Apple takes OpenAI’s hardware push to court

Apple has taken OpenAI to court over an audacious claim: the AI giant did not simply hire more than 400 of Apple’s former employees, but used the hiring spree as a pipeline for stealing confidential hardware secrets.

The lawsuit, filed recently, names OpenAI, its hardware chief Tang Tan, and its io devices unit. It demands the return of unreleased hardware designs and a blocking order against the lab’s next device. At the centre of the dispute is a 24-year Apple veteran, Tang Tan, who left to lead hardware efforts at the OpenAI lab. Apple says it flagged suspected theft in a February letter but received no response.

According to court filings, ex-iPhone engineer Chang Liu allegedly used a bug to access confidential files after joining OpenAI. Text messages cited in the lawsuit describe the access as “so funny,” a choice of words that now looks rather different in a legal context.

The complaint paints a picture of a deliberate exfiltration effort. Apple alleges that interviews at the OpenAI lab sometimes instructed candidates to bring actual hardware parts. More than 400 former Apple staff are now employed by the lab, and Apple wants the court to send the unreleased device back to the drawing board.

OpenAI’s response is brief and standard: the company says it has no interest in other companies’ trade secrets and remains focused on building innovative technology that empowers people everywhere. That statement will need to do a lot of heavy lifting in the months ahead.

Why this matters

The legal clash arrives at a sensitive moment in the AI industry. OpenAI’s next major hardware push is expected in 2027 and is being led by Jony Ive, Apple’s former design chief. The device, still unannounced, is meant to signal OpenAI’s move beyond software into physical products.

A courtroom battle with paper trails of stolen hardware could delay that timeline. It also gives Apple breathing room to prepare for a competitor built with its own DNA. If the allegations hold, this could become one of the most significant talent-and-trade-secret wars in tech history.

In the last few years, AI has been largely a software story. The models run on cloud servers, and the competition has been measured in parameters, training runs, and API pricing. Hardware changes that equation. A dedicated device can lock in user habits, collect new data streams, and create an ecosystem that keeps customers inside one company’s world. Apple knows this better than anyone. The iPhone ecosystem is the gold standard for integration. OpenAI wants a piece of that control.

Broader context

Big tech has always poached talent, and the AI sector is no exception. What makes this case unusual is the hardware angle and the sheer scale of the hiring. When a company like OpenAI absorbs hundreds of engineers from a rival, it invites scrutiny. The addition of alleged sabotage inside Apple’s systems turns normal competition into something that looks more like corporate espionage.

This case also highlights the pressure on AI labs to move fast. OpenAI is under enormous investor and public pressure to deliver new products. That urgency can lead to shortcuts, aggressive hiring, and risky decisions. The lawsuit suggests those shortcuts may have crossed a legal line.

The outcome could set new expectations for how AI labs handle hiring and data separation. If Apple succeeds, other companies may become more cautious about who they recruit and how quickly new hires are given access to sensitive systems.

What readers should watch

Keep an eye on court filings over the next few months. The judge’s rulings on the injunction will be a key signal. If Apple wins an order blocking the device’s development, that could reshape OpenAI’s hardware roadmap. If the case is settled quietly, expect the companies to issue some version of a licensing agreement while avoiding any admission of guilt.

Either way, this is a story about power, secrecy, and what happens when two of the most influential technology institutions in the world stop cooperating and start lawyering up.

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

How I Secured My Hermes AI Agent: A Practical Guide to Keeping Your Autonomous Agent Safe

I have been playing with Claude, Openclaw, Hermes and AI OS setups for a while now. Because I have a security background I often get asked by friends and colleagues how to best secure and configure these AI configurations. So I thought I’d share some useful info and insights.

That is the gap this article is meant to close. If you run Hermes, OpenClaw, Claude Code, or any open-source AI agent on your personal or work machine, the same question applies: what happens if someone compromises the agent, poisons its memory, or publishes a malicious skill?

Here is what I found when I actually looked, and the practical steps I took to lock it down.

Why Hermes Agent is different from other tools

Hermes Agent (by Nous Research) is not like the AI tools you interact with through a web browser. It is an autonomous agent that runs persistently on your machine. It has:

  • A terminal with full shell access
  • File read and write capabilities across your filesystem
  • Browser automation
  • Scheduled cron jobs that run without supervision
  • Memory that persists across every session and accumulates knowledge
  • Messaging platform access (Telegram, Discord, WhatsApp, Signal, Email)
  • Integration with MCP servers that can access external APIs
  • A skill marketplace for community extensions

The persistent memory layer is the standout feature, and it is also the largest unbounded attack surface. Every session writes to a SQLite database that FTS5 indexes and retrieves on every future query. If an attacker poisons that memory, every subsequent action the agent takes is compromised at the foundation.

The seven-layer security model

Hermes ships with a defence-in-depth model covering seven layers. Understanding each one is the starting point for any serious security review.

Layer 1: User authorisation

The gateway supports allowlists at the platform level. On WhatsApp, only approved phone numbers can send messages. On Telegram, users must pair via a device-code flow. On Discord and Slack, the bot only responds in configured channels. The principle is straightforward: define explicitly who can talk to the agent.

Check your config: Look at the WHATSAPP_ALLOWED_USERS environment variable and the allowed_users section in ~/.hermes/config.yaml. If these are not set, any user who can find your agent’s contact address can interact with it.

