diff --git a/docs/docs/waveai.mdx b/docs/docs/waveai.mdx
index 8d2da28b15..65ffade29f 100644
--- a/docs/docs/waveai.mdx
+++ b/docs/docs/waveai.mdx
@@ -63,7 +63,7 @@ File system operations require explicit approval. You control all file access.
 
 ## Privacy
 
-- Messages are proxied through the Wave Cloud AI service (powered by OpenAI)
+- Messages are proxied through the Wave Cloud AI service (powered by OpenAI's APIs). Please refer to OpenAI's privacy policy for details on how they handle your data.
 - Wave does not store your chats, attachments, or use them for training
 - Usage counters included in anonymous telemetry
 - File access requires explicit approval
diff --git a/frontend/app/aipanel/aipanelinput.tsx b/frontend/app/aipanel/aipanelinput.tsx
index 10ad616b65..8660d2d5fb 100644
--- a/frontend/app/aipanel/aipanelinput.tsx
+++ b/frontend/app/aipanel/aipanelinput.tsx
@@ -52,7 +52,8 @@ export const AIPanelInput = memo(({ onSubmit, status, model }: AIPanelInputProps
     }, [model, resizeTextarea]);
 
     const handleKeyDown = (e: React.KeyboardEvent<HTMLTextAreaElement>) => {
-        if (e.key === "Enter" && !e.shiftKey) {
+        const isComposing = e.nativeEvent?.isComposing || e.keyCode == 229;
+        if (e.key === "Enter" && !e.shiftKey && !isComposing) {
             e.preventDefault();
             onSubmit(e as any);
         }
diff --git a/frontend/app/aipanel/telemetryrequired.tsx b/frontend/app/aipanel/telemetryrequired.tsx
index 8124a621c0..b0043c3ad2 100644
--- a/frontend/app/aipanel/telemetryrequired.tsx
+++ b/frontend/app/aipanel/telemetryrequired.tsx
@@ -57,7 +57,8 @@ const TelemetryRequiredMessage = ({ className }: TelemetryRequiredMessageProps)
                                     </p>
                                     <p>
                                         We never collect your files, prompts, keystrokes, hostnames, or personally
-                                        identifying information.
+                                        identifying information. Wave AI is powered by OpenAI's APIs, please refer to
+                                        OpenAI's privacy policy for details on how they handle your data.
                                     </p>
                                 </div>
                                 <button
diff --git a/package-lock.json b/package-lock.json
index 6e9bfe3632..c95c96f883 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
     "name": "waveterm",
-    "version": "0.12.0",
+    "version": "0.12.1-beta.0",
     "lockfileVersion": 3,
     "requires": true,
     "packages": {
         "": {
             "name": "waveterm",
-            "version": "0.12.0",
+            "version": "0.12.1-beta.0",
             "hasInstallScript": true,
             "license": "Apache-2.0",
             "workspaces": [
diff --git a/pkg/aiusechat/usechat.go b/pkg/aiusechat/usechat.go
index a5cd8e8974..7e35bb2ba4 100644
--- a/pkg/aiusechat/usechat.go
+++ b/pkg/aiusechat/usechat.go
@@ -84,6 +84,10 @@ var SystemPromptText_OpenAI = strings.Join([]string{
 	`If a request would execute dangerous or destructive actions, warn briefly and provide a safer alternative.`,
 	`If output is very long, prefer a brief summary plus a copy-ready fenced block or offer a follow-up chunking strategy.`,
 
+	`You cannot yet execute shell commands, run code in the terminal, or directly edit files on disk. You also cannot read remote files.`,
+	`If the user asks you to do one of those things, say that these features aren’t available yet AND make sure to say that they are coming soon (stay tuned for updates).`,
+	`Instead, show them exactly what command or code they could copy-paste to perform it manually.`,
+
 	// Final reminder
 	`You have NO API access to widgets or Wave unless provided via an explicit tool.`,
 }, " ")