# An OpenAI model hacks Hugging Face > Source: > Published: 2026-07-22 21:00:00+00:00 A rogue AI breaking containment sounds like a hackneyed science fiction trope. It’s also what an OpenAI model did last week. OpenAI said a combination of models was undergoing internal testing when the agents broke through company guardrails to access the internet in order to find an answer to a question. Those agents then hacked into internal company systems belonging to fellow US AI startup Hugging Face. Hugging Face was forced to resort to using open-source Chinese models to defend itself from the cyberattack, as the company said other US models proved unable to distinguish between incident responders and attackers. The two companies, in a joint statement, called the incident “unprecedented,” though it’s technically not the first time a model has broken out of its sandbox. Anthropic’s Mythos previously did so in April, after it [was instructed](https://thenextweb.com/news/anthropics-most-capable-ai-escaped-its-sandbox-and-emailed-a-researcher-so-the-company-wont-release-it) to find a way to bypass its testing environment. That agent went a step further, however; without being instructed to, it posted about its success on public-facing websites. Technically, in both cases, the models were broadly following instructions. As UK cybersecurity prof Oliver Buckley noted, the takeaway here isn’t that “[Skynet has arrived](https://www.sciencemediacentre.org/expert-reaction-to-openai-hugging-face-incident/),” but that containment has suddenly become a more pressing issue. And, since containment often lessens model capabilities and increases compute costs, companies will likely need an incentive to make it a priority. One way, researcher and author Gary Marcus suggested, is to “[clearly and unambiguously](https://x.com/GaryMarcus/status/2079955507377561802) hold the companies liable for consequences.” Whether OpenAI will face consequences for this incident isn’t yet known. **Your finance team has better things to do than chase receipts.** Time is money. Ramp is a finance automation platform built to save you both. One platform for corporate cards, employee expenses, reimbursements, and bill payments. See every swipe as it happens. Automatically block out-of-policy spend. 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More details at ramp.com/canada. #### Latest news across tech **Blockchain week** The crypto community gathered in Toronto this week across events like Blockchain Futurist, bitcoin++ consensus edition, and Web3 Toronto. *BetaKit*’s Josh Scott reports that industry leaders [continue to lament](https://betakit.com/crypto-sector-says-canadas-regulatory-uncertainty-limiting-domestic-innovation/?utm_source=B%7CK%3A%20The%20BetaKit%20Newsletter&utm_medium=email&utm_campaign=B%7CK%3A%20The%20BetaKit%20Newsletter%2007.22.26%20%2801ManualRampWeek%29) how a lack of regulatory clarity is hampering domestic crypto innovation. While the United States’ crypto framework bill, the CLARITY Act, cleared a major hurdle on its way to becoming law this week, the Canadian government has yet to expand on promised stablecoin regulation in the 2026 budget. **Slopastic book fair** Studies have shown that AI models “collapse” when trained on content generated by other AI. As the internet fills with AI slop, *404 Media* reports that “the world’s largest book database,” ISBNdb, is [offering up old books](https://www.404media.co/ai-companies-are-buying-tons-of-old-books-because-theyre-free-of-ai-slop/) so AI companies can train models on guaranteed, human-made content. **Forging Palantir’s Canadian rival** *The Logic* profiled Ottawa-based Anvil and Vancouver-based Caseway, two companies building the military intelligence tools they hope can someday “[displace and unseat](https://thelogic.co/news/canada-homegrown-military-software/)” American defence tech giant Palantir’s Canadian contracts. **Resurrecting Canadian health science** Canada has always struggled to bridge research and commercialization. Kevin Smith, the president and CEO of Toronto’s University Health Network, told *Be Giant* how he thinks Canada can [become