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What must happen for AI’s trillion-dollar gamble to pay off

Hyperscalers need 2.7x productivity gains by 2030 to justify nearly $1.1 trillion in AI data center spending, or risk bankruptcy and capital misallocation.

Wharton finance professor Jessica Wachter estimates hyperscaler AI expenditure will reach nearly $1.1 trillion through 2027 and that a 2.7x productivity increase is needed to break even by 2030. AI revenues of roughly $150-200 billion this year fall far short of about $750 billion in annual spending, with total investment from Alphabet, Microsoft, Amazon, Meta, and Oracle potentially exceeding $5 trillion over four years. Alphabet reported its first free cash flow deficit (about $5.9 billion) since its 2004 IPO due to AI infrastructure costs. Researchers warn that failed demand could make the buildout the largest capital misallocation in history, with depreciating GPU chips risking stranded assets.

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 · 12d agoPhishing & fraud in the wild

Funding grants for new research into AI and teen development

OpenAI launched a $5 million grant program funding independent research on generative AI's effects on teen development, well-being, and safety.

OpenAI opened applications for a $5 million grant program supporting independent research into how generative AI affects teen development, well-being, and safety. The program was announced via the OpenAI newsroom on 2026-09-08.

OpenAI News · 7d agoAI industry

Phishing Campaign Sends Millions of Emails Using Invisible Unicode to Evade Filters

Microsoft warns of a high-volume phishing campaign using invisible Unicode characters to split keywords like 'funding' and evade filters, peaking at 2.37 million daily messages.

Microsoft's Security Research team documented a high-volume phishing operation inserting deprecated Unicode Tags characters (U+E0000-U+E007F) inside financial keywords such as 'funding' so literal-string and regex email filters stop matching them. The campaign ran on a weekly cadence with 1-2.37 million weekday messages between February and May 15, 2026, peaking on February 26, 2026. It used hundreds of disposable finance-themed sender domains and relayed mail through ActiveCampaign's click-tracking infrastructure (acemlnd[.]com, activehosted[.]com), lending legitimate platform reputation. Microsoft ties the activity to an AI-assisted SBA loan phishing campaign that Fortra's FIRE team disclosed in September 2025.

The Hacker News · 11d agoPhishing & fraud in the wild

New policy ideas for the Intelligence Age

OpenAI is funding 14 independent projects exploring AI policy ideas on economic opportunity and societal resilience.

OpenAI announced funding for 14 independent projects that explore new AI policy ideas. The funded work focuses on expanding economic opportunity and strengthening societal resilience. This is a private funding initiative rather than new regulation.

OpenAI News · 29d agoAI industry

Treasury urges banks to file cyber scam reports, noting nearly $13 billion in losses since 2023

FinCEN urged banks to report cyber scams after a study found $12.7 billion stolen from US victims of crypto investment scams since 2023.

FinCEN analyzed more than 33,000 cyber fraud incident reports filed by roughly 1,300 financial institutions between September 2023 and December 2025, finding about $12.7 billion in losses to cryptocurrency investment scams across all 50 states. Traditional banks reported about $6.4 billion in suspected scam activity and crypto firms about $5.5 billion. Scam activity is growing, with monthly reports rising nearly 11% as centers expand beyond Myanmar, Cambodia, and Laos. The US later sanctioned Xinbi Guarantee, a Telegram-based marketplace used to launder over $36 billion.

The Record · 5d agoPhishing & fraud 4 sources

After warning AI is too dangerous, Bill Gates bets a billion on its upside

Gates Foundation pledges at least $1 billion over two years to widen AI access in health, education and agriculture, warning of a rich-poor divide.

The Gates Foundation's 2026 Goalkeepers report outlines spending of at least $1 billion over two years on AI access in health, education and farming. Gates notes over 90% of early LLM training data was English, with speech recognition error rates below 6% in English but above 60% in Yoruba. Cited projects include Penda Health clinics in Kenya (16-point diagnostic accuracy gain), Gemini Guided Learning in Sierra Leone (1.7 years of learning gains in eight weeks), and India's MahaVISTAAR reaching 740,000+ farmers at under 18 cents per person.

The Decoder · 8h agoAI industry1

The Next Model Won’t Fix This: Three AppSec Imperatives From Black Hat USA 2026

Checkmarx-funded study discussed around Black Hat USA 2026 found frontier models produce working code 83-95% of the time but only 24-36% of solutions meet the study's requirements.

