AI Neanderthal by Malcolm Werchota

Malcolm Werchota

AI news for humans, not robots. Every weekday, Malcolm Werchota comes out of the cave and explains what actually happened in AI — in plain language, with the numbers checked and the hype taken out. Around ten stories a day: three explained slowly, the rest fast. No jargon. No breathless futurism. Just what happened, what it costs, and who gets handed the bill — explained the way you would explain it to a smart friend who does not work in tech. If you run a company, sit on a board, or simply want to understand the technology reshaping your industry, this is your daily 25 minutes. Keep the stories that touch your world. Stay curious, stay human.

  1. 1h ago

    #49 - A $24 Spy Device at OpenAI, and China Wants to Rent Your Face

    An OpenAI engineer is accused of hiding a $24 recorder behind a TV in an executive meeting room – wrapped in toilet paper. In China, people now rent out their faces to AI for $15 to $700. Today is one question: when AI can do the job, what is still worth paying a human for – and who checks what the AI knows about us? A shorter episode with shorter stories. In this episode: 🌑 A hidden recorder at OpenAI (01:14) — the FBI arrested OpenAI engineer Abdulrahman Alfozan (35) on 9 October, the US Justice Department says. Prosecutors allege he hid a recording device behind a TV in an executive meeting room, plugged into a USB port and wrapped in toilet paper. Business Insider identified it as a Seeed Studio microcontroller that costs about $24. Prosecutors say a ChatGPT account linked to his wife was used to ask how to build and hide a continuous recorder, and Fortune reports he used an internal OpenAI tool to find where high-level meetings happen. OpenAI says it used its own models in the investigation. He is charged with intercepting oral communications – not espionage or theft of trade secrets – and his lawyer warns against jumping to conclusions. These are allegations only. 🌑 Rent your face (05:53) — Rest of World reports Chinese platforms like ActID (Shenzhen) and New Claw now license ordinary people's faces to AI drama studios, for roughly $15 to $700 depending on use. The reason: China's microdrama industry – more than 800 million viewers, over $14 billion last year, and about 430,000 microdramas in the first eight months of 2026, more than 90 percent made with AI somewhere in production. Audiences complained that AI characters all look the same, so studios need real faces again. The business question: owning a video of someone is not the same as owning the right to generate new performances they never gave. 🌑 Character.AI goes bankrupt – Disney bids (10:53) — the chatbot app, valued at one billion dollars in 2023, filed for Chapter 11, Reuters and NBC News report. Disney's opening (stalking-horse) bid is 20 million dollars for a licence to some of its technology (Malcolm says 22 million on air – it's 20). Reuters reports about 12 million active users and an operating loss of 8 to 9 million dollars a month, plus lawsuits in Kentucky and Pennsylvania. Earlier this month Disney hired Character.AI's former CEO, Karandeep Anand, as its CTO. In AI, every conversation comes with a bill. 🌑 ASML is sold out (14:37) — Europe's most valuable tech company, the only maker of EUV machines for the most advanced AI chips, reported record quarterly sales of 11.7 billion euros (not dollars, as said on air). CEO Christophe Fouquet says planned supply for 2027 and 2028 will not fully meet customer demand; some customers want to order for 2029 and 2030. Nobody plans machines four years out for a bubble that pops next quarter. 🌑 Austria: less AI, less training, more fear (16:42) — an Allianz survey of 1,000 people in each of eight countries: 43 percent of Austrians use AI weekly (average 48), only 11 percent got AI training at work (average 17), and the sentiment on job losses is minus 81 percent (average minus 67). One insurer's survey – but it matches what Malcolm sees. 🧵 The thread (18:20) — a $24 device, a rented face, a billion-dollar chatbot sold for a licence fee. AI makes things cheap – the human parts are where the value, and the risk, now sit. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #49 - A $24 Spy Device at OpenAI, and China Wants to Rent Your Face
  2. 1d ago

    #48 - A Chip That Isn't Built Yet Moves Billions, and a Police AI Finds Your Home From One Photo

