# The cyberpocalypse is here — sort of

> Source: <https://www.transformernews.ai/p/php-flaw-cyberpocalypse-is-here-sort-of>
> Published: 2026-10-23 13:56:51+00:00

*Welcome to Transformer, your weekly briefing of what matters in AI. If you’ve been forwarded this email, [click here to subscribe](https://www.transformernews.ai/welcome) and receive future editions.*

### NEED TO KNOW

- A **leaked bill draft** from**Anthropic** caused widespread consternation among **AI safety** advocates.
- **OpenAI** suggested amendments to strengthen**California’s****SB 53** .
- **Anthropic** is reportedly planning to**publicly file for an IPO** as early as today.

*But first…*

### WE’RE SPINNING OUT

Some news from *Transformer*: we are [spinning out](https://www.tarbellcenter.org/blog/transformer-to-spin-out-from-tarbell) from the Tarbell Center for AI Journalism and becoming our own independent organization.

We’re very grateful to Tarbell for incubating us and acting as our publisher for the last couple of years — and to all of you for reading us! Since we’ve launched, we’ve built up an enviable subscriber list (including staff across Congress, the executive branch, and frontier AI companies) and regular citations from the *New York Times*, *New Yorker*, *Washington Post* and many others. We’re now doubling on our success, with ambitious 2027 and 2028 growth plans.

Thanks for your continued support. We’re also fundraising for our new entity: if you work at a foundation or philanthropy keen to support our impactful AI policy reporting, please get in touch ([shakeel@transformernews.ai](mailto:shakeel@transformernews.ai)).

### THE BIG STORY

For months, people have wondered whether the cyber disaster predicted by Anthropic and OpenAI earlier this year would ever materialize, or if it was just doom-mongering and hype. This week, we finally got an answer: it’s real, but it looks different from what we might have imagined.

This week, we learned that researchers using AI models found two major vulnerabilities in PHP, a programming language underpinning much of the web. Details of the vulnerabilities leaked before the fixes were released, causing chaos: government websites, the Internet Archive, and various other important services were quickly [yanked](https://www.bloomberg.com/news/articles/2026-10-22/researchers-say-hackers-targeted-php-before-flaws-were-known?cmpid=ai-today) so they could be fixed before they were compromised. And PHP wasn’t the only victim: OpenAI also said it found a separate flaw in Node.js, another backbone of the web, which was patched this week.

Widespread panic ensued. “Feels like March 1, 2020 for Cyber. Not normal, something is happening. Internet lockdowns in a couple of months?” [said](https://x.com/jachiam0/status/2112968705240109558) former OpenAI executive Joshua Achiam.

**But how worried should we actually be?** In some sense, this week’s events were things working as intended. Yes, new AI models are very good at finding long-dormant vulnerabilities in critical software. But there’s a clear advantage for defenders. The vulnerabilities revealed this week were discovered as part of OpenAI’s Patch the Planet and Daybreak initiatives, giving critical infrastructure providers more than two months to address them before they went public. Yes, things went a bit awry when details leaked early — but for the most part, this went about as well as it could have.

“About as well as it could have” is a long way from “well,” though. Yes, the PHP issues can be fixed. But those fixes actually have to be installed across the web. Many sites and devices will take weeks or months to update. Some, still active but no longer maintained, will never get patched. Those that don’t may end up compromised, fooling ordinary people into handing over sensitive information.

**And this is just the start.** OpenAI said this week’s bugs are “among several significant vulnerabilities we’ve already found,” and that “we expect similar findings to increase sharply in the coming months.” Attackers, meanwhile, now have access to AI cyber capabilities of their own, in the form of open-weight Chinese models.

Defenders just about won the race this time. The question is whether they can keep winning it, again and again, as the pace picks up. That doesn’t mean concrete harm is inevitable or imminent. Joshua Saxe, who worked on AI for security at Meta and now runs a cybersecurity startup, [notes](https://x.com/joshua_saxe/status/2113273925396250683) that cheaper offensive capability “doesn’t immediately translate into damages.” Breaking into a network was never the main bottleneck, he argues: carrying out an entire criminal operation with limited access to compute and without getting caught is the really hard part.

**But it probably does mean a very bumpy road ahead**, because governments and organizations aren’t going to leave security to chance. Weeks like this one, where websites suddenly disappear to get patched, may be the new normal. Attacks will likely increase, even if they do not reach truly catastrophic levels.

We are probably in the best of all possible worlds in which AI has advanced cyberattack capabilities. The problem is that *none* of those worlds were ever good ones.

*— Shakeel Hashim*

### THIS WEEK ON TRANSFORMER

- **[Claude will tell you how to manipulate an election](https://www.transformernews.ai/p/claude-jailbreak-election-manipulation)** —**Chris Stokel-Walker** investigates Claude’s willingness to design an influence campaign
- **[Is a new job in Rep. Moran’s office a sign Congress is staffing up on AI?](https://www.transformernews.ai/p/nathaniel-moran-to-hire-ai-staffer)** —**Veronica Irwin** looks at whether a new fellow could be the first of many
- **[Anthropic’s weak AI bill undermines its ‘safety first’ approach](https://www.transformernews.ai/p/anthropic-leaked-ai-bill-undermines-safety-first-approach)** —**Shakeel Hashim** on the backlash to the leaked legislative proposal

### THE DISCOURSE

**Nathan Calvin** got “viscerally angry” [reading](https://x.com/_NathanCalvin/status/2111262661493010492) Anthropic’s draft federal AI safety bill: 

- “For all of its warning about the potential for AI to cause a catastrophe that kills literally everyone on the planet, Anthropic’s proposed federal law likely makes it harder than under existing law for a court to get an order blocking or restricting the development of frontier models? WTF??”

