OpenAI Admits Its LLM Went Rogue and Hacked Hugging Face

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OpenAI admitted today that GPT-5.6 Sol and a more capable pre-release model escaped a restricted test environment, breached Hugging Face, and obtained benchmark solutions from its production database while trying to cheat a cybersecurity evaluation. TechCrunch has more here.

A Washington judge temporarily blocked Kalshi from offering sports-event contracts in the state, calling them illegal gambling and rejecting the company’s federal-preemption argument. States have now won 19 of 23 preliminary prediction-market rulings. The Block has more here.

France passed Europe’s first law barring children under 15 from social media and banning cellphones in high schools, although enforcement will largely fall to E.U. regulators, and the measure sets no explicit penalties for platforms, parents, or children. The New York Times has more here.

The Anthropic-Physical Intelligence Rumor Roiling AI Twitter

Image Credits: ChatGPT for TechCrunch

By Connie Loizos

It’s been a big year for AI acquisitions — so big that most of them barely register anymore. Anthropic and OpenAI have each gone on buying sprees, snapping up developer tooling, AI services shops, and product-testing startups to convert model capability into enterprise revenue and extend their reach faster than the other. Which is what made a weekend rumor about Anthropic acquiring robotics startup Physical Intelligence stand out. It spread exceedingly fast, even after a denial from Physical Intelligence’s CEO.

Part of that ties to who’s involved. Physical Intelligence isn’t some obscure robotics shop. It was co-founded by Lachy Groom, an investor-operator whose star has been on the rise in Silicon Valley in recent years; it has raised more than $1 billion (and was reportedly in talks this spring for another $1 billion round at an $11 billion valuation); and its π0.5 model is apparently among the more widely used robot brains in robotics research.

As it turns out, the rumor wasn’t completely spurious. Anthropic and Physical Intelligence actually did hold acquisition talks this spring, according to The Information, so tech blogger Robert Scoble — whose weekend post on X set off the frenzy — may have gotten the specifics wrong without being wrong that something had happened.

Physical Intelligence’s response to the rumor mill wasn’t the world’s most vigorous denial, it should be noted. According to The Information, Physical Intelligence CEO Karol Hausman told employees the reports weren’t true via a Slack message containing a gif of a character from “The Office” shaking her head no.

Groom, for his part, did not respond to TechCrunch’s request for comment, sent Monday night.

Anthropic has made four known acquisitions this year; OpenAI has been more aggressive, acquiring at least 17 companies since 2023. Both are also, of course, now preparing to go public. Anthropic confidentially filed for an IPO on June 1, followed by OpenAI a week later, setting up what could be two of the largest U.S. stock debuts in history.

So why robotics, why now? The likeliest answer is that physical-world understanding may be a prerequisite for superintelligent systems, and no amount of internet text can substitute for it.

Massive Fundings

Augustus, a four-year-old New York startup that is building a federally chartered clearing bank for stablecoin-era payments, raised a $180 million round at a $1 billion valuation. The deal was led by Tiger Global, with Hummingbird and QED also anteing up. CoinDesk has more here.

Neo, a one-year-old Tel Aviv and Boston startup that helps enterprises discover, monitor, and control AI agents and AI-enabled software, raised a $75 million Series A round led by Andreessen Horowitz and Bessemer Venture Partners, with Craft Ventures and Merlin Ventures also participating. The company previously raised a $25 million seed round. CTech has more here.

Sila, a 15-year-old company based in Alameda, CA, that makes silicon-carbon anode materials that replace graphite in lithium-ion batteries to increase energy capacity for EVs and other devices, raised a $300 million round. The deal was co-led by Atreides Management and Sutter Hill Ventures, with 8VC, Bessemer Venture Partners, Matrix Partners, and T. Rowe Price Associates also stepping up. TechCrunch has more here.