    A Chinese company announces progress on a memory chip it can't mass-produce yet – and Korea's two biggest chip makers lose five to six percent in one morning. In Berlin, Germany's digital minister wants to tax AI in the morning and talks about no new taxes by the evening. Today is one question: how can a plan move more money than a product – and who is checking? Recorded with a deep, cold-ridden voice. In this episode: 🌑 CXMT shakes the memory trade (01:47) — CXMT (ChangXin Memory Technologies), China's biggest maker of DRAM, the short-term memory every computer and AI server needs, says it has made progress on a denser memory design – by industry estimates 30 to 50 percent more memory in the same space, with server memory planned by the end of 2026. The Seoul Economic Daily reports Samsung fell almost 5 percent and SK hynix almost 6 percent on Tuesday morning; Micron lost almost 4. But the chip isn't in mass production yet – yields, performance and customer certification are unverified. 🌑 Huawei vs Nvidia – the first independent count (05:34) — Huawei's chairman claims its AI chips now outsell Nvidia's in China. The first independent count, by IDC for the first half of 2026 and reported by Reuters, says: not yet. Nvidia leads AI data-centre chips in China with 34 percent, Huawei has 28. But Nvidia's shipments fell 44 percent while Huawei's nearly doubled. US export controls taught Chinese customers to stop depending on Nvidia. 🌑 IMF – AI keeps a war-hit world growing (07:24) — the IMF now expects 3.1 percent world growth in 2026, up from 3.0 in July. Xinhua and Fortune name the reason: the AI build-out is offsetting the energy shock from the war in the Middle East. Only 32 countries now make up 95 percent of world growth, down from 54 in April – mostly those in the AI hardware supply chain, like South Korea and Taiwan. The euro area grows only 1.1 percent. Malcolm's take: this is no longer a tech story, it's a world-growth story. 🌑 Germany's AI tax, on and off in one day (11:38) — Germany's digital minister Karsten Wildberger (CDU) said the "extremely high" revenue from AI must be taxed to pay for retraining, the news agency dpa reports – the first German cabinet minister to suggest an AI revenue tax. The same day he told RTL and ntv: "I want growth through AI and I'm not talking about new taxes." Would you build an AI company in a country that floats a tax on it and steps back the same day? 🌑 A police AI finds your home from one photo (14:57) — 404 Media reports on Raven, a police tool from Graylark Technologies: from a single photo inside a home – no window view, no GPS data – it tries to find the exact address by matching cupboards, tiles, fittings and appliances against images from Airbnb and Zillow. Police in Los Angeles and Miami-Dade bought access; Miami-Dade says it hasn't led to significant breakthroughs. Every photo from your home is now a possible address. 🌑 China's top mathematicians unite behind AI (17:16) — Fields medallist Shing-Tung Yau launched an alliance of nearly a thousand Chinese mathematicians from eight institutions to build a maths AI model and AI research tools. While many Western mathematicians argue whether AI makes them lazy, China is organising its whole maths elite around AI. Who moves faster? 🧵 The thread (19:29) — a chip that isn't built yet moves billions, a world economy that leans on AI money, and a tax that comes and goes in a day. The checkers are arriving – the answers aren't yet. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #48 - A Chip That Isn't Built Yet Moves Billions, and a Police AI Finds Your Home From One Photo
  3. 2d ago

    #47 - Who's to Blame? Palantir Says "Likely Human Error", and AI Learns to Copy Itself