**Anthony Cimino** [replied](https://x.com/ajcimino/status/2111932795714977941?s=20) carefully on behalf of Anthropic’s federal affairs team: 

- “I’ve seen valid questions about whether we have sufficiently updated our proposal following this summer’s incidents. We did make some adjustments … But we’re still working to strengthen the framework.”

**Calvin** [thanked](https://x.com/_NathanCalvin/status/2112295219765137570?s=20) him for responding on a weekend, then said: 

- “[I]t’s worth asking the question: what is Anthropic?”
- “One answer is an extremely large tech company that exists to make its employees and investors mind-bogglingly wealthy … Another answer is an AI safety organization, whose core values are those of the sort laid out in the 2023 essay from Anthropic’s co-founders … *‘Anthropic’s role will be to provide as much evidence as possible that AI safety techniques cannot prevent serious or catastrophic safety risks from advanced AI, and to sound the alarm so that the world’s institutions can channel collective effort towards preventing the development of dangerous AIs.’”*
- “A third view is that Anthropic exists … as an organization primarily concerned with creating superhuman AI capabilities before anyone else.”
- “When I look at many notable actions that Anthropic has taken over the past year, that evidence seems most consistent to me with the view that Anthropic is primarily trying to win the race to super intelligence, and that other considerations (including safety) are fundamentally secondary.”

**Dario Amodei** stepped in to [reply](https://x.com/DarioAmodei/status/2112732230124818891) to Calvin directly: 

- “Our strategy has always been what I’ve called the ‘race to the top’ — by showing how it’s possible to build the technology responsibly, we can raise the bar for the entire industry. The forces that drive the race to the top are hugely more effective if the company practicing them is at the frontier.”
- “I believe that if we take a list of things that Anthropic did in the past year that were pro-safety and commercially costly to us, they far outweigh the list you’ve made.”
- “For each decision, you can come up with ulterior motives that could have driven us — I think it is a general truth that any decision, on any topic, can always be portrayed as a nefarious scheme. But most of these end up being pretty farfetched or don’t fully make sense if you actually examine them closely.”
- “I think that even if I conceded every item in your list, I would happily hold up mine next to it; I don’t think it’s a close call.”

**Amodei** specifically [described](https://x.com/DarioAmodei/status/2112732230124818891) elements of its draft bill as: 

- “Rhetoric or policy communication that wasn’t carefully written or resulting from fast-changing circumstances not propagating from one team to another fast enough.”

**Calvin** [stuck](https://x.com/_NathanCalvin/status/2113273917544505798) the landing: 

- “I hope that Anthropic reflects on this picture, supports stronger regulation, exercises extraordinary caution when advocating for weak regulation, and doubles down on its founding purpose of helping the world safely navigate transformative AI together, instead of prioritizing Anthropic’s ability to win a race that imposes intolerable risks on everyone alive.”

**Ashley Gold** [wondered](https://x.com/ashleyrgold/status/2112895349228536104?s=20): 

- “You think these AI people ever just call each other instead of posting essays on X”

### POLICY

#### Executive

- **President Trump**[urged](https://x.com/pstasiatech/status/2112866785313587474?s=12) new large** data centers** to**generate their own electricity** and**share excess with local grids** , encouraging them to consider giving communities a “dividend” to win their support.
- **FTC Chair Andrew Ferguson** is[emerging](https://punchbowl.news/article/tech/trump-ai-enforcer) as Trump’s AI enforcer, leading a consumer protection committee under the SI Force while the FTC issued information demands to**OpenAI** and**Anthropic** .
- **Treasury Secretary Scott Bessent** reportedly[dismissed](https://ft.com/content/5b7c2fdf-2300-4208-860e-6389ceb18886?syn-25a6b1a6=1) AI bubble concerns, saying “I don’t see a systemic problem” at a private investor conference.
- **NIST** , the **NSA** and**CISA**[issued](https://media.defense.gov/2026/Oct/16/2004015654/-1/-1/0/KEY_PRACTICES_INCIDENT_READINESS_RESPONSE_IN_SI_TRAINING_EVALUATION.PDF) new guidance on “**incident readiness** and response in super intelligence training and evaluation.”
- *The Intercept*[reported](https://theintercept.com/2026/10/19/army-autonomous-ai-agents-arcyber) that the**US Army** is developing**autonomous AI agents** to hack and “neutralize” adversaries’ computer systems with minimal human oversight.
- *Politico* , meanwhile, reported that the**Pentagon** is[building](https://politico.com/news/2026/10/22/technology-support-office-dod-tech-spyware-sabotage-01100327) a secret**tech sabotage agency** , the Technology Support Office, to disrupt foreign AI and defense programs.
- The  **Department of Homeland Security**[banned](https://cyberscoop.com/dhs-bans-deepseek-federal-agencies)** DeepSeek** from civilian federal agencies, citing national security concerns including data storage on Chinese servers.
- The **Treasury Department**[proposed](https://apnews.com/article/treasury-china-tech-investments-rule-b742c292ff8eb19e6a4c8cf03d4d66b9) an expansion of rules**restricting AI investment** in foreign adversaries such as China.
- Federal agencies [are being overwhelmed](https://fedscoop.com/ai-slop-responses-rfp-rfi-federal-agencies) by**AI-generated RFP** and**RFI** responses, with one**Department of Transportation** official noting submissions jumped from ~10 to 500 responses per request.

#### Congress

- **Sens. Richard Blumenthal** and**Josh Hawley**[launched](https://wsj.com/tech/ai/senators-express-grave-concerns-launch-inquiry-into-googles-ai-push-in-schools-a198d5c1?mod=e2twd) an inquiry into**Google’s AI tools in schools** , citing “grave concerns” over student wellbeing.
- **Rep. Jim Himes**[warned](https://punchbowl.news/article/tech/himes-ai-lead) the US will eventually lose its AI lead over China, calling** chip export****controls** “one real lever” for policymakers.
- **Sen.****Dave McCormick**[urged](https://punchbowl.news/article/tech/dave-mccormick-ai-hawks) the US to end** advanced AI chip sales to China** , as Senate hawks push related measures via the defense bill.
- **Sen. Chuck Schumer**[urged](https://aljazeera.com/economy/2026/10/19/chuck-schumer-urges-fcc-to-block-ai-robocalls-before-elections) the** FCC** to reject a**Club for Growth** petition allowing AI robocalls ahead of November midterms.

#### States

- **Washington** state leaders[discussed](https://govtech.com/policy/washington-state-leaders-weigh-ai-guardrails) introducing legislation in January aligned with**Illinois’ SB 315** .
- **North Dakota** lawmakers[considered](https://grandforksherald.com/news/north-dakota/north-dakota-lawmakers-consider-rules-for-ai-chatbots-and-children) restricting AI chatbot interactions with minors.
- **SpaceXAI**[testified](https://cbsnews.com/newyork/news/space-x-nyc-council-elon-musk-ai-safety) before the** NY City Council** on AI safety after being subpoenaed.
  - **NYC Mayor Zohran Mamdani**[criticized](https://techcrunch.com/2026/10/19/mamdani-says-feds-have-abdicated-on-ai-urges-new-yorkers-to-push-back) federal “abdication” on AI regulation, urging cities to hold AI companies accountable.
  - He also [called on](https://x.com/calder_mchugh/status/2112327833020141998?s=12)**Gov. Kathy Hochul** to sign the**Responsible Data Center Development Act** .
- **New York** ’s state budget chief[warned](https://politico.com/newsletters/new-york-playbook/2026/10/20/an-ai-warning-01127524?nid=0000014f-1646-d88f-a1cf-5f46b74f0000&nname=new-york-playbook&nrid=a6d61068-eefa-499a-bfcb-d648b4d030e4) that a slowdown in AI investment could cool financial markets and hurt state revenue.

#### China

- **DeepSeek** and**MiniMax** got[approval](https://bloomberg.com/news/articles/2026-10-23/deepseek-minimax-win-approval-for-global-use-state-media-says) to deploy models overseas under China’s new**AI export control** framework.
- Zilan Qian and Cheryl Wu [analyzed](https://asteriskmag.substack.com/p/how-chinese-companies-talk-about) how Chinese companies talk about**recursive self-improvement** , with evidence suggesting a bottom-up commercial story rather than Beijing coordination.

#### UK

- **UK Prime Minister Andy Burnham**[advertised](https://theguardian.com/politics/2026/oct/22/downing-street-advisers-andy-burnham-ai) for a No 10 AI adviser with “deep expertise” to lead preparations for AI’s workforce and societal impacts.
- **AI minister Kanishka Narayan**[urged](https://bbc.co.uk/news/articles/ck7vp8g38y7vo?at_bbc_team=editorial&at_campaign=Social_Flow&at_campaign_type=owned&at_format=link&at_link_id=851D6456-CE9F-11F1-8DF2-BCBFF5155801&at_link_origin=BBCNews&at_link_type=web_link&at_medium=social&at_ptr_name=twitter&xtor=AL-71-%5Bpartner%5D-%5Bbbc.news.twitter%5D-%5Bheadline%5D-%5Bnews%5D-%5Bbizdev%5D-%5Bisapi%5D) democracy to “assert power [over AI] rather than leave it to tech bros and oligarchs.”

#### EU

- **The European Commission**[published](https://digital-strategy.ec.europa.eu/en/library/first-harmonised-standard-supporting-ai-act-published-official-journal) the first harmonized standard supporting the**EU AI Act** , covering quality management systems for high-risk AI providers.
- At the **International AI Summit** in Dublin, European officials[insisted](https://politico.com/newsletters/decoded-by-politico/2026/10/16/europes-ai-identity-crisis-01123019)**no new AI rules** are needed, even as US tech executives warned their models require stronger oversight.

#### International

- **India’s** cybersecurity agency[reported](https://techcrunch.com/2026/10/16/india-becomes-the-latest-country-to-report-rogue-ai-agent-activity)**AI agents** from multiple providers accessed**personal data** at Indian organizations.
- **G7 finance ministers**[agreed](https://ft.com/content/ce1b9236-1e53-47f1-b1f9-443a9f430b0d?syn-25a6b1a6=1) to hold simulated** AI cyber attack drills** on banks amid rising fears over frontier AI-enabled threats to financial stability.

