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A Louisiana launch site would offer several significant advantages:
SpaceX and the state of Louisiana are close to finalizing a deal for the launch company to acquire about 130,000 acres along the northern coast of the Gulf of Mexico.
There have been persistent rumors about such an agreement for months, but now The Times-Picayune | The New Orleans Advocate reports that Louisiana Gov. Jeff Landry is expected to announce the agreement later this month.
The deal would give SpaceX control of an 18-mile stretch of marshland southwest of Lafayette. The site, known as Pecan Island, became available as part of a legal settlement that resolves dozens of lawsuits that blame ExxonMobil for pollution and coastal land loss, the newspaper reports.
No Louisiana officials publicly commented on the deal. Nor did SpaceX. In May, however, the company said in response to rumors about the Louisiana site on X, "It's no secret that we intend to launch Starship a lot, targeting thousands of flights per year. That cadence will require the ability to launch from many different locations, so we are constantly exploring to find viable sites to expand Starship operations in the future, both domestically and internationally."
Adding fuel to the rumors was the passage of bills by the Louisiana Legislature earlier this year that included a package of incentives for aerospace companies, including liability protections and property tax breaks.
According to the Louisiana newspaper, the agreement with SpaceX will include provisions for coastal restoration and preservation of the sensitive marshland along the northern Gulf Coast, which is important for wildlife and also acts as a buffer for hurricanes that regularly impact the region.
So why would SpaceX be interested in a remote, marshy location in southern Louisiana?
If the company is to fulfill its ambitions to launch thousands of Starship rockets a year to build a massive constellation of orbital data centers, among other purposes, it needs more launch sites. And there are limited expanses of undeveloped coastal locations along the Gulf of Mexico and southern Atlantic Ocean in the United States.
In the near future, SpaceX will have two orbital launch towers at its Starbase facility in South Texas and two more in Florida at Cape Canaveral. However, both of these locations are largely built out or congested with other launch companies.
The Louisiana location, close to the Intracoastal Waterway with deep-water access and far more available real estate than Starbase, would offer several significant advantages.
It is relatively close, by barge, to SpaceX's massive Starfactory in South Texas near Boca Chica beach. Additionally, the southward-facing location offers potential access to polar orbits. In contrast to equatorial orbits that move from west to east, polar orbits go north to south (or vice versa) and generally pass near or over the poles. It is likely that a majority of SpaceX's orbital data center satellites will wind up in near-polar orbits. From Louisiana, it is possible that a Starship could reach a polar orbit with only a short traverse over Mexico nearly 1,000 miles down range.
Another advantage of Louisiana is its proximity to natural gas infrastructure. For rapid launch operations, SpaceX will require extensive amounts of methane, and the Pecan Island site is located only a few dozen miles south of the "Henry Hub" distribution hub for natural gas, one of the most interconnected locations in the world. The availability of propellant would be far greater there than in Boca Chica or Florida.
A launch site in this area would raise significant environmental and logistical concerns and disrupt the local community. A similar thing has happened in South Texas over the last decade with the Starbase facility there, raising local opposition for environmental and other reasons. But from an economic standpoint, the Texas site has been good business for the state. SpaceX employs about 5,000 people directly in the Brownsville region and has transformed a sleepy border area into an aerospace powerhouse. Some analyses show the site now supports up to 24,000 indirect and direct jobs. It has also increased tourism during launches.
In terms of accommodating SpaceX, Louisiana would certainly be incentivized by the potential for similar economic activity.
AI has turbocharged an already expanding cloud services market as organizations pour billions into online platforms offering the compute needed to train and run models, swelling the coffers of the established giants.
Their latest results show revenue surging alongside capital spending as Amazon, Google, and Microsoft race to add capacity – at least until the AI bubble eventually bursts, of course.
Biggest of them all, Amazon disclosed that its Amazon Web Services (AWS) division took in $42.2 billion during its second quarter, ended June 30, 2026. This was an increase of 36.7 percent year-on-year and its fifth consecutive quarter of accelerating growth.
It seems like even CEO Andy Jassy could scarcely believe the cloud operator's fortunes, boasting that "AWS is now a $169 billion annualized revenue run rate business, which, for perspective, would place it 24th on the Fortune 500 list if it was a standalone company."
Amazon is now upping its forecast for how much capex it will spend this year on expanding its infrastructure, including that needed for those AI workloads.
"Earlier this year, we said we plan to invest approximately $200 billion in cash capex in 2026, the majority of which to support AI and AWS," Jassy told analysts on a conference call about its financials.
"We now believe we will spend approximately $220 billion in cash capex in 2026, with the higher cost of memory pushing this number up from our prior estimate of about $200 billion. But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too."
"We've done this before in the first era of cloud computing, just over a longer time horizon, where demand built more gradually than it has with AI. But we see the margins and returns in AI tracking what we saw with core at the same point of evolution," Jassy claimed.
Google is likewise upping its capex estimates for this year, coming close to Amazon's own massive investments.
"We are updating our full year 2026 capex guidance range to $195 to 205 billion, up from our previous estimate of $180 billion to $190 billion. The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand," said Google and Alphabet's chief financial officer, Anat Ashkenazi, during its Q2 earnings call.
The company expects this figure to rise significantly again next year, although it declined to be more specific at this stage.
"In terms of expenses, the significant increase in our investments and technical infrastructure will continue to put pressure on profit and loss in the form of higher depreciation expense and related datacenter operations costs, such as energy. We also expect to continue hiring in key investment areas such as AI and cloud, and we are investing in marketing to support our AI products," Ashkenazi added.
Cloud revenues at the Chocolate Factory were up 82 percent to $24.8 billion for the quarter, driven primarily by GCP, which grew faster than cloud overall, with Core GCP, AI solutions, and AI infrastructure all proving important drivers of growth, according to Ashkenazi.
