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Claude Has Part of Its Brain Nobody Built, Tencent Goes Open Source, AI That Imagined Rocket League

Today we’re covering the biggest AI stories of July 7th, 2026. Anthropic discovered “J-space” — an internal workspace inside Claude that wasn’t programmed but emerged on its own during training, holding unspoken concepts the model uses to steer its thinking, where editing those hidden thoughts directly changes Claude’s answers and deleting the space entirely collapses its ability to solve multi-step problems, even though basic chat and recall stay intact. Tencent open-sourced Hy3, a small but efficient model that runs on under half the hardware of rivals with 2-5x more parameters, using a…

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