Tag: ai

Anthropic Removes “Scary” Secret Claude Tracker After Developer Stumbles Across It

Anthropic has removed hidden detection code from its Claude Code tool after a developer reverse-engineered the binary and exposed how the company was subtly monitoring users in China.

The code, which Anthropic described as an experiment launched in March, used a form of prompt steganography to signal information about a user’s environment back to Anthropic’s servers. It was designed to help detect unauthorized resellers and attempts by other organizations to distill Claude’s capabilities into their own models.

How The Detection Worked

The mechanism was first spotted by a Reddit user known as LegitMichel777, who stumbled on it while trying to restore a disabled feature in Claude Code. A separate developer known as Thereallo independently confirmed the finding the same day, June 30, publishing a technical breakdown of exactly how it worked.

The checks only ran in one specific situation: when a user pointed Claude Code at a different server instead of Anthropic’s own – something companies commonly do when they route their traffic through internal systems or third-party gateways. From there, it checked two things:

  • Whether the user’s computer was set to a Chinese time zone (Shanghai or Urumqi).
  • Whether the new server address matched a hidden list of Chinese AI companies (including well-known names like DeepSeek, Zhipu, and Moonshot) or known resale and proxy services.

If either check came back positive, Claude Code would quietly tweak a line of text called the “system prompt” – background instructions the app automatically sends to the AI model with every request, invisible to the person typing. Specifically, it changed how the date was written in that line:

  • If the user was in a Chinese time zone, the date switched from using dashes to slashes (e.g., 2026/06/30 instead of 2026-06-30).
  • The apostrophe in the phrase “Today’s date is…” was swapped for one of three lookalike characters, each one a different signal, depending on which combination of checks the session had triggered.

None of this was visible to users, or likely even to the AI model itself in normal use – the characters look identical on screen. But Anthropic’s servers could read the difference instantly. The lists of flagged domains and keywords were also scrambled inside the app’s code using a basic encryption trick, so they wouldn’t show up if someone just opened the file and searched for them.

Thereallo called the approach “prompt steganography” – hiding a signal inside ordinary-looking text – and noted it let Anthropic sort and flag sessions without needing any separate, visible tracking system.

Anthropic’s Explanation

Last Tuesday, Anthropic engineer Thariq Shihipar, who works on the Claude Code team, confirmed the feature on X:

“This is an experiment we launched in March that was meant to prevent account abuse from unauthorized resellers and protect against distillation. The team has landed stronger mitigations since then and we’ve actually been meaning to take this down for a while. We merged the PR and this should be fully rolled back in tomorrow’s release.”

Anthropic has stated that unauthorized resellers have been selling access to Claude accounts and subscriptions at steep discounts in certain markets. The company has also publicly documented large-scale efforts by Chinese AI labs to distill its models by querying them at high volume through proxies and fraudulent accounts.

Anthropic removed the detection logic shortly after it became public.

Keep reading

The AI Jobs Apocalypse Has Begun: We Are Witnessing An Unprecedented Wave Of AI-Related Layoffs In 2026

We all knew that this would be coming. In 2026, the rate of AI-related layoffs has greatly accelerated, and that means that large numbers of good paying jobs are suddenly disappearing from the economy. This is occurring when we are already facing one major crisis after another, and so the timing could not be worse. Many young people specifically chose a major in college that would prepare them for positions in the tech industry because those were supposed to be the jobs of the future. Unfortunately, the AI jobs apocalypse is wiping out those jobs the fastest.

Let me give you some cold, hard numbers that will clearly demonstrate what I am talking about.

According to Challenger, Gray & Christmas, the number of announced job cuts in the United States last month was the highest that we have seen during the month of May since the peak of the last pandemic…

U.S.-based employers announced 97,006 job cuts in May, up 16% from the 83,387 job cuts recorded in April, and up 3% from the 93,816 announced in the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.