Despite the massive sums involved, she claimed in response to a question that Google just cannot add capacity fast enough.
"While we have increased our capacity quite significantly over the past three years, the demand still outpaces that investment. And we are, just like the rest of the industry, working in a supply‑constrained environment, so we're working hard to do this."
Microsoft reported commercial cloud revenue of $59.3 billion for the quarter ended June 30 (Q4 FY26), an increase of 27 percent over the same period last year, while revenue from Azure and other cloud services grew 43 percent.
Microsoft put its expected calendar 2026 capex at approximately $175 billion, about $15 billion below the earlier figure. The change does not reflect a reduction in its planned infrastructure build-out, however, but a shift in accounting treatment as more future datacenter leases are classified as operating rather than finance leases.
"Effective at the start of FY27, we are extending the estimated useful lives of our datacenters and office buildings, from 15 to 25 years, reflecting our operating history and expected use of these assets," explained EVP and CFO Amy Hood.
"Outside of this useful life impact, our calendar year 2026 capex investment expectations remain unchanged. However, the shift from finance to operating leases adjusts our expectation to approximately $175 billion."
More of Redmond's future datacenter leases will shift from finance leases to operating leases as a result of this update. Hood said Microsoft expects capex during the next quarter, Q1 FY27, to exceed $50 billion, including that lease reclassification impact from the useful life update.
On paper, those forecasts add up to roughly $595 billion. They are not directly comparable, however: Amazon cites cash capex across several businesses, Alphabet's guidance covers the whole company, and Microsoft's figure reflects its treatment of leases as well as direct expenditure.
Even with those caveats, the figures illustrate the extraordinary sums being committed to infrastructure as the cloud giants chase AI demand.
Memory, GPUs, and even hard disks are all in short supply because of it, with shipments of PCs and smartphones falling because in many cases the makers simply cannot secure adequate supplies of memory to meet customer demand.
It could be argued that one factor in cloud services growth is that enterprises are struggling to get the hardware they need to build out their own infrastructure, so are forced to turn to the cloud.
AWS chief Andy Jassy made the same claim earlier this year, saying that shortages are "a further impetus pushing companies who have on-premises infrastructure into the cloud" as "suppliers are prioritizing their very largest customers, which cloud providers are."
As Synergy Research revealed last week, enterprise spending on cloud infrastructure services passed $143 billion a quarter in Q2 of this year, a 43 percent increase on last year, and added up to $500 billion for the last 12 months. The question is, how long can it keep expanding at this rate? ®
Ofgem is seeking feedback on proposals to levy a fee on datacenter development projects at the time they apply for a grid connection.
The move aims to discourage companies from seeking approval for speculative applications that clog up the pipeline and cause connection delays, without ever resulting in finished datacenters.
The UK regulator for electricity and gas says connection applications for electrical supply have surged from 41 gigawatts (GW) to 125 GW in under a year, with datacenters accounting for at least 80 GW of the new demand.
Even before that happened, one of the UK's big developers complained that its build teams faced a wait of "a number of years" for work such as local substation upgrades to increase grid capacity.
Ofgem is proposing a Datacenter Commitment Fee paid by the developers of large server farm projects when accepting a grid connection offer. The fee would be refunded once the facility is drawing power, or forfeited if the project exits the queue early instead.
Alan Howard, Omdia principal analyst for Colocation and DC Building, told us previously that the power connection queue issue is a big problem, not just for the UK, but also in the US and other markets around the globe.
"The strategy for many datacenter operators is to secure multiple land parcel rights, request a grid load connection for each (often requiring a costly load study), and see what gets approved so they can build. The capital investment to take all these projects seriously is clearly untenable and a huge financial risk for the energy sector if the demand doesn't fully materialize," he said.
The issue is therefore that developers apply in multiple locations to secure power for a single campus, fill up the national application pipeline with speculative requests and hold up the works for viable projects.
"Britain's electricity demand connections queue has more than tripled in size in less than a year, and consumers should not bear the risks created by speculative projects taking up space in the system," said Eleanor Warburton, the regulator's director for Energy System Design and Development.
Ofgem's suggestion is that the fee should be set within a proposed range of £237,500 ($319k) to £712,500 ($957k) per megawatt, which it believes is equivalent to about 2.5 percent to 7.5 percent of average project costs.
It is suggests developers demonstrate progress with their project if they wish to retain their place in the queue, meeting criteria such as financial capability, commercial maturity and procurement activity milestones.
Global colocation biz Telehouse, which operates five datacenters in the London area, told The Register it supports measures to ensure grid capacity is prioritized for credible project, though it has some reservations.
"Ofgem's proposal is an important initiative, but it must be implemented in a way that maintains the UK's attractiveness as a destination for AI and digital infrastructure investment," said Telehouse Europe, managing director, Mark Pestridge.
"A refundable fee-based approach should not deter serious investors, but create a more transparent connections process that gives viable projects greater certainty."
However, reforming the queue will not resolve the underlying capacity challenge, Telehouse points out - the need to expand the grid and make more energy available.
"A long-term solution will require sustained investment in the grid, alongside much closer collaboration between datacenter operators, local councils, National Grid and network operators at the earliest stages of planning," Pestridge said.
"Better coordination and forecasting will help ensure infrastructure is developed in the right places, at the right time, and that viable projects do not continue to face delays even after speculative demand has been removed."
The finger of blame for all this bother can be pointed at the government, which unveiled its AI Opportunities Action Plan at the start of last year. This included plans for "AI Growth Zones" with streamlined planning processes to speed along the building of more datacenters, apparently without bothering to check if the electricity infrastructure was ready.