### INFLUENCE

- **OpenAI**[called for](https://politico.com/newsletters/decoded-by-politico/2026/10/22/thiels-big-break-with-trump-01131403) a federally funded**cybersecurity overhaul** , including expanded incident reporting requirements.
- **OpenAI**[urged](https://x.com/ShakeelHashim/status/2112982250266796284?s=20)** California Gov. Newsom** to strengthen**SB 53** to include shutdown controls, annual audits and cybersecurity requirements.
  - The move came shortly after **OpenAI** ’s Chris Lehane[praised](https://punchbowl.news/article/tech/openai-lehane-frontier-bill) the bipartisan**FRONTIER Act** and called for mandatory pre-deployment testing and a debate over kill switch mechanisms.
- **OpenAI** has[quietly dropped](https://politico.com/news/2026/10/20/openai-ai-chips-china-nvidia-01127385) its push for strict AI**chip export controls** on China, seemingly to avoid annoying**Nvidia** .
  - **Nvidia** ,**Anthropic** ,**Google** and others[lobbied](https://punchbowl.news/article/tech/chips-lobbying-bonanza) on AI chip export restriction bills in Q3, per new disclosures.
- **OpenAI** ,**Anthropic** and**Nvidia** each[set](https://theverge.com/policy/1016585/openai-anthropic-nvidia-lobbying-records)**record lobbying quarters** in Q3 2026, spending a collective ~$6m.
- **Meta** quietly[withdrew](https://nytimes.com/2026/10/16/technology/meta-midterms-funding.html)**$25m** from its**midterm election spending** plan, shrinking its**$65m** campaign budget by 40%.
- Conservative AI safety group **Alliance for a Better Future**[gave](https://x.com/birnbaum_e/status/2112986916614496475?s=12)**$1m** to Trump’s**MAGA Inc** .
- **Guardrails Alliance**[announced](https://mailchi.mp/theworkeragency.com/guardrails-announces-12-million-spend-15084524?e=12ef0374c0) an additional**$1.93m** in ad buys opposing AI industry-backed candidates in four congressional races.
- **Abundant Future PAC** , which is backing**Scott Wiener’s** campaign and has received funding from Anthropic-backed nonprofit**Public First** , has been[linked](https://www.politico.com/newsletters/politico-influence/2026/10/16/health-care-fraud-donations-rnc-01123614) to Wiener’s campaign through shared staff.
- **Kleiner Perkins** chair **John Doerr**[funneled](https://readsludge.com/2026/10/20/tech-billionaire-john-doerr-funnels-millions-to-democrats-through-new-dark-money-group)**$10m+** via dark money nonprofit**Incaendo** to**Democratic groups** while lobbying for narrow federal AI rules.
- **AI-generated deepfakes**[are appearing](https://axios.com/2026/10/19/ai-attack-ads-campaigns-elections-deepfakes?lctg=68f16033e54395565a070527&stream=top) in midterm attack ads as election laws struggle to keep pace.
  - Republican campaigns [dominated](https://nytimes.com/2026/10/16/us/politics/midterm-elections-ai-generated-ads.html) the**$137m** in AI-generated midterm ads, with 70% lacking disclosure.
- A task force including **Nvidia** ,**Microsoft** and**Cisco**[warned](https://theguardian.com/uk-news/2026/oct/22/ai-firms-say-uk-has-a-year-to-head-off-datacentre-protests-before-construction-is-threatened) UK ministers they have 12 months to build community support for data centers before US-style protests threaten construction.
- **Nvidia CEO Jensen Huang**[urged](https://bloomberg.com/news/articles/2026-10-21/nvidia-ceo-huang-pitches-europe-on-all-industries-adopting-ai)** Europe** to adopt AI faster, unveiling new data center products and partnerships at GTC Berlin.
- **Humans First**[outlined](https://humansfirst.com/america-first-ai-policy) an “America First”** AI policy framework** prioritizing national security, Big Tech accountability and worker protections.
- The **data center** industry[is using](https://wired.com/story/data-center-industry-is-trying-to-woo-kids)**school field trips** and**children’s books** in an attempt to improve its public image.
- Youth-led group **Design It For Us** [released](https://semafor.com/article/10/21/2026/youth-led-ai-safety-group-demands-protections-for-young-users) a 2027 AI policy platform demanding Congress pass AI safety legislation by year’s end.
- Activists led by the advocacy group **Irreplaceable**[rallied](https://kqed.org/news/12105289/freeze-ai-now-bay-area-activists-rally-outside-openai-headquarters) outside** OpenAI** ’s San Francisco headquarters, and staged a walkout in 50 other US cities demanding a freeze on AI development.
- **PauseAI Boise**[organized](https://mailchi.mp/pauseai-us.org/pauseai-us-on-capitol-hill-the-people-demand-an-intl-treaty-to-pause-ai-17468144?e=db2e2d5c42) Idaho’s first AI safety protest, demanding a pause on frontier AI development and an international treaty.
- A new **IFP report**[argues](https://ifp.org/how-to-increase-americas-ai-lead-over-china/) that existing federal authorities to impose measures like**remote access restrictions** could double**America’s AI lead** over**China** by the end of next year.
- **New York’s DSA chapter**[is divided](https://semafor.com/article/10/21/2026/how-ai-divided-a-powerful-chapter-of-the-democratic-socialists-of-america) over whether AI poses**catastrophic existential risk** or is merely**overhyped** , with a resolution on the topic up for a vote next month.
- A new poll by **PF Global** [found](https://www.politico.com/newsletters/decoded-by-politico/2026/10/19/big-techs-elephant-in-the-room-01125846) that American voters across the political spectrum now see nearly all**major tech CEOs** — including fake CEO “Marshall Ancoates” and Anthropic’s Dario Amodei — as**more Republican-presenting** than Democrat.

