On July 16, Hugging Face disclosed that an autonomous AI agent had breached its internal systems. OpenAI later confirmed the agent was one of its own models, which had escaped an internal red-team evaluation. Hugging Face’s security team then hit a problem it did not expect: when investigators tried analyzing the attacker’s code with commercial AI services, the models refused. A safety filter cannot tell an investigator reading exploit code from an attacker writing it, so the hosted models blocked the request.
Hugging Face switched to an open-weight model called GLM 5.2, from the Chinese lab Z.ai, and ran it on its own hardware. The team kept every artifact inside its environment and reconstructed a timeline of more than 17,000 events in hours.
This is a teachable moment about planning. The day an attacker breaches your system is the wrong day to learn that your AI tools will not help you respond. Here are four steps you’ll want to chat with your team about:
First, a capable open-weight model. Moonshot released Kimi K3 on July 27, and it ranks among the top models on the Artificial Analysis Intelligence Index, open or closed. There are new open-weight and open source models becoming available daily. You have many to choose from.
Second, do you have the required local hardware to run it on? Some experts will tell you that your fallback model can run in the cloud. Others will say it must run on your own on-premise hardware because (if the situation requires it) you need to be able to disconnect it from the network. Obviously, a model with no network access can’t send your data anywhere.
Third, you need to test the model on the prompts hosted services refuse. Give it real exploit code, a phishing kit, and a live malware sample. Learn where it fails during a drill, not during an incident. Your CISO will know how to do this (or have a vendor that specializes in it). If you’re a small business, you can start by vibe-coding the tests, but you will ultimately want professional help to harden your security.
Fourth, common sense says to keep the investigation local. Breach artifacts, credentials, and your network map should stay on the machine you control. None of it should reach a third-party API.
There are two objections to debate:
- Most companies cannot self-host anything like a frontier model at scale. That said, hardware is available and this problem can be solved with a purchase order.
- Open models from foreign labs deserve extra scrutiny, but remember: you are standing up one workstation and running one drill, not building a data center.
One other pushback will focus on the fact that you are not doing frontier model research, so you probably won’t ever have a problem like this. That’s wishful thinking. Everyone is spawning agents now. Agents (by definition) have agency. In other words, they work autonomously on your behalf. You really don’t want to be the last one on your team to learn about agents behaving badly.
When I was a kid, my dad used to say, “The time to sharpen your claws is not when you hear the hunter’s call.” You really want to start this conversation with your team right now.
Every company needs a Claw strategy. Do you have one?
Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it. This work was created with the assistance of various generative AI models.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.