Anthropic Mythos Breaches NSA’s Classified System in a Few Hours | Rewire News Morning Brief

1｜Anthropic Mythos Breaches NSA's "Nearly All" Classified Systems in Red Team Test

NSA Director Rodriguez briefed Senate Intelligence Committee Vice Chair Warner that Anthropic's Mythos model breached "nearly all of our classified systems" within hours during an authorized red team test on June 11. The government subsequently issued a ban on foreign nationals accessing Fable 5 and Mythos 5, leading Anthropic to claim inability to enforce nationality checks and opt for a global shutdown.

The security alert company, known for its origins in security warnings, had proactively announced in April that the code capabilities of Mythos could pose a global security threat, and had handed the model over to security experts for evaluation. The evaluation results confirmed their own warning, turning them into a national security risk. Seizing the opportunity, OpenAI launched the "Patch the Planet" open-source vulnerability remediation plan and the upgraded GPT-5.5-Cyber to vie for dominance in the security narrative. In the same week, DeepMind Nobel laureate John Jumper announced his move to Anthropic, while Micron and Anthropic signed an infrastructure supply agreement. Anthropic responded by stating that the red team "breach" was a limited breakout, and that competitor models also had similar vulnerabilities. However, this distinction had become irrelevant. A security prophecy had turned into a security incident, which in turn became the starting point for a reallocation of market share.

(Source: Tom's Hardware / MIT Technology Review / Wired / The Information / Cyber Security News)

2｜SpaceX Signs $6.3 Billion AI Compute Lease Agreement with Reflection AI, $150 Million Monthly

Open-source AI company Reflection AI, founded by two former DeepMind researchers, has signed a compute lease agreement with SpaceX, valued at up to $6.3 billion. Starting from July 1, Reflection will pay $150 million monthly to instantly access Nvidia's latest GB300 chip and accompanying hardware at SpaceX's Colossus 2 data center in Memphis, Tennessee. The contract runs until 2029, with both parties retaining exit clauses after 90 days.

Reflection is valued at $250 billion, with Nvidia being one of its investors. This deal makes Reflection the latest tenant at Colossus 2 following Anthropic, Google, and Cursor. SpaceX recently completed its largest-ever IPO, with bond issuance documents revealing over $100 billion in cash reserves. From rockets to compute leasing, SpaceX's second curve is replicating the scale logic of launch infrastructure in AI infrastructure. The S-1 also disclosed that Musk will receive 1 billion shares of restricted stock, contingent on reaching 15 market cap milestones up to $7.5 trillion and colonizing Mars with 1 million people.

(Source: CNBC / Reuters / TechCrunch / Bloomberg / The Information)

3｜Bank of America Predicts Three Rate Hikes This Year, Allianz Stands Pat, 2-Year Treasury Yield Hits 16-Month High

Bank of America released a research report on Monday, revising its federal funds rate forecast from "unchanged for the year" to "25 basis point hikes in September, October, and December," with the target range rising from the current 3.5%-3.75% to 4.25%-4.5%, and no rate cuts expected before 2028. The bank stated that the inflation issue has "clearly deteriorated," with core PCE possibly hitting 3.5%, nearly 70 basis points higher than a year ago. The housing deflation is mostly over, while other core services remain highly sticky.

On the same day, Allianz's Chief Economic Advisor Elian stated on CNBC that he expects the Fed to stay put for the year. The two reached opposite conclusions based on the same set of data, with the divergence itself being a signal. The market is leaning towards the hawkish side. The 2-year Treasury yield rose to its highest level since February 2025, with tech giants experiencing a collective decline, SpaceX's stock continuing its post-IPO slump, and Google's parent company Alphabet seeing its largest single-day drop in a year. Bank of America's rate hike forecast aligns more closely with the hawkish tone set by the new Fed Chair Wash during last week's FOMC meeting.

