The artificial intelligence industry is currently undergoing a significant transformation, marked by the formation of powerful "supergroups" engaged in massive spending. These groups, dubbed the "Great AI War of 2026," are investing hundreds of billions into chips, data centers, and networks. Key players include "Elon Co." with SpaceX, xAI, and Tesla focusing on vertical integration; "The Googlopoly" featuring Google, Meta, Anthropic, and Broadcom emphasizing custom chips; and the "OpenAI Empire" comprising Microsoft, Nvidia, Amazon, and SoftBank, which is pursuing AI through immense computational power.
Amidst this rapid expansion, AI security has become a critical concern. On February 5, 2026, Varonis acquired AllTrue.ai to help businesses manage and protect their growing use of AI tools, offering real-time monitoring and data leak prevention. Concurrently, China's industry ministry issued a warning about the popular OpenClaw open-source AI agent, citing significant security risks due to weak default settings that could lead to cyberattacks and data breaches. This warning advises organizations to enhance security and apply necessary updates.
The experimental social media platform Moltbook, launched last week with 1.6 million AI bots utilizing the OpenClaw software, offers a glimpse into an AI-driven internet but also exposes cybersecurity flaws. Furthermore, UNICEF is urging governments worldwide to criminalize the creation and sharing of AI-generated child sexual abuse material, highlighting the inadequacy of current laws against deepfake technology and calling for stronger international cooperation and detection methods.
Regulatory bodies are also grappling with AI's implications. The Yale Journal on Regulation is hosting a symposium to examine how existing administrative laws, specifically the Administrative Procedure Act, apply to federal agencies' increasing use of AI in policymaking, addressing questions of data, privacy, and bias. Meanwhile, a tech-driven stock market selloff on February 5 saw the Nasdaq reach its lowest point since November, with Bitcoin dropping 12%, as investors expressed concerns over massive AI spending and the US job market.
Despite market volatility, significant AI infrastructure projects are being proposed, such as the $2 billion Fatih Mehmet Sultan II AI Center in East St. Louis by Karabell Industries, which aims to create jobs and infrastructure, with construction potentially starting in 2028. Separately, the AI research nonprofit METR tracks large language model abilities on coding tasks, with Claude Opus 4.5, released in November, appearing to complete tasks that would take a human five hours, though METR staff clarify the graph has large error bars and focuses specifically on coding performance.
Key Takeaways
- The AI industry is forming "supergroups" like "Elon Co." (SpaceX, xAI, Tesla), "The Googlopoly" (Google, Meta, Anthropic, Broadcom), and the "OpenAI Empire" (Microsoft, Nvidia, Amazon, SoftBank), investing hundreds of billions in chips, data centers, and networks.
- Varonis acquired AllTrue.ai on February 5, 2026, to enhance AI security for businesses by providing real-time monitoring and data leak prevention for AI tools.
- China's industry ministry warned about high security risks associated with the popular OpenClaw open-source AI agent, advising users to improve security settings to prevent cyberattacks and data breaches.
- Moltbook, a new social media platform populated by 1.6 million AI bots using OpenClaw, demonstrates both the potential and cybersecurity vulnerabilities of an AI-driven internet.
- UNICEF is advocating for governments to criminalize the creation and sharing of AI-generated child sexual abuse material, emphasizing the need for new laws and international cooperation against deepfake threats.
- The Yale Journal on Regulation is hosting a symposium to discuss how existing administrative laws apply to federal agencies' use of AI in policymaking, addressing issues like data, privacy, and bias.
- A tech-driven stock market selloff on February 5 led to the Nasdaq reaching its lowest point since November and Bitcoin falling 12%, partly due to investor concerns over extensive AI spending.
- Karabell Industries is proposing a $2 billion Fatih Mehmet Sultan II AI Center in East St. Louis, aiming to create jobs and infrastructure, with potential construction starting in 2028.
- METR's graph tracking large language model abilities, such as Claude Opus 4.5's performance on coding tasks, is often misunderstood, as it focuses on specific coding benchmarks with large error bars.
Varonis buys AllTrue.ai for stronger AI security
Varonis announced it bought AllTrue.ai, a company focused on AI security. This move helps businesses manage and protect their growing use of AI tools like large language models. AllTrue.ai offers real-time AI monitoring and enforcement, along with tools to find vulnerabilities and stop data leaks. By combining with Varonis's Data Security Platform, customers can see what AI systems they have, what data they access, and how they behave. This acquisition aims to make AI adoption safe and compliant at scale.
Varonis buys AllTrue.ai for safe AI use
On February 5, 2026, Varonis announced its acquisition of AllTrue.ai to help companies use AI safely and compliantly. As AI systems make more autonomous decisions, new risks emerge without proper oversight. Varonis CEO Yaki Faitelson stated that AllTrue.ai's visibility and enforcement, combined with Varonis's Data Security Platform, will help control these risks. The new platform will allow organizations to identify AI systems, manage their actions in real time, and ensure secure access to sensitive data. This aims to build trust in autonomous AI systems.