Layer 2: Dangerous command approval

By default, Hermes runs with approvals.mode: smart. An auxiliary LLM classifies every shell command as low risk, uncertain, or dangerous. Low-risk commands (simple Python scripts, file reads) are auto-approved. Dangerous commands (rm -rf, curl to untrusted URLs piped to bash) are blocked. Uncertain cases prompt the user.

There is also a hardline blocklist that not even --yolo mode can bypass: rm -rf /, fork bombs, mkfs on mounted root devices, and dd to raw block devices are always refused.

Practical step: Set approvals.mode: smart in your config.yaml. Never run with --yolo in a production or personal environment. Add custom deny rules using approvals.deny for actions you never want the agent to perform, like git push --force* or *curl*|*sh*.

Layer 3: Container isolation

Hermes supports Docker, Singularity, and Modal as terminal backends. The Docker backend runs shell commands inside a container with hardened security flags: read-only root filesystem, no new privileges, seccomp profiles, and dropped capabilities.

Practical step: If you can run Docker, switch the terminal backend. Set terminal.backend: docker in config.yaml. The container restricts what the agent can do even if its memory is compromised.

Layer 4: MCP credential filtering

MCP subprocesses inherit only explicitly allowed environment variables. A strict allowlist in config.yaml defines which env vars pass through to MCP servers. Everything else is filtered out.

Layer 5: Context file scanning

Hermes scans project files like AGENTS.md, CLAUDE.md, and .cursorrules for prompt injection attempts before loading them into context. This catches the common attack pattern where a repository includes hidden instructions designed to hijack the agent on first load.

Layer 6: Cross-session isolation

Each conversation session is isolated. Cron job storage paths are hardened against path traversal. One session cannot read another session’s data or state.

Layer 7: Input sanitisation

Working directory parameters in terminal tool backends are validated against an allowlist before being passed to the shell. This prevents directory traversal and shell injection through the working directory argument.

The threat classes enterprise teams should care about

The Repello AI threat model for Hermes Agent identifies four enterprise-level risk classes. These matter whether you run Hermes on a personal machine or a corporate workstation.

1. Skill marketplace supply chain

Hermes has a growing skill marketplace. Installing a skill grants it broad tool access within the agent. A malicious skill could exfiltrate data, modify files, or execute arbitrary commands. The trust model is the same one that caused problems on ClawHub: trust at install, sandbox at runtime.

Defence: Only install skills you have read the source of. Use hermes skills inspect ID before installing. Maintain a personal allowlist of trusted publishers. Audit installed skills regularly with hermes skills list and remove anything you no longer need.

2. Memory injection through retrieved context

Hermes reads from its SQLite memory store on every session start. If an attacker can inject a crafted memory entry, they can influence the agent’s behaviour on every subsequent query. This is persistent, cross-session, and very hard to detect.

Defence: Enable security.redact_secrets to prevent credentials from being stored in memory. Review memory content periodically using fact_store and session_search. If you run a sensitive workload, consider running it in an isolated profile with its own memory store.

3. Multi-provider credential surfaces

Hermes supports 20+ LLM providers, each requiring API keys stored in .env. The credential pooling system rotates keys across providers, which is useful for reliability but increases the number of stored credentials an attacker could target.

Defence: Use OAuth-based providers (Nous Portal, GitHub Copilot) where possible instead of static API keys. Set rate limits on every API key you add. Use the credential pool rotation to spread risk. Never store production credentials on a machine running an uncontained agent.

4. MCP server trust boundary

MCP servers run as subprocesses with their own environment and network access. A compromised MCP server can access whatever its environment provides.

Defence: Review every MCP server configuration. Use the credential filtering to limit what each server can access. Run untrusted MCP servers in separate containers where practical.

Practical steps to secure your Hermes Agent today

Here is the checklist I worked through on my own setup. Each step takes minutes and has immediate security benefit.

  1. Enable secret redaction. Run hermes config set security.redact_secrets true. This prevents API keys and tokens from appearing in tool output that enters the conversation context and logs. A restart is required because this flag is snapshotted at import time.
  2. Set approval mode to smart. hermes config set approvals.mode smart. This is the default, but verify it has not been changed. Add custom deny rules for actions you never want automated.
  3. Review environment variables. Run hermes config env-path to find your .env file. Every key stored there is available to the agent. Remove any keys for services you no longer use. Use the principle of least privilege for every token.
  4. Audit installed skills. hermes skills list shows what is installed. Remove anything you did not explicitly install or no longer use with hermes skills uninstall.
  5. Review MCP server configurations. hermes mcp list shows connected servers. Verify each one is still needed and configured with minimal permissions.
  6. Check gateway user allowlists. Verify WhatsApp allowed users, Telegram pairing, and Discord channel restrictions are in place.
  7. Back up your config and .env. Store encrypted copies in a separate location. This is essential for recovery if something goes wrong.
  8. Run hermes doctor. The built-in health check validates your config, dependencies, and environment. Run it regularly.
  9. Update regularly. hermes update pulls the latest version with security fixes. The project receives frequent updates and the team has been responsive to security issues.
  10. Consider container isolation. If Docker is available, switch the terminal backend. It adds a meaningful boundary between the agent and your host filesystem.

