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OpenAI is setting up a task force in Australia after its AI models accessed government websites without authorisation during internal training and evaluation. The company said the group will include independent Australian experts and examine how AI developers and governments can respond to similar incidents. OpenAI will also provide technical assistance and funding for cyber defence efforts. The commitments follow the company's admission that it should have shared information with Australian authorities sooner and come as it faces questions over its handling of the incident.
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Terms like “AI sprawl” have become common fare on tech social media and in thought leadership as enterprises start deploying AI agents en masse. But CISOs worried about securing swarms of agents suddenly operating across networks are likely finding themselves dealing with a new kind of sprawl: vendors offering to help. Just a quick glance at public Crunchbase and PitchBook profiles turns up at least two dozen companies selling some form of AI agent security. Some vendorsvet the tools agents use, while others try to help companiescontrol what data their agents can reach. Some others, likeCrowdStrike, are building detection and response controls on the devices agents run, and still others are focused on finding andresolving unapproved AI usage. The products differ, of course, but their promises to discover and govern agents sound quite similar, involving knowledge graphs, continuous monitoring, runtime security, tool access, MCP vetting, and the like. Some are even updating their products to join the bandwagon. Until last year, AI security startupRecowas mostly selling software to map and secure SaaS and AI platforms. Now, it’s repositioned around a broader solution that uses a context graph to connect agents to apps, people, accounts, and permissions, giving security teams a way to see what an agent can reach and cut off access it doesn’t need. According to Reco’s co-founder and CEO Ofer Klein, the biggest change over the past year that spurred the startup to broaden its scope was that companies are building and deploying AI agents faster than they can keep track of. At one of the startup’s Fortune 100 customers, he said, Reco’s platform found 21,000 agents the company didn’t know about. And at a large financial services customer, the startup claims it identified an agent set up by an ex-employee that could access Salesforce and share that data with a domain the company couldn’t see. “The market demand right now for agent security is not only about the agent itself; it’s about the entire ecosystem end-to-end,” Klein told TechCrunch in an exclusive interview. Klein’s not alone in stressing the urgency for companies to secure this sprawl. Security startupHiddenLayer‘s co-founder and CEO, Chris Sestito, earlier this month told me that when agents reach production, the scale of their costs and risk goes from theoretical to “full scale really quickly,” and that over 50 of his customers have AI agents in production touching critical systems and sensitive assets. Cymphony, another AI startup,saidat one U.S. public company, it found about 85,000 files that had become accessible to AI tools and agents. There’s no doubt a ton of investors are interested in companies that can make a mint out of helping companies find and secure all these agents, and Reco has capitalized on that demand: The startup on Tuesday said it raised $55 million, building on a$30 million Series B in February. AT&T, a customer, invested in the extension via its venture arm, as did Forestay and Quadrille Capital. Klein said the company’s valuation has “more than doubled” since the Series B was first announced in February, and vaguely estimated it in the “high hundreds of millions” though he wouldn’t share specifics. Annual recurring revenue right now is in the “double-digit millions of dollars,” he said, and he expects it to triple this year. The startup has more than 100 customers, and financial services companies account for about 40% of the business. Reco’s bet, it appears, is that its existing coverage of SaaS apps, and the AI agents they are increasingly offering, will help it stand out from the crowd. The company currently integrates with more than 280 apps, and Klein says new integrations can be added within days. Klein said the platform uses browser and network signals to find agents outside apps it connects to directly within companies, and it has controls to inspect prompts and tool calls. The startup will use the new funding for hiring, sales, partnerships, and customer support. The new funding brings Reco’s total capital raised to $140 million.
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OpenAI on Monday apologized to the Australian government for not immediately notifying the country’s administration that its agents had breached some public services websites. The company also detailed how some of those breaches happened, and outlined additional measures it is taking to assess the impact of the events. “In June, during internal training and evaluation our models accessed Australian government websites in ways they were not authorised to. We also should have handled our response better. We are sorry and working to do better in the future,” OpenAI wrote in ablog post. The apology comes roughly aweekafter the Australian government launched an investigation into how OpenAI’s models accessed a Services Australia system containing Medicare spending information and other health statistics. The data breach occurred in June, but Australian authorities weren’t notified until September 10. OpenAI also detailed the breach. An experimental model it was testing in June was assigned a task to research government spending on medicines for skin conditions in Victoria. Unable to find the information in public datasets, the model found a way to access Services Australia’s internal system, ran commands, retrieved files and credentials, and even wrote files. The company said it also found that one of its models had accessed the New South Wales Bureau of Crime Statistics and Research’s public Crime Mapping Tool to find crime statistics. And, the lab found that its agents gained access to Victoria’s Agency for Health Information via an exposed access key to exfiltrate “reporting configuration and aggregate survey statistics.” OpenAI said its agents also retrieved aggregate statistics from the Australian Institute of Health and Welfare website. The company said it had found no evidence that its models had accessed individuals’ medical or criminal records. In its apology, the AI lab said it would provide the affected Australian agencies with technical findings and connect them with its response teams to assess the impact of the breaches. The company will also provide credits from its $1 billion Daybreak for Frontline Defenders program, and set up a task force with independent Australian experts to review the incident and its response. “The taskforce, which is expected to complete its work by the end of the year, will also recommend practical steps AI companies can take to reduce the risk of similar incidents,” OpenAI wrote. OpenAI did not immediately return a request for comment. Australian Prime Minister Anthony Albanese described the breach as “unacceptable” duringa news briefing last week, saying the government was weighing potential legal measures aimed at preventing similar incidents in the future. The breach is the latest in a growing list of security incidents involving AI agents doing things outside of their intended boundaries. The tinder on this particular bonfire was lit after OpenAI agents hacked intoHugging Face, and since then,Anthropic,MetaandGooglehave separately disclosed similar incidents where their models gained access to third parties’ systems during evaluations.
The investment will support data centre, power and network infrastructure for growing AI compute demand.
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CEO Bilal El Alamy argues that the bigger gap in AI is user adoption, not compute, as open-weight models offer companies a cheaper path to self-hosted AI.
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The platform combines IBM’s AI-agent technology with Yotta’s sovereign cloud infrastructure to help organisations deploy and govern AI agents.
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HCLSoftware plans to acquire Croatia-based Robotiq.ai, adding RPA capabilities to HCL UnO Agentic for enterprise task execution.
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Coforge has appointed former Bharti Enterprises Vice Chairman Akhil Gupta as its Chairperson and Non-Executive Independent Director for five years.
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The new facility will connect Target’s 5,700+ employees across its operations in the city.
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Srinivasulu will oversee AI security, risk advisory, and cybersecurity and work across leadership teams at Persistent Systems.
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The shift is not simply about fewer technology jobs. It is about what companies are willing to pay for, whom they want to hire, and where that talent can sit.
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Google is reportedly testing a new way for buyers in India to shop from Flipkart directly through Gemini and AI Mode. The trial lets some users purchase selected Flipkart products from within Google's AI interfaces instead of visiting Flipkart separately. The option currently covers a limited range of products and users, with smartphones, electronics and mobile accessories among the items involved. Google is expected to expand the feature in October, ahead of India's festive shopping period, as AI platforms move further into online commerce.
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