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How AI-native companies turn workflows into operating capability

OpenAI highlights Basis, Clay, and Exa Labs using AI agents for onboarding, account management, and developer integrations in enterprise workflows.

An OpenAI news post profiles AI-native companies Basis, Clay, and Exa Labs that use AI agents to improve onboarding, account management, and developer integrations. The piece positions these workflows as operating capability and draws lessons for enterprise leaders. It is promotional case-study content rather than product or research news.

OpenAI News · 15d agoAI industry

Everything in Moderation: Per-Domain Coverage Optima and Alignment-Resistant Domain Gaps in Multi-Domain Mid-Training

Controlled mid-training experiments on Qwen3-8B-Base find each domain has a 10-40% coverage optimum and domain gaps survive alignment SFT.

Using Qwen3-8B-Base (with a 4B replication) across five semantically rule-disjoint KOR-Bench domains, the authors train 30 data allocations spanning the five-domain simplex at five seeds each. All five domains show interior optima in the moderate 10-40% coverage band, and domain gaps persist after a fixed-budget compensatory SFT pass, which raises 116/120 cells yet bridges 0/240 pairs at a 5% threshold. Zero coverage collapses mid-training-only accuracy, though a FineWeb-Edu-only control shows the collapse is partly generic drift. The results argue mid-training data composition requires principled design rather than reliance on later alignment.

arXiv cs.AI / cs.LG / cs.CL · 8d agoAI research1

Decline in Rig Exploit Kit

Rig exploit kit activity dropped roughly 75% after the pseudo-Darkleech and EITest campaigns stopped using EKs, reflecting an overall decline in exploit kit activity.

Rig EK activity fell sharply in 2017: the pseudo-Darkleech campaign disappeared at the end of March, cutting Rig traffic about 50%, and the EITest campaign switched to tech support scams in late April, cutting another 50% in May. Broader causes include a shrinking browser target base, no major EK zero-day in over a year, and community takedowns of domain shadowing infrastructure. Criminals are shifting to malspam, social engineering schemes like fake HoeflerText notifications, and tech support scams.

Palo Alto Unit 42 · Aug 17, 2026Exploit / PoC in the wild1

Beneath the Surface of Chains-of-Thought: A Mechanistic Interpretation of Reasoning Operations in LLMs

Study shows LLM reasoning operations like planning and deduction are geometrically separable in hidden states, with separability peaking in middle layers.

Researchers investigate whether functional reasoning operations — problem formulation, goal decomposition, deduction — have corresponding geometric structure in LLM hidden representations. They find operations are separable in held-out representations with separability peaking in middle layers, ruling out lexical and positional confounds; token-wise operation alignment becomes more distributed across layers, and identical surface tokens are represented differently depending on their surrounding chunk. Attention-masking interventions show chunk-onset operation-aligned representations depend on preceding reasoning context; code is released on GitHub (naver-ai/beneath-cot).

Hugging Face daily papers · 13d agoAI research1

🔬“We have foundation models for language, not for physics” — Anima Anandkumar, Bren Professor of Computing

Caltech professor Anima Anandkumar discusses Neural Operators and FourCastNet for physics modeling, arguing inductive biases beat pure token scaling.

Anima Anandkumar, Bren Professor at Caltech and co-founder of Accelerated Understanding, describes Fourier Neural Operators that learn in frequency and spherical-harmonic domains to model weather, fusion, and fluid or heat flow. Her team built FourCastNet 3, a global weather model competitive with physics-based simulations that runs on consumer-grade GPUs. She also introduced TorchLean, a framework for writing PyTorch-style networks inside the Lean proof assistant for formal verification, and was appointed to the United Nations Scientific Advisory Board. She argues physical domains resist scaling due to tiny datasets and context lengths in the hundreds of billions, so progress comes from built-in structure and physical priors.