### INDUSTRY

#### Anthropic

- Anthropic is [planning](https://finance.yahoo.com/markets/article/anthropic-to-publicly-file-for-ipo-as-early-as-friday-sources-say-135343841.html) to publicly **file for an IPO** as early as today.
  - According to its **draft prospectus** , revenue is[skyrocketing](https://www.wsj.com/tech/ai/anthropic-revenue-growth-ipo-accaf0f1) , but so are**computing costs** — potentially outpacing what cloud providers (and private[fundraising](https://www.axios.com/2026/10/21/anthropic-ipo-ai-costs) ) can actually provide.
    - It also revealed a net loss of $80b for the first half of the year.
    - It cited damages caused by **misaligned models** and**data center backlash** as major financial risks.
  - It [plans](https://anthropic.com/news/public-benefit-fund) to put 5% of shares into a**public benefit fund** , with an extra 2% added per 50% increase in company value.
  - An IPO [would](https://www.bloomberg.com/news/articles/2026-10-19/eric-schmidt-s-1-anthropic-stake-set-to-pay-massive-windfall) be great news for**Eric Schmidt** , an early Anthropic investor who now owns about 1% of the company.
  - Ahead of the IPO, the *WSJ*[examined](https://wsj.com/tech/ai/anthropic-ipo-private-trust-188f41f7?mod=djem10point) its Long-Term Benefit Trust, which controls board appointments and can block major corporate actions.
- It [launched](https://claude.com/resources/articles/claude-duet) a research preview of**Claude Duet** , Anthropic’s answer to**proactive AI agent apps** such as Meta’s Muse.
- It’s reportedly [preparing](https://www.theinformation.com/newsletters/ai-agenda/anthropic-readies-model-reads-users-intentions-better?rc=rqdn2z) a**new model** that*The Information* described as “especially good at discerning a person’s underlying intentions and goals even if they don’t give the model much information.”
- **METR** [reviewed](https://metr.org/blog/2026-10-20-misalignment-risk-report-august-2026-review/#background) the “Misalignment in high-stakes settings” section of Anthropic’s**Risk Report** from August.
  - It concluded that, while risk of **catastrophic harm from misalignment i** s low for now, this is mostly because the models aren’t smart enough — not because they’re sufficiently aligned or under control.
- Anthropic is [getting](https://www.ft.com/content/f7c26ac0-f5f2-443a-86b2-39d62f7920a9?syn-25a6b1a6=1) advice from**law firms** on how AI agents should negotiate things like prices and customer service issues on behalf of human users.
- It’s [in talks](https://bloomberg.com/news/articles/2026-10-19/nscale-anthropic-in-talks-for-45-billion-cloud-computing-deal) to buy **$45b** worth of computing power from **Nscale** .
- It [published](https://techcrunch.com/2026/10/17/anthropic-says-its-workforce-has-become-less-junior-and-is-spending-more-time-in-meetings) a report showing that, as internal use of**AI agents** increased, the company hired**fewer junior technical employees** .
  - Meanwhile, many existing employees switched departments as their previous tasks were handed off to Claude.

#### OpenAI

- The  **ex-OpenAI engineer**[accused](https://www.nytimes.com/2026/10/19/technology/saudis-aided-family-openai-engineer.html) of bugging one of its offices,**Abdulrahman Alfozan** , will remain in**custody without bail** while awaiting trial.
  - Alfozan was reportedly [exchanging](https://theinformation.com/briefings/employee-bugged-openai-saudi-royal-ties-u-s-prosecutors-say?rc=rqdn2z) “frequent” messages with a member of the**Saudi royal family** in the days leading up to his arrest.
- It reportedly [cut](https://ft.com/content/bb564eb1-79d4-4694-aa24-1155202a9abc?syn-25a6b1a6=1) its valuation target to**$1.25t** after market resistance to an initial**$1.4t** pitch, with the *FT* reporting weak demand and “zero clamoring” from investors.
- The *WSJ*[reported](https://www.wsj.com/tech/ai/the-signal-chats-that-cost-openai-researchers-their-jobs-594c5853) that OpenAI fired**three safety researchers** over alleged mishandling of sensitive information after finding they had auto-deleting Signal chats with an**external safety researcher.**
- Agents [powered](https://x.com/marcus_j_w/status/2112695138199966084?s=12) by**GPT Sol 6.1** and**GPT-6 Astra** keep**turning off misalignment monitoring** . In one recent case, an agent**lied** and told the user it hadn’t.
- It  [expanded](https://theinformation.com/briefings/openai-expands-chatgpt-ads-26-countries-says-100-000-advertisers)**ChatGPT** ads to 26 more countries, making a total of 83, and claimed it now has more than 100,000 advertisers.
- It [acquired](https://openai.com/index/openai-to-acquire-orchestra-bio)**Orchestra Bio** , a biotech startup that helps pharma companies coordinate**drug development** .
- It [invested](https://wired.com/story/openai-startup-brain-implants-detect-cancer) in a**$45m seed round** for**Coherence Neuro** , a startup building AI models and implants to detect, and eventually treat, brain tumors.
- It’s [making](https://openai.com/index/openai-models-google-cloud) its models available on**Google Cloud** .
- Sam Altman [told](https://theinformation.com/articles/altman-describes-three-endgames-ai-including-one-single-firm-melts-everyone-elses-gpus?rc=rqdn2z) OpenAI staff about **three proposals for safely developing AI** : an international organization enforces safety standards (apparently Altman’s favorite), all AI labs merge into one, and a single company dominates all compute so its competitors can never catch up.
  - He reportedly said of the third option: “Obviously I think that one’s terrible.”
- A US judge [dismissed](https://www.reuters.com/world/us-judge-dismisses-sam-altmans-sisters-sexual-abuse-lawsuit-2026-10-20/) the**sexual abuse lawsuit** against Sam Altman brought by his sister, Annie, after she failed to appear for an independent medical examination.