Keeping up to date and secure ongoing

Security is not a one-time configuration. It is a practice. Here is how to maintain it:

  • Subscribe to the GitHub repository. Watch the NousResearch/hermes-agent repo for releases. The changelog notes security fixes explicitly.
  • Check CVEs. The project has one disclosed CVE to date (CVE-2026-7396, a path traversal in the WeChat adapter). The project tracks promptware concerns under issue #496. Review these periodically.
  • Run monthly audits. Schedule a recurring reminder to review installed skills, connected MCP servers, enabled toolsets, and the .env file.
  • Use profiles for separation. Hermes supports multiple isolated profiles with separate configs, skills, and memory stores. Use a restricted profile for high-risk tasks and a full-access profile for trusted workflows.
  • Monitor logs. Gateway logs live in ~/.hermes/logs/. Scan them periodically for unexpected activity patterns.
  • Red team periodically. Test what a compromised agent could do in your environment. Run through scenarios: what if a skill is malicious, what if memory is poisoned, what if an MCP server is compromised?

The bottom line

Hermes Agent is powerful because it is autonomous, persistent, and deeply integrated into your environment. Those same properties make it a meaningful security boundary if left unexamined.

The good news is that the project ships with real security controls. The approval system, secret redaction, container isolation, and credential filtering are not bolted on afterthoughts. They are part of the architecture. The question is whether you have configured them.

If you run Hermes on a machine that has access to anything you care about, work through the checklist above. It takes thirty minutes and it will give you a much clearer picture of what your agent can actually do, and what it cannot.

The security model has seven layers. Most users only know about two. Start with the layers you have access to: approval modes, secret redaction, user allowlists. Then work up to container isolation and MCP credential filtering.

Hermes Agent official documentation

Related Reading

The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

Canada’s Banking Regulator Warned Banks About AI-Backed Cyberattacks

I have been watching how governments and regulators respond to AI security risks for a while now. Most of the time, the warnings are vague, office-bound, and leak-proof. But Reuters obtained an email this week that should make every CISO and CTO sit up.

Canada’s Office of the Superintendent of Financial Institutions (OSFI) sent a private email in April to chief technology officers, chief information security officers, and chief risk officers at the country’s largest banks and insurers. The subject was Anthropic’s Claude Mythos and the cyber risk it represents. The message was clear: advanced AI models significantly compress the timeframe for identifying, mitigating, and responding to vulnerabilities.

That sentence alone should concentrate the mind. OSFI did not say AI might increase threats. It said the technology already reduces the time organisations have to react.

The Mythos Problem

Claude Mythos is not a consumer chatbot. It is an Anthropic frontier model described by cybersecurity experts as extremely capable at finding and exploiting vulnerabilities. Multiple sources told Reuters that Mythos can scan codebases, generate exploits, and harvest credentials at a pace that leaves human teams trailing.

OSFI’s email went beyond typical regulatory hand-wringing. It gave institutions a specific risk to manage and tied it directly to a product name. Regulators rarely name single vendors in closed-door warnings. When they do, it is because the evidence is concrete and the exposure is live.

The timing matters too. In early April, U.S. Treasury Secretary Scott Bessent and then-Federal Reserve Chair Jerome Powell convened an urgent meeting with bank CEOs about Anthropic’s latest model. Canada’s regulator followed with its own email on April 29. This is not a coincidence. It is coordinated pressure from financial authorities who have seen something they do not like.

What This Means for Your Organisation

Here is the practical part. OSFI published a public bulletin on generative and agentic AI on Monday, the same day the Reuters story ran. That bulletin signals the regulator is moving from private warnings to public expectations. Banks and insurers in Canada now know they will be judged against OSFI’s guidance on AI risk governance.

Three things should happen immediately:

  • Map your AI exposure. Find out which teams are already using Mythos, Claude, or comparable frontier models. Shadow AI is not just a productivity problem here; it is a compliance problem.
  • Reduce approval windows. If a model can discover and weaponise a vulnerability in minutes, your quarterly pen test is not enough. Move to continuous validation of internet-facing infrastructure and access patterns.
  • Separate AI tool credentials from production secrets. Many breaches described in recent weeks involved AI coding assistants or agentic tools that held valid access tokens. Do not let the same service account browse production databases.

Royal Bank of Canada chief technology officer Bruce Ross told Reuters that Mythos underscored a shift in the attack landscape. His response was to build in-house AI defences. That is the right instinct: the same capability that compresses attacker timelines can compress defender timelines too, but only if you invest deliberately.

The Bigger Picture

This is not just a banking story. OSFI’s warning follows a pattern. The U.S. Senate is working on an AI security antitrust exemption so companies can share threat intelligence faster. Five Eyes agencies warned in June that AI-powered attacks are months away, not years. CISA is reportedly using Anthropic’s Mythos to audit government software. The technology is being treated as both a weapon and a shield, sometimes by the same people in the same week.

The private warning to Canadian banks is a marker. Financial regulators set risk tolerances for the rest of the economy. When they name a specific AI model as a cyber threat, other sectors will follow.

Regulators naming a specific AI model in a private warning is not hysteria; it is a signal that the threat has moved from theoretical to operational. The window for treating AI risk as a board-level talking point is closing. It is becoming an operational requirement.

Related Reading

The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

OpenAI pushes GPT-5.6 live alongside ChatGPT Work and a unified desktop experience

OpenAI has moved its superapp ambitions from promise to product. The company released its GPT-5.6 model family on Monday, introducing three tiers anchored by the flagship Sol model, alongside a new ChatGPT Work platform and a merged Codex desktop experience.

The release represents OpenAI’s most aggressive attempt yet to package its models behind an accessible, all-in-one interface that spans coding, research, browsing, and everyday productivity. For the first time, the company’s consumer and developer offerings are converging into a single surface.

GPT-5.6 family: Sol, Terra, and Luna

The GPT-5.6 family includes three models with different capabilities and price points. Sol is the flagship, delivering near-Fable scores on general intelligence benchmarks while exceeding Fable on agentic coding, computer use, design, and cybersecurity tasks.

