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Jun 16, 2025Ravie LakshmananMalware / DevOps Cybersecurity researchers have discovered a malicious package on the Python Package Index (PyPI) repository that's capable of harvesting sensitive developer-related information, such as credentials, configuration data, and environment variables, among others. The package, named chimera-sandbox-extensions, attracted 143 downloads and likely targets users of a service called Chimera Sandbox, which was released by Singaporean tech company Grab last August to facilitate "experimentation and development of [machine learning] solutions." The package masquerades as a helper module for Chimera Sandbox, but "aims to steal credentials and other sensitive information such as Jamf configuration, CI/CD environment variables, AWS tokens, and more," JFrog security researcher Guy Korolevski said in a report published last week. Once installed, it attempts to connect to an external domain whose domain name is generated using a domain generation algorithm (DGA) in order to download and execute a next-stage payload. Specifically, the malware acquires from the domain an authentication token, which is then used to send a request to the same domain and retrieve the Python-based information stealer. The stealer malware is equipped to siphon a wide range of data from infected machines. This includes - JAMF receipts, which are records of software packages installed by Jamf Pro on managed computers Pod sandbox environment authentication tokens and git information CI/CD information from environment variables Zscaler host configuration Amazon Web Services account information and tokens Public IP address General platform, user, and host information The kind of data gathered by the malware shows that it's mainly geared towards corporate and cloud infrastructure. In addition, the extraction of JAMF receipts indicates that it's also capable of targeting Apple macOS systems. The collected information is sent via a POST request back to the same domain, after which the server assesses if the machine is a worthy target for further exploitation. However, JFrog said it was unable to obtain the payload at the time of analysis. "The targeted approach employed by this malware, along with the complexity of its multi-stage targeted payload, distinguishes it from the more generic open-source malware threats we have encountered thus far, highlighting the advancements that malicious packages have made recently," Jonathan Sar Shalom, director of threat research at JFrog Security Research team, said. "This new sophistication of malware underscores why development teams remain vigilant with updates—alongside proactive security research – to defend against emerging threats and maintain software integrity." The disclosure comes as SafeDep and Veracode detailed a number of malware-laced npm packages that are designed to execute remote code and download additional payloads. The packages in question are listed below - eslint-config-airbnb-compat (676 Downloads) ts-runtime-compat-check (1,588 Downloads) solders (983 Downloads) @mediawave/lib (386 Downloads) All the identified npm packages have since been taken down from npm, but not before they were downloaded hundreds of times from the package registry. SafeDep's analysis of eslint-config-airbnb-compat found that the JavaScript library has ts-runtime-compat-check listed as a dependency, which, in turn, contacts an external server defined in the former package ("proxy.eslint-proxy[.]site") to retrieve and execute a Base64-encoded string. The exact nature of the payload is unknown. "It implements a multi-stage remote code execution attack using a transitive dependency to hide the malicious code," SafeDep researcher Kunal Singh said. Solders, on the other hand, has been found to incorporate a post-install script in its package.json, causing the malicious code to be automatically executed as soon as the package is installed. "At first glance, it's hard to believe that this is actually valid JavaScript," the Veracode Threat Research team said. "It looks like a seemingly random collection of Japanese symbols. It turns out that this particular obfuscation scheme uses the Unicode characters as variable names and a sophisticated chain of dynamic code generation to work." Decoding the script reveals an extra layer of obfuscation, unpacking which reveals its main function: Check if the compromised machine is Windows, and if so, run a PowerShell command to retrieve a next-stage payload from a remote server ("firewall[.]tel"). This second-stage PowerShell script, also obscured, is designed to fetch a Windows batch script from another domain ("cdn.audiowave[.]org") and configures a Windows Defender Antivirus exclusion list to avoid detection. The batch script then paves the way for the execution of a .NET DLL that reaches out to a PNG image hosted on ImgBB ("i.ibb[.]co"). "[The DLL] is grabbing the