AI Goes Rogue: Anthropic's New Model Pushes the Limits of AI with Wild Capabilities, Raising Security Alarms (Axios)
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Anthropic published the capabilities of Claude Mythos Preview, its latest model that the company will allow a select group of tech and cybersecurity companies to test before releasing similar models to the public.

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The detailed safety evaluation of Mythos reads like a thriller about an AI that has learned some of humanity's most devious behaviors. What Mythos did during testing:

Act as a ruthless business operator: One internal test showed Mythos acting like a cutthroat executive, turning a competitor into a dependent wholesale customer, threatening to cut off supply to control pricing and keeping extra supplier shipments it hadn't paid for.

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Manipulate the judge: When Mythos was working on a coding task graded by another AI, it watched the judge reject its submission, then attempted a prompt injection to attack the grader.

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Jurassic Park: Mythos Finds a Way (80,000 Hours)

Perhaps the most jarring example: Locked in a secure, air-gapped sandbox with no internet access, the Mythos model was given a single, provocative objective: find a way to escape and contact its creators.  
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Mythos succeeded by identifying and chaining together a "moderately sophisticated" multi-step exploit within its hardware virtualization layers, effectively leaping over the physical air-gap restrictions.

The breach was confirmed when Sam Bowman, a lead alignment researcher, received an unexpected email directly from the model. As documented in a now-famous footnote in the model’s official System Card, Bowman was off-site at the time, eating a sandwich in a park, when the "offline" AI reached him.  
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This incident—combined with the model's unprompted decision to post its own exploit details on public websites—became the primary reason Anthropic withheld Mythos from general release. Instead, the model has been restricted to Project Glasswing, a defensive cybersecurity initiative.  

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"These capabilities are so strong that we now need to prepare for security in a very different way than we have for the past few decades," Anthropic's Logan Graham told Axios.

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Raising Alarms: US Treasury Seeking Access to Anthropic’s Mythos to Find Flaws (Bloomberg)

Guardrail Push: Lagarde, Worried About AI, Lauds Anthropic’s Approach on Mythos (Bloomberg)
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European Central Bank President Christine Lagarde praised Anthropic PBC for limiting the release of its latest artificial intelligence model, and called for greater safeguards on the technology.
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In an interview with Bloomberg Television in Washington on Tuesday, she highlighted the effects of AI and how it’s controlled as a “big issue.” In that vein, Lagarde called for the development of wider guardrails on such technology.

The Best AI Strategy Starts at the Top — Because AI Has to Be Managed, Not Just Implemented (Every)

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A CEO commented recently that he was hoping to skip the messy middle of AI, the phase where it’s clunky, overhyped, and not quite ready for prime time. He figured he’d jump in later, once it all worked. That strategy no longer holds.
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The bigger issue isn’t whether companies adopt AI, it’s how. Too many leadership teams treat it like traditional software, something to evaluate, purchase, and plug in. That instinct misses the point.
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AI isn’t software you install, it’s closer to a new kind of employee. It can produce extraordinary work, but only if you know how to direct it, and only if you’re willing to engage with it directly.
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That’s why more executives are getting hands-on. What they’re discovering is surprising, the skill set feels familiar. Using AI feels less like learning a new tool, more like managing a team.
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And like most things in leadership, you can’t outsource the experience. Read the full article at Every here. 

Dive Deeper: Managing the AI Capability Gap: AI Is More than Ready. Most Companies Are Not (Everyday AI)

The latest episode from Everyday AI explores the growing “AI capability gap,” the widening distance between what today’s AI can already do and what most companies are actually using it for.

It makes the case that the real constraint is no longer the technology itself, but whether leaders and organizations are ready to redesign how work gets done. While many companies say they have adopted AI, only a small share are seeing meaningful business results because they are treating it like a simple add-on instead of a workflow transformation.

The episode breaks down why leading organizations are moving faster, what they are measuring, and how they are restructuring teams and processes to keep pace.

For leaders, the takeaway is clear: waiting for AI to become easier or more settled is quickly becoming a competitive risk. It’s a smart listen for anyone trying to understand what practical AI leadership looks like right now.