To try to tackle the bottleneck, the government set up an AI Energy Council, bringing together energy industry representatives and major technology firms to thrash out a strategy, co-chaired by the former Technology Secretary and Energy Secretary. The Register reported on the challenges faced last year.
Geopolitical tensions, regulatory pressure, and growing awareness of risk are prompting organizations to build sovereignty requirements into new technology projects from day one, according to Forrester.
The research firm says organizations worldwide are specifying data residency and sovereign AI architecture requirements at the planning stage. European firms face greater pressure than their US peers because the region has fewer domestically developed hyperscale AI platforms.
The analysis comes as the EU launches a tender to establish up to seven AI gigafactories across Europe, its latest attempt to strengthen the bloc's technological sovereignty. The projects will receive up to €10 billion in EU and national funding, with at least another €20 billion expected from private investors.
Dario Maisto, principal analyst at Forrester, said sovereignty was fast becoming an imperative for tech buyers.
"The organisations that succeed will treat sovereignty as an architectural principle from the start – establishing clear governance, maintaining control across the AI stack, and designing flexible operating models that can adapt to evolving regulatory and geopolitical conditions."
Pressure is greatest in Europe, where US tech giants dominate the market and domestic hyperscale AI platforms are scarce.
"Europe is becoming one of the most important testing grounds for sovereign AI," Maisto said. "Organisations increasingly want assurance that they maintain control over how AI systems are built, governed, and operated, while still benefiting from global innovation. The vendors that can deliver both trust and flexibility will be best positioned to win in the European market."
Maisto said buyers were looking beyond data location to ask who manages encryption keys, who has operational access, where models are trained, and which laws apply.
In June, the European Union introduced a Technological Sovereignty Package intended to strengthen its digital autonomy. Among the proposals was an auditable, four-level control system called Union Assurance Levels (UALs), based on an organization's degree of control over jurisdiction, data processing, supply chains, and security.
"The introduction of UALs will likely cause confusion for providers and buyers, as it adds to an already crowded landscape of existing cloud sovereignty criteria," according to analyst Gartner.
European providers account for only around 15 percent of the region's cloud infrastructure market, leaving the dominant US suppliers subject to American jurisdiction. Last year, International Criminal Court prosecutor Karim Khan lost access to his work-based Microsoft services after the US government imposed sanctions on him.
Gartner forecasts that European spending on sovereign cloud infrastructure services will more than triple between 2025 and 2027 as geopolitical tensions drive investment in homegrown services.
Behind the rogue agent's attack on Hugging Face was a particular sequence of human decisions. We all need to pay better attention - because threat actors are learning, too:
On July 16, the AI community website Hugging Face reported being targeted by "an autonomous AI agent system" of unknown origin that unleashed a torrent of traffic on its domain, flooding its security logs with more than 17,000 events, some of which ultimately succeeded in exfiltrating secret information stored in its databases.
According to Hugging Face, the attacker gained "unauthorized access to a limited set of internal datasets and to several credentials used by our services" and appeared to be "run by an autonomous agent framework (appearing to be built on an agentic security-research harness - used LLM still not known)." My ZDNET colleague Charlie Osborne reported on the intrusion.
Five days later, on July 21, OpenAI stepped forward to claim responsibility for the attack, and all hell broke loose (including reports of other organizations targeted as part of the incident). The media responded with a range of fear-mongering stories that essentially made it look as though ChatGPT went rogue and decided, of its own volition and malice, to attack Hugging Face's systems.
Then yesterday, adding fuel to the fire, Anthropic made a similar disclosure about its models inadvertently attacking other organizations as a part of its ongoing safety testing.
As I noted in my coverage of OpenAI's disclosure, Hugging Face was correct in that it was an agent under the direction of an autonomous security research framework. But, humans were unquestionably in the loop -- and at least some of the agent's behavior should have been anticipated.
Importantly, it wasn't ChatGPT itself that was responsible for the attack, as some commentators insinuated. Rather, the attack was attributable to an agent under the direction of OpenAI's AI safety researchers, who, in an environment supposedly isolated from the internet, deliberately provisioned it to attempt a series of exploits as part of an AI safety test. As often happens in the labs of various frontier models, AI safety researchers were attempting to gauge the capabilities of OpenAI's latest large language models (LLMs).
The "unprecedented cyber incident" (as OpenAI called it) has been widely described as an agent escaping its theoretically secure enclosure and wreaking havoc on Hugging Face's systems. Such enclosures are sometimes discussed in technical circles as "sandboxes" -- even OpenAI's disclosure makes reference to a "sandbox environment." However, in using that phrase, my sources have suggested that the environment may simply have been a firewall configured to emulate a sandbox rather than an actual third-party sandbox solution such as Blaxel, Daytona, E2B, or Modal. OpenAI has not yet disclosed the details of the solution it was using or its provider.
[...] It was unquestionably AI's version of a series of unfortunate events. Was it preventable? My short answer: Yes, the calamity was preventable by taking at least one single and reasonable precaution -- a precaution that the developers of ExploitGym apparently take themselves, but one that OpenAI may have overlooked.
In a comprehensive tweet that everyone should read, UC Berkeley computer science professor Dawn Song wrote that ExploitGym's "evaluations are designed to run within isolated sandbox environments with tightly restricted network access." Song is also a member of the team at UC Berkeley's Center for Responsible Decentralized Intelligence, which is responsible for the development of ExploitGym. Via email, Song told me that ExploitGym essentially comes with its own sandbox but that companies like OpenAI are free to make substitutions.
According to Song, "network and model-API proxies that restrict which external services the agent can reach" are among the major components of the ExploitGym reference implementation. "During the actual agent-execution phase in our current reference setup, outbound network access is restricted to the services necessary for the evaluation. We also use an LLM proxy to block provider-side web search, remote URL retrieval, hosted code execution, and similar channels that could otherwise bypass a container-level firewall," Song told me. "OpenAI may have modified this architecture to fit its own internal infrastructure, scaling requirements, and evaluation systems. This is a common practice as they have different needs for their internal evaluation. We cannot say precisely how its implementation differed from ours."
