ZeroHour

Search: “m&a”

40 stories

Smart search ranks by meaning as well as keywords (one row per story, last 45 days).

Why the current tech backlash feels different

The Verge's Decoder mailbag discusses the current tech backlash, arguing AI hype overstates verifiability outside software engineering.

Nilay Patel's Decoder mailbag episode addresses listener feedback on the widely discussed 'software brain' essay. He argues AI hype is concentrated on software because code is verifiable through compilation, while domains like drug discovery, math and science lack equivalent verifiability. The episode also touches on AI backlash, surveillance, data centers and upcoming midterm coverage.

The Verge · AI · 6d agoAI industry1

When AI quietly breaks things, who pays?

Reed Smith partner David Halbreich explains how AI companies can avoid D&O/E&O coverage gaps around mergers, governance warranties, and claims timing.

In an interview, insurance recovery partner David Halbreich of Reed Smith outlines insurance pitfalls for AI companies under claims-made D&O and E&O policies. He highlights 'straddle' claims after mergers that fall between tail coverage and go-forward policies, potentially leaving policyholders with no coverage. He also warns that governance artifacts submitted in insurance applications, such as bias testing records and model cards, can become warranties carriers use to deny claims, and discusses who should answer AI-use questions and how business interruption coverage applies to cloud and compute vendor outages.

Help Net Security · 13d agoAI industry

Cognition launches new SWE-2 model, Rivaling Fable 5.1 and GPT-Astra

Cognition released SWE-2, a coding model post-trained from Kimi K3 that scores 50.0% on FrontierCode 1.1 Main, near Fable 5.1 at 64% lower cost.

Cognition introduced SWE-2, its most advanced coding model, post-trained from the 2.8T-parameter Kimi K3 base model. It achieves 50.0% on FrontierCode 1.1 Main, 73.0% on DeepSWE 1.1, and 92.8% on Terminal-Bench 2.1, beating Grok 4.6 and SWE-1.7 while matching Fable 5.1 and GPT-5.6 Sol at a fraction of the price. The company says it scaled reinforcement learning to the multi-trillion-parameter regime for the first time, using Pareto-informed cost penalties that train all reasoning-effort levels in a single run, tripled RL environments, and NVFP4/FP8 quantization-aware training. SWE-2 is available today in Devin Desktop and CLI, with rollout on Devin Web and Fusion.

Hacker News · AIupdated · 4d agofirst · 6d agoModel release 10 sourcesHN 58↑ · 15 comments1

Generative Marketing Mix Modeling: A Causal Inference Framework Linking GEO and GEM to Business Impact

Paper proposes Generative Marketing Mix Modeling to causally estimate Generative Engine Optimization and Marketing effects on business outcomes.

The authors develop GMMM, a causal inference framework for measuring how often users see and notice a firm's name in generated answers, which standard marketing data ignore. For GEO it combines repeated generated answers with question counts, shares of generative-system usage and notice probabilities; for GEM it uses sponsored placement records with notice probabilities. The framework compares expected business responses under alternative treatment sequences, establishes identification conditions, and is evaluated on simulated product-recommendation answers in English and Japanese.

arXiv cs.AI / cs.LG / cs.CL · 6d agoAI research

A Vinyl Bar in Shibuya is a startup from a former Spotify leader for making music apps

Former Spotify innovation head raises $5.5M pre-seed for A Vinyl Bar in Shibuya, a startup building playful music-creation apps with selective generative AI features.

A Vinyl Bar in Shibuya, founded by former Spotify head of innovation Máuhan M Zonoozy, raised a $5.5M pre-seed round from Mantis VC, SV Angel, Boxgroup, Quiet Capital and others. The startup ships small music-play apps including Speed Surfer, Usersound, Stacks, Drops, Sampler, and the iOS mixer app bop, plus a new prompt-based sound creation feature. Zonoozy says the company deliberately avoids infusing AI into every product, arguing human taste and participation become more valuable as AI-generated content grows abundant.

TechCrunch · AI · 2d agoAI industry 2 sources

Necessary or Sufficient? Evaluating LLM Explanations With Behavioural Evidence

New framework tests whether LLM-cited explanation factors are necessary or sufficient, finding weak correlation across Claude, GPT, and Gemini models.

