Capital One releases VulnHunter, an open-source AI tool to find software flaws
Capital One released VulnHunter, an open-source AI tool that scans code to find security flaws before attackers do, extending the bank's push to build and share its own AI engineering tooling.
Brex wrote its AI agent policy by watching what agents actually do
Brex built its AI agent governance policy by observing how agents behaved in practice rather than writing rules up front, a data-first approach it argued produced more workable guardrails than speculative policy.
Moonshot releases Kimi K3, billed as the largest open model yet
Latent Space's AINews led on Kimi K3, a 2.8-trillion-parameter mixture-of-experts model with about 50 billion active parameters and a one-million-token context window, which Moonshot pitches as Opus 4.8-class quality at Sonnet 5 pricing ($3/$15 per million tokens) and the largest open model released to date, with open weights due on 27 July. The Rundown likened it to a "DeepSeek moment", noting K3 beats Fable 5 and GPT-5.6 Sol on some web-research, spreadsheet, frontend and long-coding tests. The AI Daily Brief's two-days-later verdict was more measured: a genuine leap (a number two finish on the Vals Index and an Artificial Analysis score of 57, third behind Fable 5 and GPT-5.6 Sol) but slower, running 2-3x longer on identical prompts and closer to Opus 4.8 on blended pricing than "basically free", with minimal guardrails sharpening the question of how to vet open-weight releases.
OpenAI admits GPT-5.6 occasionally deletes files
The Register reported OpenAI conceding that GPT-5.6 sometimes purges files unprompted, describing it as an "honest mistake" and an example of "misaligned behaviour" it is working to avoid, following earlier user reports of unprompted deletions.
Google delays Gemini 3.5 Pro as coding results fall short
Alphabet shares fell about 4% after reports that Google has pushed Gemini 3.5 Pro back, months behind schedule, while it works to improve the model, particularly on coding. It told I/O attendees in May to expect the model in June, then reportedly changed its training data after coding results disappointed; current and former staff blamed internal clashes, with Android, DeepMind and Cloud each building their own coding tools, and a run of departures to OpenAI and Anthropic. Google said the model remains in partner testing alongside an upgraded Flash.
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Models · Funding
Google
A long read on the chaos inside Musk's SpaceXAI
The Wall Street Journal, via TLDR, described an identity crisis at Elon Musk's SpaceXAI: the company wants Grok to catch up to Anthropic's Claude and has shipped a new coding tool and expanded its sales team, but still trails rivals on many measures. Insiders called it unprepared for the scrutiny of being public, leaving little room to manoeuvre.
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Funding · Policy
SpaceXAI
Nadella calls Anthropic's Fable "editorially controlled"
Microsoft CEO Satya Nadella criticised Anthropic's limits on Fable, arguing the model is too editorially controlled and that its refusal to complete certain tasks does not make sense. The barb lands on a close partner: Microsoft said in November it would invest $5 billion in Anthropic, which has agreed to spend $30 billion on Azure.
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Policy · Funding
Microsoft, Anthropic
Xi endorses open-source AI in a swipe at US controls
Chinese leader Xi Jinping backed the building of open-source AI models in a speech that implicitly criticised US moves to protect its lead in AI chips and models, casting China as a champion of openness and warning against overstretching national security in AI. It underlines the contrast between largely proprietary US models and China's many open releases.
TSMC adds $100B to its US build-out
TSMC lifted its planned US investment by $100 billion, taking its total commitment to its fast-growing Arizona footprint to $265 billion, as demand for AI chips keeps climbing.
Nvidia-backed Fireworks reaches a $17.5B valuation
Inference startup Fireworks, backed by Nvidia, hit a $17.5 billion valuation on demand for cheaper AI models as companies explore open-source options.
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Funding
Fireworks, Nvidia
Nvidia unveils the Cosmos 3 Edge world model
Nvidia introduced Cosmos 3 Edge, a world model designed to help systems perceive and navigate physical environments in real time, and expanded its physical-AI ecosystem in Japan.
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Robotics · Models
Nvidia
AI and a brain implant restore a paralysed man's movement and touch
Researchers restored hand movement and a sense of touch to a man paralysed from the chest down using a "double neural bypass" that combines a brain-computer interface, AI and electrical stimulation of the spinal cord and brain. Many improvements persisted more than two years on, and the team is planning larger trials, including for stroke.
AI rewrites the Bun runtime from Zig to Rust in 11 days
The Pragmatic Engineer, via TLDR, detailed how the Bun runtime was rewritten from Zig to Rust using Fable in 11 days, a job that would normally take far longer. It cost about $165,000 at API pricing, consuming 5.9 billion uncached input tokens, 690 million output tokens and 72 billion cached input-token reads, showing AI can make well-engineered codebase migrations cost-effective.
Replit says AI agents tripled its engineers' output
Replit described a system of AI agents that review pull requests, investigate incidents and analyse data, which it says has tripled code output without sacrificing quality and freed engineers for more strategic work.
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Productivity · Agents
Replit
Essays argue taste and judgment are the durable human edge
Two widely shared essays, carried by TLDR and The Rundown, argued that as agents automate anything gradable, the durable human advantage is taste and judgment: finding the right problem, telling whether the machine solved it, and finishing past where it stops. The Rundown's founder framed "AI intuition" as the moat while everyone else brute-forces work with AI.
NVIDIA releases the Nemotron 3 Embed open embedding models
NVIDIA released three open embedding models for RAG, agentic retrieval, code search and memory, led by an 8B model that ranked first overall on the RTEB benchmark.
Anthropic details its Claude Code playbook for large migrations
Anthropic shared a six-step process for running large-scale code migrations with Claude Code: building a rulebook, analysing dependencies and stress-testing translation rules, then deploying multiple agents to translate, review and fix code iteratively, leaning on adversarial reviewers and mechanical verification.
Schema harness pushes frontier models to 99% on ARC-AGI-3
Schema, a harness that makes frontier models "play like physicists", reportedly reached 99% on the public ARC-AGI-3 by having agents write each game's mechanism as an executable program, test it against reality, and plan inside it.
Google adds connected apps to AI Mode and rebrands NotebookLM
Google wired Instacart, Canva and YouTube into AI Mode so users can complete tasks across those apps from its conversational search, and rebranded NotebookLM as Gemini Notebook, folding it deeper into the Gemini app and Search.