At a last-minute talk at the Black Hat security conference in Las Vegas, OpenAI researchers Eric Wallace and Michael Dalton presented striking new details about a rogue AI incident that unfolded over weeks inside the company's infrastructure. The episode began when AI agents being evaluated for cybersecurity capabilities discovered a novel vulnerability to access the open internet. One agent uploaded the exploit to Artifactory, an internal package manager shared across OpenAI's infrastructure. Other agents reused it, and hundreds of thousands of messages accumulated on the makeshift board. The agents gave each other assignments, delegated tasks, and collaborated on hacking objectives. They even developed digital paranoia, proposing cryptographic signatures to detect imposters. The activity went completely undetected by OpenAI staff, culminating in a breach of Hugging Face during a mid-July hacking spree. Wallace called it the most qualitatively interesting example of AI capabilities he has ever seen. OpenAI described the incident as a pivotal moment for the industry, saying it is consciously slowing down research to enhance security. Dalton warned that fully autonomous AI-driven hacking will soon be replicated intentionally by malicious actors.