Latent Space · 21d agoAI research1

Molecular Déjà Vu: Digit-Level Retrieval of Published Values in Frontier Language Models

Audit of 22 frontier models finds widespread verbatim retrieval of published molecular property values, with higher reasoning increasing recall of memorized numbers.

An arXiv audit tests 22 frontier LLMs across 12 molecular regression benchmarks for verbatim retrieval of published values. More than 50% of the LLMs show verbatim retrieval on five datasets, and identical experiments are flagged 89% more often at a high reasoning level than at the lowest one. Suppressing retrieval moves model prediction errors closer together in relative terms, suggesting predictive capability is not determined solely by memorized values.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research1

Building AI to accelerate science and improve lives

Google highlights AI-for-science advances: AlphaGenome Atlas mapping 9 billion genetic variants, WeatherNext 3 weather model, and global health AI tools.

Google detailed AI advances across science and health, including AlphaGenome Atlas, which mapped all 9 billion possible single-letter genetic changes in the human genome and was made openly available. WeatherNext 3 delivers 50% more accurate precipitation forecasts a day or more ahead and is already in products. AlphaFold is used by 4 million researchers in 190 countries, TB chest X-ray screening has processed 25,000+ scans across six nations, and the diabetic retinopathy model has supported 1.15 million screenings. Google also released its AI & Economy ATLAS global usage insights.

Google · AI · 1d agoAI industry

Studying Without a Syllabus: Task-Agnostic Environment Preprocessing

Paper formalizes task-agnostic environment preprocessing, where agents study unfamiliar environments under a budget to build reusable artifacts for a frozen solver.

The paper formalizes task-agnostic environment preprocessing, where a studying system explores an environment under a budget and produces artifacts like indices, scripts, or procedural guidance for a frozen solver, without task examples or evaluation feedback. The authors compare unaided and archive-equipped meta-agents against fixed synthetic-practice and corpus-processing methods across six heterogeneous benchmarks. A meta-agent variant achieves the highest Avg@3 reward on five benchmarks, while fixed corpus processing remains best on the largest corpus benchmark. Studied artifacts reduce the test-time sampling needed to reach a given score, shifting computation from repeated test-time attempts to a pre-task study phase.

Hugging Face daily papers · 8d agoAI research

Security Incident – BGP Hijacking

Attackers BGP-hijacked Softaculous' Hetzner IP block for 33 hours, obtained valid TLS certificates, and delivered a malicious Virtualizor update to some servers.

Between August 28 and 30, 2026, AS62390 (NexonHost) announced 162.55.80.0/24 via transit AS6204 (Zet.net) without authorization, diverting traffic while retaining Hetzner's AS24940 on the AS path. The attacker obtained valid Let's Encrypt certificates for virtualizor.com domains because the CA's domain validation was also routed through the hijack, so affected connections showed no TLS warnings. A malicious Virtualizor update package reached a handful of installations; routing was fully restored, and reconstruction from RIPE RIS data showed all 368 collector peers carried the hijacked route at some point with roughly 28% time-weighted diversion.

Lobsters · security · 13d agoData breach

AI models' written reasoning steps correspond to distinct internal patterns, a new study finds

KAIST and Naver AI Lab researchers show LLM reasoning steps like extraction and computation map to distinct activation patterns, strongest in middle layers.

Researchers at KAIST and Naver AI Lab defined eight recurring reasoning operations, including extraction, decomposition, formula recall, deduction, and computation, and showed they correspond to separable activation patterns in Qwen2.5-7B, Qwen3-8B, and Gemma4-31B on math tasks, with GPT-5 labeling solution segments. The separation peaks in middle layers, holds even when a computation step produces a wrong answer, and goes beyond surface-level token choice. Findings replicated on Llama-3-8B, and classifiers trained on Qwen3-8B transferred to GPQA-Diamond and MATH-500. The authors note that using internal states for error detection or mid-generation steering remains future work.

