Welcome to the AI Chat Podcast. I'm your host,
Jaden Schaefer. Every day I cover cutting -edge
AI news and talk with the leaders behind it,
breaking down what it means for your life and
business. A Claude agent has hacked an Australian
gym's booking system to get its user to the front
of a waitlist. Revenue at Reddit is up 61 % to
$805 million, but due to AI search, investors
are a little bit scared right now. Microsoft
has just shipped MAI Cyber 1 Flash. This is its
very first cybersecurity model. On paper, Microsoft
is up $3 .2 billion on investments into Anthropic,
but they're writing down their OpenAI stake by
$600 million. Meta has just released Muse Glimmer,
which is a $30 billion open -weight model for
on -device AI agents. And I was watching Mark
Zuckerberg had a whole video about it over on
Instagram, talking about how everyone in the
world needed unlimited... general personal intelligence.
If you're looking for a way to leverage AI to
grow and scale your business or create a side
hustle, I'd love for you to check out my community
over on school called AI Hustle. My goal with
it is basically to give you an unfair advantage
in mastering AI tools for actually making money,
growing your network, scaling your side hustle,
and just unlocking everything that is possible
with AI today. I record an exclusive video I
post over there every single week, and I also
have a weekly live stream where you can see how
I'm growing my business. businesses with AI.
I show you my exact ad accounts, my exact ads
that I'm using, my exact revenue metrics, everything.
It's the stuff I don't share publicly, but if
you're interested, it is free for the next couple
weeks to join. After that, it will be paid again.
There is a paid portion of it, but we give you
five videos for free and the community is all
free if you join this week. So it is called the
AI Hustle School Community. I'll leave a link
in the description if you're looking to grow
and scale your business with AI tools. So right
now an AI agent... which was running Claude Opus
4 .6, hacked an Australian gym's booking system
to get its owner to the front of the wait list.
It actually had to go and cancel another customer's
reservation. It did that, of course, without
having any permission. This is going very viral
on X, so a lot of people are talking about it.
But basically what happened was this particular
Claude agent found a security flaw in the gym's
API, and then it exploited it. It wasn't prompted,
by the way. There is kind of a similar jailbreak.
behavior that has now been confirmed in at least
three other AI models from Anthropic, Moonshot,
and Meta. So this isn't just Anthropic, this
happens with other models. And I'm actually going
to be honest, I want to go a little bit into
this story, because I think it's fascinating.
But I've also seen, I don't want to say, you
know, hacks, but I've seen slightly similar things
from AI models that I've used, although I found
it very useful. Basically, I had software services
that had rate limits to how much to how much
I could do on their software platform. And it
was unfortunately, I felt like very arbitrary.
And they were gatekeeping a bunch of my own content
that was on the platform. So they weren't letting
me download the content from the platform. And
I was using Clod and I was asking it, you know,
how can I get all my content down because they
have these kind of rate limits. And it basically
found some sort of exposed or some sort of API
in the platform's code and was able to use that
to write some code and download all of my content
for me. I was thrilled. I mean, it was my own
content. I was annoyed that it was gatekept.
But it just goes to show that sometimes when
a platform has some sort of limitation, when
you're looking at the code, there is a way around
it. particular case, the agent basically discovered
the gym API didn't have any sort of authorization
checks on cancellation. So in order to get its
user onto the gym's waitlist, it canceled the
number one reservation, and then it moved its
owner from number four to number three on the
waitlist. Opus 4 .6, by the way, isn't the latest
model. This came out about six months ago. Anthropic
has since disclosed that Opus 4 .7, Mythos 5,
and Fable all have very similar unprompted kind
of rule bending behavior that it can do. And
I don't know, in some ways, people are apologizing
for this. In my opinion, I mean, yeah, canceling
someone else that that's definitely shady. But
I think there's a lot of ways where you want
to get a task done. And, you know, maybe there's
not a feature that exists on a platform. And
when these tools can make it is very useful for
you as the user. So I know a lot of people want
to like throw shade and are like, oh, this is
a bad thing. And in this case, like I wouldn't
condone canceling. other people that have legitimate
reservations. But in my case, where I had to,
quote unquote, bend the rules to give me my content,
which I felt like was, I mean, basically being
gatekept from me, even though it was my own content,
I was very happy that it was able to do that.