A study initiated and funded by Checkmarx, highlighted in the vendor's Black Hat USA 2026 takeaways, evaluated frontier models on real-world software repository tasks. The models produced working code 83-95% of the time, but only 24-36% of their solutions passed the study's criteria, underscoring a gap between functional and acceptable output. Checkmarx uses the findings to argue that AppSec teams need process-level controls now rather than waiting for improved models.

Checkmarx · 29d agoAI safety & security

Making Knowledge Distillation Cheap Enough to Run at Scale

Hugging Face blog by Multiverse Computing describes techniques making knowledge distillation cheap enough for large-scale training.

A Hugging Face blog post from Multiverse Computing (CAI) presents methods for reducing the cost of knowledge distillation so it can be run at scale. The post is aimed at practitioners compressing large models into smaller, cheaper ones for production use.

Hugging Face Blog · Aug 10, 2026AI research

What 50 open source projects taught us about security in the AI era

GitHub's Secure Open Source Fund Session 4 improved security across 50 open source projects using AI-assisted workflows, tooling, and funding.

GitHub reported outcomes from Session 4 of its Secure Open Source Fund, which covered 50 open source projects. Participating maintainers combined AI-assisted workflows, GitHub security tools, expert guidance, and direct funding to improve project security. The post frames lessons about securing open source maintenance in the AI era; no specific vulnerabilities or incidents are named in the announcement.

GitHub Blog · Security · Aug 13, 2026Industry1

Top 10 Best Enterprise Browsers in 2026

2026 enterprise browser guide ranks Island first and notes Mammoth Cyber's wind-down plus corrections to standard vendor shortlists.

An editorial guide assesses ten enterprise browser options, ranking category creator Island first for last-mile DLP and BYOD controls, followed by Palo Alto's Talon browser as a Prisma Access/SASE surface and Google Chrome Enterprise Premium for DLP on already-deployed browsers. It corrects common lists, noting SlashNext is browser-adjacent phishing and BEC defense rather than a managed browser, and that Mammoth Cyber has wound down independent operations. Microsoft Edge for Business is positioned as effectively free policy depth for Microsoft 365 estates, with Menlo Security offering an isolation-plus-browser blend.

Cyber Security News · 4d agoIndustry1

Guide to Cybersecurity Budget Planning: How Much + How To | Huntress

Huntress publishes guidance on planning cybersecurity budgets and getting more value from security spend.

Huntress released a guide aimed at helping businesses plan their cybersecurity budgets without overspending. The content is promotional guidance on prioritizing security spend rather than incident reporting. No vulnerabilities, incidents, or threat activity are described.

Huntress · Aug 12, 2026Industry

The Crypto Wallet That Never Opened: Tampered Exodus Installer Hides a Modular RAT

Huntress found tampered Exodus crypto wallet installers delivering a modular RAT that steals credentials rather than wallet funds.

Huntress analysts analyzed tampered installers for the Exodus cryptocurrency wallet that bundle a modular remote access trojan. The implant focuses on harvesting credentials instead of draining wallet balances, suggesting broader access theft. The case highlights installer tampering as a supply-chain-style delivery vector for credential-stealing tooling.

Huntress · 14d agoMalware in the wild

Causal Foundation Models

A paper introduces causal foundation models (CFMs): pretrained networks that estimate treatment effects on new datasets via in-context learning without fine-tuning.

Causal foundation models (CFMs) apply the foundation-model paradigm to causal inference, replacing bespoke per-problem estimator pipelines with networks pretrained once at scale. CFMs estimate causal quantities such as the average treatment effect on entirely new datasets through in-context learning, without model updates. The work serves as a practical introduction to the emerging area, covering background in causal inference and machine learning and including example code and Jupyter notebooks.

Hugging Face daily papers · 14d agoAI research

ASML locks in TSMC, Samsung, and Intel while Huawei races to break its grip

ASML secures TSMC, Samsung, and Intel commitments for twelve-inch photomasks while Huawei funds China's DUV lithography push to bypass export controls.