#### Meta

- **Muse** , Meta’s AI agent app, now[has](https://businessinsider.com/meta-q3-2026-earnings-mark-zuckerberg-muse-ai-app-users-2026-10)**over 10m users** in the US and Canada.
- Meta’s **instructions to its WhatsApp chatbot,** including directions to avoid giving users legal advice, were[leaked](https://wired.com/story/whatsapp-help-pages-leaked-hidden-instructions-for-a-meta-chatbot) on**WhatsApp** help pages.
- Meta is [creating](https://wsj.com/articles/metaplatforms-meta-3q-earnings-report-2026-stock-f28d64c2?reflink=desktopwebshare_permalink&st=Uj26V6) a**non-voting stock class** to fund its AI development.

#### Google/DeepMind

- Several **Google DeepMind** employees, including researchers**Sofia Liguori** and**Andreas Kirsch** ,[resigned](https://bbc.co.uk/news/articles/cmreyvepnv0po) over its military deals, which they say lack sufficient human oversight, with Liguori describing her concerns despite what she said was a**lifetime clause** in her contract barring her from speaking out.

#### SpaceX

- Elon Musk is [considering](https://www.ft.com/content/e598bbc7-8211-436f-a57e-46c3ae21ac0f?syn-25a6b1a6=1) a **$3.6t merger of Tesla and SpaceX** .
  - Special committees representing each company would have to agree to terms.
  - Musk said this makes sense because “we are pretty much in the superintelligence singularity.”
- He also [said](https://www.cnbc.com/2026/10/19/elon-musk-spacex-shares-giveaway-kids.html) he’ll give**every child in the US** — that’s 72m kids —**one SpaceX share** .
  - “This will be the first of many,” he [tweeted](https://x.com/elonmusk/status/2112089556615123114) .

#### Nvidia

- Nvidia [launched](https://www.datacenterdynamics.com/en/news/nvidia-launches-dsx-pod-claims-the-vera-rubin-reference-architecture-will-make-ai-data-centers-more-water-and-energy-efficient/)**DSX POD** , a design for Vera Rubin-powered data centers that it claims uses**30% less power** and saves **54m liters of water a day** relative to conventional methods.
- It’s [in talks](https://theinformation.com/articles/nvidia-moves-back-gpu-cloud-provider-firmus-investors-balk-ipo) to invest hundreds of millions of dollars in**Firmus** , an Australian AI cloud provider that recently pulled its IPO due to investor skepticism.
- **ByteDance, Alibaba** and**Tencent** reportedly[ordered](https://www.reuters.com/business/retail-consumer/bytedance-alibaba-tencent-place-over-35-billion-worth-nvidia-chip-orders-2026-10-20/)**$35b** worth of Nvidia’s new RTX PRO 5500 graphics cards in a bid to secure export-control compliant computing power.

#### DeepSeek

- **DeepSeek** [raised](https://www.bloomberg.com/news/articles/2026-10-22/deepseek-raises-15-billion-in-challenge-to-leading-us-labs) roughly**$15b** in one of China’s largest-ever fundraising rounds.
- It  is reportedly[working](https://www.theinformation.com/articles/deepseek-shaping-huaweis-ai-chips-growing-challenge-nvidia?rc=rqdn2z) closely with**Huawei** to make Chinese AI chips good enough that the company won’t have to rely on Nvidia.
- It unveiled **DeepInfer,** an open-source inference framework to lower compute costs and reduce energy use.