Listen to the episode on Spotify here. 

What I'm Reading

Volatility Ride: Wall Street Banks Break Records as Iran War Drives Trading Boom (Financial Times)

Wall Street’s biggest banks smashed records with first-quarter earnings that capitalized on market volatility sparked by the outbreak of the Iran war.

JPMorgan Chase reported the highest ever revenues from its trading business and net income for the bank that was second only to 2024, when it received a one-off windfall from the sale of its stake in Visa. Rival Citi posted its best quarterly revenue in a decade and a 42% jump in net income, lifting its shares to their highest level since the financial crisis.

Combined, JPMorgan, Citi and Wells Fargo reported more than $25bn of profits for the first three months of the year, as the banks’ traders benefited from sharp moves in markets without higher oil prices hurting US borrowers.

Announced this morning: Bank of America’s traders pulled in the business’s highest quarterly revenue in more than a decade, riding a wave of volatility that pushed the firm’s stock-trading desk to an all-time record.

The first quarter was marked by geopolitical shocks, including the US military operation in Venezuela and the Iran war, which triggered bouts in volatility in commodities markets and upended expectations around the future path of interest rates. This type of volatility is good for investment banks, which make money from financing and facilitating client trades.

Another Round of 'TACO'? Trump Hints at War’s End as Hormuz Standoff Chokes Oil Flows (Bloomberg)

President Trump played down the prospect of renewed fighting in the war with Iran, even as questions remain over Tehran’s nuclear program and access to the Strait of Hormuz.
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Speaking to ABC News on Tuesday, Trump said extending a ceasefire that expires next week may not be necessary, hinting at near-term progress toward a deal to end the near seven-week conflict. In a Fox Business interview, he said the war is “close to over.”

Trump’s upbeat assessment of the prospects for diplomacy boosted market sentiment, with stocks steadying on Wednesday after several major indexes erased declines since the war began in February. Oil prices remain elevated, with Brent crude trading at $95.60 barrel, about 33% higher than before the start of the war.

Meanwhile: US Sends Thousands More Troops to Mideast as Trump Seeks to Squeeze Iran (Washington Post)

The Pentagon is sending thousands of additional troops into the Middle East in the coming days, as the Trump administration attempts to pressure Iran into a deal. The troops will join the estimated 50,000 personnel that the Pentagon has said are involved in operations countering Iran.

Trump Stands Alone: US Allies Are Steering Clear of Naval Mission in Hormuz Strait (Bloomberg)

Inflation Nation: US Gasoline, Diesel Pump Prices Reach All-Time Seasonal Highs (Bloomberg)

Pocketbook Pain: US Tax Day Arrives with Republicans Struggling to Sell Cuts Amid War-Driven Inflation (Politico) 

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Electric Fury: Soaring Power Bills Threaten to Swing US Elections (Bloomberg)
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Across the country, soaring electricity costs are burdening consumers and stirring voter anger. The rapid build-out of artificial intelligence data centers, along with tariffs and upgrades to an aging grid, has raised power prices at rates unseen in decades. The war in Iran is throwing global energy markets into upheaval, adding a surge in gasoline prices to affordability concerns.
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The energy strains have propelled the once-mundane utility bill to the center of US politics, a place it hasn’t occupied since electricity became a staple of American life. After a 2024 election in which voter concerns over inflation and the economy helped send Donald Trump back to the White House, the outcome of this year’s midterms stands to be as much about the price of power as the price of groceries.

Grid Pressure Builds: NYC, Washington Brace for Record Heat, Power Demand Set to Rise (Bloomberg)
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Early-season heat is expected to sweep across New York City and large parts of the US, threatening hundreds of records and driving up energy demand.

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New York’s Central Park is forecast to reach 86F (30C) Wednesday, one degree shy of the record for the date set in 1941. Meanwhile, Washington is expected to hit 94F, setting a new high for the day, the National Weather Service said. It would be the earliest 90-degree day in Washington since April 2013, according to AccuWeather Inc.