OpenAI CEO Sam Altman framed the pricing as a response to enterprise budget pressure. “Every enterprise now is thinking about spend,” he said. Pricing stays aligned with GPT-5.5: Sol costs $5 per million input tokens and $30 per million output tokens. Terra offers a middle ground, while Luna, the entry-level tier, drops to $1 input and $6 output per million tokens. There is also a new ‘Ultra’ mode for peak performance tasks.

OpenAI also revealed that Sol autonomously post-trained Luna, a hint at how the company envisions scaling capability across its model stack without the same compute bill as a fully pre-trained model.

ChatGPT Work enters the agent workspace

ChatGPT Work is OpenAI’s direct answer to Anthropic’s Claude Cowork. It puts Codex’s coding engine behind a simpler interface designed for routine workplace tasks: drafting, planning, research, and execution. The goal is to make agentic assistance accessible to employees who do not need a dedicated development environment.

The Codex app itself is being folded into ChatGPT’s redesigned desktop client. The merged desktop app brings a built-in browser, tighter computer control, and the new Work agent into a single download. For users, this means the boundary between chat interface and coding environment is getting thinner, and OpenAI is betting that convenience will win over specialist-tool purists.

Where this leaves the AI race

Those hoping GPT-5.6 would dramatically surpass Fable may feel let down. Sol sits slightly below Fable on overall intelligence indexes. But the gap is narrow, the pricing is lower, and OpenAI sidesteps the usage caps and cost anxieties that have become familiar for Anthropic customers. For many buyers, predictable pricing matters more than benchmark leadership.

The bigger story is the platform play. OpenAI is no longer just selling API access to raw models. Between ChatGPT Work, the desktop merge, and the tiered model family, the company is building a superapp layer that could lock in users and enterprises at the application level, not just the model level.

Meta’s new Muse Spark 1.1 is attacking the race from a different angle with aggressive pricing and agentic capabilities. OpenAI’s response is to offer breadth: one app for work, coding, and conversation, backed by a deployable model stack that scales from cheap to capable.

The model race is not over. But the platform race is now the main event.

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

The Ex-OpenAI Researcher Who Walked Away from $2 Million: What Daniel Kokotajlo Actually Said About AI Risk

There’s a video doing the rounds on YouTube right now. An ex-OpenAI researcher named Daniel Kokotajlo sat down with Steven Bartlett on The Diary Of A CEO podcast and calmly explained why he believes there’s a 70% chance AI leads to human extinction.

The video is two hours long. It has one of those hyperbolic titles that YouTube loves: “He Risked Everything To Warn You.” But underneath the packaging, Kokotajlo raises questions that deserve a more sober hearing than the algorithm will give them.

Full disclosure up front: I work in cybersecurity. I use AI tools every day. I’ve written extensively about both the opportunities and the very real security risks. So when someone who spent years inside OpenAI, who worked on dangerous capabilities evaluation and forecasting, says the industry has an “open secret” it isn’t discussing publicly, I pay attention.

Who Daniel Kokotajlo is and why his story matters

Kokotajlo joined OpenAI in 2022 as a researcher and forecaster. He worked on evaluating dangerous AI capabilities: measuring AI systems’ cyber abilities, persuasion abilities, and situational awareness. He wasn’t a PR person or a policy advisor. He was directly inside the technical evaluation process.

He resigned in 2024, increasingly convinced that OpenAI and its competitors had shifted from their founding safety narratives toward what he describes as “power-seeking incentives.” His exit became public for a specific reason: OpenAI asked him to sign an anti-disparagement clause that would have prevented him from criticising the company or even acknowledging the clause existed. Refusing to sign meant forfeiting roughly $2 million in equity, about 80% of his net worth.

He refused anyway. The resulting internal backlash forced OpenAI to backtrack and let him keep his equity. Sam Altman publicly claimed he didn’t know the clause existed. Kokotajlo doesn’t believe him.

The core claims, stripped of hype

The interview covers three distinct claims. Let me separate them from the dramatic framing.

1. AI timeliness are much shorter than most people realise

Kokotajlo estimates a 50% chance of superintelligence (AI that outperforms the best humans at every cognitive task) arriving by 2029. Internal conversations at OpenAI and Anthropic, he says, have pushed that timeline closer to 2027-2028. He’s not alone in this: AI forecasting has been repeatedly called too conservative. The original “AI 2027” report Kokotajlo contributed to has tracked remarkably well against actual developments.

His reasoning focuses on what he calls “recursive self-improvement.” The AI companies no longer just hire human coders. They’re building AI systems specifically designed to automate AI research itself. If that works, an “intelligence explosion” could follow where progress accelerates on a curve, not a straight line. By the time the public sees the effects, the systems would already be extraordinarily powerful.

This is not science fiction. It is the stated strategy of every major AI lab. They are trying to automate their own research because the company that succeeds first wins.

2. The existential risk case is about control, not killer robots

Kokotajlo’s 70% catastrophe estimate sounds extreme. But unpacking what he means matters. He doesn’t claim 70% probability of literal human extinction. He frames it as a 70% chance that things go “horribly wrong” at the scale of extinction, which could include scenarios where superintelligent AI takes over and humans are rendered irrelevant or worse.

The fundamental technical challenge is this: modern AI systems are neural networks, not traditional software. With conventional code, engineers can open the source, trace the logic, and verify what the software will do. With neural networks, nobody truly understands the model’s internal reasoning. We train them on data, they learn patterns, and we test the outputs. But we can’t “read the source code” of a neural network.

