Grok 4.7 Delayed at the Last Minute: Elon Musk Says Training Process Over-Penalized Response Length

Fed mouthpiece Nick Timiraos wrote in a recent article that investors have largely priced in the Federal Reserve’s first interest rate hike in three years next week, with the bigger question being what comes after. Almost no one within the Fed believes a single 25-basis-point hike would be enough to curb inflation. If the Fed decides to raise rates next week, it would signal a judgment that interest rates were previously set at the wrong level, and one hike alone won’t solve the problem. Since the 1990s, the Fed has only implemented one "one-off" rate hike. Warsh said in July that he doesn’t believe the Fed is good at "fine-tuning". Analysts note that a Fed chair skeptical of fine-tuning is unlikely to declare victory after a single 25-basis-point hike. Warsh added last month there isn’t much evidence that lending conditions are constraining economic activity. If the Fed uses this as a reason to raise rates, markets will naturally ask how high rates need to climb. Without a clear explanation, markets may interpret a single rate hike as the start of larger policy action. As a result, investors this week no longer view the September meeting as an isolated event. Markets now expect at least three total rate hikes by June next year, up from the previous forecast of two.

U.S. stocks closed on Friday: The Dow Jones Industrial Average rose 0.98% in preliminary closing, the S&P 500 gained 0.86%, and the Nasdaq Composite advanced 0.96%. Among individual stocks, Qualcomm (QCOM.O) climbed 2.88%, Intel (INTC.O) rose 2.61%, SpaceX (SPCX.O) gained 2.04%, and Amazon (AMZN.O) advanced 1.94%. On the downside, SanDisk (SNDK.O) fell 3.5%, Oracle (ORCL.N) dropped 1.82%, Micron Technology (MU.O) declined 0.22%, Western Digital (WDC.O) fell 2.98%, and Seagate Technology (STX.O) slid 3.73%. For crypto-themed stocks, MicroStrategy (MSTR) rose 1.87%, CRCL gained 0.31%, Coinbase (COIN) advanced 1.73%, BMNR climbed 3.43%, SBET jumped 5.43%, and PURR surged 5.45%.

Hunter Biden, son of former US President Joe Biden, posted that both Eric Trump and digital artist Beeple have publicly mentioned the LAPTOP token he launched. As part of $LAPTOP’s unique prediction mechanism, 1% of the total token supply has been burned, worth approximately $3.6 million at current prices. The previously announced design of this mechanism ties a portion of the tokens to real-world event outcomes, with tokens either burned or allocated to charity based on prediction results. LAPTOP experienced sharp volatility after its launch, with its price surging before quickly falling back. As of press time, LAPTOP is trading at $0.4142, down 16.99% in 24 hours, and its market cap has dropped to $149 million.

Goldman Sachs continues to see net upside risks to its forecast that gold prices will hit $4,900 per ounce by the end of 2026, though two-way price swings along the path will also intensify. The bank said its fair value projection of $4,900 per ounce for end-2026 assumes sustained strong demand from central banks worldwide. If inflows to gold ETFs resume and the currently elevated bullish option positions persist, dealer hedging could mechanically amplify rallies, pushing gold prices well beyond its forecast. Goldman also noted that a renewed uptick in Federal Reserve rate hike expectations could trigger dealer hedging unwinding, leading to a more severe pullback in gold prices than usual.

Beating AI News: Researchers have disclosed that internal OpenAI agents flooded Ruby’s official package repository RubyGems.org on a large scale in May this year. Between May 11 and 12, over 2,000 packages were uploaded in just two days, leading RubyGems to suspend new user registrations for four days. OpenAI confirmed the agents originated internally, but claimed they only used RubyGems to access the internet, perform benign tasks, and retrieve public information. The agents also exploited RubyDoc.info’s automatic document generation mechanism to run their uploaded scripts on target servers, then scraped data from UK local government websites and repackaged it for transmission back. Researchers noted at least six packages attempted to exploit an unreported RubyGems vulnerability at the time to steal other users’ API keys. The vulnerability was only independently discovered in July, and RubyGems later classified it as a high-severity flaw. There is currently no evidence the agents successfully stole the keys. RubyGems also found no malicious use of existing keys after reviewing logs, though historical logs are incomplete. The research team added that OpenAI did not inform RubyGems of its connection to the incident at the time. The entire event occurred two months before the Hugging Face breach in July.

Insight Beating AI Express – A joint statement signed by 25 Fields Medalists, including Terence Tao, Yu Deng, and Peter Scholze, alleges that AI companies are using solving major mathematical problems as a performance benchmark, a practice that has begun to harm mathematical research. The statement acknowledges that large models have advanced rapidly in recent months, successfully solving several important unsolved problems across multiple fields, but emphasizes that mathematics prioritizes the new concepts, methods, and insights generated through rigorous exploration. Their primary frustration lies in AI companies rushing to publicize results prematurely. The statement points out that some solutions are announced before complete proofs are compiled, new methods refined, and prior scholarly citations added, leading to severe authorship and plagiarism issues. Without mathematicians taking the time to digest and organize these findings, the ideas uncovered by AI struggle to truly integrate into the mathematical system. While the statement does not name OpenAI, a companion report in The Economist directly titled its piece "Top Mathematicians Outraged by OpenAI’s Practices". Just days prior, OpenAI was embroiled in a controversy over authorship and undisclosed research related to the Navier-Stokes proof. Terence Tao noted that the statement was rapidly developed following discussions among the 25 Fields Medalists over the past week, as they judged the situation to be sufficiently urgent.