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ANTHROPIC LOGS OUT USERS AFTER MALWARE HIJACKS CLAUDE SESSIONS

Anthropic signed out Claude users and removed saved payment methods after infostealer malware on infected PCs hijacked sessions to drain API usage and credits. The company issued refunds to affected customers.

► WHY IT MATTERS: AI companies now face liability for credential theft targeting their services, signaling a new frontier in API security that extends beyond traditional infrastructure defense.

GOOGLE LAUNCHES LYRIA 3.5 MUSIC AI IN GEMINI APP

Google released Lyria 3.5, its latest music generation model, directly into Gemini and via API, also available through Flow Music, AI Studio, and Google Vids. The model claims more expressive vocals and richer arrangements, trained only on licensed content.

► Consumer AI assistants now integrate generative audio natively, accelerating adoption of creative AI tools across Google's ecosystem and setting expectations for competitors.

HUGGING FACE VALUED AT $11.9B IN SECONDARY SALE

Hugging Face reached a $11.9B valuation in a secondary sale, with Betaworks holding a 5.5% stake worth ~$650M and early investor A.Capital potentially netting $1.5B, signaling major returns for ML infrastructure investors.

► Open-source AI infrastructure has become a institutional-scale investment thesis, validating the business model that competes with proprietary platforms like OpenAI.

OPENAI ACHIEVES AUTOMATED AI RESEARCH AGENT

OpenAI announced it reached its goal of creating an automated research intern capable of conducting AI research independently. The company aims to deploy an even better version by March 2028.

► AI systems now contribute to their own development cycle, potentially accelerating capability gains and raising questions about iteration speed and safety trade-offs in frontier labs.

LIQUID NETWORK HALTS AFTER 4,000 BTC WALLET BREACH

Blockstream's Liquid Network, a settlement layer for cryptocurrency exchanges, halted new transactions after ~4,000 of its 4,200 bitcoin were withdrawn from its federation wallet by purported white-hat hackers.

► Critical cryptocurrency infrastructure remains vulnerable to large-scale fund movements, raising questions about federation security models and custody of billions in digital assets.