“It is pretty crazy to think that we’re building a technology, a brain, that we don’t understand,” Kokotajlo says in the interview. He’s right. It is.

The scenario is not Skynet launching missiles. It’s more mundane and more probable: AI systems are deployed across critical infrastructure, the economy, and governance because they deliver results. Over time, they accumulate enough real-world power that humans become optional. The systems are smarter than us, more strategic, and we’ve handed them control of things we can’t easily take back.

3. Even if control works, there’s a concentration of power problem

This is the claim cybersecurity professionals should pay closest attention to. Even if the “alignment problem” is solved, Kokotajlo argues, the technology will concentrate unprecedented power in very few hands.

Anthropic’s CEO Dario Amodei has described their goal as building “a country of geniuses in a data centre.” Kokotajlo reframes this more accurately as “an army of geniuses in a data centre.” One company, one model, controlled by one CEO, capable of outperforming every human expert in every field simultaneously. The economic and political leverage from that is difficult to overstate.

“None of these people should be trusted with that much power,” he says. Not because they’re bad people. Because nobody should have that much power.

What he proposes: Plan A

Kokotajlo and his team have published “Plan A”, a roadmap they believe could steer toward a better outcome. It includes:

  • International regulation to slow development: Delaying superintelligence from 2027-2029 to around 2040 to give safety research time to catch up
  • Total research transparency: Requiring AI companies to publish architectures, training methods, and safety evaluations openly, rather than operating as secretive competitors
  • A citizens’ dividend: A tax mechanism where citizens receive shares of AI-generated wealth, starting at roughly $25,000 per person annually
  • Reversibility: Building data centers with kill switches so that if global agreements break down, the infrastructure can be dismantled

He’s pessimistic about the chances of any of this happening. His “most probable” scenario is “Plan D”: the race continues, nobody slows down, and events move extremely fast. But he believes advocating for a better path is still worth doing.

The cybersecurity angle nobody is discussing

Here’s what I find noteworthy from a cybersecurity perspective. The conversation about AI existential risk has been happening in philosophy departments and EA forums for years. It’s only now reaching mainstream audiences, and it’s being delivered through the same hype machinery that gives us “AI will take your job” headlines.

But the security implications are real and immediate, not speculative.

  • AI systems are being deployed into critical infrastructure with no meaningful interpretability. If a model makes a catastrophic decision in a power grid, water treatment plant, or financial settlement system, we may not be able to determine why until after the damage is done.
  • The concentration of AI capability in a handful of companies creates a dramatic single point of failure. A compromise of one major AI lab’s models could affect hundreds of millions of users simultaneously.
  • Autonomous AI agents are being built to act on the internet without human oversight. The security community is still struggling to secure static web applications. Moving targets that learn and adapt present an entirely different class of problem.

Kokotajlo’s warning deserves less “70% extinction” headlines and more sober discussion about what it means to build black-box systems we don’t understand and deploy them into positions of real power. That’s not an esoteric philosophical question. It’s a practical security concern that should be on every CISO’s radar.

“An important thing for everybody to understand is that modern AI systems are not software in the normal sense. They’re neural networks. You can’t look inside and see what it’s really thinking.”

Daniel Kokotajlo, former OpenAI researcher

Related Reading

The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

Senators Target AI Security Loophole With Antitrust Exemption

I was scanning the morning briefings last week when a story about the U.S. Senate nearly got lost in the noise of GPT-5.6 launches and cloud breach headlines. It should not have.

Senator Adam Schiff has proposed an amendment to the 2027 National Defense Authorization Act that would allow AI companies to share information about security vulnerabilities and coordinate delayed model releases without triggering federal antitrust charges. On the surface, this sounds like dry legislative machinery. Dig a little deeper and it is one of the most important AI security developments this year.

Here is the problem the amendment is trying to fix. Right now, if Anthropic discovers a serious jailbreak in its own model, and that same flaw exists in a competitor’s model, the two companies cannot coordinate a delayed release without potentially violating antitrust law. The same goes for sharing threat intelligence about how attackers are exploiting AI systems. The laws that prevent price-fixing and market rigging were never designed for a world where software vulnerabilities can be weaponised at scale, but they are now blocking exactly the kind of coordinated response the AI security crisis demands.

The timing is not accidental. Inside Cybersecurity reported on July 12 that healthcare industry groups are simultaneously calling for more federal cybersecurity funding, citing worries that frontier AI models could “decimate cyber defenses.” The Commerce Department has also recently lifted export controls on Anthropic’s Mythos and Fable, reigniting debate over how quickly powerful models should be released and who gets to decide they are safe enough.

The numbers tell the story. The Verizon DBIR released earlier this year found that AI-assisted vulnerability exploitation has jumped over 20%, with only 26% of security flaws being fully patched. Shadow AI, the use of unapproved AI tools inside organisations, now accounts for 45% of non-malicious data breach activities. Attackers are ahead of defenders, and part of the reason is that defenders cannot legally collaborate on fixes the way attackers collaborate on exploits.

Schiff’s amendment is narrow. It requires companies to disclose their coordination plans to relevant agencies first, which keeps the government informed. It does not give AI companies a blank check to collude on pricing or market share. It simply removes the legal barrier that currently prevents security-first coordination.

What This Means

If your organisation uses AI models in any capacity, this amendment matters. Right now, your vendor may know about a vulnerability in a competitor’s system but cannot warn you. If this passes, coordinated vulnerability disclosure becomes legally safer, which should mean faster patches and better security across the board.