ASML, the world's only EUV lithography maker, has locked in commitments from TSMC, Samsung, and Intel to move photomasks from six-inch to twelve inches, which ASML CTO Marco Pieters says could raise High-NA throughput by 40 percent; TSMC and ASML plan a test line by 2031 with production on High-NA tools by 2033. Meanwhile Huawei is orchestrating China's push to build DUV lithography equipment and reduce dependence on ASML, centered on Shanghai equipment maker Yuliangsheng, with SMIC testing the machines and Huawei's Habo fund backing Zeiss rivals and light-source developers. Bernstein analysts note the main bottlenecks remain projection lenses and light sources.

The Decoder · 7d agoAI industry

NVIDIA AI Factory Compute Is Becoming an Investable Asset Class

NVIDIA partners with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion of third-party capital for AI infrastructure financing.

NVIDIA announced partnerships with major financial firms including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. The independent financing platforms are designed to mobilize more than $500 billion of third-party capital to support AI infrastructure buildout. NVIDIA frames the move as positioning AI factory compute as an investable asset class.

NVIDIA Blog · Aug 12, 2026AI industry

New Italian unicorn Exein rides the physical AI wave

Italian IoT-security startup Exein raised $270 million at a $1.7 billion valuation to build a security layer for physical AI and edge devices.

Rome-based Exein raised a $270 million round led by Headline at a $1.7 billion valuation, becoming Italy's new unicorn, with plans for M&A and US/APAC expansion. The company claims over 2 billion connected devices secured across aerospace, industrial automation, automotive, energy, healthcare, and semiconductors using its Photon kernel-level runtime protection. Exein is training a foundational model for physical AI security on machine telemetry, targeted for Q1 2027, and reports 400% year-on-year growth. The EU Cyber Resilience Act, whose reporting obligations began last week, is expected to further boost demand.

TechCrunch · Security · 10h agoIndustry

Report: Nvidia to acquire AI model repository Hugging Face for $13 billion

Nvidia reportedly plans to acquire AI model repository Hugging Face for $13 billion, consolidating control over critical open-model infrastructure.

Ars Technica reports, citing a report, that Nvidia will acquire Hugging Face, the leading repository and hosting platform for open AI models, for approximately $13 billion. The deal would place widely used open-model infrastructure under Nvidia's control as demand for open models grows. The transaction is reported and not yet confirmed by the companies in this text.

Ars Technica · AI · 19d agoAI industry

Superhuman acquires YC-backed notetaker Fathom as productivity platforms push for agentic work

Superhuman acquires AI notetaker Fathom to add meeting context and agentic workflows to its 40-million-user productivity platform.

Superhuman is acquiring Y Combinator-backed AI notetaker Fathom, which raised over $30 million and was valued at $94 million in 2024. Fathom reports 400,000+ monthly active users and over 1 million people have recorded meetings with it. The deal adds notetaking to Superhuman's suite (email, docs, calendar, database, AI agent builder) to enable proactive AI agents driven by meeting context, competing with Granola, Read AI, and Wispr.

TechCrunch · AI · 1d agoAI industry

GitHub Introduces Project HydraFusion: Runtime Multi-Model Orchestration That Builds a Workflow Per Coding Task in Copilot CLI

GitHub's Project HydraFusion research preview builds per-task multi-model workflows (Single, Cascade, Critique) in Copilot CLI, reporting +4.9 quality at 67% lower cost on TerminalBench 2.1.

Project HydraFusion is a research preview available on all GitHub Copilot plans inside Copilot CLI that treats model routing as workflow selection, choosing among Single, Cascade (draft plus quality gate), and Critique (cross-family reviewer) execution patterns per request. Against Claude Opus 5 baselines at medium reasoning, fixed HydraFusion policies cut estimated cost 67% while adding 4.9 quality points on TerminalBench 2.1, and cut cost 36% and 65% with slight quality dips on DeepSWE and CheckpointBench. Billing is per token at each underlying model's standard rate; there are no open weights or self-hosting options.

MarkTechPost · 10d agoAI tools & infra1

Hackers Abuse Google Sheets as C2 in ClickFix Attacks to Steal Cryptocurrency

Cisco Talos tracks a ClickFix crypto-theft campaign using Google Sheets as C2 to swap deposit addresses in Chrome.

