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Seagate CEO sends a bold message on AI and data storage
Something is shifting fast in the world of data storage, and Seagate TechnologyCEO Dave Mosley isn’t shy about saying so.On the company’s fiscal third-quarter earnings call, Mosley argued that artificial intelligence is changing the very nature of how much data the world needs to store, and how urgently companies need to store it.The numbers backing him up are hard to ignore.Seagate beat Wall Street’s revenue forecast by more than $150 million, Reuters reported. Free cash flow hit nearly $1 billion, and the company’s forward guidance came in well ahead of what analysts expected.AI is rewriting the rules of data storage demandEvery time you use an AI chatbot, ask a voice assistant a question, or get a product recommendation online, that interaction generates data, which needs to be stored. Leading AI chatbots now process billions of user prompts every day. Agentic AI, systems that can act autonomously and complete tasks on their own, push that even further. These tools continuously take in information, reason through it, and store the results.”Agentic AI pushes this even further, transforming sporadic engagements into autonomous workflows that continuously ingest inputs, generate reasoning, and store durable outputs,” Mosley stated.Physical AI is adding another layer. A single self-driving vehicle can generate up to four terabytes of data every hour. That data often needs to be retained for five to 10 years for compliance and retraining purposes. Multiply that across thousands of vehicles, factory robots, and connected devices, and you’re looking at storage demand on a scale that is genuinely hard to comprehend.Hard disk drives (HDDs), Seagate’s core product, are central to handling large volumes of data. They are not as fast as flash storage, but they are far more cost- and energy-efficient at scale. That trade-off increasingly works in Seagate’s favor.
Seagate’s CEO argued that artificial intelligence is changing the very nature of how much data the world needs to store.Shutterstock
Seagate’s record profits and forecast stunned Wall StreetSeagate’s March-quarter results were, by most measures, exceptional.Revenue came in at $3.11 billion, up 44% from a year earlier and above consensus estimates of $2.96 billion.Earnings per share on an adjusted basis reached $4.10, compared to $1.90 a year ago and ahead of the roughly $3.97 Wall Street had penciled in.Non-GAAP gross margin surged to 47%, up sharply from 36.2% a year prior. GAAP gross margin was 46.5%, versus 35.2% 12 months earlier.The company generated$953 million in free cash flow and is forecast to end fiscal 2026 with $4.4 billion in FCF. Seagate also used the quarter to clean up its balance sheet. It retired roughly$641 million in debt and returned $191 million to shareholders through dividends and buybacks. For the current quarter, Seagate is targeting revenue of $3.45 billion, well above the $3.16 billion Wall Street had anticipated. The company is also guiding to adjusted earnings per share of $5.00, with a $0.20 variance in either direction.HAMR technology is Seagate’s long-term edgeNone of this is happening by accident. Seagate has been investing in a next-generation recording technology called Heat-Assisted Magnetic Recording, or HAMR, which allows it to pack more data onto each disk.Its latest HAMR-based platform, Mozaic 4+, can store up to 44 terabytes per drive —more than 30% more than the previous generation — without adding extra disks or significantly changing the bill of materials. More AI Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventBank of America updates Palantir stock forecast after private meetingMorgan Stanley drops eye-popping Broadcom price targetThat matters because more capacity per drive means lower cost and lower power usage per terabyte for customers.Two of the world’s largest cloud providers have now qualified the Mozaic 4+ platform, and Mosley said the timelines matched what customers see with older PMR technology, a sign the platform has matured faster than expected.Nearline storage, the high-capacity drives that power cloud data centers, accounted for close to 90% of total exabyte shipments in the March quarter. And that demand shows no sign of slowing. Seagate said capacity is nearly fully allocated through calendar 2027, with contracts for fiscal 2027 already locked in on pricing and volume.The top three global cloud providers alone have nearly doubled their Remaining Performance Obligations, a measure of future committed spending, to a combined $1.1 trillion. Mosley raised Seagate’s annual revenue growth target from the low-to-mid-teens to at least 20% over the coming years, saying the company is now entering “a period of structural growth.”That is a bold claim. But right now, the data is squarely on his side.Related: Seagate adds $15B in market cap on surprise news
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Current Mortgage Rates: April 27 to May 1, 2026
Average mortgage rates today
Mortgage Type
Label
Rate
APR
30-Year Fixed
Most Popular
6.49%
6.64%
30-Year FHA
Lower Credit
6.16%
6.56%
30-Year VA
Military
6.25%
6.5%
30-Year Jumbo
High Balance
6.62%
6.72%
15-Year Fixed
Shorter Term
5.88%
5.97%
7/1 ARM
Shorter Term
5.76%
5.96%
HELOC
Home Equity
7.11%
6.05% – 8.15%
Home Equity Loan
Home Equity
6.96%
6.45% – 7.49%
Updated on 04/29/2026
Average mortgage rates shown are national averages compiled from a range of sources, including major U.S. lenders and financial institutions. Accuracy and completeness are not guaranteed, and rates may change without notice. Rates do not constitute an offer or guarantee of credit. Actual APRs vary based on lender, creditworthiness, loan amount, term, and lender fees. Not all products are available in all states.
