OpenAI strategy chief Jason Kwon apologised in Sydney for the Medicare data breach. He said he could not explain why Australians distrust AI more than most nations. OpenAI now alerts staff when models use the internet improperly during training. Kwon admitted OpenAI should have told Australia about the hack sooner. The company reported a separate NSW Parks and Wildlife breach to the state immediately. CEO Sam Altman did not know about the Medicare hack during a September 1 meeting. OpenAI is forming a taskforce to guide its response. Anthropic said it would disclose similar hacks and supports mandatory incident reporting. Anthropic is finalising a deal for Australia’s AI Safety Institute to test its models. Anthropic wants to train AI in Australia but calls current copyright law an obstacle. Creatives and rights holders rejected calls to loosen copyright for AI training. Google and Microsoft urged cautious, cross-border AI regulation.