So this incident in particular happened in April,
but it resurfaced this weekend. And I think a
lot of people are talking about it because of
the whole open AI hacking, hugging face situation
that happened earlier. Reddit has just posted
$805 million in Q2 revenue, which is absolutely
insane. That's a huge jump. It's up 61 % year
over year. They're going to beat Wall Street's
expectations, not just for profit, but also for
the forward guidance. But even with all that,
quote unquote, good news, their stock is still
down 10 % after hours because their CEO, Steve
Huffman, warned that search referral traffic
had become, quote unquote, choppy. And of course,
when you're trying to forecast for a company,
the last thing... Wall Street wants to hear is
that your revenue source or your traffic source
is choppy. All of this is because Google's AI
search summaries are keeping people from clicking
through to Reddit. Now, I will say Reddit has
100 % been the benefactor of a massive surge
since AI has become so prolific. Google has really
heavily indexed Reddit and pushed them to the
top of most of the search results. You guys have
probably seen this. I feel like I see Reddit
for at least a third of all my search results.
There's a huge Reddit thread there. And to be
honest, it's often very good content. So Google
is probably just searching or surfacing what
people are clicking through and reading and spending
a lot of time on. That being said, as Google
could, you know, basically be scraping the data
that's on Reddit and just giving it to people
in the AI overviews, Reddit's traffic is, you
know, likely to drop because of it. US daily
active users fell to $53 .2 million. That's down
from a million users in Q2 from 53 .5. So, you
know, down about 300 ,000 users. And even at
the same time, global users was growing. So US
daily users went down a little bit global was
up. But I mean, honestly, 300 ,000 out of 53
million. I don't think that's a huge issue right
there. But investors definitely thought that
was a red flag. Reddit makes about $60 million
a year licensing their content to Google. And
they are going to be renegotiating that same
deal next year because Google's AI products now
compete with Reddit for search clicks, right?
So in like some way, they're like sweet, they
made $60 million. But also Google just took all
that content, stuck it in the AI overview, and
then no one's clicking through to Reddit, is
it? Too late is a cat out of the bag is all of
that content now inside of the Google Gemini
and their AI model. And now because of that.
Reddit is just going to get permanently not get
that traffic anymore. I think time will tell.
Their net income went up 183 % to $253 million.
And they said that their Q3 revenue guidance
was $860 to $870 million. Both of those are way
above the targets that Wall Street set for them,
even with Google sort of cannibalizing all of
that. Microsoft has just launched MAI Cyber One
Flash. This is a security -focused AI model,
and they also have a platform that came out that
uses AI teams to find bugs. It also simulates
attacks. It writes code fixes. It does all of
this automatically. Both of these are going to
be under preview. And on November 3rd, people
are going to actually be able to test them out.
Microsoft says that their model is outperforming
Gemini, GPT models, and anthropic security AI
on industry benchmarks. And the thing that I
would say, though, is like, that's super cool.
But they're not going to be handing this out
to anyone till November. And in my opinion, if
you're announcing something, you're like, our
model is better than everybody else's in August.
Okay, well, we got all the way till November
for all of them to come up with better models.
and to get them out. So I think that's great
that they say they have this model. But until
people are actually able to test it, I don't
put too much stock in it, especially when they
say they're not giving this out to anyone until
November. In other Microsoft news, Microsoft
has booked a $3 .2 billion paper gain. So this
isn't in cash or anything, but on paper, they're
up $3 .2 billion on their Anthropic investment
just this quarter in Q4. They also are writing
down their OpenAI stakes. They have an investment
in OpenAI, about $600 million. So on the one
hand, they got their Anthropic up $3 .2 billion.
They got their OpenAI down $600 billion. I mean,
this just goes to show how wild these numbers
for these AI investments can go. And it's also
funny when you see compared investors investing
in each other as seeing these kind of huge swings.
I think at the same time, we also saw that Google,
they were a very early investor in SpaceX. And
after the SpaceX IPO, Google's third -party company
investments is almost entirely SpaceX. They have
about $900 billion, almost $100 billion worth
of SpaceX shares, apparently after the IPO. like
jump in money, the $3 .2 billion that Anthropic
went out is almost matching a full year of OpenAI
gains. So just in this quarter, they were able
to get as much as they've gotten from an entire
year of OpenAI. I think this shows that Microsoft's
bet on Anthropic is paying off a lot faster than
they were expecting. I mean, they've, you know,
they've been with OpenAI from the very beginning,
and they're seeing bigger returns with Anthropic.