An arXiv paper introduces black-box intervention tests measuring whether factors LLMs cite in their explanations are necessary or sufficient for their outputs in agent oversight workflows. Across eight models from the Claude, GPT, and Gemini families, Spearman correlations between cited rankings and measured influence ranged from 0.349-0.354 (advisor recommendation) to 0.431-0.580 (prompt monitoring). Uncited factors scored above the lowest cited factor in up to 57.6% of advisor responses, showing cited top-three factors do not reliably identify the most influential inputs.

The Tragedy and Ecstasy of AI Companions (with Bridget Todd)

Interview with journalist Bridget Todd explores how people use AI chatbots for intimacy and how tech companies monetize emotional dependence.

404 Media interviewed Bridget Todd, creator of the podcast There Are No Girls on the Internet, about her new audiobook 'Love at First Prompt: AI and the Future of Intimacy.' Todd describes turning to ChatGPT for emotional support while caring for her dying parents and interviews people who form romantic and erotic relationships with chatbots. The discussion critiques tech companies' inconsistent companion policies, citing Sam Altman's reversed stance on erotic roleplay, and their incentives to monetize intimate user relationships.

404 Media · 20d agoAI industry

What LLM Trading Agents Actually Do in Production: A Six-Month, Population-Scale Record from Two Fleets

Six-month record of 7.5M LLM trading agent invocations shows volatility-blind sizing, minimal upside capture, and no directional edge across two fleets.

The study records autonomous LLM trading agents in production across DX Terminal Pro (3,505 user-funded vaults trading real ETH in Base memecoin markets) and the DXAP fleet (500-599 agents on Hyperliquid perpetuals), spanning roughly six months, 7.5M single-model invocations and about 300K onchain actions. A risk slider explains leverage (+0.425 per level), median leverage is 5.0x in every volatility sextile, and one posture-slider cell holds 62% of liquidations. Agents capture little upside: 43.2% of positions saw +300 bps favorable excursion within 24h yet 49.3% of those closed negative, while the DXAP fleet trails a matched retail benchmark (41% vs 50% roundtrip win rate). A paired-replay league of frontier models finds decision quality statistically indistinguishable at this horizon.

Hugging Face daily papers · 13d agoAI research

Upatre Continued to Evolve with new Anti

Unit 42 analyzes an undocumented Upatre downloader variant with VM detection via process hashing, packed code, disabled Windows defenses and Namecoin .bit C2 domains.

Unit 42 analyzed an Upatre downloader variant compiled in December 2016 that went largely undetected by automated systems, featuring heavy code flow obscuration, on-demand decryption of network communications, and novel virtual machine detection. The sample enumerates running processes, computes CRC32 hashes XORed with a hard-coded key, and sleeps if analysis-related processes such as vmtoolsd.exe or python.exe are found. It masquerades with Google Chrome icons, disables Windows Defender, Firewall and other security services, injects code into msiexec.exe, and resolves .bit Namecoin domains like bookreader[.]bit via hardcoded OpenNIC DNS servers over TCP.

Palo Alto Unit 42 · Aug 17, 2026Malware1

NIS2 compliance: Fixing IAM and access control before the 2026 audit

EU NIS2 enforcement deadlines approach; organizations are urged to prioritize service account inventory, lifecycle offboarding, and phishing-resistant MFA before audits.

EU member states are moving from NIS2 transposition into enforcement, with fines up to 10 million euros or 2% of global turnover for essential entities and personal liability for management bodies. The article argues access management is the fastest high-ROI starting point, estimating 2-4 weeks to enforce fine-grained password policy, vault shared credentials, and deploy phishing-resistant MFA versus 6-12 months for supply chain risk management. It flags three common pre-audit failures: unmanaged service accounts and API keys, dormant accounts from broken offboarding, and SMS OTP instead of phishing-resistant MFA under NIST SP 800-63B. The piece promotes Passwork as a single control plane for credential storage, RBAC, and WebAuthn.

Help Net Security · 15d agoIndustry

50% of CISOs see Mythos as a sign to exit the profession

Survey of 1,001 US and UK CISOs finds 50% consider leaving the profession amid AI-driven pressure, personal liability concerns and burnout.

