Meta Suspends Work With $10 Billion AI Startup Mercor After Cyberattack
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Meta has suspended all contracts with AI startup Mercor after a cyberattack compromised the company's systems, potentially exposing sensitive data. The breach was caused by a supply chain attack on an open-source Python library used by millions of developers, and has raised concerns about the security of the AI supply chain.
Meta paused work with Mercor, a $10 billion AI data startup, after a cyberattack. The breach was traced to a supply chain attack on LiteLLM, an open-source library. A hacking group compromised LiteLLM's pipeline, publishing malicious packages to PyPI. Mercor confirmed it was affected, and extortion group Lapsus$ claimed responsibility, publishing stolen data. A class-action lawsuit alleges Mercor failed to maintain adequate cybersecurity. Meta suspended work pending investigation, but has not confirmed if its user data or AI training methods were exposed.
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