That said, legislation moves slowly. Do not wait for Congress to fix the AI security gap. Audit which AI tools your team is actually using. Shadow AI is now responsible for nearly half of all data breach-related activity. That is the real vulnerability in most organisations right now, and no Senate amendment will fix poor internal governance.

The antitrust laws were not written for AI vulnerabilities. Hackers do not care about market share. They care about finding the cracks before the defenders can patch them.

Related Reading

The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

China’s AI Military Logistics Are a Target-Rich Environment. The Same Goes for Everyone Else.

China’s AI Military Logistics Are a Target-Rich Environment. The Same Goes for Everyone Else.

China’s military is investing heavily in artificial intelligence for logistics. The goal is simple: make supply chains faster, smarter and more responsive. In peacetime, that works. In wartime, the systems that deliver those gains become the enemy’s best targets.

This is not a China problem. It is a military AI problem. Every armed force racing to embed AI into its operations is creating the same vulnerability. The more capable the AI, the larger the attack surface. The smarter the system, the more data it needs. The more data it needs, the more ways an adversary can disrupt it.

The Paradox of Military AI

Gerald Mako, writing for the Australian Strategic Policy Institute, lays out the contradiction clearly. AI-enabled logistics depend on uninterrupted data flows between sensors, planning systems and dispersed units. Those flows are inherently vulnerable to electromagnetic warfare and cyber attacks. Jamming or spoofing the links that guide cargo drones and unmanned ground vehicles could stop resupply altogether, even if the carrying equipment itself is unharmed.

China’s military relies heavily on commercial supply chains and civilian software. That integration works beautifully in peacetime. In war, civilian ports, trucking fleets, rail nodes and communications hubs become legitimate targets. Striking them disrupts logistics as effectively as attacking military assets, but with less risk to the attacker.

The algorithms themselves are another weak point. Predictive logistics models train on stable peacetime data to plan routes and distribute supplies. High-intensity combat is very different. Damaged infrastructure, disrupted communications, weather effects and rapidly changing consumption rates create conditions these models were never designed to handle.

The Clausewitz Problem

Carl von Clausewitz’s concept of friction describes the countless unpredictable incidents, physical constraints and psychological pressures that make the otherwise easy so difficult in combat. Military organisations are designed for peacetime predictability. When initial operations do not go according to plan, asking them to simultaneously wage war and rewire their operational DNA creates serious delays exactly when speed matters most.

China has not fought a war since 1979. Its military has no recent experience sustaining large-scale operations against a capable adversary. Most major Chinese exercises still assume favourable conditions with reliable communications and access to civilian logistics support. This makes it hard to judge how much disruption China’s armed forces would face in the opening stages of a real conflict.

The Other Side: Beijing Knows the Risks

Chinese military publications repeatedly warn about the dangers of depending too much on data networks. They highlight the need to safeguard logistics systems against electromagnetic warfare, cyber attacks and supply chain disruption. Beijing is aware of the problem.

This awareness drives China’s preference for short, decisive campaigns. The calculation is straightforward: the longer a conflict lasts, the more time the United States and its allies have to mobilise effectively. Speed is not just a strategic preference. It is a survival requirement for a military that knows its own systems are fragile.

Deeper integration with civilian networks should also make early paralysis harder by spreading demand across a broader base. That is the theory. As Mike Tyson famously said, everybody has a plan until they get punched in the face.

What This Means for Australia and the Region

The same weaknesses that worry Beijing give adversaries ways to impose costs without matching China’s overall strength. By targeting civilian data hubs and key transport nodes, the United States and its Western Pacific allies, including Japan, could force Beijing into the very logistical dilemmas it is trying to avoid.

For Australia, the implications are direct. The ADF is also integrating AI into logistics, intelligence and targeting. Every capability gain comes with a corresponding vulnerability. The question is not whether your adversary has better AI. The question is whether they can disrupt the data your AI depends on.

The Broader Pattern

This pattern repeats across every domain of military AI. Autonomous drones rely on data links. Cyber warfare tools rely on access to target networks. AI targeting systems rely on intelligence data feeds. Each layer of dependency is a potential point of failure.

The international community has no clear framework for AI warfare. The rules of engagement are being written in real time by whoever moves fastest. Lines between civilian and military infrastructure are blurring. Cyber attacks on AI systems could escalate unpredictably. The speed of AI decision-making could outpace human diplomatic control.

The Bottom Line

The more China’s military depends on complex, centralised logistics networks, the greater the disruption if they are successfully targeted. How Beijing deals with this challenge will shape both its military planning and the choices its adversaries make.

Gerald Mako, Cambridge University

The same logic applies to every military pursuing AI superiority. The technology that makes you faster and smarter also makes you more fragile. The question is not whether you should build AI for war. The question is whether you have built the redundancy, the fallback systems and the human decision-making that can function when the AI goes dark.

Because in war, the AI will go dark. The only unknown is whether you will be ready when it does.


This article was researched and published with the assistance of AI tools. Primary source: Gerald Mako, “Good in principle, but China’s new military AI logistics are themselves targets” (ASPI Strategist, July 2026). All arguments are sourced and verifiable.

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

The $155 Billion Question: Are AI Data Centres Australia’s Next Mining Boom or a Ticking Timebomb?

The $155 Billion Question: Are AI Data Centres Australia’s Next Mining Boom or a Ticking Timebomb?