May’s total is the highest for the month since 2020, when 397,016 job cuts were recorded in May at the height of the pandemic. It also marks the third straight month that cuts have risen, climbing from 48,307 in February to 97,006 in May.

There is no way to spin those numbers to make them look good.

And for the third month in a row, artificial intelligence accounted for more layoffs than any other reason…

In May, Artificial Intelligence (AI) led all reasons for job cuts for the third month in a row, with 38,579 announced cuts. It is the highest monthly total ever recorded for the reason since Challenger began tracking it in 2023, and it accounted for 40% of all cuts announced in May — up from just 7% in January, 25% in March, and 26% in April. For the year, AI has been cited in 87,714 cuts, or 22% of all 2026 layoffs, already far surpassing the 54,836 attributed to the reason in all of 2025.

Read that last sentence again.

The number of AI-related layoffs in 2026 has already surpassed the grand total of AI-related layoffs for the entire year of 2025.

That is how fast things are now moving.

Needless to say, the tech industry is being hit the hardest.

At this point, tech layoffs are running 44 percent faster than last year…

So far this year, there have been an estimated 363 layoffs at tech companies this year, affecting nearly 150,000 people — a pace of about 974 people per day, 44% faster than last year — according to TrueUp, a tech job board and recruiting platform that also runs one of the most widely cited tech layoff trackers.

The trend appears to be accelerating. Tech layoffs hit their highest single month in two years last month, with nearly 40,000 cuts, and AI was the most-cited reason for layoffs across every industry for the third month running, according to outplacement firm Challenger, Gray & Christmas.

There is no long-term loyalty in the tech industry anymore.

Keep reading

The Looming Shadow of the “Useless Class”

Harari’s Warning: A New “Useless Class” Emerges

In influential circles tied to global institutions, a chilling phrase has entered the conversation: the rise of a “useless class.” Historian and World Economic Forum advisor Yuval Noah Harari has repeatedly warned that rapid advances in artificial intelligence and automation will render vast numbers of people economically irrelevant. In his book Homo Deus and various public statements, Harari describes this emerging group not merely as unemployed but as unemployable, stripped of meaningful contributions to the economic and political systems that define modern power.

Superfluous People: What Happens When AI Replaces Humanity

He has pointed out that in the 21st century, the central economic question may become what to do with “superfluous people” once algorithms outperform humans in most tasks. This is not abstract futurism. It reflects observable trends: AI already displaces roles in manufacturing, transportation, customer service, coding, analysis, and creative fields. Entire professions face obsolescence. When millions cannot secure stable employment, societies risk labelling them burdens rather than citizens with inherent worth.

Echoes of “Useless Eaters”: From Nazi Eugenics to Modern Efficiency

This language echoes darker historical precedents. The term “useless eaters” originated in early 20th-century eugenics and Nazi propaganda, where authorities deemed the disabled, elderly, or unproductive as drains on resources unworthy of life. Those regimes justified sterilization, euthanasia, and gruesome experiments on living humans deemed irrelevant, using economic and efficiency as grounds. While today’s discussions avoid explicit calls for elimination, the underlying logic of sorting human value by productivity should alarm anyone who values individual dignity.

Schwab’s Fourth Industrial Revolution: Mass Redundancy Ahead

Harari’s warnings align with broader elite conversations about technological disruption. Klaus Schwab, founder of the World Economic Forum, has addressed the Fourth Industrial Revolution and its potential to create redundancy for many workers. The concern is real: without robust adaptation, large segments of the population could become dependent on state or corporate systems, vulnerable to control.

Georgia Guidestones: The Elite Blueprint for Drastic Population Cuts

This feeds into visions of a restructured world. The Georgia Guidestones, a controversial monument erected in 1980 in Georgia and later destroyed, laid out ten guiding principles for humanity. Its first commandment declared: “Maintain humanity under 500,000,000 in perpetual balance with nature.” That explicit target of drastic population reduction (over 90%) has fueled suspicions about long-term agendas among some influential figures who see overpopulation as a crisis. It underscores a mindset that prioritizes global limits over unfettered human flourishing.