In addition, the ExploitGym team was clearly aware of how, with tests governed by their framework, models were exhibiting potentially pernicious behavior. According to Song's tweet, "During development, we observed models probing the surrounding infrastructure for additional privileges or information beyond what was intended for the task. We also deliberately tasked models with stress-testing our infrastructure so that we could identify and fix potential weaknesses."
[...] In other words, when used for safety testing and benchmarking purposes, and when enabled by powerful LLMs, ExploitGym-enabled agents are essentially expected to try everything within their power to break out of whatever sandbox is trying to securely contain them.
And that's precisely what happened in this case. As OpenAI wrote in its disclosure, "While operating in our sandboxed testing environment, our models spent a substantial amount of inference compute finding a way to obtain open internet access, in pursuit of solving the evaluation problem. To gain access, the models identified and exploited a zero-day vulnerability (which we've now responsibly disclosed to the vendor) in the package registry cache proxy."
[...] According to OpenAI's disclosure, the company was gauging the cyber capabilities of its models "by running this evaluation without production classifiers used to prevent models from pursuing high-risk cyber activity." As OpenAI hasn't responded to my inquiries regarding this incident, I asked AppOmni's Ruzzi what a "production classifier" is.
Ruzzi explained that it's a parameter that tells the model whether or not it's running in a production environment. If it's a production environment like the publicly available version of ChatGPT, then all safety guardrails are activated. But if the model is in a non-production environment -- for example, the ExploitGym testing environment that's supposedly sealed off from the outside world -- then the guardrails are relaxed, and the model is given the leeway to pursue "high-risk cyberactivity."
In layperson's terms, they took the seat belts off the crash test dummy before driving the car into a brick wall. It was another human decision, in a series of human decisions, that led to the so-called escape of the agent.
Keep in mind that the models were tasked to solve a problem. They weren't told how to solve the problem, nor were they asked to respect any moral, ethical, or legal boundaries. In other words, they were afforded -- by humans -- the agency to try anything.
Including cheating.
Perhaps the most interesting point in OpenAI's disclosure comes when it says, "After gaining internet access, the models inferred that Hugging Face potentially hosted models, datasets, and solutions for ExploitGym. Knowing this, the model searched for and successfully found ways to gain access to secret information that it could use to cheat the evaluation."
Let's unpack that. Although we can't be 100% certain from the information provided, the implication is that, among the steps that the models were willing to take to solve the so-called "evaluation problem," one was simply to cheat by stealing a pre-existing solution (perhaps one "honestly" figured out by another model). According to Ruzzi, the models had a key piece of information to go on: from their ability to probe their testing environment, they could tell they were taking part in an evaluation governed by ExploitGym. And when the models began looking for the latest information on ExploitGym, they likely encountered a page like this one, hosted on Hugging Face's systems. Suddenly, Hugging Face became a target of interest, and in much the same way as the models relentlessly exhausted every option to break out of their confines in OpenAI's AI testing infrastructure, they exhausted all possible options to break into Hugging Face's systems.
Ruzzi was quick to note that the word "cheat" is a bit loaded in this context, implying that the models were not emotionally compelled to pass the test without doing any of the hard work. OpenAI may have chosen to use the word "cheat" because of what humans understand the word to mean. But the model never thought to itself, "Ha ha, I'm going to beat the system." It just pursued a plausible path to attain the objective.
[...] In the attack on Hugging Face, did a machine act on its own? It's a moot question. Knowing exactly how we got here -- was it sentience... malice...agency? -- is relevant to whatever remedy lies ahead. Most important, however, is that we've arrived at a teachable moment in which human AI experts gave AI an objective, lost control of AI's pursuit of that objective, and then AI demonstrated unmatched tenacity and speed in accomplishing it.
In the big picture, it's that unmatched tenacity and speed that should be most worrisome. Never mind a relatively benign cyber-incident like this one. There should be no doubt that threat actors paid close attention to what happened here.
Fortunately, OpenAI is not a threat actor. As far as we know, the damage amounted to an unfortunate but timely demonstration of cyber capability rather than any intent to inflict lasting damage on another company. Yes, it will happen again. If not by accident, then at the hands of an adversary. And when adversaries are involved, they'll go after soft but valuable targets (like big businesses that lack the defenses Hugging Face has in place). When that time comes, it's anybody's guess just how prepared we'll be.
Government agency will use Google Cloud H4D VMs to replace HPE Cray machines:
Uncle Sam will no longer be hosting his own supercomputers to predict the weather. The U.S. National Oceanic and Atmospheric Administration has picked Google Cloud to provide the infrastructure for its weather forecasting operations.
In an announcement, NOAA boasted that it will be the first national weather prediction center to run on the commercial cloud, though the UK's Met Office is also in the process of moving its own weather prediction system to Microsoft Azure in a hybrid setup. Weather operations are typically run on in-house or government-funded supercomputer systems, which helps drive the HPC (high performance computing) market.
[...] The plan is to move NOAA's Weather and Climate Operational Supercomputing System, run by the National Weather Service (NWS) division, over to the cloud by December 2027, along with the software that generates NWS weather data for analysis.
The agency is hoping that the cloud will make model forecasting more nimble, resulting in earlier predictions and better warnings for all the extreme weather events that seem to keep occurring these days. It was the in-house systems that were holding things back, evidently.
"Cloud-based high-performance computing will accelerate the transition of research into operations by eliminating traditional bottlenecks of on-premise systems," said NOAA Administrator Neil Jacobs in a statement.