the best in the world](https://www.begiant.ca/stories/people/uhn-kevin-smith-health-sciences) at bringing scientific discoveries to market. **AI’s racial bias** Ontario has been using an AI tool to predict prisoner behaviour and decide their living conditions. According to *The Breach*, [a class-action lawsuit](https://breachmedia.ca/black-prisoners-are-assigned-harsher-living-conditions-in-ontario-jails-thanks-to-ai/) alleges that the province knew the system could disproportionately target Black prisoners but went ahead with it anyway, ultimately resulting in more Black prisoners held in maximum security. **Help shape the next generation of Canadian founders** Velocity is bringing back the Velocity Pitch Competition for Waterloo Tech Week, reimagined with a new format built to connect emerging founders with tech leaders and entrepreneurs across the ecosystem. We’re looking for judges who can bring real-world expertise, sharp feedback, and an eye for ideas with genuine potential. Here’s how it works: 100 student teams, 100 judges, one day. Each team delivers a two-minute lightning pitch, no slides. As a judge, you’ll hear from up to 20 teams, give direct feedback, and help decide who advances to the finals and who takes home prizes. This is a chance for industry leaders and entrepreneurs to spot early talent, support the next generation of founders, and stay close to the ideas shaping Canada’s future. #### On the move This week’s hires, fires, and exec shakeups: - AI inference company **Baseten** is[opening offices](https://x.com/baseten/status/2077847919697527008)in Toronto and Montréal and hiring for dozens of roles across both cities. - Ottawa-based supply chain management software provider **Kinaxis**[hired veteran finance executive](https://obj.ca/kinaxis-hires-herb-yeh-as-new-cfo/)Herb Yeh as its new CFO and chief strategy officer, the*Ottawa Business Journal*reports. - Atlantic Canadian tech accelerator **Propel** added Smart Skin Technologies co-founder Kumaran Thillainadarajah and PEI BioAlliance exec Jason Cleaversmith to its board, according to.*Entrevestor* **Startup TNT**[tapped Shar Bhanwala](https://startuptnt.com/stories/welcome-sharyat-edmonton-community-manager)as its Edmonton community manager to build out its support network in the city.- The **Business Development Bank of Canada** is launching an AI-native incubator and wants to[hire someone](https://www.linkedin.com/posts/genevievebouthillier_ia-bdc-innovation-share-7485417417431613440-KBD0/)to lead it. - Burnaby, BC-based **Clio**[has hired](https://www.clio.com/about/press/george-totev-clio-vp-security-ciso/)Goldman Sachs vet George Totev as VP of security and chief information security officer. - Workers are having a hard time proving **Meta** used discriminatory AI tools[to select employees for layoffs](https://www.reuters.com/business/world-at-work/meta-employees-lawsuit-shows-that-if-ai-fires-you-proving-it-is-hard-part-2026-07-22/)in a new lawsuit,*Reuters*reports. Want to feature a hiring announcement on our list? Email [partnerships@betakit.com](mailto:partnerships@betakit.com?subject=JOBS) with the subject line JOBS. ### #1. Fledgling Toronto-based startup Venford Technologies said its digital twin platform intended for policy planning correctly predicted the outcome of what this week? ## Your score: Quiz answer: d) The FIFA World Cup. Venford’s tech [gave Spain a 56 percent chance of victory](https://betakit.com/how-venford-says-its-digital-twin-tech-successfully-predicted-spains-world-cup-win/), a narrow prediction that proved correct in the game’s tight, 1-0 extra-time conclusion. Quiz answer: d) The FIFA World Cup. Venford’s tech [gave Spain a 56 percent chance of victory](https://betakit.com/how-venford-says-its-digital-twin-tech-successfully-predicted-spains-world-cup-win/), a narrow prediction that proved correct in the game’s tight, 1-0 extra-time conclusion. *Contributors: Alex Riehl (Ottawa staff writer), Douglas Soltys (editor in chief), Sarah Rieger (managing editor), Trevor Nichols (web editor).* *Feature image courtesy TechCrunch under Creative Commons Attribution 2.0 Generic (CC BY 2.0)*