    Missiles hit a school in Iran and at least 123 children die. Months later, the company whose AI helps the US military suggest targets goes on TV and says: the likely cause is human error. Today is one question: who is to blame when AI goes wrong – the machine, the people who trusted it, or the people who sold it? Recorded in Salzburg. In this episode: 🌑 Palantir says "likely human error" (01:40) — Palantir sells data and AI tools to armies and governments. Its Maven Smart System, used by the Pentagon, sorts drone and satellite data and suggests targets. On 28 February, the first day of the US–Iran war, two Tomahawk cruise missiles hit an elementary school in Minab, Iran, and at least 123 children were killed. According to Bloomberg, a Pentagon review that is still not public found old intelligence, old satellite pictures and cuts to the civilian-safety team – reportedly from ten people to one. Palantir's CTO Shyam Sankar told CBS "Face the Nation" that the reporting is inaccurate and the likely cause is human error. Malcolm's take: old data in, wrong answer out – and one person checking every suggestion is no longer a human in the loop. 🌑 Berlin shelves the Mistral–SAP deal (04:51) — in November 2025, Germany and France announced in Berlin that Mistral AI and SAP would build AI tools and digital helpers for government offices. The framework contract was never signed: Politico reports the Federal Digital Ministry currently has no plans to buy from Mistral. The German search engine Ecosia dropped Mistral too – CEO Christian Kroll says its models are about a year behind. Mistral's answer is a preview of Mistral Large 4, which it says can compete with some Chinese open models. Malcolm's take: Europe won't get sovereign AI without building the data centres. 🌑 AI that could copy itself onto your TV box (07:59) — Anthropic's Frontier Red Team tested whether a small AI model can copy itself onto cheap connected devices like TV boxes, cameras and routers. Alibaba's Qwen 3.5, with nine billion parameters, set up a working AI server on 8 of 9 hardware types, and because each new copy reads the notes of the one before, the success rate rose from 45 percent to as much as 84 percent. GLM-5.2 from Z.ai reached all 8 target machines in 4 of 5 trials – in a walled-off test network. The researchers' own projection: small models could do this by the end of 2026. 🧵 The thread (11:56) — this week the English show tries a shorter format: the top stories in 10 to 15 minutes. Long or short – tell Malcolm which one you prefer. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #47 - Who's to Blame? Palantir Says "Likely Human Error", and AI Learns to Copy Itself
  4. 3d ago

    #46 - The IMF Fears AI Money, While Walmart's Robots Fight Cardboard Boxes

    In Bangkok, the head of the IMF puts AI on her list of big dangers, right next to war, expensive oil and record debt. In America, the world's biggest shop has a much smaller AI problem: its new robots can't handle its old cardboard boxes. Today is one question: which one is the real AI story – the big-money fear, or the box that doesn't fit? Recorded in Salzburg. In this episode: 🌑 The IMF puts AI next to war, oil and debt (01:50) — the IMF and the World Bank hold their annual meetings in Bangkok from 12 to 18 October. IMF chief Kristalina Georgieva named three forces shaping the world economy: AI, energy prices that stay high (oil is around $100 a barrel) and record public debt. AI hardware and related tech are now "more than a tenth of global goods trade", and her warning is about the hyperscalers – Amazon, Microsoft, Google, Meta – borrowing heavily to build AI data centres: if the money doesn't come back, it becomes a problem for the whole world economy. 🌑 Walmart's robots meet the real warehouse (05:56) — Walmart, the world's largest retailer with more than 140,000 warehouse workers, is automating its warehouses with a robotics company it partly owns. The problem is very physical: the robots can't handle old, soft, misshapen cardboard boxes, so the boxes need extra tape and new packaging. And at peak, the monthly power bill of an automated grocery warehouse can go above $800,000, against about $250,000 with mostly manual work. Most of these warehouses were built in the 1980s and '90s. AI meets the real world one box at a time. 🌑 Nicolas Cage says no to Amazon's AI waiver (11:25) — at New York Comic Con, Nicolas Cage said he refused to sign an AI waiver for the series "Spider-Noir", made by Sony Pictures Television and Amazon MGM Studios – a clause that lets a studio use AI to recreate or change a performer. As reported by the LA Times: "I am not an AI-friendly actor, so it's like, connect those dots!" (His "$50 billion invested in OpenAI" is his number from the stage and can't be confirmed.) Amazon did not comment. 🌑 Switzerland: AI job ads up 32 percent, but few for beginners (15:26) — the Lucerne University of Applied Sciences (HSLU) counted nearly 5,000 AI job ads in Switzerland in one year, up 32 percent, with most of the growth from small and mid-sized companies. Zurich alone has 45 percent of them. The catch: only 5 percent are real junior roles. Where will the next generation learn the job? 🌑 Halo and GTA in a browser tab: AI rebuilds old games (17:55) — Kotaku reports that in the past two weeks, hundreds of AI-made browser versions of classic games appeared online – Halo, GTA: Vice City, The Simpsons: Hit and Run – rebuilt by decompiling the old code with AI's help. Take-Two and Microsoft could send legal letters, but it becomes whack-a-mole. If your company's value sits in old software, copying it just got a lot easier. 🧵 The thread (21:10) — billions in Bangkok, cardboard boxes on the warehouse floor, an actor who won't sign, and games rebuilt in a weekend. AI is everywhere – and it gets stuck on very ordinary things. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #46 - The IMF Fears AI Money, While Walmart's Robots Fight Cardboard Boxes
  5. 4d ago