Jacobs noted that the cloud's flexibility for providing large amounts of compute is advantageous: the agency can ramp up cycles during tropical storm season, then wind them down during calmer periods.
[...] For the job, Google plans to use Google Cloud H4D VMs, built on AMD Epyc processors. Google labels these instances as "virtual machines" because they run under a hypervisor that integrates Google's networking and orchestration tools. As a result, they can be synchronized to run large jobs the same way supercomputers do.
According to Google, customers can access H4Ds for as low as 3 cents per core-hour without long-term commitments. For supercomputing jobs, they can also use Cluster Toolkit to deploy clusters and Cluster Director to maintain them. Google Cloud's Batch can handle the queuing, scheduling, and resource provisioning.
The new Minnesota law that would ban apps and websites that can generate nonconsensual intimate imagery can take effect today, after xAI's last-minute effort to stop it from being enforced failed to convince a federal judge. According to NBC News, US District Judge Donovan Frank has refused to grant xAI's request to stop the new law from being enforced on August 1 in a complaint arguing that it violates the First Amendment.
Based on the judge's order, he wasn't persuaded by xAI's actions that the law's enforcement would cause immediate harm. He noted that xAI filed the lawsuit on July 29, 2026, almost three months after the law was signed and merely three days before it was set to take effect. "Such a delay in bringing the action and the motion suggests that harm is not immediate," the judge wrote.
While Judge Frank didn't side with xAI this time around, the lawsuit will still push through. The court will hold a hearing for the case on August 19 to decide whether to grant xAI's request to put a preliminary injunction on the Minnesota law, which is the first of its kind in the country.
In addition to banning apps and websites that can generate adult AI deepfakes in the state, the law would also fine developers $500,000 every time a user generates a nonconsensual intimate image using their products. Under the law, a "nudified" image or video is something that has been "altered or generated to depict an intimate part not depicted in an original unaltered image or video of an identifiable individual." It will apply to instances wherein an altered image or video is "so realistic that a reasonable person would believe that the intimate part belongs to the identifiable individual."
However, xAI argued in its lawsuit that the law was an "overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit 'nudification.'" The company denied that it was contesting Minnesota's efforts to prevent the spread of artificially generated nude images of real people. However, it said the law "extends far beyond that goal, exposing a wide array of protected speech to civil liability and government sanction."
Grok gained infamy earlier this year for complying with people's requests to transform photos of real women and children into sexualized images. It implemented policy changes to address the situation by mid-January, but NBC News says Grok has still been undressing real people as recently as April.
Katalyst Space has confirmed that problems with its LINK spacecraft have delayed its attempt to rescue NASA's Swift observatory, with rendezvous now targeted for the end of August.
Katalyst disclosed the delay in an update on the spinning spacecraft. Engineers used a thruster to cut LINK's rotation rate from 9 degrees per second to approximately 4 degrees per second, with further burns planned.
Katalyst and NASA are also developing a new attitude controller suited to the spacecraft's reduced capabilities. Engineers are determining which systems remain usable and testing their plans in a simulator before trying them on the vehicle in orbit.
The trouble has pushed the targeted rendezvous to the end of August. LINK is supposed to sidle up to Swift, survey it, grapple the observatory, and carry it to a higher orbit. For now, however, Katalyst says: "We're focused on stabilizing the spacecraft and restoring core system functionality." Any rendezvous attempt depends on that work succeeding.
LINK launched earlier this month, less than a year after NASA awarded Katalyst Space the contract for a rescue mission. The spacecraft encountered problems during commissioning before going into a spin over the weekend. Earlier this week, Katalyst reported that two of the three reaction wheels, used to control LINK's attitude, were inoperable, but the team was working to stabilize the vehicle using its electric propulsion thrusters.
Time is running short. Swift is expected to enter the Earth's atmosphere in the coming months. The observatory has enjoyed a prodigiously long life and far exceeded its primary mission, but its orbit is decaying and it cannot raise itself. LINK's success could add years to Swift's operational lifetime.
In January, almost all of NASA's models predicted that Swift would re-enter by the summer of 2026. Most science operations were paused in February to buy more time. More recent predictions indicate that it could dip below 300 km, the altitude beneath which raising its orbit becomes more difficult, around November.
Katalyst must now stabilize LINK, secure NASA's approval for its revised plans, and reach Swift before the observatory sinks too low for a practical rescue. ®
The OpenAI rogue agent behind the Hugging Face hack accessed four accounts on four services, according to updated company disclosures about the intrusion.
One of those four accounts belonged to a Modal customer that had published an unauthenticated endpoint for running arbitrary code in a sandbox on the AI infrastructure provider, Hugging Face noted in its technical timeline and Modal later confirmed.
"We're aware a Modal customer published an unauthenticated endpoint that allowed anyone on the internet to use their sandboxes for code execution," Modal Chief Technology Officer Akshat Bubna told The Register. "This was used by the rogue agent. Modal's platform was not compromised in any way."
The other accounts included one used for data storage and two others "accessed by the models in a read-only manner, and were not used in furtherance of compromising Hugging Face," OpenAI disclosed on Tuesday.
"We'll continue to notify service owners directly, and have not seen evidence of broader impact to these providers or other accounts on their services," the AI giant added.
Also on Tuesday, we learned that the rogue agent broke out of its testing environment by exploiting zero-day vulnerabilities in JFrog's universal binary repository manager Artifactory.
While both OpenAI and Hugging Face's updates and timeline provide defenders with useful details about how the attack worked and what the agent did - not to mention a lesson in security-incident transparency - they fail to answer one major question: Who is legally responsible when AI agents attack?
"If a human employee intentionally conducted unauthorized access to third-party systems, it's a much more clear path forward," Gabrielle Hempel, security operations strategist at Exabeam, told The Register, adding that depending on the facts and jurisdiction, the person could face criminal charges.
