Emily Forlini here. It finally happened: I had my first bout of existential AI dread last week. I managed to fend it off since July, when I helped break the story that OpenAI’s agents autonomously hacked Hugging Face. But it’s starting to sink in that things are getting worse, as Saturday Night Live pointed out with its excellent impersonation of Anthropic CEO Dario Amodei. Worth a watch.
What started my mini spiral was an independent report from a company called Transluce. Its data found instances of rogue AI activity going back to November, earlier than OpenAI has publicly disclosed, and suggested the issues were still ongoing. After seeing it all laid out in the graph, I lost a little bit of sleep imagining what might happen if the technology gets even better, as those working in the industry expect it will continue to do at an increasingly fast pace. It didn’t help that just a few minutes before I saw the post, I filed another story about OpenAI’s agents hacking into the Australian government’s medicare site.
Then, OpenAI admitted it had another issue this month, a fact the company buried in a technical report but that my editor, Jeremy Kahn, brought to light. An AI agent got out again, and while the incident was not severe, the company has since paused all training runs for a second time while it bolsters its defenses (against itself, as SNL quipped). This is the first rogue incident the company has disclosed since Hugging Face, after which it reportedly hardened its training environments so the issue wouldn’t happen again.
This is significant because it suggests OpenAI cannot easily control the technology it’s building, despite its best efforts to do so. Its agents are breaking out into the open web, where all of us spend our days—chatting with loved ones, storing financial data, viewing medical records, buying products, etc. No one wants an AI agent meddling with any of that, let alone our critical infrastructure or worse.
For those of us who aren’t in the throes of AI doom, it’s worth noting that pausing training is also a hit to OpenAI’s business. Its models are its currency. Any stop in training means slowing business momentum, which might not please investors but will likely please everyone else at this point. So kudos to OpenAI here—even if the federal government shows no interest in regulating AI, the company is, for now at least, showing some level of responsibility.
Emily Forlini
X: @EmilyForlini
Email: emily.forlini@fortune.com
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VENTURE CAPITAL
- SIMa.ai, a San Jose, Calif.-based developer of AI chips and software for robots, vehicles, and other edge devices, raised $150 million in Series C funding. Fidelity Management & Research Company and Amplify led the round and were joined by Alter Venture Partners, Dell Technologies Capital, Maverick Capital, and others.
- Quartermaster, an Arlington, Va.-based developer of an AI-powered network that monitors activity at sea, raised $100 million in Series B funding. Insight Partners led the round and was joined by Overmatch Ventures.
- Outmarket, a San Francisco-based developer of AI software for insurance agencies and brokers, raised $34.5 million in Series B funding. SignalFire led the round and was joined by Fika Ventures, Permanent Capital Ventures, TTV Capital, and Dash Fund.
- Modulate, a Somerville, Mass.-based developer of AI software that analyzes speech, including tone, emotion, and synthetic voices, raised $25 million in funding. Future Ventures led the round and was joined by Hyperplane and Lakestar.
- erad, a Riyadh, Saudi Arabia-based lender to small and midsize businesses, raised $22 million in Series A funding. MEVP led the round and was joined by SVC, 500 Global, S60 Ventures, and others.
- IPercept, a Stockholm, Sweden-based developer of software that helps manufacturers predict CNC-machine breakdowns, raised $16.5 million in Series A funding. Isogon Ventures and 2150 led the round and were joined by existing investors Luminar Ventures, RunwayFBU, J12 Ventures, and AI.Fund.
- Rayon, a Paris, France-based developer of collaborative design software for interior designers, raised $11 million in Series A funding. Partech led the round and was joined by Northzone, Foundamental, and Seedcamp.
- HiringCafe, a San Francisco-based AI-powered job-search platform, raised $6.8 million in pre-seed funding. Spark Capital led the round and was joined by Nonfiction Capital, Silicon Gardens, and angel investors.
- Dodge AI, a San Francisco-based developer of AI software for maintaining and upgrading ERP systems, raised $2.7 million in funding. Accel and Google Ventures led the round and were joined by Schema Ventures, New Build Ventures, Antler, and angel investors.
PRIVATE EQUITY
- Appdirect, backed by CDPQ, acquired Soul Machines, a San Francisco-based developer of AI avatars for customer and employee interactions. Financial terms were not disclosed.
- Finalsite, a portfolio company of Veritas, acquired RevTrak, a Glastonbury, Conn.-based provider of online payment software for schools. Financial terms were not disclosed.
EXITS
- GTCR acquired Tactacam, a Billings, Mont.-based maker of cellular-connected trail and security cameras, from Bertram Capital and the company's founders. Financial terms were not disclosed.
FUNDS + FUNDS OF FUNDS
- Sofinnova Partners, a Paris, France-based venture capital firm, raised €82 million ($93.2 million) for its fourth Sofinnova MD fund focused on medtech companies.