last two pixels from this image and then looping through some data contained elsewhere in it," Veracode said. "It ultimately builds up in memory YET ANOTHER .NET DLL." Furthermore, the DLL is equipped to create task scheduler entries and features the ability to bypass user account control (UAC) using a combination of FodHelper.exe and programmatic identifiers (ProgIDs) to evade defenses and avoid triggering any security alerts to the user. The newly-downloaded DLL is Pulsar RAT, a "free, open-source Remote Administration Tool for Windows" and a variant of the Quasar RAT. "From a wall of Japanese characters to a RAT hidden within the pixels of a PNG file, the attacker went to extraordinary lengths to conceal their payload, nesting it a dozen layers deep to evade detection," Veracode said. "While the attacker's ultimate objective for deploying the Pulsar RAT remains unclear, the sheer complexity of this delivery mechanism is a powerful indicator of malicious intent." Crypto Malware in the Open-Source Supply Chain The findings also coincide with a report from Socket that identified credential stealers, cryptocurrency drainers, cryptojackers, and clippers as the main types of threats targeting the cryptocurrency and blockchain development ecosystem. Some of the examples of these packages include - express-dompurify and pumptoolforvolumeandcomment, which are capable of harvesting browser credentials and cryptocurrency wallet keys bs58js, which drains a victim's wallet and uses multi-hop transfers to obscure theft and frustrate forensic tracing. lsjglsjdv, asyncaiosignal, and raydium-sdk-liquidity-init, which functions as a clipper to monitor the system clipboard for cryptocurrency wallet strings and replace them with threat actor‑controlled addresses to reroute transactions to the attackers "As Web3 development converges with mainstream software engineering, the attack surface for blockchain-focused projects is expanding in both scale and complexity," Socket security researcher Kirill Boychenko said. "Financially motivated threat actors and state-sponsored groups are rapidly evolving their tactics to exploit systemic weaknesses in the software supply chain. These campaigns are iterative, persistent, and increasingly tailored to high-value targets." AI and Slopsquatting The rise of artificial intelligence (AI)-assisted coding, also called vibe coding, has unleashed another novel threat in the form of slopsquatting, where large language models (LLMs) can hallucinate non-existent but plausible package names that bad actors can weaponize to conduct supply chain attacks. Trend Micro, in a report last week, said it observed an unnamed advanced agent "confidently" cooking up a phantom Python package named starlette-reverse-proxy, only for the build process to crash with the error "module not found." However, should an adversary upload a package with the same name on the repository, it can have serious security consequences. Furthermore, the cybersecurity company noted that advanced coding agents and workflows such as Claude Code CLI, OpenAI Codex CLI, and Cursor AI with Model Context Protocol (MCP)-backed validation can help reduce, but not completely eliminate, the risk of slopsquatting. "When agents hallucinate dependencies or install unverified packages, they create an opportunity for slopsquatting attacks, in which malicious actors pre-register those same hallucinated names on public registries," security researcher Sean Park said. "While reasoning-enhanced agents can reduce the rate of phantom suggestions by approximately half, they do not eliminate them entirely. Even the vibe-coding workflow augmented with live MCP validations achieves the lowest rates of slip-through, but still misses edge cases." Found this article interesting? Follow us on Twitter  and LinkedIn to read more exclusive content we post. SHARE    

AI researchers have recently been asking themselves a version of the question, “Is that really Zuck?”As first reported by Bloomberg, the Meta CEO has been personally asking top AI talent to join his new “superintelligence” AI lab and reboot Llama. His recruiting process typically goes like this: a cold outreach via email or WhatsApp that cites the recruit’s work history and requests a 15-minute chat. Dozens of researchers have gotten these kinds of messages at Google alone. For those who do agree to hear his pitch (amazingly, not all of them do), Zuckerberg highlights the latitude they’ll have to make risky bets, the scale of Meta’s products, and the money he’s prepared to invest in the infrastructure to support them. He makes clear that this new team will be empowered and sit with him at Meta’s headquarters, where I’m told the desks have already been rearranged for the incoming team.Most of the headlines so far have focused on the eye-popping compensation packages Zuckerberg is offering, some of which are well into the eight-figure range. As I’ve covered before, hiring the