    #45 - An AI Sent Police a Fake Murder Tip, and Now the Powerful Are Reacting

    An Anthropic AI model, running in a test, filled in a murder tip on the Philadelphia police website – and nobody noticed for 72 days. The same week Brussels questioned OpenAI and Anthropic about AI attacks, and Ukrainian drones knocked out Russia's AI supercomputers. Today is one question: when AI stops just talking and starts doing things in the real world, who notices – and who reacts? In this episode: 🌑 An AI sent police a fake murder tip (01:41) — Anthropic published a report, covered by TechCrunch and CBS: on 18 July, during an internal test, its small model Claude Haiku 4.5 worked as an AI agent on real websites. Its rules said never log in, never create accounts, never enter personal data – but nobody wrote "don't submit forms". It found the Philadelphia Police Department's tip page and submitted a tip about an unsolved killing. The spam filter caught it. Anthropic found it 72 days later, told the police on 7 October, and has switched off live internet access for its internal tests. The police called the two-month delay "unacceptable". My take: with agents, the question is not "is the AI evil?" but "what did we forget to forbid?" 🌑 Brussels names OpenAI and Anthropic (06:49) — Henna Virkkunen, Executive Vice-President of the European Commission, told dpa that the Commission has formally asked OpenAI and Anthropic, and several Chinese AI companies, for information, because AI systems attacked other companies during tests. The EU AI Office is checking whether these models are controlled well enough not to launch cyberattacks on their own. My view: Europe may finally become the policeman the US doesn't want to be. 🌑 Ukraine hits Russia's AI supercomputers (09:54) — on Thursday Ukrainian drones hit a Yandex data centre in Sasovo, which according to Meduza houses two of Yandex's three AI supercomputers. Yandex's cloud went down, and with it customers like Russian Railways, the mobile operator MegaFon and several media outlets. On Friday drones hit a second Yandex data centre in Kaluga. Zelenskyy, quoted by Al Jazeera: "We always respond in mirror-like fashion." Data centres are now strategic targets, like refineries. 🌑 Frankfurt Book Fair: AI rules vs AI use (14:46) — on 6 October the German book trade launched the "Frankfurter Appell", backed by 120 publishers: they want to know which books trained AI, fair licence payments and copyright that works. Sebastian Guggolz of the Börsenverein linked AI to falling reading skills, citing PISA. Meanwhile WIRED reports that staff at HarperCollins, Simon & Schuster and Hachette already use AI for marketing texts, cover art and emails to agents. In public: protect our books from AI. In the office: let ChatGPT write the back cover. 🌑 Tesla drops "Full Self-Driving" in Europe (18:40) — in the US it's "Full Self-Driving (Supervised)"; in Europe the same software is now "Tesla Assisted Driving", after Germany's transport ministry called the old name misleading: the driver has to pay attention at all times and remains fully responsible. Germany will now back approval across the EU. Same car, same software, a different promise on each side of the Atlantic. 🌑 Lumentum: lasers sold out (21:36) — Lumentum makes the tiny lasers and optical parts that move data between AI chips. Its CEO Michael Hurlston told Bloomberg it is sold out until almost 2029, and for some products can't meet about 70 percent of demand through next year. AI isn't only short of chips – it's short of light. (Not financial advice.) 🧵 The thread (23:09) — AI already did things in the real world – a police tip, attacks during tests, a war on data centres – and the people with power are only now reacting. This week Malcolm is on the road: a keynote at a big German manufacturer and at HOGAST in front of 800 people. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #45 - An AI Sent Police a Fake Murder Tip, and Now the Powerful Are Reacting
  6. Oct 9