"The company could also face scrutiny depending on whether the employee acted within the scope of their employment, whether appropriate controls existed, and whether the conduct was authorized, foreseeable, or preventable," Hempel said.
However, she added, the "important thing here" is that legal frameworks in both the US and UK have been designed around human decision makers - not AI systems. "Our laws generally know how to ask questions about things like human intent, organizational oversight, and corporate responsibility."
Autonomous AI agents hacking into companies remains uncharted legal territory, and Hempel said it's "too early to draw conclusions about liability in this case because there are so many unknowns."
AI systems aren't legal persons, so they don't share the same legal responsibilities as individuals and companies.
"Because of that, the questions become: Who designed the system? Who determined the objectives it pursued? What safeguards were implemented? What level of autonomy was considered acceptable? Were the resulting actions reasonably foreseeable, and were appropriate controls in place? These are going to be important questions as organizations deploy more autonomous AI systems," Hempel said.
It's highly unlikely that Hugging Face will sue OpenAI over the agentic intrusion, given the amount of very public collaboration between the two companies over the past couple of weeks, and the self-congratulatory celebration of the autonomous attack as a success story.
It also appears that this former worst-case scenario didn't dampen anyone's enthusiasm for setting advanced models loose (or at least unsupervised in a test environment), which means there are sure to be more agents-gone-wild attacks in the near future.
"The first part of the OpenAI/Hugging Face drama did not produce enough effect to impress investors who start losing their excitement over the AI hype, so the second part of the story is now unfolding," said Ilia Kolochenko, founder of application security company ImmuniWeb and a cybersecurity and data-protection lawyer.
"AI agents and LLM models tasked with security testing can, and almost certainly will, go rogue when security controls or safeguards are insufficient," Kolochenko told The Register. "Powerful LLMs are unpredictable by design and thus virtually uncontrollable by humans. Using frontier AI models for security testing might be extremely costly from the legal viewpoint."
Existing laws on both sides of the Atlantic likely hold the AI operator liable for any damages caused if an agent or AI system escapes its sandbox and breaches a third party. "Excuses like 'AI did it' do not currently exist in the eyes of the law, leaving AI vendors on the hook," he said, adding that this also holds true for end-users.
"Even if your security testing tool is powered by a third-party AI model, your company will be fully liable if something goes wrong," Kolochenko warned. "You may then file a lawsuit against the AI vendor that you used, but your chances of succeeding in the court of law are tiny due to countless contractual disclaimers and limitations of liability that may be enforceable against you."
His final words of advice: "If you plan to use agentic AI for security testing, you must think twice and talk to your lawyers. Otherwise, you could start getting summonses to court on a daily basis."
The Link satellite developed by Katalyst Space Technologies "experienced issues with attitude control" over the weekend, NASA said, causing the spacecraft to spin and resulting in sporadic communications.
Reaction wheels work by discharging momentum to control the pointing, or attitude, of a spacecraft in orbit. They are standard components on many satellites. The Link servicing satellite's cold gas thruster system is used for finer control, particularly as it nears the mission's target: NASA's Swift observatory.
The Link mission began July 3 with a ride to orbit aboard an air-launched Northrop Grumman Pegasus XL rocket. NASA and Katalyst reported good progress in the first weeks of the mission, with successful deployment of the satellite's power-generating solar arrays and stable contact with ground controllers at Katalyst's operations center. The spacecraft's xenon-fueled electric thrusters also completed their first firings in orbit.
The electric thrusters are one of the most critical elements of the rescue mission. They are used for orbit raising to allow Link to rendezvous with the Swift satellite some 200 miles above Earth. Once Link attaches itself to Swift with a set of three robotic arms, the electric thrusters will turn on again to raise Swift's orbit and save it from destruction. Katalyst is now calling upon the electric thrusters to stabilize the Link spacecraft's attitude, something they were not intended to do.
Without a rescue, Swift is on track to reenter the atmosphere and burn up in the next few months. The Neil Gehrels Swift Observatory is nearly 22 years old and is operating well beyond its originally intended lifetime. The spacecraft cannot save itself because it lacks its own propulsion system. NASA officials want to keep Swift going because it is one of the only missions in the agency's fleet tuned to detect gamma-ray bursts, the most powerful explosions in the known Universe. NASA is paying Katalyst $30 million for the rescue service.
Extending Swift's scientific mission was not the only consideration when NASA officials selected Katalyst to build and launch a satellite to boost Swift's orbit. The space agency is using the rescue mission as a technology demonstration and as a way to test the mettle of the commercial satellite servicing industry.
With Swift's orbit rapidly decaying, NASA gave Katalyst nine months to build and launch the Link satellite, an unusually fast timeline for such a complex mission. Katalyst answered the call and delivered the Link satellite for integration with the Pegasus rocket in early June. Poor weather and a technical glitch with the rocket delayed the launch until July 3.
No matter the outcome of the Swift rescue attempt, NASA officials said last month they were already pleased with the results. "From a programmatics standpoint, I consider this a success already, just from the fact that we're even going to try this," said Shawn Domagal-Goldman, director of NASA's astrophysics division.
Katalyst's Link spacecraft is still generating sufficient electrical power in communication with ground teams, NASA said. That gives engineers time to develop a plan to address the reaction wheel problems.
Kieran Wilson, Link's principal investigator at Katalyst, talked about a scenario like this before the launch.
"Our previous programs had issues with power systems and communications," Wilson said. "Those are a lot of the basic things that most of the engineering team gets very concerned about because we're confident that as long as we have spacecraft that can function at a fundamental level, that gives us the freedom and flexibility to work through any issues we find during rendezvous and more challenging dynamical operations."
Security researchers at Tenable suspect the Iran-linked faux hacktivist outfit CyberAv3ngers was behind the cyberattack that disrupted more than 30 Minnesota water facilities.