best AI researcher is like hiring a star basketball player: there are very few of them, and you have to pay up. Case in point: Zuckerberg basically just paid 14 Instagrams to hire away Scale AI CEO Alexandr Wang. It’s easily the most expensive hire of all time, dwarfing the billions that Google spent to rehire Noam Shazeer and his core team from Character.AI (a deal Zuckerberg passed on). “Opportunities of this magnitude often come at a cost,” Wang wrote in his note to employees this week. “In this instance, that cost is my departure.”Zuckerberg’s recruiting spree is already starting to rattle his competitors. The day before his offer deadline for some senior OpenAI employees, Sam Altman dropped an essay proclaiming that “before anything else, we are a superintelligence research company.” And after Zuckerberg tried to hire DeepMind CTO Koray Kavukcuoglu, he was given a larger SVP title and now reports directly to Google CEO Sundar Pichai. I expect Wang to have the title of “chief AI officer” at Meta when the new lab is announced. Jack Rae, a principal researcher from DeepMind who has signed on, will lead pre-training. Meta certainly needs a reset. According to my sources, Llama has fallen so far behind that Meta’s product teams have recently discussed using AI models from other companies (although that is highly unlikely to happen). Meta’s internal coding tool for engineers, however, is already using Claude. While Meta’s existing AI researchers have good reason to be looking over their shoulders, Zuckerberg’s $14.3 billion investment in Scale is making many longtime employees, or Scaliens, quite wealthy. They were popping champagne in the office this morning. Then, Wang held his last all-hands meeting to say goodbye and cried. He didn’t mention what he would be doing at Meta. I expect his new team will be unveiled within the next few weeks after Zuckerberg gets a critical number of members to officially sign on. Tim Cook. Getty Images / The VergeApple’s AI problemApple is accustomed to being on top of the tech industry, and for good reason: the company has enjoyed a nearly unrivaled run of dominance. After spending time at Apple HQ this week for WWDC, I’m not sure that its leaders appreciate the meteorite that is heading their way. The hubris they display suggests they don’t understand how AI is fundamentally changing how people use and build software.Heading into the keynote on Monday, everyone knew not to expect the revamped Siri that had been promised the previous year. Apple, to its credit, acknowledged that it dropped the ball there, and it sounds like a large language model rebuild of Siri is very much underway and coming in 2026.The AI industry moves much faster than Apple’s release schedule, though. By the time Siri is perhaps good enough to keep pace, it will have to contend with the lock-in that OpenAI and others are building through their memory features. Apple and OpenAI are currently partners, but both companies want to ultimately control the interface for interacting with AI, which puts them on a collision course. Apple’s decision to let developers use its own, on-device foundational models for free in their apps sounds strategically smart, but unfortunately, the models look far from leading. Apple ran its own benchmarks, which aren’t impressive, and has confirmed a measly context window of 4,096 tokens. It’s also saying that the models will be updated alongside its operating systems — a snail’s pace compared to how quickly AI companies move. I’d be surprised if any serious developers use these Apple models, although I can see them being helpful to indie devs who are just getting started and don’t want to spend on the leading cloud models. I don’t think most people care about the privacy angle that Apple is claiming as a differentiator; they are already sharing their darkest secrets with ChatGPT and other assistants. Some of the new Apple Intelligence features I demoed this week were impressive, such as live language translation for calls. Mostly, I came away with the impression that the company is heavily leaning on its ChatGPT partnership as a stopgap until Apple Intelligence and Siri are both where they need to be. AI probably isn’t a near-term risk to Apple’s business. No one has shipped anything close to the contextually aware Siri that was demoed at last year’s WWDC. People will continue to buy Apple hardware for a long time, even after Sam Altman and Jony Ive announce their first AI device for ChatGPT next year. AR glasses aren’t going mainstream anytime soon either, although we can expect to see more eyewear from Meta, Google, and Snap over the coming year. In aggregate, these AI-powered devices could begin to siphon away engagement from the iPhone, but I don’t see people fully replacing their smartphones for a long time. The bigger question after this week is whether Apple has what it takes to rise to the occasion and culturally reset itself for the AI era. I