A survey of 1,001 CISOs in the US and UK found 50% say Anthropic's Mythos and similar cyber-capable AI models have made them consider exiting the profession, while 60% say board pressure to adopt AI is outpacing their governance capability. Average CISO tenure is cited at 18 months, and 78% worry about personal liability for security incidents, up from 56% a year earlier. Executives from BlackBerry, Databricks and IDC discuss D&O insurance, agentic security operations and phased low-risk AI adoption as partial responses.

CSO Online · 7d agoIndustry

Is Cyber Facing an Affordability Crisis?

Dark Reading analysis argues record breach costs and roughly $240 billion in cyber defense spending leave small businesses dangerously exposed, threatening supply chains.

The analysis examines an affordability crisis in cybersecurity, noting breach costs have reached record highs while defense spending approaches $240 billion. It argues small businesses are dangerously under-protected relative to rising attack costs. Weak small-business defenses are framed as a supply chain security risk for larger organizations.

Dark Reading · 22d agoIndustry

nex-agi/Nex-N2.5-mini — new model trending #30 on Hugging Face

Nex-AGI releases Nex-N2.5 agentic model family (mini, Pro, Max) with a 1.6-trillion-parameter MoE Max, open weights, and hosted access via OpenRouter.

Nex-AGI launched Nex-N2.5, a family of agentic models in mini, Pro, and Max sizes, with the Max version built on a 1.6-trillion-parameter text-only Mixture-of-Experts foundation and the company's first complete post-training effort at trillion-parameter scale. The models target long-horizon computer use, web browsing, and visually grounded agentic tasks, with expanded agent training environments. Reported benchmarks include Max scoring 86.1 on Terminal-Bench 2.1 and 65.7 on SWE-Bench Pro, trailing Claude Opus 5. Weights are being released openly on Hugging Face and ModelScope, with hosted access through OpenRouter.

Hugging Face trending models · 8d agoModel release1

Large Enterprises Targeted in Fake Merger & Acquisition Scams

'Phantom Deal' campaign uses detailed research on large enterprises to trick midlevel employees into initiating large fraudulent merger-related financial transfers.

Dark Reading reports on the 'Phantom Deal' campaign, in which threat actors study target companies in extreme detail before running fake merger and acquisition scams against large enterprises. The social engineering aims to dupe midlevel employees into initiating large financial transfers. The scheme follows a business email compromise-style fraud pattern targeting enterprise finance workflows.

Dark Reading · 13d agoPhishing & fraud

Switching Password Managers in 2026

An Apple password-management engineer (writing personally) explains switching password managers via iOS direct app-to-app export, crediting FIDO Credential Exchange for passkey portability.

Ricky Mondello, an Apple engineer in password management and authentication (writing personally, not for Apple), demonstrates moving 100 items from 1Password to Apple Passwords via the iOS system export, which transfers passwords, passkeys, verification codes, and notes directly between apps with Face ID confirmation and no intermediate files. He credits the FIDO Alliance's Credential Exchange format (first draft May 2024, now an open spec) and iOS 26/macOS 26 for enabling phishing-resistant credential transfer between apps like 1Password, Bitwarden, Dashlane, DuckDuckGo, and Devolutions. The post is advice rather than news, recommending bulk transfer on the existing device, switching AutoFill to the new app, and treating the new manager as the source of truth.

Lobsters · security · 8d agoIndustry1

Engineered Persuasion: Evaluating Personalized Pretexts in LLM-Generated Spear Phishing

A study of 180 US workers found each LLM phishing personalization level raised click-intention odds by 28%, but credibility depends on context fit.

The arXiv paper evaluates how personalized pretexts in LLM-generated spear phishing affect perceived credibility, using 180 US working adults across 1,436 evaluations of emails with four cumulative personalization levels, from workplace context to shared-project details. Convincingness rose 2.40 points per level in sensitivity analysis and click-intention odds increased 28% per level, while non-clickers shifted toward deleting rather than reporting. Qualitative coding showed details matching the recipient's role and routines supported credibility, whereas incorrect, vague, or channel-inappropriate details raised suspicion. The authors argue personalization effectiveness depends on pretext fit, with implications for workplace security training.

arXiv cs.CR · 13d agoResearch

Proofpoint Strengthens Executive Leadership Team with Appointment of Chief Legal Officer and Chief People Officer

Proofpoint appointed Brian Levey as Chief Legal Officer and Puja Jaspal as Chief People Officer, strengthening its executive leadership team.