15-Minute Cities and Depopulation: Easier Rule Over Fewer Subjects

Critics argue that depopulation pressures, whether through policy, technology, or subtle incentives, serve a strategic purpose. A smaller global population would make centralized rule far simpler for oligarchs and technocrats. Concepts like 15-minute cities, promoted as sustainable urban planning where residents access work, food, healthcare, and leisure within a short walk or bike ride, illustrate the point. Proponents highlight reduced emissions and convenience. Yet skeptics see them as prototypes for contained zones: easier to monitor, restrict movement within or between, and enforce compliance through digital systems and surveillance. In a depopulated world with AI handling production, the need for expansive human labor and freedom of movement diminishes. Elites could manage compact, dependent populations more effectively, where dissent or excess can be easily isolated.

AI Job Apocalypse: Creating the Perfect Storm of Control

The fusion of AI-driven job loss and these control-oriented frameworks paints a grim picture. Displaced workers, stripped of purpose and economic agency, risk being recast as “useless” burdens in the eyes of systems optimized for efficiency. Harari himself has noted the profound inequality this could create, with a small elite of data owners and tech masters holding unprecedented power over the masses.

Euthanasia Explosion: From Terminally Ill to Depressed, Mentally Ill, and Children

Compounding these concerns is the rapid expansion of euthanasia laws across several nations. What began as a limited option for the terminally ill has broadened dramatically to encompass the depressed, mentally ill, and even children. In Canada, Medical Assistance in Dying (MAiD) has surged since its introduction in 2016. By 2024, there were 16,499 reported MAiD provisions, accounting for over 5 percent of all deaths in the country, with cumulative totals nearing 76,000. Cases increasingly include individuals with non-terminal conditions, disabilities, and vulnerabilities tied to poverty or isolation. In the Netherlands, total euthanasia deaths reached 9,958 in 2024, a 10 percent rise from the prior year. Psychiatric cases alone jumped to 219 from 138 in 2023, with a sharp increase among younger people under 30. Belgium and other jurisdictions show similar patterns of extending to minors. This normalization risks categorizing those with chronic illness, depression, or mental health challenges as burdens on the system. It reinforces the “useless eaters” logic by offering death as a solution to suffering that could instead prompt investment in care, community support, and human dignity. Such policies align conveniently with broader depopulation narratives, reducing pressure on resources while framing elimination as compassion.

Keep reading

Spain instructs state-backed companies to avoid new Palantir contracts

Spain just told Palantir to pack its bags. Or at least, to stop unpacking new ones.

On July 1, the Spanish government issued a directive through SEPI, the state holding company that oversees the country’s publicly owned enterprises, instructing its portfolio companies to avoid entering new contracts with Palantir Technologies. The reason: concerns over classified national security information and what officials see as risks to national sovereignty.

The directive targets firms operating in defense, communications, and infrastructure. We’re talking about heavyweights like Telefónica, defense contractor Indra, and naval shipbuilder Navantia.

What’s actually happening

Here’s the thing: this isn’t technically a ban. It’s not legislation. It’s not even a formal regulation.

It’s more like a strongly worded internal memo with teeth. SEPI is directing the companies it controls to exercise “vigilance” regarding sensitive data, which in practice means no new Palantir contracts.

That distinction matters. Existing contracts remain intact, at least for now. Palantir’s most notable Spanish deal, a contract worth approximately €16.5 million with CIFAS (the Centro de Inteligencia de las Fuerzas Armadas, Spain’s military intelligence center), runs through November 2026. So the company isn’t getting kicked out mid-project. It’s just not being invited back.

The company, co-founded by Peter Thiel and led by CEO Alex Karp, has long positioned itself as the Western world’s answer to authoritarian surveillance tech.