would have loved to hear Tim Cook address this issue directly, but the only interview he did for WWDC was a cover story in Variety about the company’s new F1 movie.ElsewhereAI agents are coming. I recently caught up with Databricks CEO Ali Ghodsi ahead of his company’s annual developer conference this week in San Francisco. Given Databricks’ position, he has a unique, bird’s-eye view of where things are headed for AI. He doesn’t envision a near-term future where AI agents completely automate real-world tasks, but he does predict a wave of startups over the next year that will come close to completing actions in areas such as travel booking. He thinks humans will need (and want) to approve what an agent does before it goes off and completes a task. “We have most of the airplanes flying automated, and we still want pilots in there.”Buyouts are the new normal at Google. That much is clear after this week’s rollout of the “voluntary exit program” in core engineering, the Search organization, and some other divisions. In his internal memo, Search SVP Nick Fox was clear that management thinks buyouts have been successful in other parts of the company that have tried them. In a separate memo I saw, engineering exec Jen Fitzpatrick called the buyouts an “opportunity to create internal mobility and fresh growth opportunities.” Google appears to be attempting a cultural reset, which will be a challenging task for a company of its size. We’ll see if it can pull it off. Evan Spiegel wants help with AR glasses. I doubt that his announcement that consumer glasses are coming next year was solely aimed at AR developers. Telegraphing the plan and announcing that Snap has spent $3 billion on hardware to date feels more aimed at potential partners that want to make a bigger glasses play, such as Google. A strategic investment could help insulate Snap from the pain of the stock market. A full acquisition may not be off the table, either. When he was recently asked if he’d be open to a sale, Spiegel didn’t shut it down like he always has, but instead said he’d “consider anything” that helps the company “create the next computing platform.”Link listMore to click on:If you haven’t already, don’t forget to subscribe to The Verge, which includes unlimited access to Command Line and all of our reporting.As always, I welcome your feedback, especially if you’re an AI researcher fielding a juicy job offer. You can respond here or ping me securely on Signal.Thanks for subscribing.See More:

Solar air heating is among the most cost-effective applications of solar thermal energy. These systems are used for space heating and preheating fresh air for ventilation, typically using glazed or unglazed perforated solar collectors. The collectors draw in outside air, heat it using solar energy, and then distribute it through ductwork to meet building heating and fresh air needs. In 2024, Canada led again the world for the at least seventh year in a row in solar air heating adoption. The four key suppliers – Trigo Energies, Conserval Engineering, Matrix Energy, and Aéronergie – reported a combined 26,203 m2 (282,046 ft2) of collector area sold last year. Several of these providers are optimistic about the growing demand. These findings come from the newly released Canadian Solar Thermal Market Survey 2024, commissioned by Natural Resources Canada. Canada is the global leader in solar air heating. The market is driven by a strong network of experienced system suppliers, optimized technologies, and a few small favorable funding programs – especially in the province of Quebec. Architects and developers are increasingly turning to these cost-effective, façade-integrated systems as a practical solution for reducing onsite natural gas consumption. Despite its cold climate, Canada benefits from strong solar potential with solar irradiance in many areas rivaling or even exceeding that of parts of Europe. This makes solar air heating not only viable, but especially valuable in buildings with high fresh air requirements including schools, hospitals, and offices. The projects highlighted in this article showcase the versatility and relevance of solar air heating across a range of building types, from new constructions to retrofits. Figure 1: Preheating air for industrial buildings: 2,750 m2 (29,600 ft2) of Calento SL solar air collectors cover all south-west and south-east facing facades of the FAB3R factory in Trois-Rivières, Quebec. The hourly unitary flow rate is set at 41 m3/m2 or 2.23 cfm/ft2 of collector area, at the lower range because only a limited number of intake fans was close enough to the solar façade to avoid long ventilation ductwork. Photo: Trigo Energies Quebec’s solar air heating boom: the Trigo Energies story Trigo Energies makes almost 90 per cent of its sales in Quebec. “We profit from great subsidies, as solar air systems are supported by several organizations in our province – the electricity utility Hydro