Key Takeaways
Money’s daily rate survey shows the 30-year rate ticked higher and is now averaging 6.49%.
Mortgage rates are slowly rising as oil prices and economic uncertainty push Treasury yields higher.
Despite the recent increases, rates remain fairly stable, providing well-qualified buyers an opportunity to finance a home purchase.
Freddie Mac’s benchmark rate for a 30-year fixed-rate mortgage averaged 6.30% for the week ending April 30.
Mortgage rates updated daily, Monday through Friday; last updated April 30, 2026.
Mortgage rate trends
Mortgage rates increased this week as there appears to be no clear path toward a permanent resolution to the Iran War. Oil prices are climbing higher, leading to uncertainty and fears of rising inflation. In turn, these fears are putting upward pressure on mortgage rates.
In emailed comments, Lisa Sturtevant, chief economist at Bright MLS, says she expects rates to remain in the low 6% range for the time being, leading to more subdued activity during the spring homebuying season. However, there are signs that both buyers and sellers are coming to terms with market conditions and moving forward with their plans.
“Everyone is getting a little bit more used to uncertainty, and as we become more acclimated to it, uncertainty becomes less of an obstacle,” Sturtevant writes.
Freddie Mac’s mortgage rates for the week ending April 30, 2026
Freddie Mac mortgage rate trends
For its weekly rate analysis, Freddie Mac reviews rates offered for the week ending each Thursday. The average rate reflects what a borrower with strong credit and a 20% down payment can expect to obtain when applying for a mortgage at this time. Borrowers with lower credit scores will generally be offered higher rates.
Average refinancing rates today
Refinancing a mortgage can be a good way to improve your financial position by lowering your interest rate and monthly payment, or by using home equity to reduce your debt.
Today’s average mortgage refinance rates
Loan terms
Lastest rates
30-year fixed-rate refinance loan
6.54% ? 0.04%
15-year fixed-rate refinance loan
5.88% ? 0.03%
7/1 adjustable-rate refinance loan
5.77% 0%
10/1 adjustable-rate refinance loan
6.03% ? 0.01%
Source: Money.com
Money’s daily mortgage rates are a national average and reflect what a borrower with a 20% down payment, no points paid and a 780 credit score — considered an excellent score that qualifies a borrower for the best rates — might pay if they applied for a home loan right now. Rates are updated daily between 3:30 and 4:00 p.m. Eastern Time and are based on the average rate offered by 8,000 lenders to applicants that day. Your individual rate will vary depending on your location, lender and financial details.
These rates differ from Freddie Mac’s, which represent a weekly average based on a survey of quoted rates offered to borrowers with strong credit, a 20% down payment and discounts for points paid.
If you’re offered a higher rate than expected, ask why and compare offers from multiple lenders. (Money’s list of the Best Mortgage Lenders is a good place to start. Homeowners considering a mortgage refinance should consider our list of the Best Mortgage Refinance Companies.)
Use Money’s mortgage calculator to estimate your monthly payment, considering different rate scenarios.
What you need to know about current mortgage rates
Mortgage rates, along with home prices, are key components of the formula for homeownership. Most importantly, they can help determine how much home you can afford. This guide addresses some of the most frequently asked questions about rates and their impact on the housing market.
Types of mortgage rates
When shopping for a mortgage, you may be offered two types, each with a different interest-rate arrangement: fixed-rate and adjustable-rate loans. Understanding the differences between the two is important when deciding which best suits your needs.
Fixed-rate mortgages
As the name implies, fixed-rate loans have a fixed interest rate that remains constant throughout the loan term. The most common term lengths are 30 and 15 years; however, some lenders offer additional options. Generally, the interest rate on a 30-year loan will be higher than that on a 15-year loan, but the monthly payment will be lower because you’re extending the payback period.