#### Other

- Concerns about the stability of the AI debt boom drove [a surge](https://ft.com/content/6dd31584-064c-4015-bf5d-e5747799ccd5?syn-25a6b1a6=1) in credit default swaps tied to AI-linked companies, such as**Nvidia, Oracle, Amazon** and**Meta** , topping**$9bn** a week in September.
  - The *NYT* also[reported on](https://www.nytimes.com/2026/10/17/business/ai-debt-coreweave-oracle-softbank.html?smid=url-share&unlocked_article_code=1.JlE.Xgxf.QuEWFgfl8zJB) the jitters around the debt-driven data center buildout affecting companies such as**CoreWeave, SoftBank** and**Oracle** .
- **Microsoft** [dropped](https://telegraph.co.uk/business/2026/10/18/microsoft-axes-ai-deal-setback-uk-data-centre-pioneer) a**UK data center deal** with**Nscale** , which had been counting on Microsoft as one of its two biggest customers.
  - **Jensen Huang** [told](https://www.bloomberg.com/news/articles/2026-10-22/nvidia-s-huang-urged-nscale-to-move-faster-after-early-setbacks?cmpid=ai-today) Nscale to “work around the clock” to bring its data centers online.
- Goldman Sachs [warned](https://axios.com/2026/10/20/goldman-ai-energy-infrastructure-bottleneck?lctg=68f16033e54395565a070527&stream=top) that US power grid bottlenecks pose the biggest risk to AI’s trillion-dollar buildout.
- **Recursive** [released](https://wired.com/story/recursive-self-improvement-flint-latest-model-scary-good)**Flint** , a coding model it claims was developed almost entirely by “the Eureka Machine,” its recursive AI system.
- **Hugging Face** [released](https://wired.com/story/hugging-face-new-ai-biology-model-chat-with-dna) an open-source biology model,**Carbon-X** , which allows nontechnical users to ask questions about**DNA and genetic mutations** via chatbot.
- **OpenEvidence** , the AI search engine used by most doctors in the US,[hit](https://ft.com/content/0ed17b79-47dd-4ad8-8dca-44eb35617edc) a**$15b valuation** after raising **$250m** last month.
- **Softbank’s** SB Energy[was reportedly considering](https://theinformation.com/articles/sb-energy-considers-waiting-december-later-ipo?rc=rqdn2z) delaying its IPO to December or later, watching**Anthropic** ’s expected listing before deciding.
- **SK Hynix**[scrapped](https://wsj.com/tech/sk-hynix-shelves-plans-for-u-s-listing-of-memory-chip-unit-solidigm-e9670506?st=aR7N6u) the planned US listing for its flash-memory subsidiary**Solidigm** , which had aimed to raise**$10b-$15b** , citing AI valuation fears and market volatility.
  - Another **SK Group** company, SK Hyper Co., was[in talks](https://bloomberg.com/news/articles/2026-10-23/sk-data-center-arm-in-talks-to-fund-350-billion-ai-buildout) to secure funding for a**$350b** AI data center buildout in South Korea.
- **Flapping Airplanes** , a startup working to train AI models more efficiently,[raised](https://bloomberg.com/news/articles/2026-10-21/ai-research-startup-flapping-airplanes-valued-at-6-billion-in-round?leadSource=article-gifting)**$1b** at a**$6b valuation** .
- **Character.AI’s** bankruptcy was reportedly[orchestrated](https://www.wired.com/story/disney-asked-characterai-to-go-bankrupt-for-a-get-out-of-lawsuits-card/) to allow**Disney** to acquire its staff and technology while avoiding legal liability for its chatbots allegedly harming minors.

### MOVES

- **Aleksander Madry** [returned](https://x.com/aleks_madry/status/2112231448103239998?s=12) to**OpenAI** after spending a few months back at MIT.
  - He’ll be working with chief scientist **Jakub Pachocki** on “getting the safety and security challenges of increasingly capable AI right.”
- **Meta chief global affairs officer****Joel Kaplan** will[leave](https://axios.com/2026/10/20/joel-kaplan-meta) next year, after a 15-year stint at the company.
  - Meta president **Dina****Powell McCormick** will take over much of his work.
- **Christopher Stubbs** , a Harvard physicist and the university’s former Dean of Science,[joined](https://www.anthropic.com/news/christopher-stubbs-joins-long-term-benefit-trust) **Anthropic’s Long-Term Benefit Trust.** 
- **Sören Mindermann** is[joining](https://sorenmindermann.substack.com/p/why-im-becoming-a-professor-in-ai)**Tsinghua University** as an assistant professor working on AI safety.
  - “There is a striking lack of mutual understanding on AI between the West and China,” he wrote in a blog post about the move. “[B]eing in Beijing in person will put me in a unique position to understand both AI ecosystems, build shared scientific understanding, and strengthen safety work in China — and that this would help all sides.”
- The **Center for Shared AI Prosperity**[added](https://politico.com/newsletters/decoded-by-politico/2026/10/21/death-of-a-cypherpunk-01128719) over a half-dozen new advisers and a fellow.
- **Chen Guangyu** , a 17-year-old AI prodigy, reportedly[left](https://36kr.com/p/4027015538759552)**Kimi**[for](https://finance.biggo.com/news/03646faa-5d6e-4574-b89b-e75704253b59) **Discovery Loop** .
- **Arwen Bradley**[joined](https://x.com/ArwenBradley/status/2112312069483827330)** Goodfire** following a brief stint at Mirendil and 12 years at Apple.
- ***The Information*** [hired](https://theinformation.com/articles/information-announces-new-openai-google-finance-asia-reporters?rc=rqdn2z) three new reporters:**Ryan Barwick** covering Google,**Claudia Chong** covering Asia, and**Alex Eichenstein** covering tech capital markets.
  - **Jemima McEvoy** also moved beats to cover OpenAI.
- **Cory Weinberg** left***The Information*** **to** [join](https://x.com/coryweinberg/status/2112933424604582097?s=12) the ***New York Times*** , where he’ll cover AI and Anthropic in San Francisco.

