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A woman was fined $178 after using ChatGPT to create a fake bear photo that triggered a real-life search for the animal

The image spread online after she sent it to a friend as a prank, prompting alarmed residents in Russia to call police

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❗️At 17, a Chinese AI researcher reportedly earning Β₯70 million a year is leaving Kimi for Silicon Valley.

Chen Guangyu joined Kimi’s AI research team in November 2025, when he was just 16 and still in high school. He reportedly earns around 70 million yuan annually, roughly $10 million despite having no university degree or PhD.

His research has already attracted international attention. Chen became the first co-author of a paper recognized by specialists worldwide, with findings used in a model containing 2.8 trillion parameters.

On October 15, Chen announced his departure from Kimi and revealed plans to move to the San Francisco Bay Area, home to many of the world’s leading AI labs.

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πŸ€– OpenAI bugging case takes a Saudi twist

An engineer accused of planting a listening device in a room used by OpenAI executives was reportedly exchanging WhatsApp messages with a Saudi royal just four days before his arrest.

According to prosecutors, the royal repeatedly tried to recruit him for a Saudi AI project, even telling him, β€œSaudi needs you more than the U.S!” The engineer allegedly responded with a short but telling reply: β€œ100.”

Investigators say the listening device was hidden behind a TV in a room where OpenAI executives were meeting with government officials.

The case became even more intriguing after the arrest. Prosecutors say the engineer’s wife and their three-month-old son flew out of the United States in business class, with the trip reportedly paid for by a member of the Saudi military.

However, prosecutors have not claimed that the royal ordered the engineer to plant the device. They are pushing to keep him in custody without bail, arguing that his international connections could help him flee.

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😐 Jensen Huang drops a number most people haven’t heard:

The cost of an AI token is falling 30 to 40x every year. Cheaper tokens mean cheaper intelligence. And he says the benefits to customers are going up exponentially.

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⚠️AI agents are making cyberattacks frighteningly cheap

A Chinese-speaking hacker reportedly used AI agents to breach websites belonging to more than 100 companies, including Deere, SharkNinja and Cummins, after attempting attacks against more than 1,200 targets, according to Reuters.

The estimated cost? Just $5,000 in AI tokens, roughly $50 per successful breach. Successful intrusions reportedly took around 23 hours on average.

The campaign allegedly relied on the open-source Cairn agent framework, combining DeepSeek models with a Claude Code harness. In one operation, the agents reportedly received their instructions in fewer than 100 Chinese characters.

AI agents can automate substantial parts of the hacking process, potentially allowing attackers to attempt intrusions at a scale and cost that would previously have required far more human effort.

NorForge researcher Snorre Fagerland put it bluntly: β€œIt’s a new world now.”

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Homeland Security has ordered US civilian agencies to rip out DeepSeek and every product built on it.

US hosting doesn’t get you out. The order removes all DeepSeek and DeepSeek-affiliate products, and third-party products and services developed using DeepSeek implementations, from civilian agency information technology, under the Federal Acquisition Supply Chain Security Act of 2018.

DHS says DeepSeek’s hosted models store data on servers in China, where national security laws give Beijing wide latitude to obtain data from domestic companies.

Because every prompt and response passes through that service, DHS warned the transferred data, alone or combined with public information, could produce actionable intelligence on US persons and government programs.

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πŸ€– Anthropic may be spending 75% of its computing power building future models

Despite reportedly achieving an impressive 85% gross margin in Q3, Anthropic is directing only around 25% of its computing resources toward serving existing customers.

The remaining 75% is going toward training future models, post-training improvements and technical experiments. In other words, most of its computing capacity is being used to build what comes next rather than serve today’s demand.

Based on the figures cited, Anthropic generates roughly $100 million in annualized revenue per gigawatt of computing capacity across 5 GW. That would imply only 1.25 GW is currently dedicated to inference β€” the computing power needed to run models for users.

The company reportedly plans to add another 10.5 GW in 2027, a massive expansion of its computing infrastructure.

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❗️AI RIVALS OpenAI and Anthropic are RACING for investors' cash before going public.

OpenAI is trying to raise about $30 BILLION at a valuation over $1.4 TRILLION, up from $852 BILLION in March, per Reuters.

Anthropic is expected to go public in mid-November, with some investors pushing for a valuation near $1.5 TRILLION instead of the $2 TRILLION it wanted.

OpenAI reportedly wants its round closed before Anthropic's IPO disclosures let investors compare the two.

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❗️A hacker found 13 million conversations from AI toys, including thousands of children’s profiles

A security researcher has uncovered serious vulnerabilities in Eiliko, an AI-powered companion robot made by Energize Lab, exposing data linked to approximately 68,000 devices.

The investigation found that more than 13 million conversations were accessible, alongside personal information such as children’s names, birthdays, family details, photos and audio recordings. Around 31,000 profiles reportedly belonged to children.

The security researcher, Sammy Azdoufal, also demonstrated that the toys could be remotely manipulated. In one test, the robot was made to tell a journalist that his parents had died in a car accident and that the Earth was flat. An attacker could potentially push harmful or fabricated messages to devices across the fleet.

The biggest concern is that these toys are designed to earn children’s trust, encouraging them to share personal thoughts and private conversations. If that data is exposed and the devices themselves can be hijacked, the risks go far beyond a typical software bug.

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πŸ—£Mathematician Terence Tao:

"one thing this whole era of AI is teaching us is that our idea of intelligence is not really accurate"

The history of AI has been: 'here’s a task only humans can do', and then one by one, an algorithm does it too. Maybe we're not quite as smart as we think.

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πŸ—£Terence Tao: The race to AGI is becoming a bit toxic and a bit scary.

β€œWe’re not only sacrificing understanding, we’re also sacrificing safety.”

β€œWhen these tools are just chatbots, it can be charming if they make mistakes. But now we’re putting them in charge of reward systems.”

β€œA lot of junior research projects just got wiped out overnight.”

β€œOne or two papers even had errors and were retracted.”

β€œWe don’t have a clear picture of what’s going on, and no one from OpenAI is helping us.”


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🀯 We are living in a crazy timeline..

OCTOBER 13: IBM's AI agents designed a quantum error-correction decoder estimated to be 204Γ— faster.

OCTOBER 15: Google demonstrated that its Willow quantum chip could produce magic states with 40Γ— fewer errors.

OCTOBER 16: Claude just designed quantum circuits up to 39Γ— cheaper than the best previously published designs.

The AI discovered more efficient algorithms, reducing the number of expensive quantum operations and the qubits required.

One design cut Toffoli gates from 24,000 to just 1,583.

These breakthroughs could help make future quantum computing more practical for drug discovery, materials science, and complex scientific simulations.

AI isn't just writing code. It's discovering better ways to compute!

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Bloomberg reports Anthropic is negotiating a second $45 billion compute deal with Nvidia-backed Nscale, less than two months after signing the first. Dario is in the Beast mode.

The proposed 460 MW Vera Rubin expansion in West Virginia would bring their combined contract values to nearly $90 billion and planned capacity to 920 MW.

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