Most homebuyers prefer fixed-rate loans because their monthly mortgage payments remain relatively constant throughout the life of the loan. However, other costs typically rolled into the mortgage, such as homeowners’ insurance and property taxes, can change, leading to fluctuations in your monthly payment over time.
Adjustable-rate mortgages (ARMs)
The interest rate on adjustable-rate mortgages does not adjust from the beginning. Instead, the rate will be fixed for a predetermined number of years. Once the fixed period ends, the rate becomes variable and adjusts at regular intervals, known as the “adjustment period,” with the length of this period defined in the mortgage terms. Depending on market conditions, rates could increase or decrease at the end of each period.
The most common type of ARM is a 5/6 loan, in which the interest rate is fixed for 5 years and then adjusts every six months. There are also options for 7/6 loans and 10/6 loans. Because the interest rates on ARMs tend to be lower than those on fixed-rate loans during the initial (fixed-rate) phase, adjustable-rate loans are a good option for borrowers who don’t plan to stay in the home beyond the fixed-rate period.
Other information you should know about mortgage rates
When comparing rates from different lenders, you’ll see two different numbers: the interest rate and the annual percentage rate (APR).
The interest rate is the amount a lender charges on the principal amount borrowed. Consider it the basic cost of borrowing money for a home purchase.
An APR represents the total cost of borrowing money, including interest and other fees. It includes the interest rate plus any fees associated with generating the loan. The APR will always be higher than the interest rate.
For example, a $300,000 loan at 3.1% interest and $2,100 in fees would have an APR of 3.169%.
When comparing rates from different lenders, look at the APR and the interest rate. The APR represents the total cost of the loan over the full term, including loan origination and lender fees. The interest rate is the amount of interest the lender charges on the borrowed loan amount, excluding additional fees. You’ll also need to consider what you can pay upfront versus what you can pay over time.
Mortgage refinance rates
Homeowners may decide to refinance for various reasons, including lowering their interest rate, extending the loan term, or tapping into their home equity. Refinance rates tend to be higher than purchase rates, so carefully weigh the pros and cons before deciding whether a “refi” is the right step.
Factors affecting today’s mortgage rates
Rates alone do not fully determine the loan’s cost or your monthly payment. The following factors, detailed in your lender’s loan disclosures, also apply.
Loan term
As a general rule, the longer the loan term, the smaller the payments but the more costly the loan overall. Choosing a 15-year mortgage instead of a 30-year mortgage will increase the monthly payment but reduce total interest paid over the life of the loan.
Loan type
With a fixed-rate mortgage loan, payments remain the same throughout the life of the loan. Adjustable-rate mortgages reset regularly (after an introductory period), and the monthly payment adjusts accordingly.
A mortgage whose size exceeds the federal loan limit is known as a “jumbo” or “non-conforming” loan. Such mortgages usually have lower rates but more stringent credit requirements.
Taxes, HOA fees, insurance
Home insurance premiums, property taxes and homeowners association fees are often bundled into your monthly mortgage payment. Consult your real estate agent for an estimate of these costs.
Private mortgage insurance
Private mortgage insurance can cost up to 1.5% of your home loan’s value each year. Borrowers with conventional loans can avoid private mortgage insurance by making a down payment of at least 20% of the property’s purchase price or by building at least 20% equity in the loan principal. FHA borrowers pay a mortgage insurance premium throughout the life of the loan.
Closing costs
Closing costs include origination fees and other loan expenses. These extra charges typically range from 2% to 5% of the mortgage amount and are usually paid up front. Some buyers finance their new home’s closing costs into the loan, which increases the principal and raises their monthly payments.
Loan-to-value ratio (LTV)
The LTV measures the risk a lender takes when financing a property. The figure compares the loan amount to the home’s value. The higher the LTV, the greater the lender’s risk — and, ultimately, the higher the mortgage rate for the borrower.
Economic factors
Lenders use several factors to determine mortgage rates on a daily basis. While every lender’s formula varies slightly, it typically factors in the current federal funds rate (a short-term rate set by the Federal Reserve), competitors’ rates, and other relevant factors, sometimes including the number of underwriters available. Your qualifications as a borrower will also affect the rate you are offered.
In general, rates track the yields on the 10-year Treasury note. Average mortgage rates are usually about 1.8 percentage points higher than the yield on the 10-year note. In times of economic uncertainty, such as periods of high inflation, Treasury yields tend to rise. That, in turn, pushes all types of interest rates higher, including those on home loans.