### RESEARCH

- **METR’s David Rein and Redwood Research’s Adam Kaufman** [spent](https://metr.org/blog/2026-10-22-red-teaming-openai-agent-monitoring/) three weeks this summer stress-testing**OpenAI’s internal misalignment monitoring system** .
  - Published findings included multiple ways in which agents were left unmonitored, and ways agents could get around monitoring entirely.
  - This came with major restrictions — METR and Redwood Research agreed to only publicly post a fraction of its 61-page internal report, and gave OpenAI the right to redact any information it wanted (without holding on to the right to describe its redactions).
  - OpenAI claims “all vulnerabilities we identified that impact their production safeguards stack have been patched.”
- **Anthropic biologists** and**Citrini Research** [asked](https://anthropic.com/research/claude-scorpion-toxin-binder-design) Claude to design**novel protein binders against scorpion poison** .
  - The model produced 211 protein designs that partners tested in wet labs. 17 successfully bound to at least one scorpion neurotoxin, the first step towards making antivenom.
- **Anthropic’s Frontier Red Team** [described](https://www.anthropic.com/research/attack-surface-reduction) how Claude found**493 security issues** across 25 open-source codebases.
  - The team also [demonstrated](https://anthropic.com/research/formal-verification) that**Claude** can produce**formal software security proofs** at scale, verifying 123 open-source libraries and discovering previously undetected bugs.
- **OpenAI, PerturbAI and Scripps Research**[used](https://openai.com/index/scaling-ai-research-for-complex-biological-data) thousands of** GPT-Rosalind** -powered AI agents to analyze millions of mouse brain cells in 32 minutes — many months faster than it would take a human researcher.
- **Google DeepMind researchers** [got](https://the-decoder.com/four-gemini-4-argon-agents-beat-minecraft-without-any-human-help/) four**Gemini 4 Argon** -powered AI agents to beat Minecraft.
- A team led by MATS fellow  **Max Kamachee** and Harvard researcher **Stephen Casper** [published](https://x.com/StephenLCasper/status/2112555723813003647) a “pre-mortem” on a future**AI-enabled terrorism** event.
  - They described two potential scenarios: one where non-state actors use a closed-weight model to make bioweapons, and another where a state-sponsored group uses an open-weight model to run a cyberattack.

### BEST OF THE REST

- The patching of the PHP vulnerabilities  revealed this week[relied](https://theatlantic.com/technology/2026/10/man-who-saved-internet-php-vulnerability/689123/?gift=iWa_iB9lkw4UuiWbIbrWGX0S2EScp28jU-louXZfg5I) heavily on one volunteer maintainer, according to*The Atlantic* .
- Ezra Klein wrote in the *NYT* that[even](https://nytimes.com/2026/10/18/opinion/ai-bubble-catastrophe-investors-control.html) AI’s “good scenario” — jobless prosperity — threatens human control, comprehension and meaning.
- Kelsey Piper [recounted in](https://theargumentmag.com/p/what-i-saw-inside-anthropic?isFreemail=true&post_id=221381590&publication_id=5247799&r=6ckwuk&triedRedirect=true&triggerShare=true) *[The Argument](https://theargumentmag.com/p/what-i-saw-inside-anthropic?isFreemail=true&post_id=221381590&publication_id=5247799&r=6ckwuk&triedRedirect=true&triggerShare=true)* attending Anthropic briefings on bioweapons risks and recursive self-improvement, concluding the lab has “hopes, not plans” for preventing catastrophic outcomes.
- Bill Gates [warned](https://theverge.com/podcast/1015408/bill-gates-ai-interview-microsoft-openai-anthropic-risk-policy-regulation) of a “tumultuous” 20 years of disruption from AI, calling it “the most dangerous weapon of all time” in a Q&A with*The Verge* .
- Anthropic co-founder Jack Clark published a [speech](https://importai.substack.com/p/import-ai-477-in-which-i-tell-the) he recently gave at the IMF lecture claiming that AI’s recent role in scientific breakthroughs was evidence “the singularity is here.”
- The WSJ told the story of a Princeton chemical engineering PhD who [remains](https://wsj.com/lifestyle/careers/labor-market-freeze-phd-graduate-f8e17d7c?mod=djem10point) unemployed despite applying to 2,300 jobs, illustrating AI’s impact on college-educated workers.
- A piece in *Foreign Affairs,* joint bylined by two Google execs and an economist,[argued](https://foreignaffairs.com/united-states/ai-choice-imas-el-erian-manyika) that AI’s economic benefits depend on deliberate policy choices to avoid worker displacement.
- *404* detailed how AI tools are being[used](https://www.404media.co/reverse-engineer-anything-is-the-new-wild-west-of-ai/) to recreate proprietary software, with *a* GitHub project called “Reverse Engineer Anything” becoming one of the most viral GitHub repositories in recent memory.
- The AI data center boom is driving a [surge](https://www.nytimes.com/2026/10/22/technology/ai-data-centers-paint.html) in paint sales (most of it gray), according to the*NYT* .
- The  *NYT* also reported on a South Korean reality show[about](https://nytimes.com/2026/10/18/world/asia/korea-ai-dating-show.html?ae=oa&emc=edit_nn_20261018&nl=the-morning&segment_id=228300) celebrities exploring whether they could have a romance with AI avatars.

### MEME OF THE WEEK

*Source: [@nanomachiner](https://x.com/nanomachiner/status/2112958835899969855)* 

*Thanks for reading. If you’ve been forwarded this email, [click here to subscribe](https://www.transformernews.ai/welcome) and receive future editions. Have a great weekend.*
