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OpenAI’s Executive Exodus & California Vetoes Safety Bill | The Gestalt IT Rundown October 2, 2024

Microsoft has revamped its AI-powered Recall feature, shifting from automatic to opt-in use with enhanced security measures like full encryption and Windows Hello authentication, addressing privacy concerns. California Governor Gavin Newsom vetoed SB-1047, which aimed to regulate AI models, citing concerns that smaller models outside the regulation’s scope might pose greater risks. Meanwhile, OpenAI is facing a leadership shakeup as CTO Mira Murati and other key executives depart, coinciding with a shift in the company’s focus toward a more traditional startup model under Sam Altman’s leadership. This and more on the Gestalt IT Rundown.

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0:58 – Rackspace Gets Attacked, Logically

Hosting provider Rackspace realized they had a problem on their hands when one of their third party tools was exploited to gain access to monitoring servers. While the name of the tool wasn’t publicly disclosed at the time of the breach it was later determined that a third party non-ScienceLogic was at fault. The self-hosted install fell victim to a zero-day exploit that doesn’t currently have a CVE attached. Rackspace quickly took the interface offline to mitigate the damage.

EDIT: We have received the following statement from ScienceLogic regarding this story:

We identified a zero-day remote code execution vulnerability within a non-ScienceLogic third-party utility that is delivered with the SL1 package, for which no CVE has been issued. Upon identification, we rapidly developed a patch to remediate the incident and have made it available to all customers globally. We are focused on assisting our customers in implementing the fix to minimize their risk. We will continue to update customers as appropriate.

Any previous errors in the story have been corrected and were unintentional.

Read More: Rackspace internal monitoring web servers hit by zero-day


4:09 – Hurricane Helene Disrupts Critical Supply Chain

Devastating floods in North Carolina’s tiny town of Spruce Pine, America’s sole source of high-purity quartz, threaten to disrupt the global supply chain for microchips and solar panels. The town, battered by Hurricane Helene, produces ultra-high-quality quartz essential for manufacturing semiconductors and solar panels, with experts warning that prolonged disruption could have far-reaching consequences. As recovery efforts continue, the world holds its breath, awaiting the full extent of damage to Spruce Pine’s critical quartz mines and the potential ripple effects on the tech industry.

Read More: A tiny town just got slammed by Helene. It could massively disrupt the tech industry


8:34 – Tech Giants and Government Support Spark a New Nuclear Renaissance?

The rapidly growing demands of artificial intelligence are sparking a new era in nuclear energy, as tech giants and the US government join forces to meet the power-hungry needs of AI data centers. With AI’s insatiable thirst for energy driving a surge in electricity demand, major players like Microsoft and Google are turning to nuclear power as a clean and reliable solution. From restarting dormant reactors to investing in cutting-edge nuclear technology, the AI revolution is breathing new life into the US nuclear energy sector.

Read More: Nuclear power’s AI renaissance


14:11 – F5 Launches NGINX One

F5 has launched NGINX One, an integrated application networking platform that simplifies the management of load balancing, APIs, and cybersecurity across hybrid cloud environments. This SaaS platform centralizes the deployment and management of NGINX instances, providing additional telemetry and AI capabilities to streamline DevOps workflows and reduce the complexity of managing modern cloud-native applications. By enabling more dynamic and flexible provisioning of networking services, NGINX One aims to replace rigid legacy approaches and adapt to evolving IT needs.

Read More: F5 Delivers on NGINX One Platform Promise


17:34 – NIST Gives Tips on Passwords

It looks like NIST is ready to put some password guidelines in place. In a new draft with a boring number for a name, NIST is making some suggestions about password policies. Things like maximum lengths of 64 characters, Unicode options, and even guidance on knowledge-based questions and password hints are included. However, the wording of the prompts does fall back on SHALL and SHOULD variations which means we may not get everything we want.

Read More: NIST Recommends Some Common-Sense Password Rules


22:20 – AI Safety Roundup

Recall Reloaded: Microsoft Unleashes Enhanced AI Search, Now with Added Safeguards

Microsoft has announced a significant overhaul of its controversial AI-powered Recall feature, transforming it from an automatic function to an opt-in experience with enhanced security measures. The tech giant has responded to privacy concerns by implementing full encryption, virtualization-based security, and Windows Hello authentication for the feature that captures screenshots of user activity. This revamp, which includes the ability to completely uninstall Recall, marks a major shift in Microsoft’s approach to integrating AI capabilities in Windows while prioritizing user control and data protection.

Read More: Microsoft’s more secure Windows Recall feature can also be uninstalled by users

AI Safety Bill Vetoed by California Governor

California governor Gavin Newsome vetoed SB-1047 this week. The bill was aimed at regulating AI models and forcing developers to impose safety kits and kill switches. The state reason behind the veto is the specifics behind the size of the model that would be subject to scrutiny, with Newsome saying that smaller models that are not subject to the regulations could end up being more harmful as a result. The bill had been hotly debated on both sides of the AI aisle, with proponents saying regulation was crucial to growth and opponents saying it didn’t go far enough.

Read More: California governor vetoes controversial AI safety bill

Mass Executive Exodus at OpenAI

Ah, remember the great OpenAI power struggle? Seems like it was forever ago, but it’s been eleven months. Guess it’s time for another one! In this case, CTO Mira Murati, Research VP Barret Zoph, and Chief Research Officer Bob McGrew all announced they are leaving. This news comes on the heels of a story from Reuters that OpenAI is restructuring away from their non-profit focus and more toward a traditional startup model that would consolidate power with Altman. Fears that Altman was too powerful led to his ouster back in November of 2023 but he was rehired very shortly and his opponents at the time eventually left the company.

Read More: OpenAI Execs Mass Quit as Company Removes Control From Non-Profit Board and Hands It to Sam Altman


40:39 – The Weeks Ahead

AI Data Infrastructure Field Day 1 – October 2 – 3

Commvault Shift – October 8 – 9

Security Field Day 12 – October 16 – 17

Cloud Field Day 21 – October 23 – 24


Gestalt IT and Tech Field Day are now part of The Futurum Group.

The Gestalt IT Rundown is your look at the IT news of the week. Be sure to subscribe to Gestalt IT on YouTube for even more weekly video content.

About the author

Tom Hollingsworth

Tom Hollingsworth is a networking professional, blogger, and speaker on advanced technology topics. He is also an organizer for networking and wireless for Tech Field Day.  His blog can be found at https://networkingnerd.net/

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