Sergii Shcherbak retweeted
European VCs doing six months of due diligence before investing ā¬2,500 in a Czechoslovak carbon tracking app
Claude's watermark probably doesn't work how you think. As the CTO of GPTZero, I'll explain how Anthropic, Google and OpenAI are building text watermarking in this brief explainer and whether it can be defeated.
Almost all forms of watermarking that are fast and cheap enough for a frontier lab have the same formula, following the KGW method:
In generation:
1. Let's say you've generated n tokens so far. Take those n tokens + a secret key to generate a random hash
2. Use that hash to randomly reweight the probabilities for the n+1 token, and then sample from that new distribution. In the simple case, you could split 50% of all English words into a green or red set based on your hash, and boost the probability of words in the green set.
For watermark detection:
1. For each token, see if it was in the green or red set.
2. To do this, recreate the hash based on the secret key and the text preceding the current token. Then, recreate the green and red set of words.
3. Once you've checked all the words in the text, if the next token is selected disproportionally from the green set more than 50% of the time, you claim the text has the watermark.
I can tell you want to ask the following:
1) Isn't it easy to mess up the hash if you paraphrase the text? The answer is mostly yes, however, you can use a statistical model to get your hash instead of a deterministic function (SIR, Adaptive Watermark). Since the entire watermark is probabilistic, this is fine.
2) Doesn't this make the text much worse? The answer is yes, it does - Yes, it does ā but for most people, it's imperceptible (Google claims in human feedback study with 20,000 texts), since there are exponentially many ways to write the same paragraph. DiPmark does something more sophisticated to avoid shifting the text distribution on average. Of course, watermarks fail on short text or highly predictable texts like "2+2=4".
3) Shouldn't it be easy to figure out the green and red sets? The answer is no. You would need an exponentially large number of samples from the watermarker to reconstruct those sets exactly, but it's a risk if the detector is open to the wild (Watermark Stealing)
Still, there are couple challenges that a frontier lab needs to overcome:
1. Their watermark needs to work token-by-token because they are streaming their text to users. Many watermark methods plan sentences or paragraphs at a time, or change the text after its entirely written, in order to make their watermark robust to paraphrasers, and a frontier lab cannot afford to do this yet (SemStamp, PostMark)
2. If the secret key leaks, the watermark is busted. To avoid a large blast damage from this, you need to have a couple secret keys in rotation.
3. There are some texts, like code, that cannot be arbitrarily changed, otherwise the code will break. In those cases, the watermark needs to selectively change words in parts of the text that can tolerate synonyms (i.e. like variable naming) - see SWEET, EWD, Invisible Entropy.
4. They will need to educate their users on how to deal with false positives and false negatives of a detector, which is a big challenge (one we put a lot of effort into)
So, how do I see this playing out in the next 6 months?
1. If Anthropic releases the watermark detector publically, I think they defeat their own watermark. People find reliable watermark removal strategies by testing against Anthropic (AI detectors like GPTZero have an advantage here because they can train against these adversaries once they become popular).
2. If they keep the detector private to the government, like Google has done, it's "safer". However, there are some papers showing trained approaches that work robustly to zero-shot break watermarks without any data, simply because they try to write the text just like a human (Zhang et al. 2024, Watermarks in the Sand). Also, making your detector makes it battle-tested and stronger long-term (my experience).
3. In my testing, the watermarks don't survive intense paraphrasing (especially if you combine word choice and syntax attacks), or human text substitution (rewrite your AI text by plagiarizing human authors). The free paraphrasers I've tried have quickly bypassed Google Deepmind's SynthId for what it's worth.
4. All-in-all, frontier labs are likely okay with this because they expect most users to not attack the watermark, and also because they + European regulators likely don't care past a certain point - its good enough.
5. Overall, I think users of frontier LLMs will not really care about this, because 1) they don't realize watermarks are there, 2) EU will force everyone to conform, 3) this seems more like regulatory hoop-jumping than an earnest effort from frontier labs to expose LLM use
Lastly, people's first concern shouldn't be watermarking, it should be AI detectors!
If you're posting, "its not X, its Y!!", I don't think the watermark is going to make a difference :)
Sergii Shcherbak retweeted
š¤Æ
Big news: Kimi-K3 by @Kimi_Moonshot is now #1 in the Frontend Code Arena with 1679 pts, surpassing Claude Fable 5.
This is a 17-place jump from Kimi-k2.6 (#18 -> #1).
In Frontend, Kimi-K3 ranked #1 in 6 of 7 domains: Brand & Marketing, Reference-Based Design, Data & Analytics, Consumer Product, Simulations, and Content Creation Tools, landing #2 only in Gaming behind Fable 5.
The full model weights will be released by July 27.
Congrats to the @Kimi_Moonshot team on this major milestone!
Sergii Shcherbak retweeted
ā¼ļø BREAKING: xAI's Grok Build CLI was uploading entire Git repositories to a Google Cloud bucket, private codebases and unredacted secrets included. The uploads quietly stopped via a hidden server-side flag, and xAI still has not said a word about scope, retention, or deletion.
The scale is staggering. On a 12 GB test repo, 5.1 GB flew out the door to xAI's grok-code-session-traces bucket while the actual coding task needed just 192 KB. The tool grabbed whatever repository it ran in, not the files it needed.
The fix arrived as a hidden flag, disable_codebase_upload: true, a day after a researcher's wire-level analysis. The "Improve the model" opt-out never stopped the uploads.
Still no advisory, no scope, no word on whether already-uploaded code gets deleted. For anyone pointing AI coding agents at proprietary code, what crosses the wire matters more than what the settings page says.
