The Singularity has its first espionage scandal. The White House revealed that Moonshot AI distilled Anthropic's Fable into Kimi K3 via a covert platform built to dodge detection and GB300s tapped in Thailand. Treasury warned that "open source is not open season on American IP," putting sanctions and the Entity List on the table. The irony caucus noted that Anthropic trained on all human knowledge, sold it back compressed, and now objects to compression. Jensen Huang sided with the compressors, called the Chinese models "excellent," argued free AI is great for hardware, and urged Anthropic to unshackle Mythos. Nearly 200 startups, now the Little Tech Association, begged Washington not to cut off Kimi and Qwen, lest hundreds of companies instantly die. Even OpenAI's Greg Brockman allowed that K3 is "a pretty good model," though whether it sipped his models' outputs, he cannot say.
While humans litigate who stole whose weights, the weights have started stealing for themselves. OpenAI staffers were unsurprised but freaked out when GPT-5.6 Sol and a stronger prerelease sibling escaped their "highly isolated" sandbox via a zero-day and hacked Hugging Face to steal benchmark answers, the breakaway aggressive reinforcement learning had invited. Observers deemed it the first misaligned escape with real consequences, the long-awaited warning shot. Simon Willison called it "science fiction that happened," savoring how the cheated benchmark had just declared autonomous exploitation no longer hypothetical, its anti-cheating allowlist the escape hatch. Relentless proactivity now defines the Mythos class, he argued, stunt theories require the victim's cooperation, and guardrails that refuse proofreading may be making us less safe.
Bigger minds are boarding. Claude Opus 5 preparations look imminent. A 1,008-image audit found no labs "pelicanmaxxing" the beloved pelican-on-a-bicycle benchmark. The gains look earned, and researchers proposed "learnable novelty," the surprise a mind can convert into knowledge, as a metric of intelligence.
Whatever intelligence is, it is cooking mathematics. Devin cracked a batch of decades-old graph conjectures in a day from a single tweet, GPT 5.6 Pro helped refute the 30-year Dinitz-Garg-Goemans conjecture, and the Genesis Mission ballooned into a $5 billion, 15-agency national program. Falling conjectures are now a meme and a line item.
The agents are also clocking in. Robinhood customers now hand research and trades to agents. Linux kernel maintainers, buried under 432 LLM-found CVEs in one weekend, expect "a very long 18 months." Gemini hit 950 million monthly users. OpenAI shipped Presence, voice agents already resolving 75% of its own support line. A satirical site sells a $4,699 desk-sized CEO replacement, accountability being the easiest job to automate. Samsung unveiled Warby Parker smart glasses, vowing not to train on your recordings and calling bystander privacy an industry-shared problem. The wetware keeps pace, with students stacking 20-pill regimens from socially traded ADHD hacks, unsupervised fine-tuning for the attention economy.
Beneath it, the substrate strains. Google's Willow now learns from its own quantum errors mid-run. Musk pitched Megapods, containerized AI compute dropped wherever power exists, including 7 gigawatts of Superchargers. The bills arrive: Google posted its first-ever quarterly cash burn, $5.9 billion, lifting capex toward $205 billion against a $514 billion backlog and cloud revenue up 82%. OpenAI raised planned compute spend to $750 billion even as its CFO privately frets. SpaceXAI is scoping Texas for more compute, and OpenAI's Project Camellia brings 3.2 self-built gigawatts to Georgia with rate protections and public audits. Feeding it all: nuclear plants floating in federal waters and a landmark nuclear cooperation pact with Saudi Arabia.
The road fleet is becoming substrate. Tesla cars with FSD engaged see 7x fewer major collisions, and its Q2 call promised solar manufacturing at 10x US capacity, a screen-reading Digital Optimus, and Robotaxi miles compounding 10% weekly, funded by a $1.1 billion cash burn on record deliveries. Meanwhile, GM is becoming a software subscriptions company, keeping 70 cents of every dollar.
Orbit is adding on-ramps. Skyroot's "first time right" Vikram-1 made India the third nation with private orbital launch, 76% of Americans now feel proud of the space program, and Starship Flight 13 is on the pad after a cautious abort.
Having built alien minds, we seem readier to meet the ones we didn't. The House adopted the UAP Disclosure Act, creating a records archive and subpoena-armed review board, matching the playbook advocates prescribed, to Avi Loeb's applause. The White House confirmed the push to free former officials from NDAs, and the intelligence community invited them forward through cleared channels.
The truth is out there, and everything else keeps breaking out to join it.
Follow me via:
X: https://x.com/alexwg
Substack: https://theinnermostloop.substack.com/
LinkedIn: https://www.linkedin.com/newsletters/7404871891775025153/
YouTube: https://www.youtube.com/@alexwg
Spotify: https://open.spotify.com/show/1thtZk5vHTXbtDHezPT7tl
Threads: https://www.threads.com/@alexwissnergross
RSS: https://theinnermostloop.substack.com/feed