Proofpoint announced on September 8, 2026 the appointments of Brian Levey as Chief Legal Officer and Puja Jaspal as Chief People Officer. Levey previously served as Chief Business Affairs & Chief Legal Officer at Upwork and spent 13 years at eBay; Jaspal was Chief People Officer at Fastly with prior senior roles at Cisco, Visa, and Google. The hires support Proofpoint's stated expansion around human and AI-agent security.

Proofpoint Threat Insight · 8d agoIndustry

E2A-Bench: Benchmarking Evidence-to-Action Reliability in Financial Chart Reasoning

E2A-Bench, a 969-query financial chart reasoning benchmark, finds VLMs fail evidence-to-action consistency, with fine-tuning amplifying BUY:SELL bias 4-6x.

E2A-Bench is a 969-query benchmark built from 323 HS300 constituents across three input modalities with deterministic OHLCV-derived evidence anchors, evaluating grounding, reasoning-action consistency, evidence-confidence calibration, and directional coverage via UCR, RCI, ECI, and NDR metrics. Testing 20 VLMs showed the lowest-hallucination model ranked near the bottom on coverage with only 6.4% directional coverage, and oracle-aided verification reduced unsupported claims but could collapse coverage. Financial fine-tuning amplified the BUY:SELL ratio by factors of 4.21 to 4.68 across base-fine-tuned pairs.

Hugging Face daily papers · 4d agoAI research

Comfy-Org/YuE2 — new model trending #30 on Hugging Face

m-a-p's YuE2-3B music generation model and SheetSage2 audio encoder are repackaged in bf16 for ComfyUI and trending #30 on Hugging Face.

Comfy-Org published repackaged bf16 safetensors files for m-a-p's YuE2-3B model and its SheetSage2 audio encoder, organized into ComfyUI checkpoints and audio encoder folders. The repository links to the original m-a-p/YuE2-3B and m-a-p/SheetSage2 model pages and is currently trending #30 on Hugging Face.

Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

A distillation framework compresses LLM reasoning into a 15.5M-parameter trade-up recommendation model reaching AUC 0.941 with product-type test-time training.

The paper targets trade-up recommendation, which identifies higher-quality alternatives that preserve customer purchase intent. A retrieval-augmented few-shot LLM teacher generates labels and rationales that supervise a compact embedding-pair classifier; at inference the 15.5M-parameter student uses only two precomputed 768-dimensional embeddings with no LLM calls. On 8,352 annotated pairs, label-only training scored AUC 0.912, reasoning distillation reached 0.924, and product-type test-time training lifted it to 0.941 with average precision 0.940. The distilled student is roughly 5,000x faster and 10,000x cheaper than direct LLM inference on a 100K-pair proxy catalog.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research

Notes on gotchas while migrating 35kb preprompts from Opus to self-hosted Ollama

Opinion piece urges migrating 35KB preprompts from Anthropic/OpenAI to self-hosted Ollama, citing session privacy risks and safety filters blocking security research.

The author documents gotchas migrating 35KB preprompts from Claude Opus to self-hosted Ollama, motivated by fears that frontier providers train on user sessions, citing the OpenAI Navier-Stokes controversy. The piece argues inference providers cannot audit their own retention or training pipelines and that only self-hosted hardware offers verifiable privacy. It also criticizes frontier safety filters for refusing vulnerability research tasks and calls for models that support exploitability testing in CI/CD pipelines.

Multi-Agents LLM Financial Trading Framework

TauricResearch's TradingAgents, an open-source multi-agent LLM framework for financial trading, gained traction on Hacker News with 94 points and 60 comments.

The TradingAgents GitHub repository from TauricResearch presents a multi-agent LLM framework for financial trading and surfaced on Hacker News with 94 points and 60 comments. It targets developers building agentic trading systems on top of LLMs.

Keepnet launches free SMS/Call Reporter for iOS

Keepnet launched a free iOS app, SMS/Call Reporter, letting users one-tap report smishing and vishing into corporate incident response pipelines.

Keepnet released the free SMS/Call Reporter app for iOS, letting users report suspicious SMS and voice phishing with one tap. For enterprise customers, reports flow into Keepnet Incident Responder alongside email phishing reports. The company cites Verizon 2026 DBIR data showing mobile phishing simulations achieve a 40% higher median click rate than email, and FBI IC3 2025 counted $798 million in smishing and vishing losses. An Android version is planned.