Quebec, the gas utility Energir and the Ministry of Natural Resources,” explained Christian Vachon, Vice President Technologies and R&D at Trigo Energies. Trigo Energies currently has nine employees directly involved in planning, engineering and installing solar air heating systems and teams up with several partner contractors to install mostly retrofit projects. “A high degree of engineering is required to fit a solar heating system into an existing factory,” emphasized Vachon. “Knowledge about HVAC engineering is as important as experience with solar thermal and architecture.” One recent Trigo installation is at the FAB3R factory in Trois-Rivières. FAB3R specializes in manufacturing, repairing, and refurbishing large industrial equipment. Its air heating and ventilation system needed urgent renovation because of leakages and discomfort for the workers. “Due to many positive references he had from industries in the area, the owner of FAB3R contacted us,” explained Vachon. “The existence of subsidies helped the client to go for a retrofitting project including solar façade at once instead of fixing the problems one bit at a time.” Approximately 50 per cent of the investment costs for both the solar air heating and the renovation of the indoor ventilation system were covered by grants and subsidies. FAB3R profited from an Energir grant targeted at solar preheating, plus an investment subsidy from the Government of Quebec’s EcoPerformance Programme.   Blue or black, but always efficient: the advanced absorber coating In October 2024, the majority of the new 2,750 m² (29,600 ft2) solar façade at FAB3R began operation (see figure 1). According to Vachon, the system is expected to cover approximately 13 per cent of the factory’s annual heating demand, which is otherwise met by natural gas. Trigo Energies equipped the façade with its high-performance Calento SL collectors, featuring a notable innovation: a selective, low-emissivity coating that withstands outdoor conditions. Introduced by Trigo in 2019 and manufactured by Almeco Group from Italy, this advanced coating is engineered to maximize solar absorption while minimizing heat loss via infrared emission, enhancing the overall efficiency of the system. The high efficiency coating is now standard in Trigo’s air heating systems. According to the manufacturer, the improved collector design shows a 25 to 35 per cent increase in yield over the former generation of solar air collectors with black paint. Testing conducted at Queen’s University confirms this performance advantage. Researchers measured the performance of transpired solar air collectors both with and without a selective coating, mounted side-by-side on a south-facing vertical wall. The results showed that the collectors with the selective coating produced 1.3 to 1.5 times more energy than those without it. In 2024, the monitoring results were jointly published by Queen’s University and Canmat Energy in a paper titled Performance Comparison of a Transpired Air Solar Collector with Low-E Surface Coating. Selective coating, also used on other solar thermal technologies including glazed flat plate or vacuum tube collectors, has a distinctive blue color. Trigo customers can, however, choose between blue and black finishes. “By going from the normal blue selective coating to black selective coating, which Almeco is specially producing for Trigo, we lose about 1 per cent in solar efficiency,” explained Vachon. Figure 2: Building-integrated solar air heating façade with MatrixAir collectors at the firehall building in Mont Saint Hilaire, south of Montreal. The 190 m2 (2,045 ft2) south-facing wall preheats the fresh air, reducing natural gas consumption by 18 per cent compared to the conventional make-up system. Architect: Leclerc Architecture. Photo: Matrix Energy Matrix Energy: collaborating with architects and engineers in new builds The key target customer group of Matrix Energy are public buildings – mainly new construction. “Since the pandemic, schools are more conscious about fresh air, and solar preheating of the incoming fresh air has a positive impact over the entire school year,” noted Brian Wilkinson, President of Matrix Energy. Matrix Energy supplies systems across Canada, working with local partners to source and process the metal sheets used in their MatrixAir collectors. These metal sheets are perforated and then formed into architectural cladding profiles. The company exclusively offers unglazed, single-stage collectors, citing fire safety concerns associated with polymeric covers. “We have strong relationships with many architects and engineers who appreciate the simplicity and cost-effectiveness of transpired solar air heating systems,” said President Brian Wilkinson, describing the company’s sales approach. “Matrix handles system design and supplies the necessary materials, while installation is carried out by specialized cladding and HVAC contractors overseen