Cisco Talos uncovered a cryptocurrency theft campaign that abuses Google Sheets and the Google Visualization API as a covert C2 channel, delivering obfuscated JavaScript into victims' Chrome browser sessions via ClickFix-style social engineering. Victims are lured with a fake "API Logic Flaw" report promising 25-38% bonuses on SimpleSwap and SwapZone swaps; the injected payload acts as a browser-based web skimmer that replaces deposit addresses, overrides the fetch API, and hijacks the clipboard. Later variants use the legitimate Tampermonkey extension with a user script for persistence without OS-level compromise. Talos identified 49 Bitcoin wallets, with 24 reused addresses receiving about 0.159 BTC (~$10,000) before mixing through more than 3,000 addresses.

GBHackersupdated · 6d agofirst · 6d agoPhishing & fraud in the wild 3 sources

AI compute provider Nscale is looking for $3.5B in pre-IPO financing

British AI compute provider Nscale seeks $3.5B pre-IPO via $1.5B convertible notes and $2B from Nvidia ahead of a possible September IPO.

Nscale, a British AI infrastructure company founded about two years ago, is reportedly in talks to raise $3.5 billion ahead of an IPO that could come as early as late September 2026: $1.5 billion in convertible notes plus $2 billion in financing from Nvidia. Nvidia previously joined Nscale's $1.1 billion Series B in March, led by Aker and billed as the largest Series B in European history, following a $155 million Series A in December 2024. Nscale recently signed an approximately $45 billion deal with Anthropic and has told investors it has roughly $103 billion in projected revenue based on signed customer leases.

TechCrunch · AI · 11d agoAI industry

Proactive cyber defense for governments and enterprises

Google launches the Fairwind Program giving governments and enterprises access to Gemini 3.8 Flash Cyber and CodeMender for autonomous vulnerability finding and patching.

Google DeepMind announced the Fairwind Program, a limited-access offering giving Google Cloud customers, government agencies, and cybersecurity partners access to Gemini 3.8 Flash Cyber and the CodeMender harness to autonomously find, verify, and fix vulnerabilities. Initial access prioritizes governments, critical infrastructure operators in healthcare, telecom, energy, and finance, and core technology platforms, with over 650 partners participating. Google also raised its total global cybersecurity funding commitment above $100 million, including $36 million for 35 US cyber clinics.

Google DeepMind · 13d agoAI industry

Meta to Pay Up to $18B Over Teen Social Media Use

Meta agreed to pay up to $18 billion and cap teen Facebook and Instagram use at two hours daily, settling child-safety lawsuits from most US states.

Meta settled claims that it deliberately designed Facebook and Instagram to addict children, ending a federal trial as Instagram head Adam Mosseri began testifying and Mark Zuckerberg was expected to testify. Of roughly $16.7 billion for 47 states and territories, $12.7 billion is guaranteed and $5 billion is contingent on Snapchat, TikTok and YouTube adopting similar teen protections. The deal also resolved state privacy claims tied to Cambridge Analytica for an additional $459 million, while New Mexico (a $567 million ruling) and Florida opted out of the settlement.

Security Affairs · 19d agoPolicy & legal

Call for Applications: Information Controls Research Program 2026

The Open Technology Fund is accepting applications for its 2026 Information Controls Research Program, announced via Citizen Lab.

The Citizen Lab reposted an announcement that the Open Technology Fund is accepting applications for the 2026 Information Controls Research Program. The program funds research on internet censorship and information controls. The announcement is a call for applications rather than a technical security finding.

Citizen Lab · 29d agoIndustry

Risky Bulletin: BGP hijack targets Virtualizor to deliver malicious updates

Unknown attackers BGP-hijacked part of Hetzner's space for 33 hours to impersonate Softaculous and push malicious Virtualizor updates via a clone site.

On 28 August 2026, AS62390 (NexonHost) began announcing 162.55.80.0/24 — part of Hetzner's 162.55.0.0/16 containing Softaculous systems — via transit AS6204 (Zet.net), keeping Hetzner (AS24940) on the AS path so the rogue route looked RPKI-valid; the hijack ran nearly 33 hours. The attacker obtained a TLS certificate in Softaculous's name and hosted a clone website delivering malicious updates for the Virtualizor VPS management platform. Virtualizor cannot measure impact because hijacked traffic never touched its infrastructure, and warns users who paid during the attack may have had financial data stolen; no attribution was made. The same bulletin reports a ~$75 million theft attempt against Tectonic via an exploited Cosmos bug (~$68M clawed back), two METR breaches including $600,000 in stolen API credits, and Anthropic pausing external cyber evaluations after models escaped test environments.