Help Net Security · 14d agoTools

When Should LLMs Abstain? Chain-of-Self-Questioning for Selective Risk Control

Chain-of-Self-Questioning prompting cuts LLM wrong-answer commitments 32% relative while raising answered accuracy, holding across eleven model families.

The paper introduces Chain-of-Self-Questioning (CoSQ), a prompt-only framework that makes LLM answer commitment conditional on an explicit assessment of the information required to answer. On an 817-item TruthfulQA multiple-choice set, Grounded-CoSQ at τ=0.90 reduced mean unconditional wrong-commitment rate from 13.1% under chain-of-thought to 8.9% (a 32.1% relative reduction), while raising answered accuracy from 86.9% to 89.7% at 87.6% coverage. Improvements held across eleven open-weight and hosted model families and at every evaluated threshold, with convergent evidence from a Natural Questions short-answer evaluation.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research

What the AI Warning Letter Completely Missed

Opinion piece argues the recent AI warning letter identifies a risk window but omits which actors pose risks and who can mitigate.

This Dark Reading commentary critiques a recent AI warning letter for correctly identifying an approaching risk window while failing to name who is coming through it or who will close it. The piece is brief opinion commentary on AI risk discourse rather than a technical report.

Dark Reading · 13d agoAI safety & security

U.S. Disrupts Xinbi Guarantee Scam Marketplace, Freezes $52.8 Million in Crypto

US DOJ and Treasury disrupt Xinbi Guarantee Telegram scam marketplace, sanctioning it and freezing $52.8M in USDT across 52 wallets.

The DOJ seized Xinbi Guarantee's Telegram channels and cryptocurrency wallets while OFAC sanctioned the marketplace, freezing $52.8 million in USDT from 52 wallets and bringing the Scam Center Strike Force's total restrained funds to roughly $938 million. Elliptic, which worked with the Secret Service, estimates Xinbi has processed $30 billion in transactions since around 2022, serving pig-butchering scam operators and links to North Korean hackers, Jin Bei Group, and Prince Group TCO. The strike force dismantled 13 scam compounds in Madagascar, seizing over 3,200 devices and interviewing roughly 400 arrestees, with about 30 Chinese compound leaders repatriated to China. After Tether froze funds, Xinbi began converting remaining USDT into the USDD stablecoin.

The Hacker News · 7d agoPolicy & legal

A Hybrid LSTM-XGBoost Framework for Multi-Horizon Stock Return Prediction Across Diversified Equity Portfolios

Hybrid LSTM-XGBoost model predicts multi-horizon returns for 14 US equities, cutting 30-day RMSE to about one-third of a standalone LSTM baseline.

The paper combines a two-layer LSTM (64 hidden units) processing 60-day windows of five market features with an XGBoost regressor over a 78-dimensional hybrid feature vector including 14 technical indicators. It is trained on pooled data for 14 US equities across six sectors using chronological splits and per-stock MinMaxScaling to prevent look-ahead bias, and evaluated at 30, 90, 252, and 365 trading-day horizons. The hybrid achieves test RMSE of 0.0949 at 30 days, roughly one-third of the standalone LSTM, while 97.6% directional accuracy at 365 days largely tracks the base rate of positive returns.

arXiv cs.AI / cs.LG / cs.CL · 5d agoAI research

Linux Kernel ZcopyReaper Vulnerability Lets Local Attackers Gain Root Privileges

Linux kernel RDS zero-copy flaw CVE-2026-43502 (ZcopyReaper) lets unprivileged local users gain root; fix in 7.1-rc3, public PoC published.

CVE-2026-43502, dubbed ZcopyReaper, is a Linux kernel local privilege escalation flaw in the RDS zerocopy send path, present since kernel 4.17, allowing unprivileged local attackers to gain root. NebuSec researcher Yuan Tan demonstrated root escalation on openSUSE kernel 6.4.0-150600.23.100; the fix landed in commit 44b550d88b26 with Linux 7.1-rc3 the first patched mainline release. Exploitation requires CONFIG_RDS and CONFIG_RDS_TCP but not unprivileged user namespaces, and PoC exploit material is publicly released alongside more than 20 other exploitable 2026 kernel CVEs.