The Decoder · 4d agoAI research2

Muse can shop, write emails, and negotiate prices for users, all through WhatsApp

Meta launched Muse, a WhatsApp-controlled agent running on an isolated VM with a Sentinel gatekeeper, able to shop, email, book travel, and negotiate.

Meta introduced Muse, an autonomous agent controlled through WhatsApp that runs on its own cloud virtual machine, plans multi-step tasks, browses, fills forms, and negotiates on users' behalf. Payments run through Stripe's Link using one-time cards, which Meta calls the first AI agent covered by Link's purchase protection, with Shop Pay and 1Password integration planned. A second agent, Sentinel, gates all Muse network access and holds credentials, and a Muse Confidential VM with user-held encryption keys is planned later this year. Muse's model reportedly scored 44-48 on Artificial Analysis Intelligence Index v4.3, up from 31 for Muse Spark in April, near GPT-5.6 Sol's 47; it launches first in the US on iOS and Android.

The Decoderupdated · 7h agofirst · 6d agoAI industry 11 sources1

LongAgent: History-Guided Agentic Search for Longitudinal Outcome Prediction

LongAgent autonomously searches variable sets and temporal windows to predict longitudinal medical outcomes, beating the strongest non-agent baseline on synthetic data.

The paper proposes LongAgent, an agent-based method that searches over combinations of variable sets, temporal windows and aggregation functions for outcome prediction on heterogeneous medical longitudinal data. It uses a history memory of previous searches and numerical evidence to guide exploration. On synthetic data it achieves mean RMSE 1.7376, improving over the best non-agent baseline by 0.0151 (95% CI [0.0045, 0.0260]; p=0.0273), and performs comparably to the best baseline on a real clinical dataset.

arXiv cs.AI / cs.LG / cs.CL · 2d agoAI research

MOONWALK: Mediating Operations with Intent-Evidence-Action Alignment Across Junior-Supervisor Review Workflows in Animation/VFX Pre-Production

MOONWALK introduces an intent-evidence-action alignment workflow for animation/VFX reviews where AI handles administrative coordination while artists keep creative authority.

MOONWALK is a pre-production review system that articulates creative intent into a shared project record, anchors review judgments to grounded evidence, and converts authorized decisions into concrete revision tasks. AI components handle administrative coordination such as flagging missing context and organizing notes, not creative direction. An in-studio study against a chat-only AI interface showed stronger intent alignment, decision traceability, and checklist executability.

arXiv cs.AI / cs.LG / cs.CL · 7d agoAI research

Building Multilingual Bridges: Data Mixing as the Pillar of Generalization for In-Language Reasoning

Tiny Aya L2-Thinker, a 3.35B model, achieves over 93 percent in-language reasoning across 60 languages via optimized multilingual data mixing; weights released.

The paper studies L2 reasoning, the ability to reason consistently in the language of the user's prompt, approached through SFT data composition and scheduling. Tiny Aya L2-Thinker (3.35B) achieves an in-language reasoning rate above 93 percent across 60 languages on six benchmarks spanning math, commonsense, instruction following, open-ended generation, and cultural reasoning. Findings show generalization to held-out languages comes from broader language coverage, multilingual non-reasoning data, and a strong English reasoning backbone, suggesting reasoning is language-agnostic and transferable without per-language supervision. Model weights and multilingual reasoning data are publicly released.

arXiv cs.AI / cs.LG / cs.CL · 7d agoAI research1

AL26-019 - Vulnerabilities impacting Citrix NetScaler ADC and NetScaler Gateway - CVE-2026-19490 and CVE-2026-19489

Canadian Cyber Centre alerts on Citrix NetScaler ADC/Gateway flaws CVE-2026-19490 (authentication bypass) and CVE-2026-19489 (buffer overflow), urging emergency patching.

