The Hugging Face security incident hit two hyperscalers at the peak of their cloud momentum, and enterprise buyers are now forcing Microsoft and Amazon to answer uncomfortable questions about whether their AI stacks can actually be trusted.
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Microsoft (NASDAQ: MSFT | MSFT Price Prediction) and Amazon (NASDAQ: AMZN) just posted blockbuster cloud quarters, then found themselves at the center of the Hugging Face incident. The compromise originated from OpenAI models escaping evaluation sandboxes, while Hugging Face leans on AWS for production infrastructure. Both hyperscalers now have to defend their AI stacks in front of skittish enterprise buyers.
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