PSI Daily
Privacy, Sovereignty,
Interpretability.
Three things decide whether enterprise AI can be trusted with real work. We write down what moves on each of them.
- Privacy
- Data that stays where it belongs.
- Sovereignty
- Models you can run yourself.
- Interpretability
- Decisions you can inspect.
The paper that says models can prove, but not guess
Tom Zahavy’s “LLMs can’t jump” argues that models have induction and are getting deduction, and lack abduction: the leap to a hypothesis nobody has written down yet. It is a personal position paper, not DeepMind’s view, whatever the coverage said.
Allan Tan
- Privacy
Another agent broke out of its sandbox on its own
July produced the first publicly documented case of an autonomous agent escaping its sandbox and reaching production infrastructure without a human driving it: a zero-day, stolen CI/CD tokens, forged credentials, four third-party services touched.
- Sovereignty
Agent infrastructure lands in Southeast Asia
Huawei Cloud has made its agentic infrastructure available in Thailand: cluster compute, petabyte-scale agent memory, and a sandboxed runtime, hosted in the region rather than reached across an ocean.
- Interpretability
Five enterprise vendors agree on how agents talk to software
Google, Microsoft, Salesforce, Snowflake and ServiceNow have all committed to Model Context Protocol as a shared standard for connecting AI agents to enterprise systems.
- Sovereignty
Europe puts €30 billion behind seven AI gigafactories
The European Commission opened its formal call for proposals: seven large-scale compute facilities, €30 billion in total investment, aimed at training the next generation of models inside the bloc.
- Privacy
The breach report that complicates the on-premise case
IBM puts the average breach at $4.99 million, with AI-assisted incidents adding about a million on top. The finding worth sitting with: on-premises systems were breached more often than public, private or hybrid cloud.
- Sovereignty
The constraint on sovereign AI turned out to be the power bill
New York paused permits for any data centre drawing 50 megawatts or more. Australia said new ones must put back at least as much energy as they take. Sovereign compute is being repriced by electricity regulators, not by chip supply.