This is one of those Silicon Valley real-life episodes that seem pulled from the HBO satire show. This week, some really atrocious malware was discovered in an open source project developed by Y Combinator graduate LiteLLM. LiteLLM gives developers easy access to hundreds of AI models and provides features like spend management. It’s a breakout hit, downloaded as often as 3.4 million times per day, according to Snyk , one of the many security researchers monitoring the incident. The project had 40K stars on GitHub and thousands of forks (those who used it as a base to alter and make it their own). The malware was discovered, documented, and disclosed by research scientist Callum McMahon of FutureSearch , a company offering AI agents for web research. The malware slipped in through a “dependency,” meaning other open source software that LiteLLM relied upon. It then stole the log-in credentials of everything it touched.…