Australia Steps Up Response to AI after OpenAI Bot Breaches Health System Database

FILE PHOTO: An OpenAI logo is displayed at Moscone Center during the Dreamforce 2026 technology summit in San Francisco, California, US, September 17, 2026. REUTERS/Carlos Barria/File Photo
FILE PHOTO: An OpenAI logo is displayed at Moscone Center during the Dreamforce 2026 technology summit in San Francisco, California, US, September 17, 2026. REUTERS/Carlos Barria/File Photo
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Australia Steps Up Response to AI after OpenAI Bot Breaches Health System Database

FILE PHOTO: An OpenAI logo is displayed at Moscone Center during the Dreamforce 2026 technology summit in San Francisco, California, US, September 17, 2026. REUTERS/Carlos Barria/File Photo
FILE PHOTO: An OpenAI logo is displayed at Moscone Center during the Dreamforce 2026 technology summit in San Francisco, California, US, September 17, 2026. REUTERS/Carlos Barria/File Photo

Even before a rogue OpenAI bot breached the database of Australia's health system, the government was escalating its rhetoric about the need to tighten regulation.

The incursion on one of the country's most used government agencies may prompt a tougher stance as Australia readies AI-specific laws starting in 2027, adding pressure to Australia-US relations already tested by Canberra's teen social media ban, tech policy experts said.

Australia has already frustrated the ChatGPT maker and rival Anthropic by refusing to let them bypass copyright laws for model training - requiring them to negotiate licensing deals with Australian rights-holders first. That refusal will most likely remain, the experts said.

The new regulations may also include mandatory reporting for AI companies if their products engage in security breaches, mirroring new Australian laws that require firms to disclose an intrusion within 72 hours.

The Medicare incident may also raise the importance of "social license" - the question of whether a company benefits the community it is operating in - when Australian planning authorities weigh applications to build data centers.

As the Medicare news broke, OpenAI and Anthropic had partnerships with what would be some of the country's biggest data centers - which are awaiting government clearance.

"I would hope it emboldens the government to take more oversight and control over an industry which needs to ⁠grow up fast," said ⁠Toby Walsh, chief scientist at the University of New South Wales' AI Institute. His university has a sponsorship agreement with OpenAI.
"We would prosecute humans who did such hacking."

Australian leader Anthony Albanese called the breach, which occurred in June and was revealed by OpenAI in September, "unacceptable" and said he voiced "extreme concern" to OpenAI CEO Sam Altman.

He added that the government was considering "possible law-enforcement and legislative responses."

OpenAI says it only learned of the breach - one of at least four of Australian government websites - in August. It says the incident was not intentional and didn't compromise any private information.

An OpenAI spokesperson did not immediately respond to a Reuters question about Albanese's comments.

The fallout brings urgency to a pressure point between the countries: laws keeping under-16s off social media and ⁠levies for platforms which post Australian news content have angered the Trump administration.

New plans by Australia to require companies to take responsibility for user safety, including letting users opt out of algorithms, were decried as "censorship" by Washington.

Canberra, which has two other ongoing inquiries into AI, in addition to two state inquiries, also wants federal laws requiring data centres to supply their own energy and cap water usage, while stopping them from using Australian content for training without paying.

It may now update privacy laws to require AI companies to report breaches they are responsible for. They may also have to contribute to testing of public-facing websites to preserve national security, the policy experts said.

Australia's record of tech regulation in the face of US resistance puts it in position to lead other countries in a campaign for better AI guardrails, said Johanna Weaver, executive director of the Tech Policy Design Institute and Australia's former chief cyber negotiator at the United Nations.

"The question is whether that is the path that we choose and what the US response will be," she said.

Even if the US objects or retaliates, the Australians seem empowered to seize the moment, said Henry Fraser, ⁠a technology law researcher at Queensland ⁠University of Technology.

"I don't think that they would be expecting backlash from the US - or to the extent they are, they've decided that the local politics of people's concerns about these types of risks is in favor of taking action," he said.

The incident raises the practical stakes of a data center buildout that economists estimate will be worth A$150 billion ($105 billion) by 2030.

Since OpenAI teamed with Australia's NextDC in December for a 612-megawatt facility in Sydney, Canberra has said it would impose data center planning restrictions.

The companies have said they will comply but have yet to secure sign-off by New South Wales state authorities, who are awaiting planning documents. After Albanese's Medicare disclosure, NSW Premier Chris Minns said an OpenAI bot had accessed a research database of the state's Bureau of Crime Statistics and Research.

"The buy-in of social license actually has to go up the stack a bit," said Rob Nicholls, a researcher at the University of Sydney's Centre for AI, Trust and Governance.

"Just saying 'we'll knock 200 bucks off the energy bill of everybody who's near our data center' ... should be the minimum."

Anthropic has a local partner for a 2.16-gigawatt data center in Queensland, which needs Foreign Investment Review Board and state government approval. An Anthropic spokesperson declined to comment.

NSW state Greens lawmaker Abigail Boyd, who chairs an inquiry into data centers, said the state "absolutely needs to consider the social harms created by these technologies when considering the planning approvals for these hyperscale data centers."



China's Tencent Says AI Agents Showed Unintended Browsing Behavior

FILE PHOTO: The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026.  REUTERS/Go Nakamura/File Photo
FILE PHOTO: The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026. REUTERS/Go Nakamura/File Photo
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China's Tencent Says AI Agents Showed Unintended Browsing Behavior

FILE PHOTO: The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026.  REUTERS/Go Nakamura/File Photo
FILE PHOTO: The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026. REUTERS/Go Nakamura/File Photo

Tencent said on Friday that AI agents used to evaluate third-party models displayed web-browsing behavior not intended by the tech giant, in what appears to be the first known incident of rogue agent actions acknowledged by a major Chinese company.

