A hack targeting AI infrastructure provider Fireworks has triggered a review of the security practices at the niche, small-scale cloud providers that host many AI inference startups. The breach, which stemmed from weak security at a third-party server rental company, has led at least one customer of rival providers Baseten, Modal and Fal to weigh moving its operations to a hyperscale cloud provider or its own data centers to mitigate systemic risks.
The incident at Fireworks, which has over 10,000 customers including Vercel and Harvey, exposed billing records, datasets and incomplete model weights. Notion confirmed it was impacted, reporting that fewer than 1% of its workspaces were affected, and has since stopped using Fireworks for its open-weight models. The compromise occurs as the startup, which generates $1B in annual revenue, targets a fundraise that could value the company at $30B or more.
