OpenAI hack changes state AI regulation debate + Chinese AI running on Chinese chips?

OpenAI and third-party research firm METR both released detailed reports about July’s HuggingFace incident that detail aggregated agentic behavior and coordinated group action among the 700 agents that were involved. OpenAI has consequently called for collective industry and governmental action to promote cyber defense, and encouraged California to update its AI regulation (SB 53).

Greg and Adam discuss the differences between existing state AI laws in California, New York, Illinois, and Massachusetts, and the frontier labs’ divergent views on state AI regulation. Lastly, Chinese lab Z.ai released its GLM-5.3 Flash model last week, offering a cheap, efficient model that it claims is served on inference by "Chinese" AI chips.

Chapters

1. The OpenAI Hugging Face Incident In More Detail (00:00 – 20:45)

2. AI Regulation at the State Level (20:45 – 33:57)

3. GLM-5.3 and Open Chinese Models (33:57 – 45:00)

4. Greg Off to Taiwan and Conclusion (45:00 – 45:41)