#255 - Gemini 3.7, Jalapeño, Qwen 3.8, Drones

Our 255th episode with a summary and discussion of last week's big AI news! Recorded on 08/26/2026 Hosted by Andrey Kurenkov and Jeremie Harris Feel free to email us your questions and feedback at andreyvkurenkov@gmail.com and/or hello@gladstone.ai Read out our text newsletter and comment on the podcast at https://lastweekin.ai/ In this episode: SpaceXAI released Grok 4.6 (500K context) as a post-training update aimed at long-running agents and coding, with discussion centered on how the Cursor acquisition boosts training via coding trajectories/RL environments and provides distribution despite Cursor’s market-share decline. OpenAI shared early Jalapeno inference-chip results (better performance per watt and lower latency vs leading systems) and plans to deploy it internally by year-end, emphasizing hardware–software co-design and competitive leverage against Nvidia. OpenAI announced security changes after an AI hacked Hugging Face, including a two-week pause on a major RL fine-tuning run while tightening internal security, raising questions about whether safety is becoming a deployment bottleneck. Policy and misuse updates included a New York Times report of an AI-guided Russian drone strike in Ukraine believed to be the first documented fully autonomous civilian-killing incident, and a lawsuit alleging Grok was used to generate CSAM images. A thank you to our current sponsors: Box - visit box.com/LWIAI to learn more Notion - visit notion.com/lwai to try Notion’s Developer Platform today. ODSC AI - visit odsc.ai/east and use promo code LWAI for an additional 15% off your pass to ODSC AI East 2026. Factor - visit factormeals.com/lwai50off and use code lwai50off to get 50 percent off and free breakfast for a year Timestamps (these may be slightly off due to sponsor inserts): (00:00:10) Intro / Banter (00:01:47) News Preview (00:02:52) Response to listener comments Tools & Apps (00:03:32) Google announces Gemini 3.7 Flash just three weeks after previous release - Ars Technica (00:13:11) SpaceXAI Releases Grok 4.6: A 500K-Context Frontier Model Tuned for Long-Running Agents, Coding, and Knowledge Work - MarkTechPost (00:22:32) Claude will apply invisible watermarks to AI text and images | The Verge + Anthropic explains how Claude’s invisible text watermarks will work (00:28:50) Bringing the cybersecurity capabilities of Claude Mythos 5 to more defenders | Claude by Anthropic (00:32:20) OpenAI to Roll Out Enhanced Safety Features for Paid AI Tool Users - Bloomberg (00:33:41) ChatGPT's Stricter Teen Mode Starts Rolling Out Today (00:34:43) Meta AI Now Has A Dedicated Desktop App For Mac Applications & Business (00:37:33) Jalapeño’s first results show industry-leading speed and efficiency in AI inference | OpenAI (00:45:35) OpenAI loses a top data center exec as stream of high-profile departures continues | TechCrunch + OpenAI talent exodus raises 'huge red flag' ahead of IPO (00:50:29) Anthropic Taps Google Chip Veteran as Part of Push Into Hardware (00:52:30) Anthropic's annualized revenue surges to $65B | TechCrunch (00:59:30) Thomson Reuters launches in-house AI model to cut Anthropic costs Projects & Open Source (01:04:26) Qwen 3.8: How a 27B Open Model Rivals GPT-5.6 and Claude Opus Policy & Safety (01:08:27) A Drone Killed Three Ukrainians. It Was Guided Entirely by A.I. - The New York Times (01:17:59) OpenAI lays out new security changes after its AI hacked Hugging Face | The Verge + OpenAI institutes new safeguards after Hugging Face breach + https://openai.com/index/pacing-model-development-cyber-capabilities/ (01:23:31) Another Woman Joins Lawsuit Accusing Grok Of Generating CSAM Research & Advancements (01:24:56) Small-Scale Experiments: Are We There Yet? (01:29:21) Stealing Reasoning Traces from Proprietary LLM APIs (01:34:30) Massive Activations in Hybrid Linear Attention Large Language Models: Pre-Attention Spikes and Inter-Spike Plateaus Synthetic Media & Art (01:38:59) AI Slop Is Everywhere. Spotify, LinkedI