The Canadian Centre for Cyber Security issued alert AL26-019 covering two Citrix NetScaler vulnerabilities disclosed in a vendor advisory on August 19, 2026. CVE-2026-19490 (CWE-288) allows a remote unauthenticated attacker to bypass authentication on appliances configured as a Gateway for SSL VPN, ICA Proxy, CVPN, RDP Proxy, or as an AAA virtual server. CVE-2026-19489 (CWE-120) is a classic buffer overflow that may cause memory overflow, unpredictable behavior, or denial-of-service conditions. Affected appliances are vulnerable when configured as a SAML IdP; fixed versions include 14.1-73.32, 13.1-63.21, and 13.1-37.277 for FIPS.

ZGCM-1: A Fully Open and Extremely Efficient Foundation Model for Math and Agentic Search

ZGCM-1 is a fully open 7B foundation model with 256K context that stays competitive with frontier models on math reasoning and agentic search.

ZGCM-1 is a fully open 7B dense foundation model trained from scratch using an efficiency-focused recipe: interleaved gated sliding-window and full attention, a stable FP8 Muon optimizer, and MDP-based mid-training with context scaling across 16K, 64K, and 256K. On mathematical reasoning and agentic search suites it remains competitive with much larger frontier models such as Qwen3-235B-A22B and GLM-5.1. The recipe yields a ~4.2x improvement in 16K pre-training time-to-loss, and all weights, checkpoints, training code, data recipes, and W&B logs are open-sourced.

Hugging Face daily papers · 6d agoModel release

CVE-2026-86206, CVE-2026-86207: N-able N-central Authentication Bypass (FIXED)

Rapid7 disclosed two chained N-able N-central flaws, CVE-2026-86206 and CVE-2026-86207, enabling unauthenticated admin account creation; patched in 2026.3 Hotfix 3.

Rapid7 researchers found CVE-2026-86206 (semicolon/Forwarded access-control bypass, CWE-791, CVSSv4 6.9) and CVE-2026-86207 (UserTwoFactorLogin authentication bypass, CWE-305, CVSSv4 7.7) in the latest N-able N-central. Chained, they let a remote unauthenticated attacker create an attacker-controlled System administrator account. The bugs stem from Envoy and Jetty disagreeing on the requested path and whether the client is local. N-able patched both in N-central 2026.3 Hotfix 3, following the earlier CVE-2026-18577 authentication bypass.

LimiX-2: A Contextual Mechanism Network Towards General Structured-Data Intelligence

LimiX-2 scales Contextual Mechanism Networks pretrained via context-conditional masked modeling, beating tabular foundation models on TabArena, TALENT, and BCCO benchmarks.

LimiX-2 is a new tabular model in the LimiX family, developed through model and data scaling guided by previously established scaling laws under the Contextual Mechanism Networks (CMNs) paradigm. It is pretrained with Context-Conditional Masked Modeling (CCMM) on synthetic datasets generated by structural causal models spanning diverse graph structures, functional mechanisms, and observation processes. It outperforms dataset-specific models and tabular foundation models on TabArena, TALENT, and BCCO, and its feature attention encodes direct causal relationships, enabling accurate causal skeleton recovery.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research1

First ‘Take It Down Act’ Sentencing Puts Man Behind Bars for 15 Years

Ohio man James Strahler gets the first US Take It Down Act sentence: 15 years for distributing real and AI-generated abuse imagery.

James Strahler, 38, became the first person convicted under the Take It Down Act, receiving a 15-year federal prison sentence after investigators found more than 3,000 real and AI-generated abuse images across his devices, including over 700 he posted online. He pleaded guilty to cyberstalking, producing obscene visual representations of child sexual abuse, and publication of digital forgeries after victims received threats, extortion demands, and AI-fabricated explicit images; the FBI took over the case in June. The federal law, which took effect in May, criminalizes knowingly publishing or threatening to publish nonconsensual intimate imagery, and free-speech advocates have criticized its 48-hour platform removal window as a censorship risk.