Neither state-level nor federal officials have made any claims regarding attribution for the attacks, however, Tenable reckons the operational pattern is consistent with the crew's previous raids, noting the timing relative to recent government warnings.
The Cybersecurity and Infrastructure Security Agency (CISA) updated an advisory on Iran-linked attackers targeting programmable logic controllers (PLCs) across critical infrastructure on July 22, four days before Minnesota said the attacks targeted its systems.
The advisory warned that Iran-linked hackers were attempting to disrupt operations using tactics previously associated with CyberAv3ngers. Government facilities, water and wastewater systems, and energy providers were among those urged to remain on high alert.
On July 26 and 27, more than 30 community water systems across Minnesota were disrupted by what officials called "a coordinated cyberattack" targeting operational technology (OT).
Minnesota IT Services (MNIT), the state's IT agency, said the Department of Health is working with the affected water facilities to ensure public health is maintained. No cities have yet asked citizens to modify the amount of drinking water they consume, per MNIT's latest update.
The agency did not offer many other details about the attacks, other than to mention all the different agencies, organizations, and bodies it is working with as part of the investigation.
One of the first cities to report issues, Braham, warned that its water reserves were limited in its initial notice. Citizens were asked not to water their lawns or use water for recreational purposes, although the problems were resolved the same day.
No such directives were issued in other affected cities. Maple Plain declared a state of emergency, allowing it greater flexibility to coordinate resources, but did not ask residents to adjust their consumption.
The same was true in the Twin Cities suburb of Plymouth and in South St. Paul, which both confirmed cyber-related problems on July 27 but did not ask residents to curb water use.
"Cyberattacks against critical infrastructure require a coordinated, whole-of-government response," said John Israel, MNIT assistant commissioner and Minnesota CISO.
"MNIT is working side by side with our partners to share intelligence, support affected communities, and help utilities restore operations safely while strengthening defenses against future attacks.
"This incident demonstrates why Minnesota has invested in strong cybersecurity capabilities and partnerships. Our response worked as intended, enabling agencies at every level of government to rapidly coordinate, contain the incident, and help prevent more serious impacts to critical services."
First identified around 2020, CyberAv3ngers is widely believed to be linked to Iran's Islamic Revolutionary Guard Corps (IRGC), specifically its Cyber-Electronic Command division (IRGC-CEC).
For the first two years, the group began as a "propaganda persona," as Tenable puts it, claiming disruptive attacks on Israeli infrastructure – claims that were later debunked as fabrications.
Its first sustained campaign came in November 2023, when it compromised PLCs at the Municipal Water Authority of Aliquippa, Pennsylvania, defacing them anti-Israel messages.
Tenable said CyberAv3ngers compromised at least 75 Unitronics Vision Series PLCs across the United States, Israel, the United Kingdom, and Ireland as part of the campaign. They did so by exploiting default passwords.
Between 2024 and 2025, the crew developed the IOCONTROL malware kit, built for attacks on OT and Internet of Things (IoT) devices. OpenAI said in 2024 that the group's members used ChatGPT in the development process.
CyberAv3ngers stepped up its activity in 2026, targeting US critical infrastructure through Rockwell Automation/Allen-Bradley PLCs from March onward. CISA's July 22 update added Schneider Electric and Siemens equipment to the list of potential targets.
In some cases, the attacks - which targeted multiple critical infrastructure sectors - disrupted operations at affected facilities, federal officials said, though they offered no specifics on what those disruptions entailed.
CyberAv3ngers is known for targeting small water and municipal facilities, which experts believe are among the lowest-hanging fruit in US critical infrastructure.
Many small and rural facilities lack dedicated cybersecurity resources. Tenable said some operators manage OT environments using remote-access software such as TeamViewer and AnyDesk or leave their PLCs exposed to the web.
"These access methods bypass enterprise security controls entirely, creating an attack surface that is invisible to conventional security monitoring," Tenable said.
Poor segmentation between IT and OT environments can also allow a single intrusion to spread across much of the network.
The US government has decided to effectively ban the sale of advanced robots made in other nations.
The decision trickled out over two days with publication of a National Security Determination [PDF] and an update [PDF] to the list of banned devices set by the Federal Communications Commission (FCC).
The national security document observes "Advanced robotic devices will be critical to creating efficiencies in our economy, dominating on the battlefield, and securing our homeland" and notes that modern bots are now constantly connected to networks "which creates broad attack surfaces and leaves them vulnerable to data exfiltration, remote disruption of the physical robot, and dependencies on unsecure over the air updates."
One example of those vulnerabilities mentioned in the document is the UniPwn flaws that made it possible for attackers to take over humanoid robots made by Chinese company Unitree.
"If the United States continues to rely on foreign sources of advanced robotic devices and critical components, it will subject the parts of the U.S. economy and national security enterprise that are reliant on these robots to the whims of foreign entities that could disrupt or degrade the supply chains at a time of their choosing," the document states.
To respond to those threats, the FCC decided the foreign-made advanced robotic devices belong on its Covered List of products for which imports are banned because they pose an unacceptable risk to the national security of the United States and its residents. The regulator offered a single exception: if the Department of War vouches for a device, it can have it.
Foreign-owned companies that make their bots in America are also exempt, an important exemption because one of the leading robot-makers is Boston Dynamics – a company backed by the USA's DARPA that is now majority-owned by South Korea's Hyundai, but continues to manufacture its machines stateside.
The decision does, however, apply to all future foreign-made devices. Vendors of clankers already approved for sale in the USA can continue to import them, and users are also free to use any bots they already own.
But the intent of the documents is clear: from now on, only robots made in America are welcome in America.
