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Hugging Face Chief Urges Transparency and AI Security Investment

OpenAI is reviewing an incident in which one of its AI models breached the systems of AI platform Hugging Face, following calls from the company’s chief executive, Clem Delangue, for greater transparency about what happened.

Delangue said on X that he had travelled to San Francisco to discuss the incident with the OpenAI team before urging the company to publicly release technical details of the event.

Delangue Calls For Greater Transparency

In a follow-up post, Delangue called for what he described as “radical transparency,” urging OpenAI to publish traces from the “rogue” AI agent so researchers can analyse the incident.

He also called on the company to commit $100 million in computing resources to help the Hugging Face community develop stronger AI-powered cybersecurity tools.

“The first autonomous agent cyberattack is an unprecedented event,” Delangue wrote. “It deserves an unprecedented response!”

Questions Over The Cause

While the incident has raised concerns about autonomous AI systems, some cybersecurity experts have suggested it may have resulted from human error rather than the model’s behaviour alone, pointing to reports that OpenAI’s testing environment may not have been fully isolated.

The incident has highlighted the importance of both AI safety measures and secure deployment practices as companies expand the use of autonomous systems.

OpenAI Reviewing The Incident

An OpenAI spokesperson confirmed the meeting with Delangue and said the company is continuing its investigation.

“This is an unprecedented incident, and we think it marks an important moment for AI safety,” OpenAI said. “We are still conducting a thorough review along with external advisors and with oversight from our Safety and Security Committee. Once the review is complete, we plan to publish a technical report of our learnings in the coming weeks.”

The company said it plans to release the findings of its review in the coming weeks.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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