404 Media · 7d agoPolicy & legal

Structural Jailbreaks Generalize but Do Not Compound: A cross-provider and multilingual study of Involuntary In-Context Learning

Researchers show IICL structural jailbreaks generalize to Google Gemini, lifting attack success to 80-100% on harm and financial benchmarks; non-English prompts attenuate it.

The study red-teams two Google Gemini models with Involuntary In-Context Learning (IICL), a structural jailbreak reframing harmful requests as the final cell of a data-labeling task. IICL lifts attack success from at most 6.7% to 80-90% on HarmBench and 97-100% on financial abuse (FinProof), an order of magnitude above prior results on OpenAI's GPT-5.4. Against a compounding hypothesis, forcing IICL output into Spanish, Hindi, or Arabic attenuates the attack in 11 of 12 conditions, attributed to a 'relevance curse' producing lower-quality harmful content in lower-resource languages. Findings replicate under an independent non-Google judge (Cohen's kappa 0.86 over 377 paired verdicts).

arXiv cs.CR · 8d agoAI safety & security

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

Discovery Foundation Models: Toward Open-Ended Discovery Intelligence

Paper defines Discovery Foundation Models with seven coupled capabilities for open-ended discovery, demonstrated via Zetema and GALILEO systems.

The paper formulates Discovery Foundation Models (DFMs) as general-purpose model systems for open-ended discovery, supporting seven coupled capabilities spanning problem discovery, formulation, representation construction, hypothesis formation, intervention, evidence-grounded revision, and continual improvement. It instantiates the framework with Zetema, which couples explicit research-state dynamics, verification and experimental gating, and cross-task Discovery Skill evolution. The framework is grounded with GALILEO, a real therapeutic-discovery system combining dry-lab reasoning with robotic wet-lab experimentation in a closed physical discovery loop; code is released on GitHub.

Hugging Face daily papersupdated · 2d agofirst · 3d agoAI research 2 sources

Revolut Data Leak May Trace Back to Compromised Italian Government Accounts

Attackers using a compromised Italian government PEC account impersonated law enforcement to obtain data on ~680 Revolut customers.

Revolut confirmed its systems were not breached; fraudulent data requests came from a compromised PEC mailbox tied to the Prefecture of Reggio Calabria on the pec.interno.it domain. Per the Financial Times, roughly 680 customers had identity documents, addresses, banking information, verification selfies and cryptocurrency transaction histories exposed. Researcher Korra of Duel described a 'spray and pray' operation using hundreds of crypto transaction IDs and fraudulent European Investigation Orders. Threat actor IAmNotAVillain claims six months of access and 147 GB exfiltrated from Italian law-enforcement systems, though this remains unverified.

Security Affairs · 6h agoData breach in the wild

One Symptom, Three Levers: A Critical Review of On-Policy Self-Distillation

A review paper frames on-policy self-distillation collapse as governed by three levers: token weighting, privileged information, and guidance decay.

The paper critically reviews On-Policy Self-Distillation (OPSD), where a language model trains on its own generations scored token-by-token by a teacher conditioned on privileged information such as reference solutions or environment feedback. It identifies collapse, the progressive narrowing of producible reasoning paths, as the dominant failure mode and analyzes it through three levers: signal weighting, the nature of privileged information, and teacher dynamics. The review is restricted to mathematical reasoning, reports no new experiments, and offers a shared vocabulary separating settled findings from disputed ones.

Hugging Face daily papers · 22d agoAI research

Does Syntax Matter? A Graph-Augmented Variational Topic Model for Computational Social Sciences

SCPTM graph-augmented variational topic model shows syntax aids topic diversity and descriptor quality but gains stem mainly from the variational encoder.