(Source: CNBC / Fortune / Benzinga / HousingWire)

4｜Chevron Signs 20-Year Natural Gas Agreement with Microsoft, AI Data Centers Lock in Fossil Fuel for a Generation

Chevron and Microsoft have signed a 20-year power purchase agreement to supply a data center in Reeves County, West Texas. Codenamed Project Kilby, the total capacity is 2.67 gigawatts, equivalent to about the power usage of 2 million households, spanning over 2,000 acres in the heart of the Permian Basin. Power delivery is set to commence in 2028, with a total investment of around $7 billion. GE Vernova will provide gas turbines, Chevron will leverage its own gas fields, and the collaboration includes Joulent under Engine No. 1.

On the same day, NVIDIA announced that its new generation of servers will be fully liquid-cooled, claiming to eliminate water consumption inside data centers. However, TechCrunch pointed out that this does not address the largest water consumption source, which is the cooling needs of upstream power plants. A Fortune survey revealed that only 8% of Americans opposing data centers actually live near one, with the resistance spreading from local opposition to national levels. The tech companies' strategy of local community relations is losing efficacy as the adversaries are no longer just neighbors but a national public sentiment.

(Source: FT / Reuters / TechCrunch / Fortune / Chevron Official Website / Bloomberg)

5｜US and Iran Partially Lift Oil Sanctions, Rubio Visits Middle East to Strengthen Agreement Implementation (Continued from yesterday's report)

The US Treasury Department issued a 60-day sanction waiver on Monday, allowing Iran to trade and export oil in USD. This is a predetermined step in the memorandum of understanding signed on June 17. Treasury Secretary Benson described the negotiations as "productive," with Iran committing to keeping the Strait of Hormuz open for passage and allowing IAEA inspectors entry. Oil prices fell in response.

Secretary of State Rubio will visit the UAE, Kuwait, and Bahrain from June 23 to 25, with discussions covering MoU implementation and strait passage arrangements. Israel has expressed concerns about the direction. Axios cited two Israeli officials stating that the US is effectively legitimizing Iran's influence in Lebanon, weakening Israel's room for maneuver. Iran has included the Lebanese situation as a bargaining chip in talks with the US to secure a buffer for Hezbollah. Qatar's Prime Minister stated that protective measures have been established to prevent regional escalation from negotiations. The sanctions have loosened, the 60-day clock is ticking, but each party has a vastly different definition of "success."

(Source: Al Jazeera / Axios / PBS / CNN)

Also of Note ↓

UK Prime Minister Stamer announces resignation, UK to welcome its seventh Prime Minister in a decade. The Labour Party changes leadership in the face of the rise of the far-right Reform UK and dismal local election results. Former Mayor of Manchester Burnham emerged as the most likely successor after winning a by-election on June 18, with the new leader to be in place by September at the latest. (Source: Economist / NPR / CNN)

Germany reaches agreement to acquire 40% stake in Europe's largest tank manufacturer. Berlin continues to advance the nationalization of the defense industry layout, in line with last year's historic defense budget increase. (Source: FT)

NYSE's parent company ICE forms a joint venture with the cryptocurrency exchange OKX, with former New York Governor Cuomo serving as co-chair. The joint venture will tokenize NYSE-listed assets. The relationship between traditional exchanges and crypto platforms is shifting from "who replaces whom" to infrastructure complementarity. (Source: FT / Fortune / CoinDesk)

Google's parent company Alphabet experiences its largest single-day decline in a year, with Nobel laureate Jumper and Gemini's leader Shazeer leaving consecutively. Jumper moves to Anthropic, while Shazeer joins OpenAI. The talent drain in AI is now extending from the product side to the stock price. (Source: Bloomberg / CNBC / The Information)

Former Federal Reserve Chair Alan Greenspan has passed away at the age of 100. He led the Fed for nearly 19 years from 1987 to 2006, earning the nickname "Maestro," but his reputation suffered after the 2008 financial crisis. As the debate over interest rate hikes once again takes center stage in the market, his "let it loosen, then clean up" approach is being revisited. (Source: WSJ / Economist / Marginal Revolution)

Meta has paused its employee keylogging program after data collected for the project was accidentally leaked internally. The program collected employee keystroke data for training AI models, and employees had previously expressed concerns. (Source: Wired)

With the World Cup kicking off in just 11 days, the predicted market betting volume has already reached $5.4 billion, setting a new record. Kalshi and Polymarket are the main beneficiaries, with a month of matches still to go. (Source: Fortune)

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia