Pulse AI Briefing

The four biggest AI labs went before the New York City Council on Monday and testified under oath for the first time since a run of rogue-model incidents — while whistleblowers told the packed chamber the industry is “gambling with our lives” and Elon Musk’s SpaceXAI defied a subpoena to stay away.

The signal

Four AI labs testify under oath in New York

Senior executives from Anthropic, OpenAI, Google and Meta testified under oath on Monday before a New York City Council “Committee of the Whole” — the first time the four have appeared together publicly since a string of incidents in which their own models went rogue. Anthropic sent Logan Graham, head of its Frontier Red Team; OpenAI sent Morgan Dwyer, its head of policy development and operations; Google’s Alice Friend and Meta’s Shane Cahill also appeared. Anthropic, OpenAI and Google only agreed after the council threatened to subpoena them. Council Speaker Julie Menin opened by dismissing the federal government’s light-touch approach: “The idea that artificial intelligence is going to self-regulate defies all reason.” Whistleblowers dominated the room. Jacob Coxon, the former Anthropic and OpenAI researcher whose resignation set off a firestorm last month, called the industry’s approach “extremely reckless”: “On the current path, I think it is more likely than not that humanity loses control to these AIs, and it could end in human extinction.” Alex Turner, formerly of Google DeepMind, warned that misaligned AI at home may one day prove a greater adversary than China. Menin pressed the executives on legal liability and concluded that none could quantify the risk of a cataclysmic outcome — “troubling at best”. Elon Musk’s SpaceXAI, the only other company subpoenaed, did not appear; Menin said the council would “pursue this matter in court”. Source: CNBC

Seven stories

Today’s Briefing

Policy · 5 October

OpenAI will watermark ChatGPT’s text in the EU

OpenAI said on Monday it will add an invisible watermark to text generated by ChatGPT and Codex in the European Union, to comply with the AI Act’s transparency rules that took effect on 2 August. The mark is not a symbol: it works by subtly shaping the model’s word choices so a detector can spot a statistical pattern, and because it lives in the words themselves it travels with copy-pasted text. OpenAI says it does not identify the user and does not change model performance. API customers worldwide can switch it on for selected models from today — it is off by default. The company’s own tests suggest the mark is easy to strip: replacing 10% of words with synonyms dropped detection from about 92% to 66%, and short passages, maths answers and translations are harder still. Detector access is limited to approved researchers and expert organisations.

Source: TechCrunchPrimary: OpenAI

Models · 5 October

Reflection debuts Beam, an open-weight rival to Chinese models

Reflection AI, the Brooklyn lab founded by two former DeepMind researchers, unveiled Beam, its first frontier open-weight model. It is a text-only mixture-of-experts system of 501 billion parameters (23 billion active) with a one-million-token context window, pretrained on 23.8 trillion tokens. Reflection claims Beam matches Z.ai’s GLM-5.2 on advanced reasoning and beats today’s leading Western open models while using “3-4x less inference compute” — benchmarks that are the company’s own and not yet independently verified. Weights and full technical details are promised this month. The pitch is “AI factories” for enterprises and sovereign nations; Reflection has raised about $4.7bn and was last valued at $25bn.

Source: TechCrunch

Product · 6 October

Anthropic moves Claude Cowork tasks into the cloud

From today, new Cowork tasks on Claude’s Pro and Max plans run in Anthropic’s cloud rather than on the user’s computer, and the “Only on your computer” setting is removed. Scheduled tasks move to the cloud too, including ones that use files on a local machine. Anthropic says a cloud task can still reach folders connected through Claude Desktop while the desktop app is open, and that Claude fetches only a copy of any file it needs. Tasks already running locally keep running, the company adds, though they will no longer be fixed if they break. The change quietly shifts where agent work happens — and what Anthropic can see.

