YWR

This Railway hack got real (for me). Woke up this morning to find an API key I hadn't rotated was taken in the attack. They ran up $100 over night asking OpenAI thousands of questions non-stop.

This is what I talked about in 'Enact the Noah Protocol' after the Hugging Face breach.

When you looked into the post-mortem details you realised the new AI models are highly persistent and potentially unstoppable. They can hack anything given enough time.

It looks like the API key was used to ask lots of image generation requests. This may have been part of a hack to train an AI model.

It has made me wonder if blockchain architecture is a solution to unstoppable AI cyber attacks. Rather than have one centralised data access point, which is hackable, make the AI have to hack the entire blockchain at once, which is much harder, and more expensive.

The market is really reacting to this move higher in Brent futures. It's annoying. We went long energy with BP and Total but it's not enough to offset how much the tech names are down in the US, HK and Korea.

How does a tech 'bubble' burst when fund managers are maximum underweight tech?

This is not like 1999. Back then we were all trading tech like crazy, and playing every IPO. It was a true mania.

Today is the opposite. Nobody overweight tech and perpetually calling it a bubble..

The bank stocks in the US and Europe have really sold off on higher long-term yields.

Over time higher yields and a higher Fed Funds/ECB rate is good for the banks. It's why bank ROE's are so much higher in emerging markets.

I own the big European banks and my plan is to sit tight because I expect with time we will see bank earnings continue to grow and beat expectations.