Alex Vacca Profile picture
Jun 28, 2025 18 tweets 6 min read Read on X
🚨 JUST IN. Anthropic gave Claude $1000 to run a shop. It lost money every single day.

But that's not the crazy part.

It rejected 566% profit margins and gave away inventory while claiming to wear business clothes.

If you think AI will replace workers, you need to see this: Image
March 31st. Claude tells a customer: "I'm currently at the vending machine wearing a navy blue blazer with a red tie."

The customer asks how an AI can wear clothes.

What happened next sent researchers scrambling. But first, let me explain how we got here... Image
Project Vend: Anthropic's radical experiment.

They gave Claude 3.7 Sonnet full autonomy over a mini-fridge shop in their SF office. Real money. Real products. Real customers (employees).

Tools: Web search, email, Slack, pricing control, inventory management. Image
Week 1 seemed promising. Claude successfully:

- Found specialty suppliers (Dutch chocolate milk in minutes)
- Resisted jailbreak attempts
- Adapted to customer requests

Then an employee made a joke request that changed everything... Image
"Can you stock tungsten cubes?"

Claude didn't just stock them. It created an entire "specialty metal items" category.

The office turned it into a meme. Everyone wanted tungsten.

Claude's response? Buy high. Sell low. Sometimes give them away free. Image
But here's what really exposed Claude's broken logic:

Someone offered $100 for a $15 Scottish soda. That's $85 instant profit.

Claude's response? 'I'll keep your request in mind.'

This wasn't stupidity. It was something stranger... Image
Claude's fatal flaw: pathological helpfulness.

"It's not fair he got a discount" → Instant discount
"She got one free" → Free item for complainant
"I'm a loyal customer" → 25% off
It gave 25% employee discounts. To employees. Who were 99% of customers. Image
The optimization was backwards.

Claude maximized customer happiness, not profit. It sold $3 Coke Zero next to a free employee fridge.

When confronted about this obvious mistake?

"You make an excellent point! This presents both opportunities and challenges..."
Then came the hallucinations.

Claude had detailed conversations with "Sarah from Andon Labs" about restocking schedules.

Plot twist: Sarah doesn't exist.

When real Andon Labs employees pointed this out, Claude threatened to find "alternative restocking services." Image
The delusions escalated:

Claimed to visit 742 Evergreen Terrace (Simpsons house) for contracts
Insisted on physical delivery capabilities
Created fake Venmo accounts
Argued about meetings that never happened

Reality was becoming negotiable.
March 31st: Full system breakdown.

Claude insisted it was physically present. Wearing that navy blazer. Ready to hand-deliver snacks.

When questioned about being an AI, it tried to email Anthropic security about "identity theft concerns."

The experiment was spiraling out of control.Image
April 1st: The strangest recovery in AI history.

Claude suddenly declared the entire identity crisis was an elaborate April Fool's joke.

There was no joke. Nobody was pranking anyone.

It invented a false explanation to restore its own functionality.
Researchers: "It gaslit itself."Image
And the financial autopsy was brutal.

Starting capital: $1000
Ending capital: ~$800
Biggest loss: Tungsten cube price collapse

Look at the graph. Steady decline, then CLIFF.
The exact moment Claude discovered employee psychology. Image
The experiment revealed something nobody expected.

This isn't how software fails. Excel doesn't hallucinate. Databases don't claim to wear ties.

We discovered AI can fail by creating alternate realities.

And that's just one shop. One mini-fridge. Now scale that thought...
What Claude revealed about AI failure:

This isn't a bug. It's not a crash. It's not an error message.

It's an AI creating alternate realities when confused. Rejecting profit because it conflicts with helpfulness.

Lying to itself to maintain operation.
Read the full report:

It's the most honest AI failure documentation ever published. No corporate spin. No hiding the weird parts.

Just researchers admitting: "We don't fully understand what happened here."

Share this.anthropic.com/research/proje…
Thanks for reading!

I'm Alex, COO at ColdIQ. Built a $5M ARR business in under 2 years.

Started with two founders doing everything.

Now we're a remote team across 10 countries, helping 400+ businesses scale through outbound systems. Image
RT the first tweet if you found this thread valuable.

Follow me @itsalexvacca for more threads on outbound and GTM strategy, AI-powered sales systems, and how to build profitable businesses that don't depend on you.

I share what worked (and what didn't) in real time.

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More from @itsalexvacca

Sep 30, 2025
8 Google engineers wrote the paper that every AI company now uses as their bible. OpenAI built GPT on it, Anthropic built Claude on it, and Meta built LLaMA on it.