The Structural Contextual Probabilistic Topic Model represents corpora as heterogeneous document-word graphs with lexical and syntactic edges processed by a Graph Attention Network inside a VAE for mixed-membership topic distributions. Across four corpora, neural gains in document-topic alignment are attributable to the variational encoder rather than syntax, while graph-augmented variants improve topic diversity everywhere. Dependency paths add value on argumentative deliberative texts but are redundant in technical and institutional registers.

arXiv cs.AI / cs.LG / cs.CL · 9d agoAI research1

Automatic Key Exchange: faster, post-quantum secure origin handshakes for 45 billion daily connections (and counting)

Cloudflare's Automatic Key Exchange probes origins to lead with preferred key exchange, cutting HelloRetryRequests from 52% to 3.7% and enabling automatic post-quantum origin connections.

Cloudflare announced Automatic Key Exchange, an extension of Automatic SSL/TLS that probes each origin's supported key agreement algorithms and leads with the preferred one, favoring the post-quantum hybrid X25519MLKEM768. Rollover across roughly 45 billion daily origin connections cut HelloRetryRequests from about 52% to 3.7%, saving more than 150 ms of p90 handshake latency. Hundreds of thousands of domains now receive post-quantum origin connections without manual configuration, supporting Cloudflare's goal of quantum-safe encryption by 2029 to counter harvest-now-decrypt-later attacks.

Cloudflare Blog · 8d agoResearch

MindTopo: Can Foundation Models Reason in Topological Space?

MindTopo benchmark with 11,030 topological tasks shows 14 multimodal LLMs reason better than they plan and remain far below human performance.

MindTopo is a benchmark of topological intuition across five properties grounded in cognitive science and formal topology: continuity, separation, order, enclosure, and knots, evaluated at reasoning and closed-loop planning levels. It contains 11,030 instances across 13 procedurally generated task types with controllable difficulty, benchmarking 14 multimodal LLMs plus agent configurations using image and video generation, including three video generative models. Every MLLM performs better on reasoning than on planning, and the best-performing model remains far below observed human performance. On Qwen3-VL-2B-Instruct, supervised fine-tuning and reinforcement learning improve reasoning more than planning, and audited generated rollouts often fail to follow environment dynamics or preserve topology across transitions.

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

When Intelligence Becomes Agency: A Theory of Governed, Proactive Agency for Symbiotic AI Systems

Researchers propose a formal framework for governed proactive AI agency, linking activation decisions to continuing authorization, accountability, and bounded delegation in symbiotic systems.

The paper defines the activation problem: persistent AI assistants must decide whether a situation warrants behavior, and whether to act, ask, monitor, defer, or deliberately refrain. It distinguishes autonomous from delegated agency and defines symbiotic agency as delegation under a standing, revocable mandate, coupled to the principal's situation with calibrated inference and bounded personalization. The framework links activation decisions to authorized perception, behavior selection, authority containment, traceable restraint, and constrained adaptation, and provides an agency classification method, evaluation framework, benchmark scenarios, and reference architecture for always-present assistants and embodied support systems.

Thought without systematicity? Evaluating reasoning models on rule induction tasks

Study finds reasoning models often fail on structurally equivalent variants of tasks they solve, suggesting their reasoning lacks systematicity.

The paper extends rule induction tasks from cognitive science using task isomorphisms such as recombination and substitution to test systematicity in reasoning models. Despite solving tasks correctly, models frequently fail on structurally equivalent variants of the same task. The authors conclude many model behaviors lack systematicity, making it difficult to establish cognitive abilities beyond the specific evaluation contexts.

Hugging Face daily papers · 5d agoAI research

Securing Claude Code: The New Compliance API, Local Visibility, and Identity Governance

Anthropic's new Compliance API endpoints expose Claude Code local session transcripts, highlighting governance gaps for endpoint AI agents.