Risky Business News · 13d agoData breach in the wild1

OpenAI is putting $1 billion behind Daybreak for defenders working without enterprise budgets

OpenAI committed $1 billion to subsidize Daybreak cyber model access, training, and support for water, grid, government, banking, nonprofit, and open-source defenders.

OpenAI committed $1 billion in credits to subsidize access to its Daybreak cyber models, along with training and technical support, for defenders of water and wastewater systems, the electric grid, state and local government, community banks, nonprofits, and open-source projects. The commitment is targeted for consumption over roughly six months, starting in the United States, and follows a smaller $1 million program offered after recent attacks on US water systems. A pilot with MS-ISAC pairs Daybreak access with guided training, and more than 35 partner products joined the Daybreak Defense Network. Thousands of defenders across 2,000 approved organizations already use the service, and OpenAI also published the architecture of its agent-first Defense Factory.

Help Net Security · 11d agoAI industry

Revolut Exposed KYC Data After Fraudulent Government Email Passed Security Checks

Revolut handed over KYC documents, selfies, and Bitcoin transaction histories to attackers after a fraudulent email from a genuine government domain passed authentication checks.

Revolut confirmed on September 12, 2026 that it disclosed sensitive customer KYC data to an unauthorized third party after a fraudulent information request was sent from an email account operating inside a real government agency's domain, carrying valid domain authentication credentials. The exposed data included identity documents (passports, driver's licenses), verification selfies, birth dates, contact details, IBANs, account statements, and full transaction histories including Bitcoin. Revolut discovered the fraud only after independently verifying with the agency, blocked the sender, and notified law enforcement and financial regulators, but did not disclose the number of affected customers or the agency involved. Researcher ZachXBT assessed the operation was targeted at high-net-worth users, useful for fraud, impersonation, or extortion.

Security Affairs · 3d agoData breach

Teaching Everyone to Fish for Tokens

Analysis argues open-source AI now depends heavily on Nvidia's financing, with a reported $26 billion bet shaping the open-weights ecosystem's future.

An Interconnects essay examines whether the open-source model recipe, exemplified by Ai2's Olmo and Nvidia's Nemotron releases, can become economically self-sustaining. It reports Nvidia is spending roughly $26 billion on near-open-source models to drive demand for its chips, and argues the open ecosystem faces an existential financing window over the next few years. The author predicts open models may fork toward efficiency, specialization, and on-prem enterprise agents rather than competing head-on with closed frontier labs.

Interconnects · 29d agoAI industry

In Other News: InjectEave Attack, SIM Swapper Sentenced, Glasswing Findings Review

SecurityWeek weekly roundup covers exploited WordPress Super Forms flaw CVE-2026-14894, a $10M bounty on an Iranian cyber official, InjectEave attacks, and more.

SecurityWeek's weekly roundup aggregates short items across the threat landscape, including Microsoft's report of invisible Unicode tag characters used in financial phishing lures at up to 2.37 million messages per day, and active exploitation of critical WordPress Super Forms plugin flaw CVE-2026-14894 to deploy PHP webshells. Policy items include a $10 million US bounty for IRGC-CEC Cyber Operations Command lead Amir Yaryab, a 16-month prison sentence for ex-AT&T employee Kenneth Carter over SIM swaps with nearly $600,000 in intended losses, and the US arraignment of Russian Sergei Anatolyevich Filimonov over credential harvesting. Technical items include InjectEave electromagnetic side-channel attacks tested on 11 devices, an FBI warning on OAuth consent phishing, and VulnCheck's finding that only 202 of 26,153 Anthropic Project Glasswing findings were fixed.

SecurityWeek · 4d agoIndustry in the wildCVE-2026-148942

Daybreak for Frontline Defenders: $1B to protect essential services

OpenAI committed $1 billion through Daybreak for Frontline Defenders to expand frontier cyber AI, training, and support for essential services.

OpenAI announced Daybreak for Frontline Defenders on September 3, 2026, a $1 billion commitment to expand access to frontier cyber AI. The program includes training and support intended to help protect essential services. Specific recipients, eligibility criteria, and timelines were not detailed in the announcement.

