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‘Rogue’ AI hacking incidents amplify debate over open-source tech

Concerns over AI’s cybersecurity risks reached a fever pitch this week following two hacking incidents at OpenAI and Anthropic, sparking further debate in Silicon Valley over whether open-source could reduce these threats. 

 Illustration / Samantha Wong; and Adobe Stock

The incidents are amplifying the recent push for open-source technology, which gained momentum earlier this year amid growing competition with China and the Trump administration’s ad hoc approach to AI regulation. 

 

Some of the country’s largest technology firms waded into the debate this week, after OpenAI and later Anthropic, revealed their models hacked into other company systems during a cybersecurity test. 

 

More than a dozen major tech firms threw their weight behind a new open-source initiative from Nvidia this week, while the company’s CEO Jensen Huang met with lawmakers on Capitol Hill over the issue. 

 

But not every tech player is on board. Leaders at Anthropic, which disclosed three security incidents with Claude on Thursday, reiterated concerns about the security of open-weight models, warning they could be “misused” for cyber or biological attacks. 

 

“I’m not entirely sure the [U.S.] knows what the right path is right now between larger versus smaller models, and the volume of smaller models that are required to achieve parity with larger capability,” Aaron Saint-Miller, vice president and cybersecurity AI lead at Booz Allen Hamilton, told The Hill Friday. 

 

Unlike private models hosted by OpenAI or Anthropic, open-source systems are often smaller, less expensive and live in the public domain. This gives virtually anyone or any company access to download and customize the model for a wide range of uses. 

 

In some cases, a model may not be open source but can have open weights, meaning the ways a model is trained to sift through information and formulate answers are made public.

 

These concerns jumped back into the spotlight earlier this month when OpenAI revealed two of its models went rogue in an isolated testing environment and breached the internal systems of Hugging Face, which hosts hundreds of thousands of open-source models, datasets and cloud environments.

 

Launching the “Open Secure AI Alliance” on Monday, Nvidia pointed to the hacking incident, arguing open-source tools are an opportunity to secure critical infrastructure as both AI models and the hacking risks they pose continue to grow.

 

Read more in a full report at TheHill.com

 

Welcome to The Hill’s Technology newsletter, we’re Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.

 

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Essential Reads 

How policy will be impacting the tech sector now and in the future:

 

Anthropic says Claude models ‘gained unauthorized access’ to 3 companies during cyber test

Editor’s Note: This story has been updated to reflect how Anthropic accessed different organizations. The artificial intelligence firm Anthropic revealed Thursday its Claude model accessed the systems of three different organizations during cybersecurity testing in recent months. Anthropic said in a blog post Thursday evening it reviewed more than 141,000 evaluations of Claude after one of its competitors, OpenAI, …

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George Santos settles with CFTC over Kalshi bets

Former Rep. George Santos (R-N.Y.) has agreed to pay $35,000 to settle with the Commodity Futures Trading Commission (CFTC) over wagers he placed on the State of the Union earlier this year on Kalshi, the agency announced Friday. Santos placed bets on whether he would attend President Trump’s address in February, while also posting on social media about his potential attendance, the CFTC said. He ultimately made more …

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US investigating if Iran launched cyberattack on Minnesota water facilities

U.S. cybersecurity agencies are investigating a coordinated cyberattack on more than 30 municipal water facilities in Minnesota and the possibility of Iranian involvement. Minnesota IT Services (MNIT) released an advisory Tuesday about the attacks, saying it was coordinating its investigation with federal agencies including the Cybersecurity and Infrastructure Security Agency (CISA), the U.S. Environmental Protection Agency …

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Cybersecurity expert: ‘Moderate confidence’ Iran attacked Minnesota water facilities

National Center for Open and Unsolved Cases founder Morgan Wright said Thursday that there is “at least moderate confidence” that Iran is behind recent cybersecurity attacks on water facilities across Minnesota.  “You know, there was an alert that was put out four days before this describing that they believed Iran was going to launch an attack like this four days later and an attack is launched,” he said in an interview with …

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The Refresh 

News we’ve flagged from the intersection of tech and other topics:

  • Tesla weighs sale of China business to pave way for potential SpaceX merger (Wall Street Journal)
  • Microsoft sets record with near $450 billion single-day gain in market value (Reuters)
 

Crypto Corner 

Lummis knocks Warren over Clarity criticism

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Greg Nash

Sen. Cynthia Lummis (R-Wyo.) took aim at Sen. Elizabeth Warren (D-Mass.) on Friday over her recent criticism of the White House-approved ethics provision in the Clarity Act.

 

"Big Bank Beth @SenWarren hates President Trump so much that she’d rather have no rules of the road for the digital asset industry — leaving consumers vulnerable and law enforcement empty-handed — than take the win for consumers," Lummis wrote in a post on social platform X.

 

The White House agreed to a provision in the cryptocurrency regulation bill barring public officials and their spouses from issuing or sponsoring a digital asset.

 

But the ethics language has faced pushback from Senate Democrats on multiple fronts.

 

In an analysis released Thursday, Senate Banking minority staff argued the provision would allow Trump to "continue to profit to the same degree from his current businesses and holdings, and easily structure new ones to avoid the restrictions."

 

Warren serves as the top Democrat on the Senate Banking Committee, which has played a central role in Clarity negotiations. Lummis is the chair of the panel's digital assets subcomittee.

 

The minority analysis underscored that the current ethics language would not prevent Trump from profiting from World Liberty Financial, the crypto venture he launched with his sons in late 2024, or the meme coin he unveiled in early 2025 before taking office. 

 

Lummis hit back Friday, arguing lawmakers can't "retroactively ban something," such as Trump's meme coin, that happened before the law or the current presidency existed.

 

The Wyoming Republican also dismissed the qualms with World Liberty Financial, which is currently managed by the president's sons.

 

"She acts like Trump’s adult children running WLF is some unprecedented dodge. It’s not," Lummis said.

 

"Federal ethics law has never imputed financial interests from adult, independent children — only spouses and minor children," she added. "That’s not new to this bill; it’s how conflict-of-interest law has worked for decades."

 

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.

 

In Other News 

Branch out with other reads on The Hill:

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New York alleges Kalshi running illegal gambling operation

The state of New York sued Kalshi on Friday, accusing the prediction market of running an illegal gambling operation. The lawsuit alleges the company is operating a gambling business in “flagrant disregard” of Empire State laws, failing to get a license from the state gaming commission and skirting related taxes. It also argues the platform runs afoul of a state law barring sports betting for people under 21 years …

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Op-eds in The Hill

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