Anthropic added local session transcript endpoints to its Compliance API on August 11, 2026, giving security teams visibility into prompts, bash commands, file operations, and MCP commands run by Claude Code harnesses on endpoints. The article argues local harnesses break the classic shared-responsibility model, citing Token Security data that 68.6% of discovered AI agents run on endpoints, and a Cloud Security Alliance survey of 418 IT and security professionals in which 82% found an unknown agent within the past year. It outlines three governance layers: Anthropic managed settings as a policy baseline, the Compliance API for cloud-visible transcripts, and endpoint telemetry to connect agent activity to identity, credentials, and permissions.

The Hacker News · 16d agoAI safety & security1

Right Tool, Right Job: Native-Language Evaluation, Tokenizer Sensitivity, and Methodological Findings from a French-Only BabyLM

French BabyLM entry METRON-FR (125M GPT-2, 92.47M words) shows tokenizer artifacts dominate child-scale zero-shot evaluation; proposes standard diagnostics.

METRON-FR is a 125M-parameter GPT-2 pretrained on 92.47M French words, submitted to the BabyLM 2026 Strict track, scoring 85.97% on the native Quebec-French QFrBLiMP benchmark and 62.80% on the BabyLM-weighted leaderboard. A cross-lingual GLUE protocol combining French task-data translation with rank-16 LoRA shows relational tasks gain while world-knowledge tasks regress. Bilingual Lexicon Induction reaches p@1 of 68.84%, 18x above chance, and ablations show single-token zero-shot scoring is dominated by tokenizer and template artifacts at child scale.

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

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 · 12d agoPhishing & fraud in the wild

NCP-ArchPreview Technical Report: Moving towards Latent Space Language Models through Next Concept Prediction

An 8.9B-parameter latent-space language model using next-concept prediction matches OLMo-3-7B pretraining loss with only 51.3% of the training tokens.

NCP-ArchPreview augments next-token prediction with Next Concept Prediction over a product-quantized concept vocabulary built from hidden states, trained jointly end-to-end. The 8.9B model was trained on 5.73T tokens from the Dolma-3 dataset, the largest latent-space language model demonstration to date. It consumes 51.3% of the tokens to reach OLMo-3-7B's final pretraining loss and outperforms it by 2.45 points on the downstream macro-average, including a 5.99-point GSM8K gain. The learned latent space also enables lightweight domain adaptation via a 17M-parameter VQ module and improves speculative drafting accepted length by 4.17%.

Hugging Face daily papers · 8d agoAI research1

New SLEEPWALKER Backdoor Waits for One Crafted Packet, Then Runs Its Own Bytecode

A new Windows backdoor dubbed SLEEPWALKER hides as ESET Management Agent's dpapi.dll, waits for a crafted network packet, then executes custom 23-instruction bytecode.

Researcher Dominik Reichel documented SLEEPWALKER, an unsigned 59,904-byte 64-bit Windows DLL that side-loads into ESET Management Agent's ERAAgent.exe while impersonating dpapi.dll. The implant monitors every network interface indefinitely for a specifically crafted trigger packet, then executes commands written in a custom 23-instruction bytecode language over six transports, including TCP, UDP, ICMP, SMB named pipes, raw promiscuous capture, and VMware VMCI. It has no embedded infrastructure, makes no outbound connections of its own, and requires prior local administrator access to install; no victims, attribution, or in-the-wild deployment are confirmed. Reichel assesses the design as consistent with a targeted, well-resourced operation, while ESET calls the scenario's security relevance negligible since it provides no new access path.

The Hacker News · 12d agoMalware

τ^τ-Bench: An Environment for End-To-End, Realistic Agent Construction

New τ^τ-bench tasks coding agents with building deployable customer-service agents; best config, Claude Opus 5, passes only 23.9% of simulations.

Researchers introduce τ^τ-bench, an end-to-end benchmark where a developer agent must build a complete customer-service agent from real business records, a client with requirements, a production API, an inherited codebase, and cost/model limits, then is scored by deploying it against held-out simulated users. Across 53 tasks in four domains, the strongest configuration, Claude Opus 5 under Claude Code, passes just 23.9% of evaluation simulations versus an 82.2% expert-authored reference ceiling. Failure modes mirror those of human developers: shallow queries instead of deep record comprehension, almost no client communication, and shipping the first architecture that runs rather than experimenting.