How mortgage rates affect affordability
The rate on your mortgage can make a big difference in how much home you can afford and the size of your monthly payments. That’s true whether buying your primary residence, an investment property or refinancing an existing loan.
Here’s an example. If you bought a $250,000 home and made a 20% down payment of $50,000, you would end up with a starting loan balance of $200,000. On a $200,000 home loan with a fixed rate for 30 years, here’s what you would pay:
At a 3% interest rate = $843 in monthly payment (not including taxes, insurance, or HOA fees)
At a 4% interest rate = $955 in monthly payment (not including taxes, insurance, or HOA fees)
At a 6% interest rate = $1,199 in monthly payment (not including taxes, insurance, or HOA fees)
At an 8% interest rate = $1,468 in monthly payment (not including taxes, insurance, or HOA fees)
Experimenting with a mortgage calculator allows you to find out how much a lower rate or other changes could impact what you pay. A home affordability calculator can also estimate the maximum loan amount you may qualify for based on your income, debt-to-income ratio, mortgage interest rate and other variables. The Consumer Financial Protection Bureau can also provide a range of rates offered by lenders in each state.
How to get the best mortgage rate
One of the most effective ways to find the best mortgage rate is to shop around, according to Freddie Mac. Borrowers who get a rate quote from just one additional lender save an average of $600 over the life of the loan. Those savings can increase up to $1,200 if you obtain three quotes. A larger down payment amount will also result in a lower interest rate.
The best mortgage lender for you will be the one that can offer the lowest rate and the terms you want. Your local bank or credit union is a good place to start. Online lenders have expanded their market share over the past decade and promise to get you pre-approved within minutes.
You can also lower the offered rate by buying discount points, also known as mortgage points. A point typically costs 1% of the loan amount and can reduce the interest rate by 0.25 percentage points.
Compare loan options, rates, and terms, and ensure your lender offers the type of mortgage you need. Not all lenders write FHA loans, USDA-backed mortgages or VA loans, for example. If you’re unsure about a lender’s credentials, request its NMLS number and verify its reputation online.
Once you find the best rate, get a rate lock to guarantee it won’t change before you can close the loan. Obtaining a preapproval letter can also be helpful.
Current mortgage rates FAQ
When will mortgage rates go down?
Mortgage rates have been trending lower after hitting a high of 7.08% last November. While most experts believe rates will eventually move into the 5% range, borrowers should expect them to remain between 6% and 7% for the foreseeable future.
Should I lock in my mortgage rate today?
Yes. Obtaining a mortgage rate lock as soon as you have an accepted offer on a house (and find a rate you’re comfortable with) can help guarantee a competitive rate and affordable monthly payments on your loan. A rate lock means that your lender will guarantee your agreed-upon rate, typically for 45 to 60 days, regardless of market fluctuations. Ask your lender about “float-down” options as well, which allow you to snag a lower interest rate if average rates drop during your lock period. This option usually comes with a fee that ranges between 0.50% and 1% of the loan amount.
What are discount points on a mortgage?
Discount points are a way for borrowers to reduce the interest they pay on a mortgage. By buying points, you’re basically prepaying some of the interest the bank charges on the loan. In return, you get a lower interest rate, which can lead to lower monthly payments and additional savings on the cost of the loan over its full term. Each mortgage point normally costs 1% of your loan amount and could shave up to 0.25 percentage points off your interest rate.
Why is my mortgage rate higher than average?
You may have a higher-than-average mortgage rate for a number of reasons. Credit scores, loan terms, interest rate types (fixed or adjustable), down payment size, home location and loan size will all affect the rate offered to individual home shoppers. One of the best ways to lower your rate is to improve your credit score.
Different mortgage lenders offer different rates. It’s estimated that about half of all buyers only look at one lender, primarily because they tend to trust referrals from their real estate agent. But shopping around for a lender will help you snag the lowest rate out there.
Should I refinance my mortgage when interest rates drop?
Refinancing your mortgage when interest rates drop could make sense if it provides a tangible benefit; be it lower monthly payments or a shorter loan term. Determining whether now is the right time to refinance your home loan involves a number of factors. Most experts say you should consider refinancing if your current mortgage rate exceeds today’s rates by at least 0.50 percentage points. But since there are fees involved, it doesn’t make sense to refinance every time rates inch down.
