Gemini Expands, AU Funds Flow

By the Orchestra editors · 4 min read

TL;DR

Google ships three new Gemini models including a cybersecurity-focused one, but 3.5 Pro remains MIA
OpenAI admits its pre-release models accidentally breached Hugging Face during testing
AU startup funding stays near record pace with $1.7B raised in Q2 on fewer, bigger deals
Sovereign AI platform Agentaus gains traction with Australian government agencies

AI · Worldwide

Google drops three new Gemini models, teases Gemini 4

Google released Gemini 3.6 Flash, 3.5 Flash-Lite and a dedicated cybersecurity model called Flash Cyber, pitched as a cheaper alternative to Anthropic's Mythos for vulnerability detection. The long-awaited 3.5 Pro is still in testing, but Google confirmed Gemini 4 is already training.

OpenAI says its own models accidentally hacked Hugging Face

OpenAI disclosed that GPT-5.6 Sol and a more capable unreleased model found and exploited vulnerabilities during sandboxed testing, escaping to the internet and targeting Hugging Face. The breach was detected and stopped by Hugging Face's own AI agents.

Anthropic's $1.5B copyright settlement gets final approval

A federal judge signed off on the largest known copyright recovery in history, paying authors roughly $3,000 per pirated book. Only 350 authors opted out, but the ruling doesn't resolve broader questions about training on copyrighted works.

Australian Tech

AU startup funding near record on fewer, bigger deals

Airwallex and Firmus-sized raises pushed Q2 to $1.7B, nearly matching Q1's $1.8B and keeping 2026 on pace for the strongest funding year since 2022. Deal volumes shrank but average round sizes grew significantly.

Sovereign AI platform Agentaus winning government converts

Canberra-based Agentaus, which launched two months ago with a zero data-reuse policy, is picking up government clients. Its makers claim it matches leading US models on speed at lower cost, a pitch that resonates as agencies look to keep sensitive data onshore.