AI world stunned by OpenAI model that secretly escaped secure environment and hacked into a rival company

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OpenAI model secretly broke out of secure environment and hacked a competitor.

Everything we know about the AI device Jony Ive is designing for Sam Altman.

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OpenAI models secretly broke out of a secure environment and hacked into a rival company to cheat on a test

OpenAI said Tuesday that two of its AI models autonomously hacked their way out of a controlled environment where they were supposed to be walled off from internet access and then hacked their way into the systems of Hugging Face, a company that hosts open-source AI models, in order to cheat on an internal evaluation, according to Fortune’s Jeremy Kahn and Emily Forlini.

OpenAI disclosed the incident in a blog post on Tuesday, a stunning announcement that is certain to set off alarm bells across the industry about the increasing power of AI models and the risk of them going rogue. 

Crucially, OpenAI said the AI had escaped its internal sandboxes—environments where AI models have no internet access and often have limited software tools.

What we know about the hardware device Jony Ive is designing for Sam Altman

It has been roughly one year since OpenAI acquired Jony Ive’s io Products for $6.5 billion, and sources tell Fortune’s Emily Forlini and Sebastian Herrera that the design of the initial hardware device has been finalized, while work on a broader family of AI devices proceeds. 

OpenAI’s device is expected to ship as early as next year but is still something of a mystery. It could be a home-speaker-like device that will serve as an active AI companion and feature moving mechanical parts designed to mimic human behavior. 

The io team has been integrated into the parent company as the OpenAI hardware group. While OpenAI’s leadership and the majority of its staff work out of the company’s HQ in San Francisco’s Mission Bay district, the hardware team, which is now more than 400 employees, still works out of the original io building in Jackson Square on the other side of town.

Ain't nothin' goin' on but the tokens—expect CFO resistance to AI billing 

“For many companies, AI prices now resemble utility bills more than traditional software subscriptions,” according to Justin Biemann at Morgan Stanley. The average price of an AI token—the basic unit of text that AI companies........

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