AI Briefing

Today is all about who controls the raw materials of AI. OpenAI is catching rivals trying to siphon its hidden reasoning, Reddit is slamming the gate on its data, and Broadcom is lending Anthropic tens of billions to rent Broadcom's own chips. Meanwhile California just told employers a chatbot can't be the one to say 'you're fired'.

01IndustryCNBC ↗

OpenAI Says Moonshot-Linked Operators Tried to Siphon Its Hidden Reasoning, Using Over 15,000 Accounts

OpenAI disclosed that it disrupted a coordinated campaign to extract its models' protected reasoning, tying a core cluster to China's Moonshot AI (maker of Kimi). Activity began in early July, spiked to 16,000 requests from 4,000+ users in two days, and spread across more than 15,000 accounts before OpenAI shut it down by July 28. It matters because reasoning traces are the crown jewels of frontier models, and distillation is becoming the front line of the US-China AI race.

02PolicyCNBC ↗

California Bans 'Robo Bosses': No Firing Workers Based Mainly on AI Output

Gov. Newsom signed SB 947, the No Robo Bosses Act, barring California employers from relying solely on automated systems to fire or discipline workers. Employers who lean primarily on AI must have a human corroborate with evidence like evaluations and personnel files, and must give workers written notice. Newsom reversed an earlier veto to sign it, and the state also moved on AI-driven mass layoff notices and emotion-detection surveillance, setting a template other states may copy.

03FundingTech Startups (citing Reuters) ↗

Broadcom Will Lend Anthropic Up to $42 Billion, and Anthropic Will Use It to Lease Broadcom-Built Chips

Anthropic's IPO filing reveals Broadcom agreed to lend up to $42 billion via convertible notes, which could give Broadcom equity. That covers roughly a third of Anthropic's $125.2 billion five-year commitment for TPU compute. It's the clearest example yet of 'circular' AI financing, with a supplier also acting as lender, and Anthropic itself flagged the potential conflict of interest.

04IndustryWinBuzzer ↗

Reddit Is Closing Its Public API and Killing RSS, Citing AI-Era Scraping

Reddit will end RSS feeds on November 13 and fully close public API access by March 2027, funneling developers toward its Devvit platform and requiring contracts for commercial use and consent for model training. Reddit says RSS had become a surface for large-scale scraping. It shows how the value of human conversation as AI training data is walling off the open web, and independent feed readers and apps are the collateral damage.