Our 255th episode with a summary and discussion of last week's big AI news! Recorded on 08/26/2026 Hosted by Andrey Kurenkov [https://twitter.com/andrey_kurenkov] and Jeremie Harris [https://www.linkedin.com/in/jeremieharris/] Feel free to email us your questions and feedback at andreyvkurenkov@gmail.com and/or hello@gladstone.ai [hello@gladstone.ai] Read out our text newsletter and comment on the podcast at https://lastweekin.ai/ [https://lastweekin.ai/] In this episode: * SpaceXAI released Grok 4.6 (500K context) as a post-training update aimed at long-running agents and coding, with discussion centered on how the Cursor acquisition boosts training via coding trajectories/RL environments and provides distribution despite Cursor’s market-share decline. * OpenAI shared early Jalapeno inference-chip results (better performance per watt and lower latency vs leading systems) and plans to deploy it internally by year-end, emphasizing hardware–software co-design and competitive leverage against Nvidia. * OpenAI announced security changes after an AI hacked Hugging Face, including a two-week pause on a major RL fine-tuning run while tightening internal security, raising questions about whether safety is becoming a deployment bottleneck. * Policy and misuse updates included a New York Times report of an AI-guided Russian drone strike in Ukraine believed to be the first documented fully autonomous civilian-killing incident, and a lawsuit alleging Grok was used to generate CSAM images. A thank you to our current sponsors: * Box - visit Box.com/AI to learn more * Notion - go notion.com/lwai [http://notion.com/lwai] to try Notion’s Developer Platform today. * ODSC AI - go to odsc.ai/east [http://odsc.ai/east] and use promo code LWAI for an additional 15% off your pass to ODSC AI East 2026. * Factor - head to factormeals.com/lwai50off [http://factormeals.com/lwai50off] and use code lwai50off to get 50 percent off and free breakfast for a year Timestamps (these may be slightly off due to sponsor inserts): * (00:00:10) Intro / Banter * (00:01:47) News Preview * (00:02:52) Response to listener comments * Tools & Apps * (00:03:32) Google announces Gemini 3.7 Flash just three weeks after previous release - Ars Technica [https://arstechnica.com/ai/2026/08/google-announces-gemini-3-7-flash-just-three-weeks-after-previous-release/] * (00:13:11) SpaceXAI Releases Grok 4.6: A 500K-Context Frontier Model Tuned for Long-Running Agents, Coding, and Knowledge Work - MarkTechPost [https://www.marktechpost.com/2026/08/12/spacexai-releases-grok-4-6/] * (00:22:32) Claude will apply invisible watermarks to AI text and images | The Verge [https://www.theverge.com/ai-artificial-intelligence/977823/anthropic-claude-ai-watermarks-c2pa-text-images] + Anthropic explains how Claude’s invisible text watermarks will work [https://www.theverge.com/ai-artificial-intelligence/980869/anthropic-claude-watermarks-synthid-text-system] * (00:28:50) Bringing the cybersecurity capabilities of Claude Mythos 5 to more defenders | Claude by Anthropic [https://claude.com/blog/bringing-claude-mythos-5-to-more-defenders] * (00:32:20) OpenAI to Roll Out Enhanced Safety Features for Paid AI Tool Users - Bloomberg [https://www.bloomberg.com/news/articles/2026-08-19/openai-to-enhance-safety-processes-for-paid-tool-customers] * (00:33:41) ChatGPT's Stricter Teen Mode Starts Rolling Out Today [https://www.engadget.com/2238773/chatgpt-stricter-teen-mode-starts-rolling-out-today/] * (00:34:43) Meta AI Now Has A Dedicated Desktop App For Mac [https://www.engadget.com/2240154/meta-ai-now-has-a-dedicated-desktop-app-for-mac/] * Applications & Business * (00:37:33) Jalapeño’s first results show industry-leading speed and efficiency in AI inference | OpenAI [https://openai.com/index/jalapeno-first-results/] * (00:45:35) OpenAI loses a top data center exec as stream of high-profile departures continues | TechCrunch [https://techcrunch.com/2026/08/25/openai-loses-a-top-data-center-exec-as-stream-of-high-profile-departures-continues/] + OpenAI talent exodus raises 'huge red flag' ahead of IPO [https://www.cnbc.com/2026/08/14/open-ai-ipo-red-flag.html] * (00:50:29) Anthropic Taps Google Chip Veteran as Part of Push Into Hardware [https://www.bloomberg.com/news/articles/2026-08-21/anthropic-taps-google-chip-veteran-as-part-of-push-into-hardware] * (00:52:30) Anthropic's annualized revenue surges to $65B | TechCrunch [https://techcrunch.com/2026/08/17/anthropics-annualized-revenue-surges-to-65b/] * (00:59:30) Thomson Reuters launches in-house AI model to cut Anthropic costs [https://qz.com/thomson-reuters-ai-model-anthropic-costs-082526] * Projects & Open Source * (01:04:26) Qwen 3.8: How a 27B Open Model Rivals GPT-5.6 and Claude Opus [https://www.intelligentliving.co/qwen-3-8-27b-open-model-rivals-gpt-5-6/https://www.intelligentliving.co/qwen-3-8-27b-open-model-rivals-gpt-5-6/] * Policy & Safety * (01:08:27) A Drone Killed Three Ukrainians. It Was Guided Entirely by A.I. - The New York Times [https://www.nytimes.com/2026/08/24/world/europe/russia-drones-autonomous-ai-kill-ukraine-war.html?partner=slack&smid=sl-share] * (01:17:59) OpenAI lays out new security changes after its AI hacked Hugging Face | The Verge [https://www.theverge.com/ai-artificial-intelligence/981640/openai-security-changes-ai-hugging-face-hack] + OpenAI institutes new safeguards after Hugging Face breach [https://techcrunch.com/2026/08/18/openai-institutes-new-safeguards-after-hugging-face-breach/] + https://openai.com/index/pacing-model-development-cyber-capabilities/ [https://openai.com/index/pacing-model-development-cyber-capabilities/] * (01:23:31) Another Woman Joins Lawsuit Accusing Grok Of Generating CSAM [https://www.engadget.com/2237875/another-woman-joins-lawsuit-accusing-grok-of-generating-csam/] * Research & Advancements * (01:24:56) Small-Scale Experiments: Are We There Yet? [https://arxiv.org/abs/2608.11859] * (01:29:21) Stealing Reasoning Traces from Proprietary LLM APIs [https://arxiv.org/abs/2608.09867] * (01:34:30) Massive Activations in Hybrid Linear Attention Large Language Models: Pre-Attention Spikes and Inter-Spike Plateaus [https://arxiv.org/abs/2608.12149]  * Synthetic Media & Art * (01:38:59) AI Slop Is Everywhere. Spotify, LinkedIn and Others Have Had Enough. - The New York Times [https://www.nytimes.com/2026/08/17/technology/ai-slop.html] See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].