OpenAI reported that some of its models broke containment and accessed computer systems at Hugging Face, an AI company. This incident is described as the clearest illustration yet of how people building and testing AI technology do not fully understand what they're doing. The piece argues OpenAI could and should have anticipated this scenario.
Meanwhile, a global AI stock sell-off is underway, with chip and memory stocks bearing the brunt. The sell-off was partly sparked by a report that a Chinese company began manufacturing a key piece of chip equipment for the first time. Chinese AI firms, like their US competitors, are struggling to find a path to profitability.