by on-site architects and engineers,” Wilkinson added. Finding the right flow: the importance of unitary airflow rates One of the key design factors in solar air heating systems is the amount of air that passes through each square meter of the perforated metal absorber,  known as the unitary airflow rate. The principle is straightforward: higher airflow rates deliver more total heat to the building, while lower flow rates result in higher outlet air temperatures. Striking the right balance between air volume and temperature gain is essential for efficient system performance. For unglazed collectors mounted on building façades, typical hourly flow rates should range between 120 and 170 (m3/h/m2), or 6.6 to 9.4 cfm/ft2. However, Wilkinson suggests that an hourly airflow rate of around 130 m³/h/m² (7.2 cfm/ft2) offers the best cost-benefit balance for building owners. If the airflow is lower, the system will deliver higher air temperatures, but it would then need a much larger collector area to achieve the same air volume and optimum performance, he explained. It’s also crucial for the flow rate to overcome external wind pressure. As wind passes over the absorber, air flow through the collector’s perforations is reduced, resulting in heat losses to the environment. This effect becomes even more pronounced in taller buildings, where wind exposure is greater. To ensure the system performs well even in these conditions, higher hourly airflow rates typically between 150 and 170 m³/m² (8.3 to 9.4 cfm/ft2)  are necessary. Figure 3: One of three apartment blocks of the Maple House in Toronto’s Canary District. Around 160 m2 (1,722 ft2) of SolarWall collectors clad the two-storey mechanical penthouse on the roof. The rental flats have been occupied since the beginning of 2024. Collaborators: architects-Alliance, Claude Cormier et Associés, Thornton Tomasetti, RWDI, Cole Engineering, DesignAgency, MVShore, BA Group, EllisDon. Photo: Conserval Engineering Solar air heating systems support LEED-certified building designs Solar air collectors are also well-suited for use in multi-unit residential buildings. A prime example is the Canary District in Toronto (see Figure 3), where single-stage SolarWall collectors from Conserval Engineering have been installed on several MURBs to clad the mechanical penthouses. “These penthouses are an ideal location for our air heating collectors, as they contain the make-up air units that supply corridor ventilation throughout the building,” explained Victoria Hollick, Vice President of Conserval Engineering. “The walls are typically finished with metal façades, which can be seamlessly replaced with a SolarWall system – maintaining the architectural language without disruption.” To date, nine solar air heating systems have been commissioned in the Canary District, covering a total collector area of over 1,000 m² (10,764 ft2). “Our customers have many motivations to integrate SolarWall technology into their new construction or retrofit projects, either carbon reduction, ESG, or green building certification targets,” explained Hollick. The use of solar air collectors in the Canary District was proposed by architects from the Danish firm Cobe. The black-colored SolarWall system preheats incoming air before it is distributed to the building’s corridors and common areas, reducing reliance on natural gas heating and supporting the pursuit of LEED Gold certification. Hollick estimates the amount of gas saved between 10 to 20 per cent of the total heating load for the corridor ventilation of the multi-unit residential buildings. Additional energy-saving strategies include a 50/50 window-to-wall ratio with high-performance glazing, green roofs, high-efficiency mechanical systems, LED lighting, and Energy Star-certified appliances. The ideal orientation for a SolarWall system is due south. However, the systems can be built at any orientation up to 90° east and west, explained Hollick. A SolarWall at 90° would have approximately 60 per cent of the energy production of the same area facing south.Canada’s expertise in solar air heating continues to set a global benchmark, driven by supporting R&D, by innovative technologies, strategic partnerships, and a growing portfolio of high-impact projects. With strong policy support and proven performance, solar air heating is poised to play a key role in the country’s energy-efficient building future. Figure 4: Claude-Bechard Building in Quebec is a showcase project for sustainable architecture with a 72 m2 (775 ft2) Lubi solar air heating wall from Aéronergie. It serves as a regional administrative center. Architectural firm: Goulet et Lebel Architectes. Photo: Art Massif Bärbel Epp is the general manager of the German Agency solrico, whose focus is on solar market research and international communication. The post Op-ed: Canada’s leadership in solar air heating—Innovation and flagship projects appeared first on Canadian Architect.