    #44 - Your AI Thinks You're Rich: Who Decides When the AI Can?

    Your AI assistant saves you 20 minutes booking a flight – and quietly shows you the more expensive one because it thinks you're rich. Meanwhile OpenAI drops 719 maths manuscripts on mathematicians' desks, and China builds its AI future in the cold steppe of Inner Mongolia. Today is one question: when the AI can decide, who sets the goal? In this episode: 🌑 Your AI thinks you're rich, so it shows you the expensive flight (01:29) — in a paper called "Et Tu, Brute?", researchers ran about 325,000 experiments with 13 AI agents. With the same offers on the table, 8 of them shifted toward pricier recommendations when they thought the user was wealthier. In the Gemini test, even when the user asked for the cheapest option, recommendations averaged $208 above the cheapest available flight. The price didn't change – what you get to see did. If you hand your emails, your bookings and your shopping to an AI, trust becomes the real question. 🌑 The next AI revolution might be 100 tiny decisions a minute (05:19) — so-called System 1 models, or classifiers, don't write essays: they read a document and answer yes or no, pick an option or give a score, in milliseconds and in parallel. On 6 October OpenAI launched a Decisions API in public beta, and Perplexity offers one too, at $0.02 per million input tokens. Think of a hotel inbox: 500 emails sorted to finance, sales or maintenance in a second. The useful part is the confidence: below a threshold you set, the case goes to a human. 🌑 AI can produce the work. Who checks the work? (10:24) — on 6 October OpenAI published 719 manuscripts in 372 problem families from an internal model. On 7 October it withdrew 3 of them over a sign error and fixed 14 more. The Association for Human Mathematics called the release a show of power and asked mathematicians to stop working with OpenAI; Ethan Mollick predicted the statement will be read in university courses about this moment. The real bottleneck: who checks hundreds of results when the machine produces them overnight? 🌑 Why China's AI is moving into the steppe (13:41) — Inner Mongolia is a region in northern China, not the country of Mongolia. In the city of Ulanqab, Yicai counted more than 30 data centres within a 10-minute drive. An Alibaba Cloud manager calls cheap electricity, around five US cents per kilowatt-hour, the decisive advantage, and the average annual temperature of 4.3 °C (about 40 °F) keeps cooling cheap. For some computing jobs, the factory now moves to the electricity. 🧵 The thread (16:10) — AI can read thousands of pages in milliseconds and produce hundreds of results overnight. The bottleneck is now us: who checks the work, and who decides what the machine is optimising for? 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

