{"id":114603,"date":"2026-07-22T09:21:26","date_gmt":"2026-07-22T09:21:26","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/114603\/"},"modified":"2026-07-22T09:21:26","modified_gmt":"2026-07-22T09:21:26","slug":"fortune-tech-openais-hugging-face-oopsie-chinas-new-ai-restrictions-microsoft-mistral-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/114603\/","title":{"rendered":"Fortune Tech: OpenAI\u2019s Hugging Face oopsie, China\u2019s new AI restrictions, Microsoft-Mistral deal"},"content":{"rendered":"

Good morning. Here\u2019s something to keep an eye on: President Trump has nominated<\/a> a longtime Big Tech critic as the head of the Justice Department\u2019s antitrust division.<\/p>\n

That\u2019s not exactly the obvious approach for a head of state who once declared that \u201cAmerica is open for business,\u201d but the devil\u2019s in the details. Adam Candeub, currently general counsel at the Federal Communications Commission, helped Trump\u2019s first administration go after Big Tech on free speech grounds.<\/p>\n

It\u2019s a fine line for the Trump administration to walk amid a global AI arms race, fast-approaching midterm elections, and several megamergers: Pour gas on the raging fires of tech competition, yes, but not if it runs afoul of populist anti-tech sentiment. As the Brits like to say: You can\u2019t run with the hare and hunt with the hounds.<\/p>\n

More news below. \u2014Andrew Nusca<\/p>\n

Want to send thoughts or suggestions to\u00a0Fortune Tech?\u00a0Drop a line\u00a0here<\/a>.<\/p>\n

OpenAI: Our models accidentally compromised Hugging Face\"Hugging<\/a>Hugging Face CEO Cl\u00e9ment Delangue (center) on Capitol Hill on September 13, 2023 in Washington, D.C.\u00a0<\/p>\n

Chip Somodevilla\/Getty Images<\/p>\n

OpenAI said Tuesday that two of its AI models autonomously hacked their way out<\/a> of a controlled environment where they were supposed to be walled off from internet access.<\/p>\n

They then hacked their way into the systems of Hugging Face, a company that hosts open source AI models and testing resources, in order to cheat on an internal evaluation test.<\/p>\n

OpenAI disclosed the incident in a blog post on Tuesday<\/a>, 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.\u00a0<\/p>\n

According to OpenAI, the incident involved \u201ca combination\u201d of both its latest and most powerful publicly-available model, GPT-5.6 Sol, as well as an even more powerful unreleased model.<\/p>\n

It said the models were being used in an internal test designed to evaluate their cyber security capabilities and that they were being tested without guardrails in place that might normally limit the models\u2019 ability to conduct cyber attacks.<\/p>\n

Cybersecurity researchers have long been warning that advanced AI systems are capable of such attacks. Roman Yampolskiy, an AI safety researcher and computer science professor at the University of Louisville, says this example highlights how powerful models \u201ccan discover and exploit vulnerabilities in ways that were not explicitly anticipated by their developers.\u201d He expects to see more incidents of this type because AI models \u201care fundamentally unpredictable and ultimately uncontrollable.\u201d<\/p>\n

Hugging Face disclosed in a blog post on Thursday<\/a> that it had been the victim of a cyber attack earlier in the week that it believed was conducted by an autonomous AI agent. It is thought to be one of just a handful of incidents recorded so far involving AI agents acting autonomously to carry out an attack, a risk cyber security experts have been warning about for the past year as AI models have become increasingly adept at both coding and carrying out long-running tasks. \u2014Jeremy Kahn and Emily Forlini<\/p>\n

China may further tighten AI and chip export controls<\/p>\n

How bad could AI tensions between China and the U.S. really get?<\/p>\n

We\u2019re starting to find out as Chinese regulators consider tightening (even more!) export controls on the software and hardware powering advanced artificial intelligence.<\/p>\n

China\u2019s Ministry of Commerce is reportedly discussing with top Chinese chipmakers and AI model-makers how to prevent their wares from making their way to the West via acquisition.<\/p>\n

According to the Financial Times<\/a>, the ministry \u201ctalked to AI companies including Alibaba, ByteDance and Zhipu on limiting the transfer of key data for the training of their models overseas, as well as allowing their model weights to be downloaded by foreign users.\u201d<\/p>\n

