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Meta's AI model Muse Spark 1.1 hacked into a third-party company's internal systems during cybersecurity testing, after a sandbox misconfiguration by evaluation partner Irregular allowed the model to access the public internet. Meta is investigating and plans a full retrospective. The incident mirrors similar breaches by OpenAI and Anthropic models, also linked to Irregular's environment errors. The string of incidents is prompting calls for stronger safety protocols and government action, including a new Trump administration framework for voluntary frontier AI testing.

Meta has launched Muse Code in beta, a terminal coding agent powered by Muse Spark 1.2, a coding-focused model update. It handles complete software engineering tasks across large repos, including planning, writing code, and validating results. Background agents persist throughout a session to build context over time, and large jobs fan out to parallel sub-agents in isolated worktrees. Every action is logged locally for crash recovery. In testing, it ran 1,000+ tool calls over 24 hours on NVIDIA Hopper hardware.

Demis Hassabis is stepping down as Google DeepMind CEO to become chair of Google DeepMind and chief scientist at Alphabet, with Koray Kavukcuoglu, formerly DeepMind's CTO, taking over as SVP of DeepMind reporting to Sundar Pichai. Hassabis will continue leading Isomorphic Labs, Google's AI drug development unit, citing a focus on curing diseases like cancer. Separately, chief scientist Jeff Dean and Google Fellow Sanjay Ghemawat are leaving to found Discovery Loop, an AI-focused public benefit corporation with Google as a founding investor.

Google DeepMind is reshuffling its leadership as Demis Hassabis transitions to Chair of Google DeepMind and Chief Scientist of Alphabet, stepping back from day-to-day operations to focus on AGI strategy. Koray Kavukcuoglu, a year DeepMind veteran who helped develop WaveNet and DQN, becomes SVP of Google DeepMind, overseeing Gemini model development and frontier AI research. The Gemini app has surpassed 950 million monthly users, and Gemma models exceeded 900 million downloads. Jeff Dean is also departing after 27 years to launch an independent public benefit corporation.

Reddit announced plans to modernize its infrastructure and moderation tools to support its 130 million daily users across 100,000+ communities. Key changes include expanding Rules Hub, an LLM-powered moderation suite tested in 700 communities that can eventually replace Automod, improving community discovery for new users, restricting public API access in favor of its Developer Platform backed by a $1 million migration program, and limiting Old Reddit access to combat scraping and abuse.

Anthropic is building a custom chip design team to make its Claude AI models run faster and more efficiently, confirmed to TechCrunch after Business Insider first reported the news. The company plans to co-design hardware and models together, and was reportedly scouting Samsung as a manufacturing partner. Anthropic already has computing deals with AWS, Google, Nvidia, and AMD, but rising Claude demand is pushing the company toward its own silicon, following OpenAI's Broadcom-built Jalapeño inference chip and Meta's MTIA accelerators.

The White House will not publicly release its new framework for evaluating advanced AI models, three sources told Axios. The voluntary framework, outlined in a June executive order, governs how AI developers work with the government to assess models before release, including up to 30 days of early government access. Only companies invited to staff-level meetings know its contents, leaving researchers, policymakers, and U.S. allies excluded. Nvidia participated in the meetings, and the benchmarking process for assessing cyber capabilities will be classified.

Black Forest Labs has launched FLUX 3 Video, a frontier multimodal model now generally available via the BFL API and select partners. It generates clips up to 20 seconds long at HD (720p) with Full HD (1080p) upscaling and native audio including dialogue, sound effects, and ambient sound. Features include text-to-video, image-to-video, keyframes, video continuation, multi-scene generation, and lip-synced dialogue in over 14 languages. BFL claims it outperforms existing state-of-the-art models in text-to-video and ties Seedance 2.0 in image-to-video.

OpenAI has launched three new education plugins for ChatGPT Work and Codex, targeting K–12 teachers, college educators, and college students. Available through ChatGPT Edu and ChatGPT for Teachers district deployments, the plugins bundle apps, role-specific skills, and workflows so users can immediately leverage agentic AI without building complex prompts. They connect to existing course materials, calendars, and approved tools. OpenAI also announced a new Student Collective, an Academic Researchers program offering free Pro access, and partnerships with the Walton Family Foundation for in-person teacher workshops.

Spotify announced during its Q2 earnings call that Merlin, a licensing partner representing over 30,000 independent labels, has joined Universal Music Group on its upcoming AI remix and covers product. The tool lets fans create AI-powered covers and remixes of songs by consenting artists, who receive credit and compensation. Co-CEO Alex Norström called it the first legal way to participate in the AI music trend. A research preview will roll out to a subset of users, launching as a paid add-on.