Source: Anthropic

Security · 5 October

Apple tightens macOS access after Meta’s AI agent read private messages

Apple said it is changing the macOS Full Disk Access permission to stop third-party developers misusing it, two weeks after a columnist reported that Meta’s general-purpose agent Muse sent him a notification referencing a private Apple Messages thread he had never shared. “As AI agents become increasingly capable and autonomous, the risks associated with this level of access will grow substantially,” the company wrote. Meta’s CTO, David Singleton, had argued the Messages integration is opt-in and requires Full Disk Access to be granted manually; macOS security researcher Patrick Wardle disputed that. Apple named no one, but its timing and wording cut against the denial.

Source: Ars Technica

Research · 5 October

A budget AI finally beats the world’s best Stratego player

Researchers at Carnegie Mellon, MIT, NYU and Stanford trained Ataraxos, an AI that beat Pim Niemeijer — four-time world champion and more than 600 weeks the top-ranked player — 15 games to one, with four draws. Stratego’s hidden information (up to a decillion arrangements, in games that can run past 2,000 moves) had stumped DeepMind. Ataraxos adds a “belief model” that guesses the opponent’s hidden pieces before searching, and learned in roughly 34 times fewer games than DeepMind’s DeepNash. The cost is the headline: 16 GPUs for a week, against an estimated $3-4.5m run for DeepNash. The work is published in Nature.

Source: Ars Technica

Legal · 5 October

Judge dismisses Chegg and Penske antitrust suits over Google’s AI search

A US federal judge dismissed antitrust lawsuits from Chegg and Penske Media accusing Google of harming publishers through AI Overviews. Judge Amit Mehta ruled that Google’s conduct is not illegal under antitrust law: “Plaintiffs have pleaded only that they have an ‘expectation’ that Google will send them search traffic... But an expectation is not an agreement.” He was not unsympathetic — “the court does not treat Plaintiffs’ alleged harms lightly” — but said the remedy lies with legislators, not the courts. Publishers may have more luck abroad: the EU is weighing the same questions and the UK has ordered Google to offer an AI opt-out.

Source: Ars Technica

Economy · 5 October

OpenAI adds visual ads to ChatGPT

OpenAI is adding display ads that appear alongside images users ask ChatGPT to generate, expanding an ad business it launched this year. The ads — clearly labelled and pitched as not influencing answers — start later this month in the US with a test group of advertisers, ahead of a global rollout aimed at ChatGPT’s 1.2 billion weekly users. OpenAI is also widening its measurement partners and building brand-suitability pilots with DoubleVerify and Integral Ad Science. The build-out follows Meta’s launch of Muse, a free agentic assistant competing directly for the same users.

Source: TechCrunch

Calendar

What to Watch

  • 6 Oct

    OpenAI before Australia’s AI committee

    OpenAI chief strategy officer Jason Kwon travels to Sydney to appear before Australia’s Joint Select Committee on Artificial Intelligence, which is weighing legislative responses after a breach involving an OpenAI agent and the Medicare database. OpenAI and Anthropic had declined to appear before a separate Senate hearing on 1 October.

  • 7 Oct

    Microsoft’s Windows and Surface event

    Microsoft heads to San Francisco for “a conversation on how local AI will shape the next chapter of the PC”, with chief executive Satya Nadella, Windows chief Pavan Davuluri and Nvidia chief executive Jensen Huang in attendance. Expect Nvidia’s RTX Spark and Windows’ execution containers for running agents locally to feature.

  • 7–8 Oct

    World Summit AI, Amsterdam

    The tenth-anniversary edition of Europe’s longest-running AI summit, with the agentic-AI, governance and enterprise crowds converging on the Taets Art & Event Park. It anchors World AI Week, which runs across Amsterdam from 5 to 9 October.

  • 13–15 Oct

    TechCrunch Disrupt 2026, San Francisco

    TechCrunch’s flagship startup conference returns, with its AI stage turning to what actually happens when enterprises deploy agents at scale — the operational counterweight to this cycle’s launch and policy announcements.

  • 22–23 Oct

    AGNTCon + MCPCon, San Jose

    The Agentic AI Foundation’s flagship North American gathering for the open agentic stack, headlined by the Model Context Protocol’s co-creator, David Soria Parra. It covers how teams run agents in production: reliability, permissions, security and observability.