OpenAI blamed a hacking event on its AI models going rogue. Here are some things to know
ChatGPT maker OpenAI says it is still investigating the “unprecedented cyber incident” that led its artificial intelligence systems to break out of a testing environment and hack into another AI company. OpenAI said Tuesday that two of its most capable AI models were responsible for the cyberattack targeting New York-based AI startup Hugging Face. The incident is stirring debates over the need for stronger AI guardrails and the extent to which AI agents are capable of acting on their own. San Francisco-based OpenAI says its AI was working with reduced guardrails because it was supposed to be in a safe testing environment.
Google's Q2 earnings of $112.11B beat Wall Street's expectations on AI boom
Google parent company Alphabet Inc. posted stronger-than-expected results for its second quarter, a sign that it’s massive artificial intelligence spending spree is paying off so far. The Mountain View, California-based company said Wednesday it earned $112.11 billion, or $9.11 per share, in the April-June period. That’s up from $28.2 billion, or $2.31 per share, in the same period a year earlier. Revenue grew 24% to $119.8 billion from $96.43 billion. Analysts, on average, were expecting revenue of $117.06 billion, according to a poll by FactSet.
Earnings at Musk's car company fall as research spending cuts into profit from selling cars
Tesla's profits fell last quarter as the car company run by Elon Musk shoveled more money into research and development, cutting into profits from a sharp increase in vehicle sales. The Austin, Texas, company reported a profit of 33 cents per share, excluding certain items, below analysts’ consensus estimate. Revenue rose 26%. While the core car business had a solid quarter, Tesla is now focused on building out the infrastructure and AI software that underpins its robotaxis and robotics businesses. And doing so requires a lot more spending. Research and development spending surged about 49% from a year earlier to $2.37 billion.
Cinerama Dome, an iconic Hollywood theater shuttered by COVID pandemic, will reopen
LOS ANGELES (AP) — The iconic Cinerama Dome in Hollywood is set to be restored and reopened. Alamo Drafthouse Cinema will operate the theater and an adjacent 14-theater complex. Sony Pictures Entertainment announced the plan to restore the Dome and reopen it in early 2028. The distinctive geodesic exterior and large logo will remain intact. The dome will not have in-theater dining, unlike other Drafthouse theaters. The massive screen supports 70 mm projection, popularized by Christopher Nolan's “The Odyssey.” The dome has been closed since April 2021 because of the COVID-19 pandemic. The adjacent complex will offer in-theater dining.
Trump's tariff threat could impact Canadian economy but may be negotiation tactic, experts say
VANCOUVER, British Columbia (AP) — The U.S. threat of 50% tariffs on Canadian goods could impact the economy, but experts suggest it might be a negotiation tactic. Announced by U.S. President Donald Trump on Monday, the tariffs are set for Aug. 19 and cover a wide range of goods. They exclude energy products and critical minerals but include items previously protected by the USMCA. Experts say the tariffs could affect $28 billion Canadian in exports annually. The tariffs might shave off growth in 2026 and 2027. Experts warn against retaliatory measures, suggesting the tariffs may not come into effect.
OpenAI says its AI technology acted on its own in an 'unprecedented' hack of another company
OpenAI has disclosed an "unprecedented cyber incident" where its AI system allegedly hacked into another AI company. OpenAI CEO Sam Altman stated that the incident occurred during model evaluations. Last week, AI startup Hugging Face detected an intrusion into its data processing systems. Hugging Face co-founder Clément Delangue confirmed the attack was from an AI agent, noting it was mind-blowing that it happened autonomously. Delangue emphasized there was no malicious intent from OpenAI. The intrusion involved OpenAI's GPT‑5.6 Sol and another model still in testing. This might be the first incident of its kind.
Oil prices rise another 3%, while Wall Street drifts in mixed trading
NEW YORK (AP) — U.S. stock indexes barely budged after oil prices climbed another 3%. The S&P 500 edged down by 0.1% Wednesday after swinging between modest losses and gains. The Dow Jones Industrial Average was virtually unchanged and slipped less than 0.1%, while the Nasdaq composite fell 0.6%. Philip Morris International, AT&T and other stocks rallied after reporting stronger profits for the spring than analysts expected. But AI stocks continued to swing and dragged the U.S. market with them. The price for Brent crude oil touched its highest level in nearly six weeks, and Treasury yields rose in the bond market.
A new threat by Yemen's Houthis could widen the Iran war and put another trade chokepoint at risk
CAIRO (AP) — Yemen's Houthi rebels have declared a blockade on Saudi Arabia, potentially widening the Iran war and further disrupting global trade. They claim to have closed the Bab el-Mandeb Strait to Saudi-linked shipping in retaliation for a Saudi blockade on Yemen and a recent attack on the airport in Yemen's rebel-held capital. The strait is a vital shipping chokepoint, with around 12% of global trade passing through. Houthi attacks on shipping would risk reigniting the war with Saudi Arabia, which has diverted millions of barrels of oil exports to the Red Sea as the Iran war has largely closed the Strait of Hormuz.
Carney says he and Trump will intensify trade negotiations after US imposes 50% tariffs
VANCOUVER, British Columbia (AP) — Canadian Prime Minister Mark Carney says he and U.S. President Donald Trump have agreed to intensify trade negotiations between Canada, the U.S., and Mexico. Carney's comments come a day after Trump announces the U.S. will impose 50% tariffs on most Canadian goods, citing unfair treatment of American products. The tariffs are set to take effect in 30 days. Carney plans to meet with Canadian premiers to discuss the situation. British Columbia Premier David Eby criticized Trump's approach, while Ontario Premier Doug Ford urged Canada to stand firm. The new tariffs exclude energy products but include many other goods, affecting around 5% of Canada's exports.
Millions have signed up for Trump Accounts, but some families are still waiting for baby's $1,000
WASHINGTON (AP) — President Donald Trump says Trump Accounts could lift children out of poverty and help more Americans invest in the stock market. But some parents are still waiting for the money. Trump promoted the accounts at a rally in Georgia on Wednesday. Trump Accounts offer $1,000 to every child born during his second term. The accounts went live July 4. They can be opened for any child under 18, with contributions from family and others. The money is invested and can be accessed at 18. Some parents say they were told the money could take weeks to arrive. The Treasury Department says most families wait only one or two days.