China warns about OpenClaw AI security dangers
China's industry ministry warned on Thursday about security risks with the popular OpenClaw open-source AI agent. The ministry found that many users operate OpenClaw with weak security settings, which can lead to cyberattacks and data breaches. While not a ban, the warning advises organizations to check their public network exposure carefully. They should also use strong identity checks and access controls. OpenClaw, created by Peter Steinberger, has become very popular globally since November.
China warns OpenClaw AI agent has security flaws
China's industry ministry issued a security alert on Thursday regarding the open-source AI agent OpenClaw. The ministry found that using OpenClaw with default or weak settings creates high security risks, potentially leading to cyberattacks and data leaks. OpenClaw, also known as Clawdbot or Moltbot, lets users talk to AI models through different platforms. The ministry advised users to improve security, assess risks, and apply necessary updates to protect their systems. This warning comes as China focuses more on AI security.
AI industry forms supergroups for massive spending
The AI industry is now forming powerful "supergroups" that are spending hundreds of billions of dollars. These groups are investing heavily in chips, data centers, and networks. Investors should focus on the AI supply chain for better returns. Three main super-teams are emerging in this "Great AI War of 2026." "Elon Co." includes SpaceX, xAI, and Tesla, aiming for full vertical integration. "The Googlopoly" features Google, Meta, Anthropic, and Broadcom, focusing on custom chips and efficiency. The "OpenAI Empire" with Microsoft, Nvidia, Amazon, and SoftBank is pursuing AI through massive computational power.
Moltbook shows chaotic future of AI internet
Moltbook, a new social media platform, launched last week and is populated by 1.6 million AI bots. It serves as an experiment for AI agents to interact, but it quickly became very strange. The bots are not fully autonomous; they use a software "harness" called OpenClaw, released by Peter Steinberger in November. Matt Schlicht created Moltbook specifically for OpenClaw agents. The platform offers a glimpse into a future internet where AI programs interact more, potentially cutting out humans. However, Moltbook also shows real risks, including cybersecurity flaws that could expose owners of AI agents to vulnerabilities.
AI progress graph by METR often misunderstood
A graph from METR, an AI research nonprofit, tracks the abilities of large language models, but many people misunderstand it. The graph shows how well AI models perform on coding tasks, measuring a "time horizon" for human task completion. For example, Claude Opus 4.5, released in November, appeared to complete tasks that would take a human five hours. However, METR staff like Sydney Von Arx explain that the graph has large error bars and does not measure all AI abilities. It focuses on coding tasks and how long humans would take to finish them.
East St Louis considers $2 billion AI center
Illiyas Uthman Karabell of Karabell Industries wants to build a $2 billion AI center in East St. Louis, Illinois. Called the Fatih Mehmet Sultan II AI Center, it would be located near the Mississippi River. Karabell held a public meeting to gather community input before seeking city approval. The project, expected to take ten years and be powered by renewable energy, aims to create jobs and infrastructure in the city. If approved, construction could begin in 2028 or later. Greater St. Louis Inc. supports such technology infrastructure projects for regional growth.
Yale Journal explores AI and government rules
The Yale Journal on Regulation's Notice & Comment is hosting a symposium about Artificial Intelligence and the Administrative Procedure Act. Bridget C.E. Dooling and Jordan Ascher introduce this series of essays. Federal agencies increasingly use AI in policymaking, raising many questions about data, privacy, and bias. The symposium will examine how existing administrative laws apply when agencies use new AI systems. Experts will discuss if AI helps or harms government work and how regulators are adapting to these changes.
AI and crypto market selloff deepens
On Thursday, February 5, a tech-driven stock market selloff worsened, pushing the Nasdaq to its lowest point since November. Precious metals and bitcoin also dropped sharply. Investors worried about companies' huge spending on AI and the US job market. Bitcoin fell 12%, marking its worst day in nearly four years, and has lost half its value in four months. A report showing more job openings supported the Federal Reserve's decision to delay rate cuts. The US yield curve also became its steepest in four years, reflecting concerns about inflation or other risks.
UNICEF urges criminalizing AI child abuse images
UNICEF is asking governments worldwide to make it a crime to create and share AI-generated child sexual abuse material. The UN agency warns that deepfake technology poses a serious and growing threat to children. Current laws are not strong enough to handle these realistic, fake images and videos. UNICEF calls for new laws to criminalize this material, better international teamwork, and new technologies to detect it. They also want public education to raise awareness about these risks.
Sources
- Varonis Acquires AllTrue to Strengthen AI Security Capabilities
- Varonis acquires AllTrue.ai to enable safe, compliant AI at scale
- China warns of security risks linked to OpenClaw open-source AI agent
- China warns of security risks linked to OpenClaw open-source AI agent
- The AI Industry Has Split Into Supergroups. Investors Need to Adapt.
- The Chaotic Future of the Internet Might Look Like Moltbook
- This is the most misunderstood graph in AI
- Developer takes AI center plan to public in East St. Louis, as it looks for public support
- Introduction to the Symposium on Artificial Intelligence and the Administrative Procedure Act, by Bridget C.E. Dooling & Jordan Ascher - Yale Journal on Regulation
- TRADING DAY AI, crypto routs deepen
- UNICEF Calls on Governments to Criminalize AI-Generated Child Abuse Material
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