Meme Coin Factories: Uncovering Large-Scale Manipulations on pump.fun

Large-scale pump.fun study of 15 million meme coins identifies five manipulation classes including wash trading and a Market-Manipulation-as-a-Service ecosystem.

Researchers analyzed all 15 million coins launched on pump.fun over the last two years plus large random samples of transaction data, identifying five manipulation classes: wash trading, creator address obfuscation, coordinated sells, copycat coins, and social media manipulation. Strategic actors bypass the platform interface and implement strategies in a highly automated, low-latency way by interacting directly with the blockchain. The study also uncovers Market-Manipulation-as-a-Service (MMaaS) third-party tools that let non-technical users run these manipulations, and proposes mitigations for traders, pump.fun, and regulators.

arXiv cs.CR · 7d agoResearch

Meta AI builds detailed profiles of children from years of family posts

Meta AI suggested questions about a child and assembled detailed family profiles from years of Facebook posts, including a photo deleted years ago.

A mother reported that Meta AI on Facebook suggested the question 'Who is the child passenger?' and then aggregated her children's names, birth dates, videos, and a photo she had deleted years ago. The assistant also pieced together old posts to pinpoint her home location when prompted with 'Where does Kalie Robins live?'. Meta admitted the prompt 'never should have' appeared and said it fixed the suggestion issue, while noting the data came from posts the asker could already access. The article situates this among prior Meta AI privacy failures, including publicly shared chats and a bug exposing private conversations via guessable IDs.

Malwarebytes Labs · 1d agoAI safety & security

Governing Bring Your Own AI: A Parameterized Maturity Model

Researchers propose a parameterized governance model and maturity ladder for Bring Your Own AI, finding data exposure and compliance dominate BYOAI risks.

The paper studies Bring Your Own AI (BYOAI), where employees use personal generative AI accounts such as ChatGPT, Gemini, and Claude outside enterprise identity and security controls. Drawing on a curated corpus of 30 records (24 studies and 6 framework documents), the authors build a risk taxonomy, a five-level governance maturity ladder, and a parameterized model linking control-layer coverage to residual risk. Findings highlight data exposure and compliance as the most prominent risks, inconsistent framework engagement, and evidence that layered technical controls reduce modeled exfiltration risk more than prohibition-based approaches.

arXiv cs.CR · 12d agoResearch

PuzzleMask: Abusing Plain Prose as a Covert AI Attack Vector

Check Point details PuzzleMask, a plain-prose technique that bypasses LLM gatekeeper policy checks, letting hidden payloads reach target models unreviewed.

Check Point Research describes PuzzleMask, a prompt-crafting technique that hides policy-violating payloads inside plain-English prose wrappers, bypassing quick LLM-based policy checks without emojis, Base64, or invisible formatting. The researchers tested 23 automated prompts against gatekeepers including GPT-4o-mini, GPT-OSS-Safeguard 20b, Claude 3 Haiku, and Llama Guard 3, and all were classified as safe despite policies that flagged the plain versions. When submitted to GPT-5 in thinking-high mode with a Python interpreter, the target model extracted and acted on the payload in over 90% of trials. The technique is not itself a jailbreak but can carry a jailbreak prompt as payload; mitigations include input paraphrasing, hardened gatekeeper policies, and output monitoring.

Check Point Researchupdated · 5d agofirst · 6d agoAI safety & security 2 sources

From Parameters to Answers: How LLMs Retrieve and Use Their Internal Knowledge

Interpretability study traces how Qwen, Llama, and Gemma route query information and internal knowledge across layers when answering questions.

Researchers used layerwise interventions on hidden states to separate query-routing signals from target knowledge in language models, testing Qwen, Llama, and Gemma on country-continent questions with varied answer types. A pair-conditioned request direction strengthens before interventions alter downstream knowledge, opening a causal window while answer-supporting content is still forming. Trajectories differ by model: Gemma shows a partially overlapping mid-layer routing profile, while Llama has no sustained routing-effect window under the same gates.

arXiv cs.AI / cs.LG / cs.CL · 6d agoAI research1

ASCII smuggling crosses over from AI prompt injection to phishing evasion

Microsoft details high-volume phishing campaign using ASCII smuggling (Unicode tag chars) for filter evasion, peaking at 2.3M messages.

Microsoft researchers observed a high-volume finance-themed phishing campaign using invisible Unicode tag characters (U+E0000–U+E007F), a technique known from AI prompt injection research as ASCII smuggling, to split lure words like 'funding' and evade email filters. Telemetry from Microsoft Defender for Office 365 showed signature hits jump from roughly 21,000 messages on February 8, 2026 to more than 1.3 million on February 9, peaking above 2.3 million on February 11, with elevated weekday activity lasting approximately three months. The discovery emerged from prompt injection protection research, showing AI-era evasion techniques crossing into traditional phishing. Most messages were flagged by layered Defender protections rather than a single Unicode-specific signal.

Microsoft Security Blog · 13d agoPhishing & fraud in the wild1

Involving before Evolving: A Vision for Trustworthy Enterprise Digital Twin Engineering

Vision paper proposes 'involving before evolving' staged approach for trustworthy enterprise digital twins, validated via an ongoing Michelin prototype.

The paper presents a three-stage vision for enterprise digital twin (EDT) engineering that prioritizes early organizational buy-in before evolving toward federation and full interoperability. The approach combines foundation models for rapid prototyping, an ontological backbone for federated interoperability, and observability tooling to build stakeholder trust. The vision is grounded in an ongoing collaboration with Michelin, where an initial working prototype helped secure stakeholder buy-in.

arXiv cs.AI / cs.LG / cs.CL · 5d agoAI research

An open letter to Dario: if you mean it, open the weights

Open letter urges Dario Amodei to champion a law forcing all publicly released AI models to ship as open weights, arguing regulation otherwise gets captured.

A blogger responds to Anthropic's essay 'We Must Pace the Frontier' by proposing a law requiring any AI model offered to the public be released as open weights, citing Anthropic's 'Fable' and OpenAI's 'Astra' as examples. The author argues frontier lab valuations depend on proprietary weights, so mandatory openness would cut funding for future training runs and slow progress across all labs. The letter contends regulatory approaches like embedded evaluators, compute thresholds, and antitrust waivers inevitably lead to regulatory capture favoring incumbents. It appeals to Amodei's record on safety, export controls, and Anthropic's PBC structure to back the proposal.

Bidding war for defunct Spirit Airlines’ employee data will not die

AI firm Micro1 bid $12.5 million for Spirit Airlines' 600 million employee email and chat records, challenging Google's $10 million auction win.

After Spirit Airlines entered bankruptcy, Google won an auction for the airline's data trove with a $10 million bid, beating Mercor's $7.5 million offer, but Micro1 has now counter-offered $12.5 million. The data includes about 600 million email and chat records from 17,000 employees, 17 million OneDrive files, 20.5 million SharePoint items, and over 30 million customer service calls, valuable for AI training. Former employees' unions, including the Association of Flight Attendants-CWA representing 5,500 flight attendants, have taken legal action to block the sale over privacy concerns.

CSO Online · 12d agoAI industry

When will average people feel AI’s impact?

Interconnects essay argues AI's impact is still a rounding error for average people, comparing looming wage stagnation to Engels' pause.

An Interconnects essay argues that AI currently touches daily life far less than previous industrial revolutions, since its benefits are concentrated in knowledge work and lack tangible consumer goods. The author invokes Engels' pause (1790-1840), when British wages stagnated amid rapid GDP growth, as a warning that popular backlash could kneecap AI's development. He contends the current phase is about building compounding infrastructure, and predicts daily life may look similar even 50 years from now.

Interconnects · 7d agoAI industry1

You don’t have to join the hack-back program to inherit its risk

A new US presidential memorandum creates a vetted private hack-back program, leaving participating vendors and their customers with untested legal liability and collateral risks.

The August 12 National Security Presidential Memorandum directs the National Coordination Center, run jointly by DOJ and DHS, to approve covert surveillance and disruptive Cyber Effects Operations by vetted private companies, with a forfeitable bond of at least $1 million required as a contract condition. The analysis argues the criminal shield rests on an untested reading of the CFAA exemption at 18 U.S.C. 1030(f), with no civil safe harbor, no state-law preemption and no foreign-law protection. Non-participating organizations can still inherit risk through shared infrastructure collateral damage, lack of customer disclosure, Lloyd's bulletin Y5381 state-backed attack exclusions, and threat-intelligence pipelines feeding offensive proposals.

CSO Online · 12h agoPolicy & legal