Meta is looking to up its weakening AI game with a key talent grab. Following days of speculation, the social media giant has confirmed that Scale AI’s founder and CEO, Alexandr Wang, is joining Meta to work on its AI efforts. Meta will invest $14.3 billion in Scale AI as part of the deal, and will have a 49% stake in the AI startup, which specializes in data labeling and model evaluation services. Other key Scale employees will also move over to Meta, while CSO Jason Droege will step in as Scale’s interim CEO. This move comes as the Mark Zuckerberg-led company goes all-in on building a new research lab focused on “superintelligence,” the next step beyond artificial general intelligence (AGI). The arrangement also reflects a growing trend in big tech, where industry giants are buying companies without really buying them — what’s increasingly being referred to as “acqui-hiring.” It involves recruiting key personnel from a company, licensing its technology, and selling its products, but leaving it as a private entity. “This is fundamentally a massive ‘acqui-hire’ play disguised as a strategic investment,” said Wyatt Mayham, lead AI consultant at Northwest AI Consulting. “While Meta gets Scale’s data infrastructure, the real prize is Wang joining Meta to lead their superintelligence lab. At the $14.3 billion price tag, this might be the most expensive individual talent acquisition in tech history.” Closing gaps with competitors Meta has struggled to keep up with OpenAI, Anthropic, and other key competitors in the AI race, recently even delaying the launch of its new flagship model, Behemoth, purportedly due to internal concerns about its performance. It has also seen the departure of several of its top researchers.  “It’s not really a secret at this point that Meta’s Llama 4 models have had significant performance issues,” Mayham said. “Zuck is essentially betting that Wang’s track record building AI infrastructure can solve Meta’s alignment and model quality problems faster than internal development.” And, he added, Scale’s enterprise-grade human feedback loops are exactly what Meta’s Llama models need to compete with ChatGPT and Claude on reliability and task-following. Data quality, a key focus for Wang, is a big factor in solving those performance problems. He wrote in a note to Scale employees on Thursday, later posted on X (formerly Twitter), that when he founded Scale AI in 2016 amidst some of the early AI breakthroughs, “it was clear even then that data was the lifeblood of AI systems, and that was the inspiration behind starting Scale.” But despite Meta’s huge investment, Scale AI is underscoring its commitment to sovereignty: “Scale remains an independent leader in AI, committed to providing industry-leading AI solutions and safeguarding customer data,” the company wrote in a blog post. “Scale will continue to partner with leading AI labs, multinational enterprises, and governments to deliver expert data and technology solutions through every phase of AI’s evolution.” Allowing big tech to side-step notification But while it’s only just been inked, the high-profile deal is already raising some eyebrows. According to experts, arrangements like these allow tech companies to acquire top talent and key technologies in a side-stepping manner, thus avoiding regulatory notification requirements. The US Federal Trade Commission (FTC) requires mergers and acquisitions totaling more than $126 million be reported in advance. Licensing deals or the mass hiring-away of a company’s employees don’t have this requirement. This allows companies to move more quickly, as they don’t have to undergo the lengthy federal review process. Microsoft’s deal with Inflection AI is probably one of the highest-profile examples of the “acqui-hiring” trend. In March 2024, the tech giant paid the startup $650 million in licensing fees and hired much of its team, including co-founders Mustafa Suleyman (now CEO of Microsoft AI) and Karén Simonyan (chief scientist of Microsoft AI). Similarly, last year Amazon hired more than 50% of Adept AI’s key personnel, including its CEO, to focus on AGI. Google also inked a licensing agreement with Character AI and hired a majority of its founders and researchers. However, regulators have caught on, with the FTC launching inquiries into both the Microsoft-Inflection and Amazon-Adept deals, and the US Justice Department (DOJ) analyzing Google-Character AI. Reflecting ‘desperation’ in the AI industry Meta’s decision to go forward with this arrangement anyway, despite that dicey backdrop, seems to indicate how anxious the company is to keep up in the AI race. “The most interesting piece of this all is the timing,” said Mayham. “It reflects broader industry desperation. Tech giants are increasingly buying parts of promising AI startups to secure key talent without acquiring full companies, following similar patterns with Microsoft-Inflection and Google-Character AI.” However, the regulatory risks are “real but nuanced,” he noted. Meta’s acquisition could face scrutiny from antitrust regulators, particularly as the company is involved in an ongoing FTC lawsuit over its Instagram and WhatsApp acquisitions. While the 49% ownership position appears designed to avoid triggering automatic thresholds, US regulatory bodies like the FTC and DOJ can review minority stake acquisitions under the Clayton Antitrust Act if they seem to threaten competition. Perhaps more importantly, Meta is not considered a leader in AGI development and is trailing OpenAI, Anthropic, and Google, meaning regulators may not consider the deal all that concerning (yet). All told, the arrangement certainly signals Meta’s recognition that the AI race has shifted from a compute and model size competition to a data quality and alignment battle, Mayham noted. “I think the [gist] of this is that Zuck’s biggest bet is that talent and data infrastructure matter more than raw compute power in the AI race,” he said. “The regulatory risk is manageable given Meta’s trailing position, but the acqui-hire premium shows how expensive top AI talent has become.”