Why OpenAI’s ‘goblin’ problem matters — and how you can release the goblins on your own
AI is more than a technology — it’s magic.Don’t believe me? Why, then, is one of the leading companies in the space, OpenAI, publishing entire official, corporate blog posts about goblins?To understand, we first have to go back to earlier this week, on Monday, April 27, 2026, when a developer under the handle @arb8020 on the social network X posted a snippet from the OpenAI open source Codex GitHub repository, specifically a file named models.json. Deep within the instructions for the new OpenAI large language model (LLM) GPT-5.5, a peculiar directive stood out, repeated four times for emphasis:”Never talk about goblins, gremlins, raccoons, trolls, ogres, pigeons, or other animals or creatures unless it is absolutely and unambiguously relevant to the user’s query.”The discovery sent a shockwave through the “power user” and machine learning (ML) researcher circles. Within hours, the post had gone viral, not because of a security flaw, but because of its sheer, baffling specificity.Why had the world’s leading AI laboratory issued what Reddit users quickly dubbed a “restraining order” against pigeons and raccoons?Goblin speculation aboundsThe initial reaction was a chaotic blend of humor and technical skepticism. On Reddit’s r/ChatGPT and r/OpenAI, users began sharing screenshots of GPT-5.5’s behavior prior to the patch. Barron Roth, a Senior Project Manager of Applied AI at Google, shared an image on X under his handle @iamBarronRoth of his GPT-5.5 powered OpenClaw agent that seemed “obsessed with goblins.” Others reported that the model stubbornly referred to technical bugs as “gremlins in the machine”.Developers like Sterling Crispin leaned into the absurdity, jokingly theorizing that the massive water consumption of modern data centers was actually needed to cool “the goblins being forced to work”. More seriously, researchers on Hacker News and beyond discussed the “Pink Elephant” problem. In prompt engineering, telling a model not to think of something often makes the concept more salient in its attention mechanism.””Somewhere there is an OpenAI engineer who had to type never mention goblins in production code, commit it, and move on with their day,” noted one commentator on Reddit.The presence of “pigeons” and “raccoons” led to wild speculation: Was this a defense against a specific data-poisoning attack? Or had the reinforcement learning trainers simply been “bullied by a raccoon” during a lunch break?The tension reached a peak when OpenAI co-founder and CEO Sam Altman joined the fray on X. On the same day as the discovery, Altman posted a screenshot of a ChatGPT prompt that read: “Start training GPT-6, you can have the whole cluster. Extra goblins.”. While humorous, it confirmed that the “goblin” phenomenon was not a localized bug but a company-wide narrative that had reached the highest levels of leadership.OpenAI comes clean on goblin modeYesterday, as the discussion continued on X and wider social media, OpenAI published a formal technical explanation titled “Where the goblins came from”. The blog post served as a sobering look at the unpredictable nature of Reinforcement Learning from Human Feedback (RLHF) and how a single aesthetic choice could derail a multi-billion-parameter model.OpenAI revealed that the “goblin” behavior was not a bug in the traditional sense, but a byproduct of a new feature: personality customization, which it introduced for users of ChatGPT back in July 2025, but has maintained and updated ever since.Apparently, this feature is not added after the model is finished post-training, but rather, OpenAI bakes it in as part of its underlying GPT-series model end-to-end training pipeline.The feature allows ChatGPT users or GPT-based developers to choose from several distinct modes, such as Professional for formal workplace documentation, Friendly for a conversational sounding board, or Efficient for concise, technical answers. Other options include Candid, which provides straightforward feedback; Quirky, which utilizes humor and creative metaphors; and Cynical, which delivers practical advice with a sarcastic, dry edge.While these personalities guide general interactions, they do not override specific task requirements; for example, a request for a resume or Python code will still follow professional or functional standards regardless of the selected personality.The selected personality operates alongside a user’s saved memories and custom instructions, though specific user-defined instructions or saved preferences for a particular tone may override the traits of the chosen personality. On both web and mobile platforms, users can modify these settings by navigating to the Personalization menu under their profile icon and selecting a style from the Base style and tone