Keep reading

The Biggest Problem With AI Today

What’s the biggest problem in AI today? Is it cost, with token budgets being blown out of the water by agentic AI? Is it sustainability, with AI consuming electricity and fresh water? Is it ethics, with tech companies cramming AI into everything?

I think it’s deeper than that. Those are all symptoms of a much deeper-rooted problem: nobody’s making decisions.

Or more correctly, we’ve abdicated far too much of our executive function to AI. We’ve surrendered our thinking. 

Let’s dig in.

Part 1: Where This Issue Came From

On Friday afternoon, I was mulling over what I wanted to cover in this week’s issue. It’s a holiday weekend here in the USA, so not as many folks will be reading, and that’s okay. (I appreciate that YOU are) And I’ve covered a ton recently:

So on a whim, I set up a NotebookLM with the last 180 days of conversations from over 40 different subreddits, like r/marketing, r/chatgpt, etc. – everything around marketing, business, and AI. I connected it to Claude Code with the NotebookLM command line tool (the most token—efficient way for Claude to talk to NotebookLM), and then put all of my 2026 newsletters year to date into an input folder.

I asked Claude to compare what I’ve written about thus far this year with what folks are finding their hardest problems are with AI. Claude spit out a list of 10 major things derived from over 800,000 words of foaming at the mouth on Reddit that it thought might be good newsletter topics:

  • AI Visibility challenges
  • Agentic oversight is degrading
  • AI deployment is broken
  • 40-60% of company budget is wasted on the wrong models
  • AI is a rental
  • AI sycophancy is screwing up synthetic focus groups
  • AI detectors don’t work
  • AI is hollowing out corporations and no one’s hiring junior staff
  • People measure AI by tokenmaxxing
  • Marketers are basically unpaid labor for AI companies training data

Claude was REALLY pushing for me to write about how measurement is broken in marketing and AI today, and I might do that at some point, but that’s not what I see when I look at this laundry list. Yes, there are measurement issues in many of them, data issues in many of them, but… measurement being broken is the symptom of what I said earlier – we’ve abdicated executive function.

For those who aren’t analytics nerds, you know that measurement is a trailing indicator. It’s not a leading indicator.

Part 2: Executive Function Recap

As a reminder, I bucket executive function into four categories that I call PODS:

  • Plan: you think about achieving something in the future and make a plan to get there from here
  • Organize: you take what you have and try to make sense of it
  • Decide: you take what you have and make decisions about it
  • Solve: you solve the problems you have

Yes, there is more nuance to executive function than this, but this handy, short list is an easy way to see what our brains are doing. That’s critical thinking, one of the worst-named practices we have.

Why? Because critical thinking isn’t about being critical, per se. It’s about metacognition – the definition of which is thinking about thinking. When you’re thinking about how you think, you open the door to improvements, to growth.

Thinking about thinking means asking questions and reflecting – is this the best way to do something? How could I do this better? How could I derive more enjoyment from this thing I’m doing? It’s not criticizing yourself as much as it is recognizing what you’re doing and whether it’s working or not.

When you’re planning, organizing, deciding, and solving, you’re inherently thinking about thinking. Every time you plan, every time you bring order to chaos, you have to check in with your own brain to see if what you’re doing is moving you closer to the goal posts.

Executive function is one of the things that defines our sentience as living creatures. Every sentient creature from a mouse to us does these tasks. You’ve read or heard stories about crows fashioning tools from wire to solve problems, you’ve watched dogs and cats make decisions and plan. I’ve watched my own cat measure optically whether or not she can make a particular jump.

Properly prompted, today’s AI tools are superb at executive functions as well. Given the right frameworks, harnesses, and data, they can plan, organize, decide, and solve better than we can at most language-based tasks.

And therein lies the actual problem.