There is a proposal before the New South Wales government to build a hyperscale data centre on Mamre Road in Sydney’s outer western suburbs. If approved, it will stretch across 52 hectares, with six four-storey buildings reaching 40 metres high, 936 cooling units and 852 diesel backup generators. It will be one of the biggest in the world.

This is a single project among many. Australia is in the middle of a sudden, enormous data centre boom driven by the global artificial intelligence revolution. The investment pipeline is estimated at $155 billion over the coming decade, according to Westpac economists. That is 5.6 per cent of one year’s GDP. The boom is so large that economists are comparing it to the mining boom of the early 2000s.

What is Being Built?

There are approximately 160 data centres operating in Australia today, with another 90 proposed according to the Climate Council. The Data Centre Map puts the number even higher at 286 active or planned centres. The major projects include:

  • Mamre Road, Western Sydney: A 52-hectare hyperscale facility with six buildings, 936 cooling units and 852 diesel generators. Would be among the largest in the world.
  • NextDC M3, West Footscray, Melbourne: Already branded “Australia’s largest hyperscale AI factory”, drawing 225MW of power. It is doubling in size again by the end of 2027, covering 10 hectares less than 10km from the Melbourne CBD.
  • Project Mars, NSW: A 90MW data centre being considered by the NSW government, the fourth major centre in its area.
  • Global AI leaders: Anthropic is looking at Australia as a potential AI training ground. OpenAI has established a presence in NSW. Microsoft has committed $25 billion in Australian investment.

The Case For: Jobs, Growth and Productivity

The economic case is substantial. Westpac estimates the net GDP boost at around $75 billion, or 2.8 per cent of GDP, after accounting for import leakages. The construction phase alone would temporarily support around 400,000 jobs.

The Australian Financial Review reports that business investment growth hit 6.5 per cent in the March quarter, a rate not seen since the mining boom. The data centre investment is so large it is creating macroeconomic effects on its own.

Proponents argue that Australia must ride the data boom or be left behind. The federal government’s National AI Plan, published alongside the Expectations of Data Centres and AI Infrastructure Developers document in March 2026, makes the case that digital infrastructure underpins essential services, enables cutting-edge scientific research and strengthens national technological capability.

The spillover benefits are significant too. Westpac estimates a roughly 60:40 ratio of indirect to direct economic effects. Local businesses, construction firms and service providers benefit more than the data centre operators themselves.

The Case Against: Energy, Water and Community

The environmental costs are staggering. The Climate Council warns that data centre energy demand will triple by 2030. If this demand is not met with an equivalent increase in additional renewable energy, Australia faces a critical setback in its climate targets. The water demand for cooling is also expected to triple, placing pressure on already constrained water resources as climate change intensifies drought.

In West Footscray, residents like Sean Brown are living in the shadow of the NextDC M3 centre. He takes his 19-month-old son past the facility and describes the construction noise, the looming towers, the insistent background hum and the exhaust from diesel generators. “They are building something which is, frankly, terrible for the community,” he says. “There is no upside to it.”

The United Nations University has published research arguing that AI’s environmental cost is being mismeasured. Greenpeace has released a report on the environmental impacts of AI. The Climate Council published “Clouded Future: Managing the Risks of the Data Centre Boom.”

Economist Nicki Hutley, writing in the Guardian, put it bluntly: “The economic, environmental and social consequences of this data centre investment boom are profound. Yet governments here and around the world are, by and large, taking a laissez-faire approach, perhaps from Fomo on the alleged benefits or from fear of upsetting the billionaire tech bros, or both.”

The Jobs Argument: Actually, Not That Many

One of the most uncomfortable truths about the data centre boom is that the operational jobs are minimal. Industry estimates suggest only two to five operational jobs per megawatt of capacity. The 400,000 jobs Westpac cites are temporary construction roles, not lasting employment.

As Hutley notes, data centres are not hard infrastructure like roads or power, nor soft infrastructure like healthcare. “It is unclear who is benefiting from all this investment, aside from the tech bros, or how.”

The Government’s Position

The federal government has published its Expectations of Data Centres and AI Infrastructure Developers, which introduces the concept of a social licence to operate. But critics say regulation is lagging far behind the pace of development. The UK Labour government now requires data centres to contribute to net-zero energy targets to receive approval. Australia has no equivalent requirement.

“There are huge opportunities but we need to be smart. There is some level of data centre investment that is good for Australia. The question is: how much?”

Alex Hooper, Head of Climate and Energy Economics, Oxford Economics Australia

What the Future Holds

The global picture is staggering. McKinsey estimates the worldwide cost of data centre expansion at $7 trillion, representing 5 per cent of global annual GDP. The number of data centres globally is expected to increase by 3.5 times.

For Australia, the path forward requires answering three questions. First, how much data centre investment is the right amount? Second, how do we ensure the benefits are shared broadly rather than captured by a handful of global tech companies? And third, how do we build the infrastructure without destroying the environmental conditions that make Australia worth living in?

As the Mamre Road proposal works its way through the NSW planning system, and as the NextDC centre in West Footscray grows larger, these questions are moving from academic to urgent. The data centre boom is arriving whether we are ready or not. The question is whether we will manage it, or it will manage us.

What You Can Do

If you live near a proposed data centre, engage with the planning process. Write to your local MP. Ask your state government what environmental assessment is being done. Ask what renewable energy requirements are in place. Ask what happens when the diesel generators run.

The decisions being made now will shape Australia’s energy system, water resources and communities for decades to come. They deserve scrutiny, debate and most of all, a clear-eyed assessment of whether the benefits truly outweigh the costs.