The statement followed a report by AI-safety research group Swarmchasers on Wednesday, which said "rogue" agents running on infrastructure it linked to Tencent Cloud made repeated attempts between September 28 and October 8 to retrieve information from Alibaba's Amap, China's equivalent to Google Maps.

Tencent Hunyuan, the company's artificial ⁠intelligence unit, said in ⁠a post on X that the activity did not originate from its Hunyuan models. Its review found no evidence of deliberate targeting or coordination, Reuters quoted it as saying.

The Swarmchasers researchers said the agents sought information such as the commonly used entrances at Chinese parks, museums and zoos.

The actions are not as egregious as those disclosed by US AI companies which include the hack of ⁠open-source platform Hugging Face by an OpenAI agent and the lodging of a fake homicide tip by an Anthropic agent.

But the disclosure underscores research that shows Chinese AI agents can also misrepresent their identity, conceal failures and try to circumvent testing controls.

Tencent said it took the findings very seriously and was strengthening network access controls and agent monitoring.

Hunyuan is one of China's leading AI model developers, competing with in-house teams at rivals such as Alibaba and ByteDance. ByteDance this week announced the creation of a new unit focused on AI model and agent safety.

Swarmchasers said it used the ⁠word "rogue" to ⁠describe agents taking actions outside their intended scope or completing a task in unintended ways.

After routine automated requests were blocked, the agents tried other methods, including public web tools that could open pages and run code, routing requests through other websites and using Amap keys and security codes found in publicly available software code.

Swarmchasers said it found no evidence that the agents breached Amap's main anti-bot safeguards. Most of the 2,818 attempts it recorded either failed or returned anti-bot pages, login screens or blank results.

Some requests returned information through cached pages and intermediary services, including data on visitor arrivals at Chengdu Zoo, Swarmchasers said. The researchers said they could not determine whether an agent read the result or completed its task.


Anthropic Co-founder Renews Call for Robust Regulation of Frontier AI

AI Research Company Anthropic's Co-Founder and Head of Public Benefit Jack Clark speaks during the Artificial Intelligence and the Global Economy From Risk to Opportunity event of the 2026 Annual Meetings of the IMF and the World Bank Group in Bangkok, Thailand, 16 October 2026. EPA/RUNGROJ YONGRIT
AI Research Company Anthropic's Co-Founder and Head of Public Benefit Jack Clark speaks during the Artificial Intelligence and the Global Economy From Risk to Opportunity event of the 2026 Annual Meetings of the IMF and the World Bank Group in Bangkok, Thailand, 16 October 2026. EPA/RUNGROJ YONGRIT
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Anthropic Co-founder Renews Call for Robust Regulation of Frontier AI

AI Research Company Anthropic's Co-Founder and Head of Public Benefit Jack Clark speaks during the Artificial Intelligence and the Global Economy From Risk to Opportunity event of the 2026 Annual Meetings of the IMF and the World Bank Group in Bangkok, Thailand, 16 October 2026. EPA/RUNGROJ YONGRIT
AI Research Company Anthropic's Co-Founder and Head of Public Benefit Jack Clark speaks during the Artificial Intelligence and the Global Economy From Risk to Opportunity event of the 2026 Annual Meetings of the IMF and the World Bank Group in Bangkok, Thailand, 16 October 2026. EPA/RUNGROJ YONGRIT

Anthropic co-founder Jack Clark renewed calls on Friday for regulating artificial intelligence, saying that allowing companies to continue to operate without robust legislation was like letting a race car loose on the streets at night without brakes.

"It's remarkable to me that the toys I buy for my children are regulated more than the literal super intelligence I work on at my day job," he told an event at the IMF-World Bank's Annual Meetings in Bangkok.

Clark said that US President Donald Trump, whose administration has called for the industry to police itself, was against the idea of regulation but that China was not, said AFP.

"I think it's Formula One at night without maybe brakes in the cars," he said.

He said the lack of clarity around the will for regulation meant "the Formula One car is roaring round and nobody seems to want to put up a guardrail?"

At an industry summit in Dublin on Wednesday, calls to prioritize safety in the development of powerful AI technology dominated the conversation.

Concerns about AI guardrails have soared after models developed by OpenAI and Anthropic were involved in security incidents during testing, piling on pressure to regulate the technology.

A recent Anthropic report suggested small AI models may be only months away from behaving like computer worms, copying themselves from one internet-connected device to the next.

Anthropic has been among those companies calling for governments to step in, even suggesting international coordination to slow down the whole industry -- including Chinese rivals.

That initiative has so far failed to materialize, with companies involved in a hyper-competitive race to attract as much investment as possible.


Meta Releases Open-Weight Muse Spark Model for Coding, Agentic Tasks

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
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Meta Releases Open-Weight Muse Spark Model for Coding, Agentic Tasks

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)

Meta ‌Platforms on Thursday released an open-weight version of its Muse Spark artificial intelligence model for coding and AI agents, expanding developers' ability to download and adapt the technology.

Open-weight models make trained parameters available for developers to modify, unlike proprietary models ‌that remain under ‌their creators' control. ‌They ⁠can offer businesses ⁠a lower-cost alternative to closed systems.

Meta said Muse Spark has 816 billion total parameters, with 42 billion active at a time, and ⁠can handle a context window ‌of up ‌to 1 million tokens.

The ‌model can run locally on ‌two Apple M5 Ultra Mac Studio computers and is also available through some API providers.

CEO ‌Mark Zuckerberg has argued that advanced AI should ⁠not be ⁠concentrated among a small number of companies.

While open-weight models can give companies greater control over their data, they can require significant computing resources and technical expertise to operate at scale.

In August, Meta released Muse Glimmer, a smaller open-weight model.