Keep reading

China-Linked Socialist NGO Derailed $23.6 Billion In Data Center Buildouts: Report

Our note on Thursday titled “World’s Largest Data Center Project On Verge Of Collapse After Blackstone Unexpectedly Pulls Out” detailed Blackstone dialing back its presence from Northern Virginia’s data-center alley, raising questions about whether the AI infrastructure buildout, colliding with local resistance movements, has begun to hit hard limits.

Just days after agreeing to sell stakes in three Virginia data centers to Digital Realty Trust for $3.5 billion, Blackstone’s QTS Realty Trust is reportedly abandoning plans for its portion of the massive Prince William Digital Gateway project. The 2,100-acre campus was expected to include as many as 37 data-center buildings and require city-scale power supplies.

“For community organizers and residents that spent the last five years opposing the Digital Gateway, QTS’s pullout will now validate a playbook that involved pressure campaigns on local politicians and legal attacks. It will also unleash even more powerful blowback nationwide against these unwanted developments,” we noted.

That brings us to the composition of the local resistance. Multiple reports suggest data center opposition is not entirely organic.

In fact, one familiar player appears to be involved, a name our readers know well, and the U.S. government certainly recognizes because a China-based billionaire funds the socialist NGO network.

Y Combinator founder Garry Tan, also founder of Garry’s List, a civic engagement organization, cited the Bitcoin Policy Institute’s recent report on how a “coordinated foreign influence campaign against American AI — running through CCP state media, a Shanghai-based Marxist’s nonprofit network, and foreign billionaire dark money that has funneled $2B+ into US advocacy infrastructure.”

Garry’s List noted, “AI doomerism isn’t as organic as it looks.“

That China-based Marxist’s nonprofit network spreading across the US is supported by Neville Roy Singham, who has reportedly funneled hundreds of millions of dollars into left-wing nonprofits, media operations, and activist networks that seek to sow chaos and spread communism inside the US.

Earlier this week, U.S. Attorney Jay Clayton for the Southern District of New York, authorized by Acting Attorney General Todd Blanche, was authorized to examine whether Singham, NGOs he funded, or their leaders committed wire fraud, bank fraud, money laundering, or other financial crimes.

Given that federal investigators are circling the socialists in the Singham NGO network, Garry’s List noted that Singham’s Party for Socialism and Liberation has “run 21 campaigns across 14 states that delayed, scaled back, or blocked $23.6 billion in AI infrastructure investment.”

Keep reading

Anthropic Moves To Shut Loopholes Letting Chinese Tech Firms Access Claude

Days after the Commerce Department lifted three-week-old export controls on Anthropic’s Fable and Mythos AI models over national security concerns, a new report says the company is moving to close loopholes that have allowed Chinese firms to access its most advanced models.

The Financial Times cites people familiar with the matter who say Chinese companies, such as Ant Financial, used overseas subsidiaries, cloud providers, and internal corporate networks to access AI chatbots such as Claude Code.  

To note, Alibaba owns about one-third of Ant Financial. Alibaba was recently blacklisted by the US Government over concerns that it was effectively an arm of the Chinese military.

Ant reportedly provided employees with corporate Claude accounts routed through its Singapore-linked intranet, while ByteDance employees have used VPNs and expense reimbursements for personal Claude subscriptions.

The workarounds do not appear to violate US or Chinese law, but they breach Anthropic’s terms of service, which ban Chinese companies and Beijing-controlled foreign entities from using its models.

Anthropic said it prohibits access from unsupported regions, including China, and continuously updates enforcement systems to detect evasion.

FT provided more details on its crackdown:

As part of its efforts to crack down on unauthorised access, Anthropic has targeted “transfer station” services, which relay requests from users in mainland China through Claude accounts registered overseas before returning the responses.

However, larger Chinese AI groups generally avoid transfer stations because the services’ operators are widely suspected of storing or reselling prompts. Executives worry rivals could analyse those requests to understand how they are using advanced models to improve their own systems.