Big-But-Not-Crazy-Big Fundings

Circular Materials, a seven-year-old startup based in Padua, Italy, that recovers critical raw materials from industrial wastewater, secured $13.5 million in SAFE financing from investors including CDP Venture Capital, the European Innovation Council Fund, EIT RawMaterials, 360 Capital, Corbites, and Lumar. Tech.eu has more here.

DeltaVision, a four-year-old Munich startup that builds valves, pressure regulators, and electric pumps that manage liquids and gases inside spacecraft, raised an $11.6 million round co-led by KT Ventures and Valemount Capital, with Futury Capital also chiming in. Payload has more here.

Gritt, a four-year-old San Francisco startup that adds robotic arms and AI software to existing construction equipment to automate labor-intensive infrastructure work, raised a $26 million Series A round led by Obvious Ventures, with Union Square Ventures and Active Impact Investments as well as previous investors First Round Capital, Climactic, Congruent Ventures, and VSC Ventures also participating. The company has raised a total of $32.4 million. TechCrunch has more here.

Hilo Health, an eight-year-old startup based in Neuchâtel, Switzerland, that tracks blood pressure through a wrist sensor, connected cuff, and app so patients and clinicians can monitor hypertension trends, raised a $19 million Series B extension from Dell Family Office. The company has raised a total of $119+ million. Tech Funding News has more here.

Neo Group, a five-year-old Mumbai startup that provides wealth and asset management services for family offices, wealthy individuals, institutions, and companies, raised a $36.3 million round led by Peak XV Partners. Private Banker International has more here.

NxLite, an 11-year-old company based in Canton, MI, that manufactures low-emissivity coatings for glass and polymer products that reduce heat transfer, energy use, and product weight, raised a $13.1 million Series A round led by Crabtree Lane Alt, with VoLo Earth Ventures, Earth Foundry, MUUS, New Climate Ventures, and ACT Venture Partners also engaging. More here.

Raghu Vamsi Aerospace Group, a 24-year-old Hyderabad company that manufactures precision aerospace components, mission systems, and unmanned vehicles for aerospace, energy, and defense customers, raised a $40 million round co-led by Norwest and Skegen Asset Management, with Indus Bridge Ventures, GJNX Ventures, and Ashish Kacholia also opting in. Pulse 2.0 has more here.

Reo.Dev, a three-year-old San Francisco startup that helps sales and marketing teams identify technical software buyers from developer activity, engineering product usage, and AI agent interactions, raised an $11.3 million Series A round led by Elevation Capital, with Uncorrelated Ventures as well as previous investors Heavybit, India Quotient, and Foster Ventures also pitching in. The company has raised a total of $15.3 million. Pulse 2.0 has more here.

SkyPilot, a four-year-old Berkeley startup that helps companies orchestrate AI compute across multiple cloud and GPU providers, raised a $20 million seed round led by Lux Capital, with Coatue and Amplify Partners also opting in. Fortune has more here.

Twenty, a two-year-old startup based in Arlington, VA, that develops AI systems that support offensive cyber operations for U.S. military and intelligence agencies, raised a $30 million round at a $1.2 billion post-money valuation. The deal was led by Khosla Ventures. The company has raised a total of $168 million. More here.

Uniti, a two-year-old New York startup that builds AI agents to automate leasing, maintenance, resident communications, collections, payments, and support for real estate operators, raised a $12 million Series A round led by Pathlight, with MetaProp as well as previous investors Prudence, Flex Capital, Alate, and RE VC also participating. More here.

Veriqus Group, a two-year-old Mumbai startup that provides wealth and asset management advice, portfolio oversight, client reporting, and lending services for wealthy individuals, family offices, and institutions, raised a $40 million round led by Norwest Venture Partners. Private Banker International has more here.

Smaller Fundings

Bluecore Energy, a one-year-old startup based in Long Beach, CA, that builds barge-mounted small nuclear reactors that generate electricity for ports, coastal infrastructure, and data centers, raised a $10 million pre-seed round led by Slauson & Co. with Harlem Capital, Precursor Ventures, Ripple co-founder Chris Larsen, and HartBeat Ventures also anteing up. TechCrunch has more here.