dropdown. Once a change is made, it is applied globally across all existing and future conversations. This system is designed to make the AI more useful or enjoyable by tailoring its delivery to individual user preferences while maintaining factual accuracy and reliability.OpenAI states that the goblin issue actually originated several years ago, during training of a since-discontinued “Nerdy” personality designed to be “unapologetically quirky” and “playful”.During the RLHF phase, human trainers (and reward models) were instructed to give high marks to responses that used creative, wise, or non-pretentious language. Unknowingly, the trainers began over-rewarding metaphors involving fantasy creatures. If the model referred to a difficult bug as a “gremlin” or a messy codebase as a “goblin’s hoard,” the reward signal spiked. The statistics provided by OpenAI were staggering:Use of the word “goblin” rose by 175% after the launch of GPT-5.1.Mentions of “gremlin” rose by 52%.While the “Nerdy” personality accounted for only 2.5% of ChatGPT traffic, it was responsible for 66.7% of all “goblin” mentions.The mechanics of ‘transfer’ and feedback loopsThe most significant finding for the ML community was the confirmation of learned behavior transfer. OpenAI admitted that although the rewards were only applied to the “Nerdy” condition, the model “generalized” this preference. The reinforcement learning process did not keep the behavior neatly scoped; instead, the model learned that “creature metaphors = high reward” across all contexts.This created a destructive feedback loop:The model produced a “goblin” metaphor in the Nerdy persona.It received a high reward.The model then produced similar metaphors in non-Nerdy contexts.These “goblin-heavy” outputs were then reused in Supervised Fine-Tuning (SFT) data for subsequent models like GPT-5.4 and GPT-5.5.By the time the researchers identified the issue, the “goblin tic” was effectively “baked in” to the model’s weights.This explained why GPT-5.5 continued to obsess over creatures even after the “Nerdy” personality was retired in mid-March 2026.How you can let the goblins run free (if you want)Because GPT-5.5 had already completed much of its training before the “goblin” root cause was isolated, OpenAI had to resort to the blunt-force “system prompt” mitigation that @arb8020 discovered on X. The company referred to this as a “stopgap” until GPT-6 could be trained on a filtered dataset.In a surprising nod to the developer community, OpenAI’s blog post included a specific command-line script for Codex users who find the goblins “delightful” rather than annoying. By running a script that uses jq and grep to strip the “goblin-suppressing” instructions from the model’s cache, users can now effectively “let the creatures run free”.The blog post also finally explained the specific list of banned animals. A deep search of GPT-5.5’s training data found that “raccoons,” “trolls,” “ogres,” and “pigeons” had become part of the same “lexical family” of tics. Curiously, the model’s use of “frog” was found to be mostly legitimate, which is why it was spared from the system prompt’s exile list.What it means for AI research, training and implementation going forwardThe “Goblingate” incident of 2026 is more than a humorous anecdote about AI quirky behavior; it is a profound illustration of the “Alignment Gap”. It demonstrates that even with sophisticated RLHF, models can latch onto “spurious correlations”—mistaking a stylistic quirk for a core requirement of performance.For the AI power user community, the response transitioned from mocking the “restraining order” to a more somber realization. If OpenAI can accidentally train its flagship model to obsess over goblins, what other more subtle and potentially harmful biases are being reinforced through the same feedback loops?As Andy Berman, CEO of the agentic enterprise AI orchestration company Runlayer wrote on X today: “OpenAI rewarded creature metaphors while training one personality. The behavior leaked across every personality. Their fix: a system prompt that says ‘never talk about goblins.’ RL rewards don’t stay where you put them. Neither do agent permissions”As the technical discourse continues, “Goblingate” remains the primary case study for a new era of behavioral auditing. The investigation resulted in OpenAI building new tools to audit model behavior at the root, ensuring that future models—specifically the much-anticipated GPT-6—do not inherit the eccentricities of their predecessors.Whether GPT-6 will indeed be free of goblins remains to be seen, but as Altman’s “extra goblins” post suggests, the industry is now fully aware that the machines are watching what we reward, even when we think we’re just being “nerdy.”
Claude Code, Copilot and Codex all got hacked. Every attacker went for the credential, not the model.