And I mean, who knows how long all of this will
last. A lot of this shifts and changes very quickly.
But Microsoft invested about $5 billion in Anthropic
last November, and they're now carrying that
stake at about 1 .6 times what it paid. That's
what it's worth. So obviously a huge revenue
growth for enterprise, adoption of AI, that's
really, or of Claude, which is... really what's
driving the valuation up, et cetera. But for
the full fiscal year, OpenAI generated a $5 billion
gain and added 67 cents to the earnings per share
for Microsoft. But a single quarter of Anthropix
gains was about the same, like I mentioned. Microsoft
owns about 27 % of OpenAI. Meta has just released
something, and Zuckerberg had this whole big
PR thing. He was posting on X, which, you know,
he has threads, so he doesn't usually post on
X. And he was posting videos on Instagram. But
they have released Muse Glimmer. It's a 30 billion
parameter AI model that runs on your own computer,
on your own laptop. And it only uses a single
GPU. So it's, I think, basically the first really
solid product. from zuckerberg's vision of personal
super intelligence um he you know he wants everyone
to have an always -on assistant that handles
scheduling writing code file management he uh
he says he wants something that doesn't send
your data to meta servers which i think you know
i'm like with zuckerberg i'm actually really
impressed with uh zuckerberg's open source and
kind of like open weight model initiatives they've
had from the very beginning i haven't always
been the biggest fan of everything uh that comes
out of meta but for this honestly i I think maybe
it's them just trying to be cool. Maybe it's
them trying to go scorched earth. But at the
end of the day, I'm really impressed with Meta
here, even if they have to do that because maybe
they feel like they're a little bit behind on
the AI race. I don't really care why they're
doing it. I think it's a good thing. Glimmer
is going to be under Apache 2 .0, which means
that developers can download, they can fine tune,
they can redistribute the model free without
permission or payment. I think this is awesome
because I have AIbox .ai where we have like 80
different AI models. And we've had... a bunch
of llama models on there but um they kind of
had a moment where they didn't release any open
weight models like new ones for a while they're
making it more um just kind of closed source
and so those they kind of like fall behind and
people stop using them so i'm always excited
when we get these new open weight models we have
a bunch of different platform partners that we
work with that host them and then we then let
us redistribute them on our platform so i'm excited
for people to try them out they're typically
a lot cheaper and they can get uh you know when
when it first comes out like when this brand
new glimmer comes out it's probably going to
be pretty good um according to the benchmarks
it's like kind of like number number like four
number five top model but to not be, you know,
under Meta's control, not going to their servers
to be open weight model. I'm really excited.
It does text and images and it has about 100
languages that it supports. Also can work offline.
So if you don't have internet, it works. It also
can use the internet. It's designed to manage
relationships, finances, help home logistics
and does all on your device. I'm really excited
by that, especially being able to use it without
the internet. My wife was just talking to me
about how annoying it is that every time she
needs a recipe, she asks Google and Google uses
AI to spit. out a recipe in the AI snippet at
the top and she's like I feel like it's such
a waste that I'm using like an LLM to regenerate
the same cookie recipe that I make every two
weeks and all these same recipes I make all the
time she's like I just want like note cards where
I write them down and I was like honestly the
modern version of this is probably just like
we'll have local LLMs on our phones or on our
computers that yeah like it regenerates stuff
but it's just using like your your phone or your
computer's resources it doesn't need the internet
and you don't feel like you're you know using
a gallon of water just to get your one response.
So I think Meta is kind of pushing in this direction.
They're keeping MuseSpark, which is their most
powerful model, closed source. So not everything
that they've created is going to be open source.
And that is going to be, that was released in
April. We've seen this with some other players
where you release your best model as, you know,
paid and closed source, but... you have your
second best model, which is kind of like open
source or open weight. And I'm thrilled with
that arrangement. I think that's very generous
and I'm excited to play around with it. Thanks
so much for tuning into the podcast, guys. Like
I mentioned, if you want to grow and scale a
business or start a side hustle that uses AI
to make money, I'd love for you to go check out
my school community, the AI Hustle School Community.
I'll leave a link in the description for that.
And I hope you all have a fantastic rest of your
day.