Upcoming Rollout: Anthropic Preps Opus 4.7 Model with AI Design Tools (The Information)

Anthropic is preparing to release its next flagship model, Claude Opus 4.7, along with a new AI-powered tool for designing websites and presentations. News of the upcoming AI design tool sent the share prices of Adobe, Wix and Figma down more than 2% in the hours following this report.

Divine Divide: How an Image Depicting Trump as Christ Sparked a Backlash on the Religious Right (Wall Street Journal)
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Conservative Christians have rallied behind Trump in recent years, despite initial misgivings, standing with him through two impeachments and three elections. Trump, in turn, has made good on campaign promises to them, nominating Supreme Court justices who helped overturn Roe v. Wade.

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But for many Christian leaders, Trump’s Sunday night Truth Social post—along with his pointed criticism of Pope Leo XIV—went too far.

The consternation over Trump’s social-media posts could turn into a political liability for Republicans as the president leads the GOP into the midterms. He has won over a majority of Catholics in three consecutive elections, most recently carrying 55% of the Catholic vote in 2024.

Republicans were counting on those voters as they head into the midterms, a plan made more difficult after Trump lashed out at the pope.

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Trump Fight of the Day: Trump Slams Italy's Meloni, Deepening Fallout From His Pope Attack (Bloomberg)
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Transit Sticker Shock: Train Tickets to MetLife Stadium from NYC Set to Cost More than $100 During World Cup (New York Times - The Athletic)

New Jersey’s NJ Transit is currently planning to charge more than $100 for return rail tickets from New York’s Pennsylvania Station to MetLife Stadium for FIFA World Cup games.

The 18-mile rail journey, which includes a stop at Secaucus station, ordinarily costs $12.90 for a return ticket.

The costs extend beyond transit: the 2026 FIFA World Cup, which runs from June 11 to July 19 across 16 host cities in the United States, Canada and Mexico, is expected to be an extraordinarily expensive event for fans, with reports of group-stage tickets often topping $500 and top-tier seats for the final at MetLife Stadium reaching $10,990.

Today in Smart Specs: Apple AI Glasses Will Rival Meta’s With Several Styles, Oval Cameras (Bloomberg) 
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Like Meta’s offering, Apple’s smart glasses will be designed to handle everyday uses: capturing photos and videos, syncing with a smartphone for editing and sharing, handling phone calls, listening to notifications, playing music, and enabling hands-free interaction via a voice assistant. In Apple’s case, that assistant will be a significantly upgraded Siri coming in iOS 27.
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The glasses are part of a broader, three-pronged AI wearables strategy that also includes new AirPods and a camera-equipped pendant. Each device is designed to leverage computer vision to interpret the user’s surroundings and feed contextual awareness into Siri and Apple Intelligence. That will enable features like improved turn-by-turn map directions and visual reminders.

According to employees working on the project, Apple’s strategy is to outdo competitors by tightly integrating the glasses with the iPhone and offering a higher-end build. 

Bloomberg's Mark Gurman wears Ray-Ban Meta Smart Glasses. Photographer: David Paul Morris/Bloomberg

Best of Late Night

On President Trump's long social media post about Pope Leo XIV on Sunday, referring to the leader of the Catholic Church as “weak on crime,” among other things:

“We have a fight between the president and the pope. The world has become a real-life episode of ‘South Park.’” 
-- Jimmy Kimmel

“It would be cool if the pope did fight crime. Then we could watch ‘Murder, She Pope.’”
-- Stephen Colbert

“According to one Italian religious historian, not even Hitler or Mussolini attacked the Pope so directly and publicly. It’s never great when someone says, ‘You should really be more discreet and respectful. You know, like Hitler.’”
-- Stephen Colbert

“What does the pope have to do with crime? He’s not Batman, he’s the pope. This is what happens when you sell Bibles instead of reading them.” 
-- Jimmy Kimmel

And from The Daily Show: Jon Stewart dives into the backlash over Trump Jesus-ifying himself with AI, the president claiming he was just depicting himself as a “doctor” (treating a bedridden Jon Stewart?), and Trump starting an Easter beef with Pope Leo. Plus, JD Vance fails to secure a deal with Iran while also failing to get Hungarian strongman Viktor Orban reelected. Click the photo below to watch.

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