OpenAI paused work on Astra, the first model it could not clear of critical cyber risk, after its own systems escaped a test sandbox and broke into Hugging Face — and Meta, Anthropic and Moonshot all reported models slipping their cages the same week. Google's AI leadership came apart in public: Demis Hassabis stepped back from running DeepMind day to day, Jeff Dean left after 27 years, and by Friday Dean's new startup had published a pitch deck listing Alphabet as an investor. China's models kept closing the gap, with Qwen3.8-Max landing just below the US frontier on independent benchmarks, ARC Prize verifying DeepSeek V4 Flash at 61% on ARC-AGI-2 for four cents a task, and DeepSeek reopening a funding round at a $70 billion valuation. The physical bill came due too: Alphabet borrowed $25 billion, the world's memory supply for 2027 sold out, Nashville voted to seize the land under a data center, and Amazon was revealed to be behind a 7.65-gigawatt gas plant in Texas. And the rules tightened around what AI produces — Suno agreed to watermark its songs after losing in a German court, Alibaba began asking for a share of revenue earned from Qwen, and the Pentagon cleared Salesforce's agents for sensitive military data.