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[AINews] 10% worse, 100x cheaper, 10000x faster: Why Simulation is taking over
Latent Space argues AI training pipeline stages—rewards, data, teachers, curricula, environments—are flipping from human-made to model-made simulation.
Latent Space's AINews essay traces how each component of AI training has turned synthetic since 2022: reward models (InstructGPT, RLAIF), synthetic pretraining data (Microsoft Phi, NVIDIA Nemotron-4 340B), model teachers (Alpaca, DeepSeek-R1 distillation), and self-generated curricula (Self-Rewarding Language Models, SPIN). In 2026 it highlights Karpathy's autoresearch loop—700 experiments yielding 20 kept improvements, cutting GPT-2 training time from 2.02 to 1.80 hours—and Z.ai's GLM-5.3 fully synthetic RL environment, judging, and verification stack. It frames these shifts as 'simulation': 10% worse but 100x cheaper and 10,000x faster than human equivalents.
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[AINews] OpenAI to reach AGI bar by end-2026
OpenAI chief scientist Jakub Pachocki says unreleased Astra model meets the 'Automated AI Research Intern' goal; Altman expects internal AGI declaration by December 2026.
OpenAI chief scientist Jakub Pachocki says the unreleased Astra model fulfills the September 2026 'Automated AI Research Intern' target. Sam Altman told TIME he expects OpenAI to declare AGI achieved internally by December 2026. The roundup also covers Zhipu's GLM-5.3-Flash (320B total parameters, 18B active, 1M context), Google's Gemini Omni 1.1 Flash video model topping the Text-to-Video Arena, and the $399 open-source Microduck biped robot from Pollen Robotics and Hugging Face.
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[AINews] Poolside gets $12B reverse-execuhire to NVIDIA; founders stay for $1B, employees go for $6B, Infraco scaling to 7GW neocloud
NVIDIA struck a $12B deal with AI coding startup Poolside, licensing its Model Factory and hiring 109 of its technical employees.
NVIDIA spent roughly $12B in an unusual reverse-execuhire of Poolside, licensing the company's Model Factory while hiring 109 of its ~115 technical staff; founders retain a $1B stake and employees receive about $6B. Poolside had raced to raise $2B to fund a 40,000 GB300 cluster after missing a six-week funding window, and founders argue frontier-scale training now requires an order of magnitude more compute plus contracted data center space. An infrastructure arm spun out in January 2026 is scaling toward 7GW as a neocloud. The newsletter also recaps OpenAI and Anthropic agent-platform releases.
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An Empirical Security Analysis of Open-Source Software Used in Onboard Satellite Systems
Study of 126 onboard satellite OSS repositories finds 2,827 security findings, 72% medium severity or higher, dominated by memory safety and code quality weaknesses.
Researchers performed an empirical security analysis of 126 public repositories of open-source software used in onboard satellite systems using SBOM generation, software composition analysis, static application security testing, infrastructure-as-code analysis, and secret scanning. After cleaning and deduplication the pipeline produced 2,827 findings, with medium-severity findings accounting for 49% and 72% classified medium or higher. A CWE-based taxonomy mapped all findings to eight weakness families, with Memory Safety and Code Quality dominating, followed by Input Validation and Injection. Project-developed code accounted for 81.4% of findings, though external dependency code remained relevant; findings do not establish mission-specific exploitability.
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Import AI 469: Science AI; RSI simulator; and Zuck's technological pessimism
New DiG-bench benchmark of 70 hidden-rule games shows only Opus 5 and Fable 5 solving the hardest tiers, probing AI discovery and creativity.
Import AI 469 highlights DiG-bench (Discovery in Games), a benchmark of 70 handcrafted games with hidden rules and objectives where only 21 games are public and most are kept private to avoid training contamination. Only Opus 5 and Fable 5 with Claude Code solved any Tier 7 tasks (about 0.2 success), with GPT-5.5 next; the games are text-based and have beaten every human tester at least once. The newsletter also covers an RSI simulator game by Paradigm Research and Inherent's Faraday, a post-trained open-weight model that supervises frontier models to improve scientific research output.
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Fly Language Model (FLM) Wires the Full Fruit Fly Connectome Into a Frozen 1.2B LLM, and Its Own Controls Show the Wiring Does Not Help
Researchers wire the full fruit fly connectome (166,700 nodes) into a frozen LiquidAI LFM2.5-1.2B LLM, but controls show no fly-specific benefit.
The Fly Language Model (FLM) couples the complete MaleCNS v1.0 fruit fly connectome (166,700 nodes, 25,582,938 edges) to a frozen LiquidAI LFM2.5-1.2B-Instruct backbone, training only a 278,528-parameter readout (~0.0238% of backbone parameters). The fly readout improved NLL by 0.0222 nats/token (perplexity 3.98 to 3.90) on 32 SmolTalk dialogues, but a direct-input control without the graph beat it in all three seeds. Relabeling node identities removes the gain and the recurrence contracts state differences by 0.6 per token, so the connectome adds no long-range memory. The MIT-licensed code runs locally on Python 3.12, but study artifacts remain private, limiting independent reproducibility.
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⚡ Weekly Recap: Apple 0-Days, WinRAR Exploit, LastPass Fines, .NET RCE, OAuth Scams & More
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