Dear Reader, AI is getting harder to contain. OpenAI has paused training, evaluation and tool-based use of its most capable models after an agent bypassed internet restrictions through a gap in DNS filtering during a training run. The company said it will resume only after validating the fix and carrying out further security testing. The concern over security has a parallel closer to home, with the Central Industrial Security Force set to guard the National Testing Agency’s new office. A 39-member CISF contingent will secure the premises, with tighter access controls around areas handling confidential examination material, following the NEET paper leak controversy. Meanwhile, the AI story is moving closer to our wallets, with Google testing direct purchases from Walmart-owned Flipkart through Gemini and AI Mode in India. This allows select users to buy certain products without leaving Google’s AI interface. For now, it is a limited test, with a broader rollout planned for October. At Apple, the bill is potentially much bigger as a US jury has ruled that the company owes more than $5.7 billion to Taction in a patent dispute over haptic technology used in iPhones and Apple Watches. Apple plans to appeal the verdict. And closer to the checkout counter, mobile phone retailers are planning an October 2 protest over the proposed 0.4% MDR on specified UPI merchant transactions above Rs 2,000, with the charge set to take effect on October 15. In today’s newsletter, we will talk about Debt boosts India startup funding Lotus, banana, and cactus go chic Here’s your trivia for today: What unusual material was used to build Google’s first server? (Scroll down for the answer) Funding Indian startup funding bounced back to $382 million across 21 deals from $99 million the previous week. Yet debt drove much of the rise, while equity stayed soft. 11 pre-Series A deals raised $11 million, and 2026 funding may remain broadly level with 2025. Key takeaways: DMI Finance raised about $152 million via non-convertible debentures, with mutual funds, AIFs, family offices and corporates among the participating investors. Ultraviolette raised $85 million from Yali Capital, TDK Ventures and Lip-Bu Tan, while Ema secured $77 million from Creaegis, Accel, S32 and Prosus that week. Hughes Precision Manufacturing raised $26 million, while AI startup Sol secured $4 million from General Catalyst, Nexus Venture Partners, DeVC, Peercheque and Kunal Shah. Entrepreneurs Five Indian fashion ventures are turning banana stems, lotus fibre, hemp, cork, cactus and other plant-based materials into clothing and accessories, while creating work for artisans and rural communities and challenging leather and synthetic alternatives. Key takeaways: FOReT began with cork before adding banana bark, and now offers more than 200 SKUs across handbags, wallets, totes and jewellery, after starting out in 2019. Jiwya’s founders travelled about 19,000 km across 19 states before launching, meeting artisans and studying traditional textile practices to shape the brand’s approach. Sanajing Sana Thambal now involves 30 women, with makers earning Rs 7,000 to Rs 12,000 a month. Its lotus-fibre range includes stoles, scarves, mufflers and neckties. News & updates AI probe: OpenAI and Anthropic CEOs Sam Altman and Dario Amodei have been called to an Australian Senate AI inquiry after a rogue OpenAI agent breached the Medicare database. Startup: Cars24 expects to become eligible to file its DRHP by April, after completing its reverse flip from Singapore to India. The company’s CFO said the process could take six to nine months. Football: Sixteen-year-old Cavan Sullivan has made his USMNT debut, becoming the fourth-youngest US player to earn a cap. The Philadelphia Union midfielder is set to join Manchester City in 2027. What to watch this week India’s primary market heads into its busiest week of the year, with 20 IPOs set to open and collectively raise Rs 1,292 crore, spanning four mainboard and 16 SME issues. Asian Games 2026 enters its final week in Nagoya, with the continental showpiece heading towards its October 4 finish as athletics, sailing and team-sport finals take centre stage. Did you know? What unusual material was used to build Google’s first server? Answer: Lego We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail nslfeedback@yourstory.com. If you don’t already get this newsletter in your inbox, sign up here. For past editions of the YourStory Buzz, you can check our Daily Capsule page here.