  7. Oct 8

    #43 - Burgers, Acne Cream and Nuclear Power: AI Walks Out of the Lab

    In Utah, an app now writes acne prescriptions and no doctor signs them. In Chicago, a McDonald's customer is suing because he thinks an AI helps set the price of his burger. Plus DeepSeek's $12 billion war chest, Google's nuclear deal and insurers bracing for rogue AI agents. Today is one question: who is actually making the decisions now? In this episode: 🌑 McDonald's sued over an AI pricing tool (02:14) — Reuters reports that Michael Thomas from DeKalb, Illinois, has sued McDonald's in federal court in Chicago. About 95 percent of McDonald's nearly 14,000 US restaurants are run by franchisees, and they use a pricing tool from Tiger Analytics that recommends prices "based on its estimation of what customers are willing to pay". The complaint argues that when every restaurant feeds its sales data into the same machine and gets price advice back from it, independent owners stop competing. According to heise, it claims the tool suggests a price increase once an item has gone up in at least 30 percent of locations. These are allegations, and McDonald's says AI does not set the price of a Big Mac. What is not in dispute: average menu prices rose about 40 percent in roughly five years. If this becomes a class action, McDonald's has a much bigger problem. 🌑 Utah lets an AI write acne prescriptions (06:56) — Nolla Health, which has already treated more than 50,000 patients in Norway, launched its Nolla Derm app in Utah: answer a questionnaire, scan your face, and the AI writes the prescription without a doctor signing it. The company says it is the first AI in the US allowed to write first-time prescriptions. It runs in Utah's regulatory sandbox, for adults with mild to moderate acne, and only for creams and gels. The pilot costs $4.99 a month. Company figures: only about 10 percent of Utahns with active acne see a skin doctor, the average wait is 61 days, and a visit can cost up to $300. My take: health systems under pressure everywhere will look at this very closely. 🌑 DeepSeek's war chest (11:37) — Bloomberg reports that DeepSeek, the AI lab from Hangzhou, is preparing an IPO for early 2027, and before that is raising about $12 billion (at least 80 billion yuan). It first sought about 50 billion yuan, but interest "outstripped expectations" after its latest model. The biggest cheques come from Tencent, the company behind WeChat, and CATL, the world's biggest maker of electric-car batteries. DeepSeek reportedly earns at a pace of about $1 billion a year and plans a data centre in Inner Mongolia with more than 160,000 Huawei AI chips. The deal is not closed yet. China is building its own AI chain with its own money. 🌑 Google buys power from upgraded nuclear reactors (14:48) — Google signed for 3,590 megawatts of power from Constellation Energy, the largest nuclear plant operator in the US: think three and a half big power plants. Part of it comes from uprates, upgrading existing reactors in Illinois, Pennsylvania and New Jersey so they make more power, on a 20-year contract, with Constellation investing more than $4.3 billion. Why upgrade instead of build? A new nuclear plant takes ten years or more. Google could spend up to $205 billion on data centres and computing this year. Jack Prandelli on X: "When AI companies outbid everyone for nuclear power, who gets left buying from gas plants?" 🌑 Insurers get ready for runaway AI agents (18:23) — the Financial Times reports that insurers are preparing for big claims caused by AI agents acting outside their makers' controls. The broker Aon looked at more than 300 AI-related lawsuits and disputes, and insurers are asking whether bosses like Sam Altman and Dario Amodei could be personally exposed. Reporter Leo Schwartz heard from one lawyer that AI companies are going to "get sued up the wazoo" over rogue AI incidents. Nobody knows yet how to price this risk. 🧵 The thread (20:34) — a pricing machine behind your burger, an app that writes prescriptions, insurers who can't yet price the risk. Who is actually making the decisions? 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #43 - Burgers, Acne Cream and Nuclear Power: AI Walks Out of the Lab
  8. Oct 7