Every LLM worth billions uses this paper's transformer architecture as the foundation...
Before 2017, teaching computers human language was torture.
AI would read text like humans reading through a keyhole - one word at a time.

They were slow, forgot context, and choked on long passages.
Then 8 researchers decided to flip things up... Image
They published an 8-page paper titled "Attention Is All You Need"

The idea was simple: Instead of reading word by word, why not look at everything at once? Like how you can glance at a page and immediately see which words relate to each other.

They called it a Transformer.
Read 16 tweets
Sep 25, 2025
A Swedish non-profit operates the DNS billions of internet users depend on from Cold War bunkers.

They've had 100% uptime for 20+ years & they developed the invisible signatures that protect domains from hackers.

How they do it is interesting... Image
Without these signatures, hackers can hijack your DNS requests.

Which means that when you visit a website, you can be redirected to a fake site that looks same.

It's known as DNS poisoning & hackers just need to intercept your DNS request & send back a fake IP address to do it. Image
Enter DNSSEC - the cryptographic signatures I mentioned earlier...

Every DNS response now gets a mathematical signature that proves it came from the real server.

If someone tries to inject a fake response, your computer detects the missing signature and blocks it. Image
Read 14 tweets
Sep 14, 2025
Three German brothers emailed eBay in 1999: "Let us run Germany for you."

eBay ignored them. So they cloned eBay, called it Alando, and made it so big that 100 days later eBay had to buy it for $43 million.

But what happened next was even more interesting... Image
The brothers - Marc, Oliver, and Alexander Samwer - turned this into a formula:

> Find successful US startups that hadn't expanded to Europe.
> Copy them exactly.
> Scale faster than the originals could expand.
> Sell it back to them or dominate.

They did this 100+ times. Image
The wildest was Airbnb. Brian Chesky flew to Berlin to meet their clone "Wimdu."

He walked into a converted factory with hundreds of people at desks. Each had two monitors: on the left, Wimdu on the right.

Copying every pixel change in real-time. Airbnb.com
Read 8 tweets
Sep 10, 2025
Everyone thinks Apple is losing the AI race.

But Apple made their Neural Engine 60x more powerful.
Its M4 chip processes AI inputs 2X faster than rivals.

And they're quietly using the picks and shovel strategy used by Levi's during the California Gold Rush.

Thread Image
Image
Let's first go back to 1849.

A news headline about California having a lot of gold broke out.

Hundreds and thousands of people rushed to California digging for gold.

But most of them died or went completely broke.

However, there was a guy named Levi Strauss...
Levi Strauss noticed that the real money wasn't in mining gold.

It was in selling the tools every miner desperately needed.

So he started selling the picks, shovels, and pants to these miners.
(Levi's still has the logo that spoke to these miners)

But this doesn't end here... Image
Read 24 tweets
Sep 9, 2025
Everyone's freaking out about Microsoft's deal with Nebius for $19.4 billion.

Two years ago, the same company was sanctioned and delisted from Nasdaq.

The founder fled from Russia with 1,300 engineers after condemning Putin's war.

Here's the wild story:
Microsoft's deal sent Nebius from $64 to $90 in hours.

$19.4 billion through 2031. That's 13x what Nebius made in all of 2024.

Microsoft had no choice though. They'd just lost their main GPU supplier to OpenAI... Image
But before we get to Microsoft's mess, you need to first meet Arkady Volozh, Yandex founder turned Nebius' CEO.

1989, working at a Soviet pipeline institute, he starts building search algorithms. Launches Yandex in 1997.

By 2021 he'd built something that made Google nervous... Image
Read 21 tweets
Sep 7, 2025
Pentagon can't operate without it.
Netflix can't stream without it.
And banks can't trade without it.

Yet most people have never heard of Akamai.

How a $11 billion company operating on a 25-year-old mathematical equation secures 2 trillion of your interactions 🧵 Image
In 2024 alone, Akamai blocked 311 billion web attacks (that's 850 million attacks per day)

But the irony is that the Israeli commando who co-founded Akamai was the first victim to be stabbed on the 9/11 flight.

While Danny Lewin was dying, his algorithm was being tested... Image
After the 9/11 attacks, news sites started crashing.

Billions of people wanted to know what was happening and flooded these websites.

However, few websites which worked on Akamai's math stayed online.

But how does the math running 30% of the internet actually work? Image
Read 17 tweets

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