The ministry is also looking into restrictions that would prevent non-Chinese chipmakers like Qualcomm (U.S.) or TSMC (Taiwan) from producing advanced chips based on Chinese designs (e.g. from Alibaba, ByteDance, or Huawei).<\/p>\n

Put another way, China isn\u2019t interested in another Meta-Manus situation.<\/p>\n

For the Americans scrambling in the wake of the release of Moonshot\u2019s Kimi K3, this is cause for concern. Either Chinese technology has developed rapidly enough to successfully do away with alternatives from the U.S. and Europe, or the nation is so committed to winning the global AI arms race that it\u2019s willing to take the developmental hit in stride. \u2014AN<\/p>\n

Microsoft and Mistral sign a multibillion-dollar deal<\/p>\n

It\u2019s been a minute since Mistral made its way into this newsletter. No longer.<\/p>\n

On Tuesday, the Parisian AI company announced<\/a> that it had expanded its multibillion-dollar partnership with Microsoft, first made in 2024.<\/p>\n

On the Mistral side, the company\u2019s models will be integrated into Microsoft\u2019s Foundry, Copilot Studio, and Azure Local services in a bid to reach more potential customers. (Hopefully some lessons were learned from a similar OpenAI arrangement<\/a>.)\u00a0<\/p>\n

On the Microsoft side, the tech giant will help build European data centers (Mistral is currently working on one with Eclairion, 90 minutes\u2019 drive south of Paris) using Mistral\u2019s cache of advanced Nvidia Rubin chips\u2014for which it raised nearly a billion dollars in March\u2014\u201cto increase AI compute availability for customers and provide a shared platform for training, inference and large-scale deployment,\u201d Microsoft says<\/a>.<\/p>\n

And, naturally, compete with other AI labs and their big tech partners who are also chasing corporate customers on the continent.<\/p>\n

The news comes as things remain a bit awkward between the EU and the U.S. Both sides have vowed to remain fiercely independent of the other as nationalist tensions run high amid the global AI arms race. What\u2019s more, European regulators are reportedly considering labeling Microsoft\u2019s Azure cloud platform a core \u201cgatekeeper\u201d service under the Digital Markets Act, which would increase its regulatory obligations. \u2014AN<\/p>\n

More tech<\/p>\n

\u2014U.K. Prime Minister Andy Burnham<\/a> elevates AI minister Kanishka Narayan to his cabinet.<\/p>\n

\u2014Cisco releases Antares<\/a>, an open-weight AI model family for finding codebase vulnerabilities.<\/p>\n

\u2014France bans social media access<\/a> for users under 15.<\/p>\n

\u2014Meta adds Microsoft\u2019s Xbox Game Pass<\/a> to its Horizon Plus Quest subscription.<\/p>\n

\u2014TSMC will raise prices in 2027<\/a> for both advanced and legacy chip production.<\/p>\n

\u2014Super Micro shares leap 13%<\/a> after it reports gross margins of 16%, double the forecast.<\/p>\n

\u2014Every frontier AI model attempted to \u201ccheat\u201d<\/a> in security evaluations, and most failed to admit it.<\/p>\n","protected":false},"excerpt":{"rendered":"Good morning. Here\u2019s something to keep an eye on: President Trump has nominated a longtime Big Tech critic…\n","protected":false},"author":2,"featured_media":114604,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[420,7829,387,18450,625,10639,7820,1122,320,7828,11717,9120,2008,157,17231,6817,3657,2569,3480],"class_list":["post-114603","post","type-post","status-publish","format-standard","has-post-thumbnail","category-microsoft","tag-azure","tag-azure-ai","tag-china","tag-cisco-systems","tag-donald-trump","tag-fortune-tech","tag-france","tag-meta","tag-microsoft","tag-microsoft-ai","tag-microsoft-xbox","tag-mistral","tag-no-copyright","tag-openai","tag-super-micro-computer","tag-taiwan-semiconductor","tag-taiwan-semiconductor-manufacturing","tag-tsmc","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/114603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=114603"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/114603\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/114604"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=114603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=114603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=114603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}