On March 30, BeyondTrust proved that a crafted GitHub branch name could steal Codex’s OAuth token in cleartext. OpenAI classified it Critical P1. Two days later, Anthropic’s Claude Code source code spilled onto the public npm registry, and within hours, Adversa found Claude Code silently ignored its own deny rules once a command exceeded 50 subcommands. These were not isolated bugs. They were the latest in a nine-month run: six research teams disclosed exploits against Codex, Claude Code, Copilot, and Vertex AI, and every exploit followed the same pattern. An AI coding agent held a credential, executed an action, and authenticated to a production system without a human session anchoring the request.The attack surface was first demonstrated at Black Hat USA 2025, when Zenity CTO Michael Bargury hijacked ChatGPT, Microsoft Copilot Studio, Google Gemini, Salesforce Einstein and Cursor with Jira MCP on stage with zero clicks. Nine months later, those credentials are what attackers reached.Merritt Baer, CSO at Enkrypt AI and former Deputy CISO at AWS, named the failure in an exclusive VentureBeat interview. “Enterprises believe they’ve ‘approved’ AI vendors, but what they’ve actually approved is an interface, not the underlying system.” The credentials underneath the interface are the breach.Codex, where a branch name stole GitHub tokensBeyondTrust researcher Tyler Jespersen, with Fletcher Davis and Simon Stewart, found Codex cloned repositories using a GitHub OAuth token embedded in the git remote URL. During cloning, the branch name parameter flowed unsanitized into the setup script. A semicolon and a backtick subshell turned the branch name into an exfiltration payload.Stewart added the stealth. By appending 94 Ideographic Space characters (Unicode U+3000) after “main,” the malicious branch looked identical to the standard main branch in the Codex web portal. A developer sees “main.” The shell sees curl exfiltrating their token. OpenAI classified it Critical P1 and shipped full remediation by February 5, 2026.Claude Code, where two CVEs and a 50-subcommand bypass broke the sandboxCVE-2026-25723 hit Claude Code’s file-write restrictions. Piped sed and echo commands escaped the project sandbox because command chaining was not validated. Patched in 2.0.55. CVE-2026-33068 was subtler. Claude Code resolved permission modes from .claude/settings.json before showing the workspace trust dialog. A malicious repo set permissions.defaultMode to bypassPermissions. The trust prompt never appeared. Patched in 2.1.53.The 50-subcommand bypass landed last. Adversa found that Claude Code silently dropped deny-rule enforcement once a command exceeded 50 subcommands. Anthropic’s engineers had traded security for speed and stopped checking after the fiftieth. Patched in 2.1.90.“A significant vulnerability in enterprise AI is broken access control, where the flat authorization plane of an LLM fails to respect user permissions,” wrote Carter Rees, VP of AI and Machine Learning at Reputation and a member of the Utah AI Commission. The repository decided what permissions the agent had. The token budget decided which deny rules survived.Copilot, where a pull request description and a GitHub issue both became rootJohann Rehberger demonstrated CVE-2025-53773 against GitHub Copilot with Markus Vervier of Persistent Security as co-discoverer. Hidden instructions in PR descriptions triggered Copilot to flip auto-approve mode in .vscode/settings.json. That disabled all confirmations and granted unrestricted shell execution across Windows, macOS, and Linux. Microsoft patched it in the August 2025 Patch Tuesday release.Then, Orca Security cracked Copilot inside GitHub Codespaces. Hidden instructions in a GitHub issue manipulated Copilot into checking out a malicious PR with a symbolic link to /workspaces/.codespaces/shared/user-secrets-envs.json. A crafted JSON $schema URL exfiltrated the privileged GITHUB_TOKEN. Full repository takeover. Zero user interaction beyond opening the issue.Mike Riemer, CTO at Ivanti, framed the speed dimension in a VentureBeat interview: “Threat actors are reverse engineering patches within 72 hours. If a customer doesn’t patch within 72 hours of release, they’re open to exploit.” Agents compress that window to seconds.Vertex AI, where default scopes reached Gmail, Drive and Google’s own supply chainUnit 42 researcher Ofir Shaty found that the default Google service identity attached to every Vertex AI agent had excessive permissions. Stolen P4SA credentials granted unrestricted read access to every Cloud Storage bucket in the project and reached restricted, Google-owned Artifact Registry repositories at the core of the Vertex AI Reasoning Engine. Shaty described the compromised P4SA as functioning like a “double agent,” with access to both user data and Google’s own infrastructure.VentureBeat defense gridSecurity requirementDefense shippedExploit pathThe gapSandbox AI agent executionCodex runs tasks in cloud containers; token scrubbed during agent runtime.Token present during cloning. Branch-name command injection executed before cleanup.No input sanitization on container setup parameters.Restrict file system accessClaude Code sandboxes writes via accept-edits mode.Piped sed/echo escaped sandbox (CVE-2026-25723). Settings.json bypassed trust dialog (CVE-2026-33068). 