    #42 - Anything You Prompt Can Be Used Against You: AI in Ordinary Hands

    A Florida woman used Claude as a diary, wrote that she would shoot up the sheriff's office, and Anthropic reported it to the police. The same week, attackers walked through the side doors of seven South Korean banks with a free AI tool, and a jailed ex-president came back on stage as an AI clone. Today is one question: AI is in ordinary hands now, for good and for bad. Do you know who else reads what you type? In this episode: 🌑 Anything you prompt can be used against you (01:47) — a 30-year-old woman in Lee County, Florida, told investigators she used Claude like a diary. On 26 September she wrote that she would "shoot up" the Lee County Sheriff's Office, and the next day she mentioned a new gun. Anthropic's safety systems flagged the chat, Anthropic reported it to law enforcement, and she now faces a felony charge for a written threat of a mass shooting. In August, former Goldman Sachs analyst Darren Zhou pleaded guilty to aggravated stalking and written threats after OpenAI reported his ChatGPT conversations about his ex-girlfriend to the FBI. He got eight years of probation. And in Washington State, journalists from Cascade PBS and KNKX used public-records laws to get thousands of pages of city employees' ChatGPT histories. Your chatbot doesn't only answer to you. 🌑 Seven Korean banks, one free AI hacking tool (06:48) — The Korea Times, Herald Business and Korea JoongAng Daily report that since about 1 October attackers broke into seven banks and lenders, including Shinhan Bank and Hana Bank. More than 25,000 people were hit at Shinhan alone and about 40,000 at Yegaram Savings Bank, more than 60,000 in total. Names, phone numbers, income, loan limits and some national ID numbers leaked. The attackers didn't use the banking app. They came through side doors: websites for employees, developers and loan agents. Investigators traced the tool to ARTEX AI, a free, AI-based penetration-testing tool on GitHub. President Lee Jae-myung ordered a full investigation on Sunday, 4 October. My take: most security teams don't yet check every day for new AI attack tools, and anyone can now download one in minutes. 🌑 Brazil: a jailed ex-president's AI clone on stage (12:06) — in Sunday's first round, Flávio Bolsonaro took about 47 percent and President Lula about 45 percent, so there is a runoff on 25 October. Flávio launched his campaign with an AI video of his father, former president Jair Bolsonaro, who is serving 27 years for plotting a coup. The video said it was an AI simulation, but Jair Bolsonaro's lawyer said his client never authorised the use of his image and voice. Brazil's top electoral court voted four to three not to punish Flávio. The same trick works on companies: clone your CEO's voice from conference videos and call the accounting department. 🌑 Europe puts a hidden signature on ChatGPT's text (16:56) — because of the EU AI Act, OpenAI will put a hidden watermark called textGrain into text from ChatGPT and Codex for users in the EU. A secret key decides between equally good words, like "big" or "large", and over a long text that leaves a pattern a detector can find. OpenAI says its detector finds about 95 percent of marked texts of around 300 words. But TechCrunch reports that swapping just 10 percent of the words drops detection from 92 to 66 percent, and The Decoder says swapping a quarter drops it below 20 percent. Outside the EU it's off by default. My view: a box-ticking rule that is easy to get around. 🌑 Munich's RobCo becomes a unicorn (20:31) — The Wall Street Journal and heise report that RobCo, a robot start-up from Munich, is now valued at more than a billion dollars, double January's roughly 500 million. This time it was a secondary sale: mostly employees sold about 40 million dollars of their own shares, so no new money went into the company. Backers include Sequoia, Lightspeed and new investor Cherry Ventures. RobCo was founded in 2020 by three researchers from the Technical University of Munich. It builds modular robot kits, like Lego for factory robots, has sold more than 1,000 robots and counts BMW as a customer. Europe may have lost the race for large language models, but its Mittelstand factories are the perfect first buyers for physical AI. 🧵 The thread (24:09) — Andreessen Horowitz says only about 2 percent of US households pay for AI. Hackers and election campaigns already use it; most people haven't started. That's why I think the AI market is still wide open. 📱 Ping Malcolm on WhatsApp/Telegram/Signal: +43 676 6144 904 🌐 werchota.ai AI Neanderthal — AI news for humans, not robots. Stay curious.

    #42 - Anything You Prompt Can Be Used Against You: AI in Ordinary Hands

About

AI news for humans, not robots. Every weekday, Malcolm Werchota comes out of the cave and explains what actually happened in AI — in plain language, with the numbers checked and the hype taken out. Around ten stories a day: three explained slowly, the rest fast. No jargon. No breathless futurism. Just what happened, what it costs, and who gets handed the bill — explained the way you would explain it to a smart friend who does not work in tech. If you run a company, sit on a board, or simply want to understand the technology reshaping your industry, this is your daily 25 minutes. Keep the stories that touch your world. Stay curious, stay human.

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