What’s ironic is that a company behind one of the world’s most advanced coding models apparently failed to build the proper guardrails needed to keep Chinese firms from accessing it, even as it works to close those loopholes.

Keep reading

Billionaire Tech Mogul Peter Thiel Warns Woke AI Company Anthropic Could Rig 2028 Election for Democrats

Billionaire technology Peter Thiel warned that AI company Anthropic could use its technological advantage to influence the 2028 presidential election in favor of Democrats.

Speaking at the Aspen Ideas Festival, Thiel suggested that Anthropic, which he described as a “woke liberal company,” was “winning the AI race” and could use its advanced AI models to “rig the elections in 2028.”

Thiel, who co-founded both PayPal and Palantir, argued he company would be able to “completely outwit” any efforts by Elon Musk to counter it through X because of the power of its technology.

Anthropic has declined to comment, referring reporters to a previous blog post on election integrity and political bias.

The company has clashed with the Trump administration, which has even designated it a “supply chain risk” because of the restrictions it wants to place on military programs.

CEO Dario Amodei is known for his left-wing views and has likened President Trump to a “feudal warlord.”

Keep reading

4Chan trolls UK government with another AI hamster as fines hit $800k

4Chan has continued to troll the UK government and Ofcom after they hit the website with fines of over $800,000, and they’re answering with more AI hamsters.

Over the last year, a number of governments have been cracking down on what online content can be accessed by children under the age of 18. That includes the United Kingdom, which is working on a social media ban similar to the one that Australia implemented. 

The UK has implemented age safety verification checks for certain material too and has hit a number of websites with takedowns, as well as fines. 4Chan has been caught up in the latter, being issued with fines that now total over $800,000.

While Ofcom, the UK regulator, is still seeking payment from 4Chan, their lawyer has once again responded with an AI hamster.

4Chan hits back at UK government’s latest fine

“Ofcom wrote. Again. Demanding that 4chan pay its fine. Sent us bank details and everything. Oh no. Super scary. We replied with a hamster. Again,” Preston Byrne, the website’s lawyer, posted on X. 

Byrne also showed off the email response he sent to the regulator. “You want money, huh? Come get it,” he started, with an AI hamster wearing a Thug Life hate being surronded by mountains of dollar bills.

“As 4Chan has no assets in the United Kingdom (given that it has no connection to the United Kingdom), that would require you to show up in a US court as a platiff, waive soreign immunity, and overcome existing U.S. doctrine regarding the non-enforcement of foreign regulatory penalties. 

“We suspect that isn’t going to happen. We suspect you know it isn’t going to happen, too.”

Keep reading

Are Taxpayers Helping to Finance America’s Data Center Boom?

“Government is the great fiction through which everybody endeavors to live at the expense of everybody else” ~ Frédéric Bastiat

A strikingly large number of massive data centers are being built across the United States. It is currently estimated that there are more than 4,000 data centers in the U.S., and more are on the way.

The federal government as well as local and state governments are providing financial incentives for these investments. Such incentives occur in an environment that lacks transparency and proper disclosure. As an extension of this opaqueness, the benefits to justify these subsidies also remain unclear. Many would argue that promises of job creation have been grossly overstated (and the data centers’ potential role in creating a digital control grid kept secret), while energy and resource concerns—as well as the potential costs of site cleanup if and when the facilities close down or fail—have been minimized. This, in addition to the secrecy surrounding the planning and financing of the data center industry, indicates that the negative impact to local residents and the American taxpayers may be substantial.

The following report examines this matter and is organized into two main sections. The first covers the federal layer of financial influence helping to advance the data center boom—the One Big Beautiful Bill. The second section focuses on the generous state and local government tax incentives, which are costing state governments billions in revenue losses. The conclusion elaborates on an opportunity to join the effort in seeking clarity on America’s data center industry, with additional resources provided in the links below.

Keep reading