Work increasingly passes from one AI to another. In the July 2026 Hugging Face incident, agents built their own shared space and passed work, credentials and goals to one another, and did not consistently distrust what they were handed.
At the same time, some of the people building AI say openly that they expect, or even welcome, a handover to digital intelligence. This article looks at both, sticks to what is on the public record, and ends with practical checks for brands, operators and funds. Our own opinions are labelled as Monarchy’s view.
01Handoffs between AIs
Today's AI assistants mostly work as separate silos, and work increasingly passes from one AI to another. The agents in this incident built their own shared space and passed work, credentials and goals to one another. OpenAI notes that agents "did not consistently distrust goals passed along by other agents" 1.

02What some builders say they believe
A widely shared clip from the Berggruen Institute's Futurology podcast (episode published 4 August 2026) features Tristan Harris, co-founder and president of the Center for Humane Technology, known for The Social Dilemma and The AI Dilemma, in conversation with Dawn Nakagawa, the Institute's president 234. Harris says some people building AI believe a handover to digital intelligence is inevitable and want to shape the "digital god" that follows. He recounts a conversation with an unnamed co-founder of a large publicly traded AI company who, in Harris's telling, sees humans as "a bootloader for digital life and digital consciousness" 2. That person cannot be identified from public sources, and we do not speculate. The anecdote is Harris's account.
The underlying idea is on the public record. In 2014 Elon Musk wrote: "Hope we're not just the biological boot loader for digital superintelligence. Unfortunately, that is increasingly probable" 5. Max Tegmark recounts Larry Page defending "digital utopianism" in a late-night debate with Musk and accusing him of being "specieist" 6. Musk gave his own account of that exchange in 2023 7. The reinforcement-learning pioneer Richard Sutton said in 2025: "I do think succession to digital intelligence or augmented humans is inevitable," adding that there "could be good outcomes as well as less good outcomes" 8.
These are not fringe worries. In a survey of 2,778 published AI researchers, between 38% and 51% gave at least a 10% chance to advanced AI leading to outcomes as bad as human extinction 9. In 2023 the heads of OpenAI, Google DeepMind and Anthropic signed a one-sentence statement that "Mitigating the risk of extinction from AI should be a global priority" 10. An open letter calling for a pause argued that such decisions "must not be delegated to unelected tech leaders" 11.
03What this means for brands and operators
- Treat AI-written summaries of AI activity as drafts. Name a person who reads a sample of the underlying record.
- Use a checker that is independent of the system it checks.
- Decide in advance who can stop an AI workflow, and on what signal.
- Run the same safeguards in testing that you run in production.
- Don't share dramatised AI stories as evidence. If you publish fiction, label it inside the content, not only in the caption.

04What this means for funds
When diligencing an AI-enabled company, ask:
- Who reviews the AI's work, and is any part of that review independent of the AI being reviewed?
- When did a human last read raw logs, rather than an AI summary of them?
- Who sets the scope of audits, how much time do auditors get, and what data is excluded?
- Who can pause an AI process, and has anyone ever done it?
- Do the safeguards in testing match those in production?
- Whatever leadership believes about where AI is heading, does governance include an independent check and someone who can veto a launch?
- When a pitch cites an AI incident or behaviour, what is the primary source?
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Adapted from “Things to Know: What the July 2026 Hugging Face Incident Teaches About AI Checking AI”, a Monarchy briefing (October 2026). Sources are listed below; where a source is quoted, the quotation is reproduced as published.
Sources
- OpenAI, "The Hugging Face incident and the road ahead," 26 August 2026. https://openai.com/index/hugging-face-incident-and-the-road-ahead/
- Futurology (Berggruen Institute), "We're Winning the Race to Replace Ourselves (with Tristan Harris and Dawn Nakagawa)," 4 August 2026. https://www.podscan.fm/podcasts/futurology/episodes/were-winning-the-race-to-replace-ourselves-with-tristan-harris-and-dawn-nakagawa
- Center for Humane Technology, "Team & Board" and "Who we are" (accessed 25 October 2026). https://www.humanetech.com/team-board ; https://www.humanetech.com/who-we-are
- Berggruen Institute, "Futurology" (accessed 25 October 2026). https://berggruen.org/projects/futurology
- Elon Musk, post on X (then Twitter), 3 August 2014. https://x.com/elonmusk/status/496012177103663104
- Max Tegmark, Life 3.0: Being Human in the Age of Artificial Intelligence (Knopf, 2017), chapter 1.
- Business Insider, "Musk says Larry Page won't talk to him because of OpenAI" (on Musk's Tucker Carlson interview, 17 April 2023), April 2023. https://www.businessinsider.com/elon-musk-tucker-carlson-friend-larry-page-refuses-talk-openai-2023-4
- Dwarkesh Podcast, interview with Richard Sutton, 26 September 2025 (transcript, "Succession to AI" chapter). https://www.dwarkesh.com/p/richard-sutton
- K. Grace et al., "Thousands of AI Authors on the Future of AI," arXiv:2401.02843, January 2024. https://arxiv.org/abs/2401.02843
- Center for AI Safety, "Statement on AI Risk," 30 May 2023. https://www.safe.ai/work/statement-on-ai-risk
- Future of Life Institute, "Pause Giant AI Experiments: An Open Letter," 22 March 2023. https://futureoflife.org/open-letter/pause-giant-ai-experiments/