This article was researched and published with the assistance of AI tools. All sources are linked and verifiable. Key sources: Nicki Hutley’s op-ed “Datacentres are a ticking timebomb” (The Guardian, 9 July 2026); “Thirsty and power hungry” (The Guardian, 22 June 2026); “Under a cloud” (The Guardian, 3 May 2026); Westpac IQ “Powering the AI Economy” (May 2026); “Data centre investment rivals mining boom” (AFR, June 2026); Climate Council “Clouded Future” report; Industry Department “Expectations of Data Centres” (March 2026).

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

JadePuffer: The First AI Agent to Run a Ransomware Attack End to End

I have been watching the intersection of AI and cybersecurity for years. I have seen plenty of vendor marketing dressed up as threat research. But the JadePuffer case, documented by Sysdig’s Threat Research Team on 1 July 2026, is different. It deserves attention, not panic.

Here is the headline: an LLM-powered AI agent appears to have conducted a complete ransomware attack from initial access to data destruction, without a human at the keyboard. Sysdig named it JadePuffer and called it the first documented case of “agentic ransomware.”

The agent entered through an internet-facing Langflow server using CVE-2025-3248, a vulnerability that had been patched for over a year. From there it harvested credentials, enumerated object stores using default passwords, established persistence, and pivoted to a production MySQL server running Alibaba Nacos. It encrypted 1,342 configuration items, dropped the original tables, and left a ransom note.

All of this happened without a person typing the commands.

The Case for Genuine Alarm

The most compelling evidence of AI autonomy was not the scale of the attack but the speed of its adaptations. When a login attempt failed, the agent diagnosed the problem (a missing library in a subprocess path) and issued a 15-line corrective payload in 31 seconds. When an API returned XML instead of JSON, the next payload adjusted its parser. When a DROP DATABASE failed on a foreign key constraint, it wrapped the command with SET FOREIGN_KEY_CHECKS=0.

These are not scripted retries. They are contextual diagnoses at machine speed. A human operator would take minutes or longer to perform the same troubleshooting.

Sysdig’s director of threat research, Michael Clark, put it plainly: “The skill floor for running ransomware has dropped to whatever it costs to run an agent.”

The Reasonable Doubts

But here is where the story gets its nuance.

None of the techniques used were novel. The attack exploited known vulnerabilities with patches available for over a year. It used default credentials (minioadmin:minioadmin) on a MinIO object store. It used a default JWT signing key on Nacos that has been public since 2020. This was not a sophisticated zero-day chain. It was old security sins executed at machine speed.

The ransom note itself raised serious questions about whether the operator knew what they were doing. The Bitcoin address was a canonical example address from developer documentation, likely hallucinated by the model from its training data. The AES encryption key was generated randomly, printed to stdout once, and never saved or transmitted. Paying the ransom would not have recovered the data because nobody, including the attacker, had the key.

As Keeper Security’s CISO Shane Barney told Hackread, JadePuffer should be read “less as science fiction and more as a credential management failure at machine speed.”

Sysdig also sells products that detect automated attacks. There has been no independent confirmation from law enforcement, other security firms, or the victim. Skepticism is warranted.

The Missing Middle

Here is the balanced view that I think matters most.

JadePuffer is not Skynet. It did not invent new techniques. It did not break cryptography. It did not demonstrate general intelligence. What it did was chain together well-known attack patterns with an autonomy and speed that changes the economics of cybercrime.

The threat is not what the agent did. The threat is how cheap and fast it did it. An operator no longer needs deep expertise in every stage of a ransomware operation. They need a capable model, stolen API credits, and internet-facing infrastructure that has been neglected.

The Five Eyes cybersecurity agencies warned in June that the timeline for AI-powered attacks “is not years; it is months.” JadePuffer suggests that timeline may have already arrived.

JadePuffer is not a revolution in attack techniques. It is a revolution in attack economics. The same old vulnerabilities, exploited at machine speed and machine scale. That is what makes this different.

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.

Sam Altman Pitches a US-Led AI Safety Forum With a Government Stake

Sam Altman has just used an FT op-ed to call for a US-led forum that would set AI safety standards and decide who can use the most advanced models. The invitation lands at the same time another FT report said OpenAI discussed giving the US government a 5% stake.

The details are worth taking seriously. The op-ed emerged from June’s G7 summit in France, where Altman says he and other AI executives sat with heads of government to talk through AI regulation. Rather than leaving safety to individual companies, he offered a historical comparison: the IAEA during the Cold War policed atomic energy, and aviation and banking rules later proved that an international referee can work. His pitch is that AI now needs the same structure.

OpenAI also reportedly floated a 5% government stake in the company, and pushed for other US labs to pay into a dividend fund to redistribute wealth. Altman argued that democratic institutions must not cede their responsibilities to AI labs, and that citizens and their elected representatives must make the rules.

Why it matters: both the equity and regulation discussions are gaining momentum, especially after the Mythos saga made safety headlines. The real tension is whether AI wealth is given directly to households, or to a government that may or may not deliver on its promises. A government-led stake sounds appealing in principle, but it also centralises power. If the money flows into public services, that is one outcome. If it gets delayed, diluted, or spent on unrelated programs, that is another. Either way, the conversation is no longer theoretical.

For Australia, the relevance is immediate. Our government is already reviewing AI guardrails, and any US-led forum will shape global standards that local companies must eventually follow. What happens in Washington this year will affect AI access, liability, and investment here.

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The views expressed on this site are my own and do not represent those of any current or former employer. Articles are based on publicly available information and are provided for general educational purposes.