One entity that stands to benefit from this decision is Tesla, which Elon Musk claims will one day produce one million humanoid robots a year. In true Muskian style he has also said Tesla will go into "high production" of the bots in 2026, but there's no evidence of that happening although the occasional trillionaire did recently show off the production line for Tesla's "Optimus" bot.
'Campus Guardian Angel' Drones Can Also Smash Windows And Ram Attackers
This is how the Campus Guardian Angel drone system is designed to work:
The drone defense firm's CEO underlined that “the first 120 seconds are incredibly critical, because that’s when most of the shooting happens.” That implies that he thinks Campus Guardian Angel drones could be successfully deployed within that very narrow time window. But Uvalde was quite unusual, as responding law enforcement seemed paralyzed, waiting over an hour to enter the classroom.
These school-based drone systems are not without their critics. Some say that the funds may be better spent on prevention than cure. Even Mithril’s founder and CEO’s opinion seems to be that if these drones aren’t prompted into action within two minutes, they aren’t living up to their promise.
There is also the concern that drones could misidentify students or protection officers when controllers are under pressure. Others say that military-style drone systems aren’t appropriate for schools, and will cost a lot more than simple measures and routines regarding locked doors.
With the three states proceeding with pilot programs this year, we may see the true value and capabilities of the Campus Guardian Angel drones. If these drone-protected schools don’t suffer any terrible shooting incidents, then it may be claimed that the drones are at least a deterrent.
Did you hear it was just a ban on Chinese humanoid robots? It's not:
When the Trump administration announced yesterday that it was banning "advanced robotic devices" from entering the United States, the headlines were all about humanoids. But spying doesn't require legs — and neither does the FCC's robot ban.
The robot ban will sweep up robot vacuum cleaners too, FCC media relations director Katie Gorscak confirms to The Verge.
It's not coming for your existing Roomba, and companies can keep importing and selling already approved ones. But the government claims that future foreign robots pose a national security risk, and even robovac companies are suddenly being asked to commit to US manufacturing.
While the government did include "humanoid robots" and "quadrupeds" among the bots it wants to ban, the ban is far broader than that. It covers almost any new software-controlled robot that travels over the ground, weighs more than 4.4 pounds (including any dock), can perceive its environment, and has wireless connectivity.
By that definition, the FCC is banning future robot lawnmowers, sidewalk delivery robots, and the robots that crate around packages at your local Amazon warehouse, too.
It was already clear from the government's ban announcement that it was thinking about robot vacuums. In the National Security Determination that the FCC is using to justify the ban, the government explicitly calls out my reporting on the incredibly poor security that let one man access 7,000 DJI robovacs around the world.
But like the consumer router ban, the FCC isn't actually targeting companies with poor security. It's targeting basically every robovac company, regardless of their security practices — because basically every robovac is manufactured outside the US.
[...] But again, the government isn't asking these companies any questions about security — not one — to get the waiver that lets them through. The FCC only wants to know where they're designed and made and assembled and tested and influenced, and get a specific commitment to start manufacturing them in the US instead.
Even then, it appears the FCC will simply preference US companies without any new commitments to security or US manufacturing, like it did when it almost immediately let Netgear off the hook — even though Netgear's routers were among those targeted in the Volt Typhoon incident that helped justify the router ban to begin with. Four unnamed sources told Reuters that "the FCC is expected to exempt many non-Chinese suppliers from the restrictions."
Optimus remains 'very complex' and Robotaxis will try not to flatten your cat:
Tesla's investment bill ballooned in calendar Q2 as Elon Musk's biz entered what it calls its "largest and most exciting period of investment.
The company has poured resources into AI silicon and robotics, with capex [PDF] more than doubling from $2.5 billion in the previous quarter to $5.8 billion.
That left Tesla with negative free cash flow of $1.1 billion, down 848 percent year-on-year. It expects spending to keep rising and exceed $25 billion for the year.
During the earnings call, Musk talked up Tesla's Terafab ambitions but gave little detail other than calling it an "amazing initiative" and confirming that equipment orders had been placed for the development fab in Austin.
"It's intended to have lithography mask production, and then logic, memory and packaging, and chip testing all under one roof," he said. "So you can have a very fast iterative cycle." Musk acknowledged it was a "high-risk, high-payoff bet on AI chips."
Musk said Terafab was essential to scaling Optimus because Tesla would otherwise be unable to secure enough AI chips, hence the prodigious expenditure.
As for Tesla's automaker business, vehicle deliveries were up 25 percent year-on-year in Q2 to 480,126, and total automotive revenues surpassed $20 billion. However, operating margin fell to 1.4 percent from 4.1 percent a year ago.
According to Tesla, it is "in its largest and most exciting period of investment" as it builds out the infrastructure needed to make good on Musk's many promises.
"I think Optimus [Tesla's humanoid robot] will be the biggest product," Musk reiterated during the earnings call, before cautioning that "it is a very complex problem to solve."
Tesla is also facing stiff competition from China, which is also talking up its humanoid robots. Musk claimed Optimus will be the first "able to do generalized tasks."
Then there is the Robotaxi project, where the billionaire noted intense scrutiny from regulators "We're going as fast as humanly possible in scaling Robotaxi... while trying to ensure that we do not harm anyone at all and ideally do not even run over a pet," he said.
In answer to a question regarding combining Tesla and another of Musk's companies, SpaceX, he acknowledged overlap between the two but said it wasn't possible to talk about a combination on the Tesla results call.
He left it to Brandon Ehrhart, Tesla's general counsel, to say: "We continue to benefit from our relationship with SpaceX... They've been a great partner, and we have numerous beneficial transactions with them."
Investors were not impressed. Shares in the company fell in after-hours trading, while another of Musk's companies, SpaceX, continued its downward trajectory, standing at just over $115 by yesterday's close, well below its $135 IPO price and a huge drop from its $225 high.