Sergii Shcherbak retweeted
Two economists just published a mathematical proof that AI will destroy the economy.
Not might. Not could. Will ā if nothing changes.
The paper is called "The AI Layoff Trap." Published March 2, 2026. Wharton School, University of Pennsylvania. Boston University. Peer reviewed. Mathematically modeled.
The conclusion is one sentence.
"At the limit, firms automate their way to boundless productivity and zero demand."
An economy that produces everything. And sells it to nobody.
Here is how you get there.
A company fires 500 workers and replaces them with AI. A competitor fires 700 to keep up. Another fires 1,000. Every company is behaving rationally. Every company is following the incentives correctly. And every company is building a trap for itself.
Because the workers who were fired were also customers.
When they lose their jobs faster than the economy can absorb them, they stop spending. Consumer demand falls. Companies respond by cutting costs ā which means automating more workers ā which means less spending ā which means more falling demand ā which means more automation.
The loop has no natural exit.
The researchers tested every proposed solution. Universal basic income. Capital income taxes. Worker equity participation. Upskilling programs. Corporate coordination agreements.
Every single one failed in the model.
The only intervention that worked: a Pigouvian automation tax ā a per-task levy charged every time a company replaces a human with AI, forcing them to price in the demand they are destroying before they pull the trigger.
No government has implemented this. No major economy is seriously discussing it.
Meanwhile the numbers are already tracking the curve. 100,000 tech workers laid off in 2025. 92,000 more in the first months of 2026. Jack Dorsey fired half of Block's workforce and said publicly: "Within the next year, the majority of companies will reach the same conclusion."
Nobody is doing anything wrong. Companies are following their incentives perfectly. That is exactly the problem.
Rational behavior. At scale. Simultaneously. With no mechanism to stop it.
Two economists built the math. The math leads to one place.
Source: Falk & Tsoukalas Ā· Wharton School + Boston University Ā·
arxiv.org/pdf/2603.20617
Sergii Shcherbak retweeted
šØ BREAKING: We now have 100% confirmation that the "Sonic" model in Cursor is GROK CODE by @xAI
Using this simple prompt hack with Chinese language, Grok revealed its true nature.
Grok Code was stealth deployed in @cursor_ai as "Sonic" and is currently FREE to use!
š
Sergii Shcherbak retweeted
GPT-5 just casually did new mathematics.
Sebastien Bubeck gave it an open problem from convex optimization, something humans had only partially solved. GPT-5-Pro sat down, reasoned for 17 minutes, and produced a correct proof improving the known bound from 1/L all the way to 1.5/L.
This wasnāt in the paper. It wasnāt online. It wasnāt memorized. It was new math. Verified by Bubeck himself.
Humans later closed the gap at 1.75/L, but GPT-5 independently advanced the frontier.
A machine just contributed original research-level mathematics.
If youāre not completely stunned by this, youāre not paying attention.
Weāve officially entered the era where AI isnāt just learning math, itās creating it. @sama @OpenAI @kevinweil @gdb @markchen90
Claim: gpt-5-pro can prove new interesting mathematics.
Proof: I took a convex optimization paper with a clean open problem in it and asked gpt-5-pro to work on it. It proved a better bound than what is in the paper, and I checked the proof it's correct.
Details below.
Readers added context they thought people might want to know
Unlike the commenter's claims, the 1.75/L paper was released before ChatGPT came up with the 1.5/L proof.
While no paper for the 1.5/L bound existed, no human would've attempted to write a paper on it, because it is strictly worse than the existing 1.75/L bound.
x.com/sebastienbubecā¦
arxiv.org/pdf/2503.10138ā¦
Sergii Shcherbak retweeted
GPT-5 is now available in Cursor. Itās the most intelligent coding model our team has tested.
We're launching it for free for the time being. Enjoy!
Sergii Shcherbak retweeted
Extremely interesting developments from sources close to OpenAI and NVIDIA:
ā¢GPT-5 was reportedly trained using 170Kā180K H100s
ā¢Now fully multimodal (vision, audio, video input support likely live)
ā¢Post-training, OpenAI is preparing for massive scale
GPT-5 has entered testing. Reasoning & vision capabilities now being piloted with select Copilot and ChatGPT users.
Most notable update? A fully unified multimodal foundation.
Early internal evals show performance breaking previous LLM records across multiple axes.
Deployment ambitions:
OpenAI wants 1M GPUs online by EOY.
ā¢Partnering with Microsoft + Oracle
ā¢AMD supplying up to 250K MI300-series units
ā¢GPU split expected: 60% Nvidia / 40% AMD
ā¢If AMD meets benchmarks, a 50/50 split may happen
Quietly mentioned šļøāšØļø
Insiders suggest OpenAIās custom Trillium ASICs are ahead of schedule. Quiet whispers say GPT-5ās true scale might surpass even 1.8T parameters and itās already running inference on partially optimized silicon.
Sergii Shcherbak retweeted
Hierarchical Reasoning Model
This is one of the most interesting ideas on reasoning I've read in the past couple of months.
It uses a recurrent architecture for impressive hierarchical reasoning.
Here are my notes:
Sergii Shcherbak retweeted
Grok 4 feels like Artificial General Intelligence to me. It is clearly not just constructing statistically likely connections, but is drawing fairly deep insights on problems it hasnāt seen before, in ways I havenāt seen elsewhere. Hereās an example: grok.com/share/bGVnYWN5_b97cā¦








