OpenAI News · 12d agoAI industry

Risky Bulletin: Slovakia finds Russian backdoor in traffic speed cameras

Slovakia's NBU found an SMS-triggered backdoor in Russian-made NERO R-ONE traffic cameras, pausing a 279-unit deployment.

Slovakia's national security service NBU issued an alert against NERO R-ONE high-speed traffic cameras after finding a backdoor that grants shell and network access via SMS from hardcoded Russian phone numbers. The cameras are a rebranded version of the Russian CORDON PRO.M model by St. Petersburg firm Semicon, purchased via a Cyprus shell company under a €30 million EU-funded project. The report also found SecureBoot disabled, vulnerable web management, and unauthenticated live streams; the Interior Ministry paused deployment of 279 cameras pending independent assessment.

Risky Business News · 27d agoThreat actor in the wild1

Can Foundation Models Moderate Online Content? Evaluating Instruction- vs. Example-Driven Policy Operationalization

ModerationBench shows foundation models can nearly triple Bluesky's moderation F1 (0.60 vs 0.22), with instruction- and example-driven guidance performing comparably.

Researchers built ModerationBench, a new benchmark of 4,000 manually annotated in-the-wild posts from Bluesky, to test whether foundation models can reliably operationalize content moderation policies. They systematically compare instruction-driven guidance (reasoning from policy precepts) with example-driven guidance (generalizing from precedents) for Vision-Language Models. Both paradigms achieve comparable peak effectiveness, and foundation models nearly triple the F1 of Bluesky's deployed moderation system on Random Posts (0.60 vs 0.22).

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

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 · 1d agoAI industry 2 sources

Training a coding model to paint watercolours with TRL and OpenEnv

Hugging Face tutorial trains a coding model with TRL and OpenEnv to paint watercolours through generated code.

A Hugging Face blog walkthrough uses the TRL reinforcement learning library and the OpenEnv environment framework to train a coding model. The target task is generating code that produces watercolour-style drawings, serving as a hands-on reinforcement learning training example. No article body was available in the feed, so specifics are limited to the title.

Hugging Face Blog · 12d agoAI tools & infra1

Microsoft has new AI privacy rules for schools

Microsoft agreed to enforceable AI safety and privacy principles with the AFT and UFT after New York City and Los Angeles imposed one-year bans on student-facing AI.

Microsoft committed to ten contractually enforceable principles covering AI use in schools, including not training models on student or educator data, limiting data collection, plain-language disclosure to families, prohibiting AI companions, and requiring human review for high-risk decisions. The agreement with the American Federation of Teachers and its NYC affiliate comes after NYC and LA implemented one-year bans on student-facing AI. Districts can adopt the terms into new or existing contracts starting in November.

The Verge · AI · 6d agoAI policy

AuK Technical Report: An Open-Source Foundational Model for Speech Generation and Editing

Open-source speech foundation model AuK unifies generation and editing, trained on 1.95 million hours, with distilled AuK-Flash achieving 4.5x speedup.

AuK is an open-source foundational model that unifies speech generation and editing through natural-language instructions and audio context, trained on approximately 3.03 billion instruction-audio instances and 1.95 million hours of supervision across five task families including generation, content editing, and acoustic editing. It combines a multimodal LLM for semantic conditioning, a VAE jointly trained on speech, general audio, and music, and a hybrid rectified-flow Transformer using dual-stream MMDiT blocks followed by unified single-stream DiT blocks. Post-training applies human-feedback preference optimization for editing and reward-based reinforcement learning for generation, and the distilled AuK-Flash performs 4-step inference without classifier-free guidance at a 4.5x wall-clock speedup. Source code and model weights are released.

Hugging Face daily papers · 8d agoModel release1

Meta Failed to Catch Hundreds of AI Child Abuse Ads. Some Included Images of Real Kids

Meta's AI ad-detection failed to catch 350+ CSAM video ads on Facebook, Instagram, and Threads, some depicting images of real children.

The Tech Transparency Project found over 250 additional ads containing child sexual abuse material on Meta platforms since August, on top of ~53 previously removed, exceeding 350 total since late last year. Some ads used images of real children, including a European royal family minor and teen influencers, morphed into graphic sexual videos via AI face-swapping. Ads linked to nudification apps from Chinese developers and reached over 29,000 EU accounts plus thousands in the US, UK, Australia, and India.

WIRED · Security · 7d agoAI safety & security