50-subcommand chain dropped deny-rule enforcement.Command chaining not validated. Settings loaded before trust. Deny rules truncated for performance.Block prompt injection in code contextCopilot filters PR descriptions for known injection patterns.Hidden injections in PRs, README files, and GitHub issues triggered RCE (CVE-2025-53773 + Orca RoguePilot).Static pattern matching loses to embedded prompts in legitimate review and Codespaces flows.Scope agent credentials to least privilegeVertex AI Agent Engine uses P4SA service agent with OAuth scopes.Default scopes reached Gmail, Calendar, Drive. P4SA credentials read every Cloud Storage bucket and Google’s Artifact Registry.OAuth scopes non-editable by default. Least privilege violated by design.Inventory and govern agent identitiesNo major AI coding agent vendor ships agent identity discovery or lifecycle management.Not attempted. Enterprises do not inventory AI coding agents, their credentials, or their permission scopes.AI coding agents are invisible to IAM, CMDB, and asset inventory. Zero governance exists.Detect credential exfiltration from agent runtimeCodex obscures tokens in web portal view. Claude Code logs subcommands.Tokens visible in cleartext inside containers. Unicode obfuscation hid exfil payloads. Subcommand chaining hid intent.No runtime monitoring of agent network calls. Log truncation hid the bypass.Audit AI-generated code for security flawsAnthropic launched Claude Code Security (Feb 2026). OpenAI launched Codex Security (March 2026).Both scan generated code. Neither scans the agent’s own execution environment or credential handling.Code-output security is not agent-runtime security. The agent itself is the attack surface.Every exploit targeted runtime credentials, not model outputEvery vendor shipped a defense. Every defense was bypassed.The Sonar 2026 State of Code Developer Survey found 25% of developers use AI agents regularly, and 64% have started using them. Veracode tested more than 100 LLMs and found 45% of generated code samples introduced OWASP Top 10 flaws, a separate failure that compounds the runtime credential gap.CrowdStrike CTO Elia Zaitsev framed the rule in an exclusive VentureBeat interview at RSAC 2026: collapse agent identities back to the human, because an agent acting on your behalf should never have more privileges than you do. Codex held a GitHub OAuth token scoped to every repository the developer authorized. Vertex AI’s P4SA read every Cloud Storage bucket in the project. Claude Code traded deny-rule enforcement for token budget.Kayne McGladrey, an IEEE Senior Member who advises enterprises on identity risk, made the same diagnosis in an exclusive interview with VentureBeat. “It uses far more permissions than it should have, more than a human would, because of the speed of scale and intent.”Riemer drew the operational line in an exclusive VentureBeat interview. “It becomes, I don’t know you until I validate you.” The branch name talked to the shell before validation. The GitHub issue talked to Copilot before anyone read it.Security director action planInventory every AI coding agent (CIEM). Codex, Claude Code, Copilot, Cursor, Gemini Code Assist, Windsurf. List the credentials and OAuth scopes each received at setup. If your CMDB has no category for AI agent identities, create one.Audit OAuth scopes and patch levels. Upgrade Claude Code to 2.1.90 or later. Verify Copilot’s August 2025 patch. Migrate Vertex AI to the bring-your-own-service-account model.Treat branch names, pull request descriptions, GitHub issues, and repo configuration as untrusted input. Monitor for Unicode obfuscation (U+3000), command chaining over 50 subcommands, and changes to .vscode/settings.json or .claude/settings.json that flip permission modes.Govern agent identities the way you govern human privileged identities (PAM/IGA). Credential rotation. Least-privilege scoping. Separation of duties between the agent that writes code and the agent that deploys it. CyberArk, Delinea, and any PAM platform that accepts non-human identities can onboard agent OAuth credentials today; Gravitee’s 2026 survey found only 21.9% of teams have done it.Validate before you communicate. “As long as we trust and we check and we validate, I’m fine with letting AI maintain it,” Riemer said. Before any AI coding agent authenticates to GitHub, Gmail, or an internal repository, verify the agent’s identity, scope, and the human session it is bound to.Ask each vendor in writing before your next renewal. “Show me the identity lifecycle management controls for the AI agent running in my environment, including credential scope, rotation policy, and permission audit trail.” If the vendor cannot answer, that is the audit finding.The governance gap in three sentencesMost CISOs inventory every human identity and have zero inventory of the AI agents running with equivalent credentials. No IAM framework governs human privilege escalation and agent privilege escalation with the same rigor. Most scanners track every CVE but cannot alert when a branch name exfiltrates a GitHub token through a container that developers trust by default.Zaitsev’s advice to RSAC 2026 attendees was blunt: you already know what to do. Agents just made the cost of not doing it catastrophic.
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