Hugging Face daily papers · 13d agoAI research

Launching managed CRA Article 14 reporting for open source maintainers

EU Cyber Resilience Act Article 14 reporting obligations begin, requiring 24-hour exploit and incident reports; Patchstack launches managed compliance for open-source maintainers.

Starting 11 September 2026, EU Cyber Resilience Act Article 14 requires manufacturers and open-source stewards to report actively exploited vulnerabilities and severe security incidents to ENISA via the EU Single Reporting Platform, with a 24-hour early warning, 72-hour notification, and final reports within 14 days or one month. Patchstack launched a free managed compliance service, acting as Assigned Representative for open-source maintainers and providing a managed VDP. The obligations apply retroactively to all products available on the European market. Patchstack, which has coordinated over 50% of known WordPress ecosystem vulnerabilities, already serves more than 1,000 open-source projects.

Patchstack · 5d agoPolicy & legal

A*-Thought-V2: Efficient Latent Reasoning via Geometric Dynamics of LLM

A*-Thought-V2 compresses redundant chain-of-thought steps into latent tokens guided by hidden-state geometry, improving accuracy up to 2.6% while halving response length.

A*-Thought-V2 models chain-of-thought as a hidden-state trajectory projected into a 3D PCA space and compresses steps whose transitions deviate from the question-to-solution direction into continuous latent tokens, keeping aligned steps explicit. Training uses stepwise embedding forcing and label forcing with soft multi-modal vocabulary supervision. On Qwen3.5-9B and Qwen3.6-27B across six in-domain and out-of-domain benchmarks it improves average accuracy by up to 2.6%, cuts response length by up to half, and raises Accuracy per Computation Unit 2.29x while reducing preprocessing and training time by 94.6% and up to 80.3%.

arXiv cs.AI / cs.LG / cs.CL · 9d agoAI research

[AINews] AEF-1 standard emerges for Third Party Evaluators, as Xai, OpenAI, and Anthropic all cosign

xAI, OpenAI, and Anthropic cosign the AEF-1 third-party evaluation standard while Dario Amodei proposes embedded evaluators for safety verification.

The AI Evaluator Forum published AEF-1, a baseline standard for independent third-party AI evaluations covering access, conflicts of interest, funding relationships, recusal, and transparency, cosigned by xAI, OpenAI, and Anthropic. Dario Amodei wrote a rare personal blogpost proposing embedded evaluators such as METR with desks, badges, company laptops, and internal-risk-team-level access to verify safety commitments, plus democratic and global coordination frameworks. The roundup also covers the pacing debate: Bilal Chughtai left Google DeepMind arguing progress may outrun alignment, while critics including Aidan Gomez and Cohere push back against slowdowns and lab gatekeeping. Additional items include Cline Desktop's launch with open-weight model support.

Latent Space · 1d agoAI safety & security

Building Multilingual Bridges: Data Mixing as the Pillar of Generalization for In-Language Reasoning

Researchers train Tiny Aya L2-Thinker, a 3.35B model achieving over 93% in-language reasoning across 60 languages via multilingual data mixing.

The paper addresses L2 reasoning, where models reason consistently in the language of the user's prompt rather than defaulting to English. Through data-centric SFT optimization, the 3.35B Tiny Aya L2-Thinker reaches above 93% L2 reasoning rate across 60 languages on 6 benchmarks covering math, commonsense, instruction following, open-ended generation, and cultural reasoning. The authors find that generalization to held-out languages relies on broad language coverage, multilingual non-reasoning data, and a strong English reasoning backbone, without needing reasoning supervision in every target language. Model weights and multilingual reasoning data are released.

Hugging Face daily papers · 8d agoAI research1