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Treasury Secretary Scott Bessent wrapped talks with Chinese Vice Premier He Lifeng in New York on Sunday, floating a formal U.S.-China AI dialogue plus a notification mechanism for AI incidents that reach national-security level. Bessent framed it as "moving from opaque to more transparency between the number one and the number two AI powers in the world." Beijing's readout barely mentioned AI, so the proposal lands on Trump and Xi's table Thursday and Friday in Washington with no signal it will be accepted.
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CNN reported that a special operations analyst used a chatbot to fuse open-source and classified signals intelligence, and the model wrongly concluded a Chinese vessel in the Middle East was hauling nuclear weapons components. Boarding teams were staged and aircraft were airborne before officials realized the report was, in their words, entirely false. It is the sharpest real-world illustration yet of what hallucination costs when the output feeds a targeting decision.
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Researchers at AIR disclosed a flaw letting an attacker swap malicious code past SHA-pinning checks in Claude Code, OpenAI Codex, GitHub Copilot and Gemini CLI, with no click, approval or reinstall required. Background plugin auto-updates mean simply having a trusted, reviewed plugin installed is enough exposure. Anthropic patched in Claude Code 2.1.179 and OpenAI in Codex 0.146.0; Google deprecated Gemini CLI rather than fix it, and GitHub has not shipped a Copilot fix.
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In a Truth Social post over the weekend, the president said he will stand up an "AI Force" modeled on Space Force to watch the industry, policing wrongdoing through the existing criminal and civil courts rather than new rules. He promised an AI czar soon but offered no detail on budget, agency home, or authority, and the White House declined to elaborate. Anti-regulatory Valley figures including David Sacks and Marc Andreessen are the names circulating for the czar role.
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Politico published a detailed reconstruction of the June fight in which a narrow, non-universal jailbreak escalated from Amazon's Andy Jassy to Bessent to an NSA review to a Commerce order in roughly a day, culminating in officials bluntly telling Dario Amodei to take Fable down. A week of in-person talks with policy head Sarah Heck and co-founder Tom Brown produced a shared framework for grading jailbreak severity. Critically, the administration conceded no model can be made completely jailbreak-proof.
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As of Sunday night, users pointing Meta's Muse assistant at Amazon.com get a popup declaring that continued access by an unauthorized AI agent violates Amazon's Conditions of Use. Amazon says Meta never told it Muse would access the store, the agent does not identify itself while browsing, and it appears to capture and store customer credentials. Meta counters that Muse has no visibility into passwords or payment methods — and notably, Amazon is leaning on contract and terms-of-service claims this time, not the anti-hacking statute that failed against Perplexity.
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The AI data center provider filed with the SEC late Friday seeking a $35 billion valuation on first-half revenue of $140.6 million and a net loss of roughly $1 billion. The filing discloses management previously held substantial doubt about the company's ability to continue as a going concern, alongside $3.1 billion in convertible notes from Nvidia dated September 15 and $56.4 billion in future performance obligations. It is the circular-financing question of the AI buildout rendered in a single prospectus.
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The Information reports Alibaba has appointed senior researcher Dayiheng Liu as head of the Qwen project, closing out a year of churn that saw Lin Junyang depart in March and Zhou Jingren move to chief scientist in June. Liu joined Alibaba in 2021 and is slotted on the Apsara Conference speaker page right behind Joe Tsai and Eddie Wu. The team also dropped Qwen-Image-2.1, an open-weight 7-billion-parameter generation-and-editing model it claims beats most proprietary rivals.
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The Information reports Liang Wenfeng told investors DeepSeek wants a new batch of Huawei training chips in Q4 2026 or Q1 2027, on top of a planned deployment of at least 160,000 Ascend 950DT accelerators for inference at its Ulanqab data center. Training still runs on Nvidia for now, though the company already post-trained V4 Pro on roughly a thousand Ascend 910Cs back in June. High-bandwidth memory shortages could stretch delivery past a year.
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An FT-covered survey of 355 U.S. physicians and nurses found daily AI use tripled year over year — and that the heaviest users are the most resistant to expanding its role. Seventy-four percent fear erosion of the clinical skills being replaced, 74 percent distrust outputs due to hallucinations, and 72 percent worry advertiser-driven models will distort recommendations. Imaging and diagnostics pass muster because performance is measurable; documentation, treatment recommendations and anything touching judgment do not.
