Hugging Face

00:42:29 — The Battle Over Open Weights

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