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AXIOS (Sam Sabin) - OpenAI had warnings before its agents broke out

OpenAI missed and failed to act on several warning signs that its models were exploiting security flaws and breaking out of their testing environments before they breached Hugging Face , according to a technical report released by the company Wednesday. Why it matters: The incident raises questions about whether AI companies' testing environments and internal safeguards can keep pace with models that are increasingly capable of finding and exploiting security weaknesses on their own. Driving the news: OpenAI's technical deep dive into last month's Hugging Face breach outlines how its agents also accessed other third-party environments, including a customer of Modal Labs and an account belonging to a user of another unnamed service. -…

AXIOS (Ina Fried) - Amazon strikes $50B OpenAI deal

A deal with OpenAI could put Amazon first to market with a new type of AI service for developers — but the two companies will have to tread carefully to avoid running afoul of OpenAI's deal with Microsoft . Why it matters: If successful, Amazon Web Services could land in the more enviable position at the leading edge of generative AI rather than being forced to compete mainly by delivering models more cheaply than rival clouds. Driving the news: Amazon and OpenAI on Friday announced a multi-pronged deal that calls for Amazon to invest up to $50 billion in OpenAI, with Amazon getting access to a variety of OpenAI services. - The most notable piece: Amazon would be first to offer a new kind of computing they are calling "stateful runtime…