Geohot has releases the PS3 exploit and left the PS3 as quickly as he came. Along with the release comes a statement which is available to read below, also an attachment with the release has been included. Don't download this unless you're a developer, you can't do anything else without that knowledge.

In the interest of openness, I've decided to release the exploit. Hopefully, this will ignite the PS3 scene, and you will organize and figure out how to use this to do practical things, like the iPhone when jailbreaks were first released. I have a life to get back to and can't keep working on this all day and night.

Please document your findings on the psDevWiki. They have been a great resource so far, and with the power this exploit gives, opens tons of new stuff to document. I'd like to see the missing HV calls filled in, nice memory maps, the boot chain better documented, and progress on a 3D GPU driver. And of course, the search for a software exploit.

This is the coveted PS3 exploit, gives full memory space access and therefore ring 0 access from OtherOS. Enjoy your hypervisor dumps. This is known to work with version 2.4.2 only, but I imagine it works on all current versions. Maybe later I'll write up how it works

This is a good article for what it means for the less technical.
Good luck!

Link for the download can be found here
Source: GeoHot's Blog

After over 3 years of the ps3 on the commercial  market, it's security has finally been compromised. George Hotz (aka Geohot) has sucessfully dumped the hypervisor, lv0 and lv1 on the ps3 along with having read/write access to the entire system memory.

"I have hacked the ps3" states geohot on his blog. According to him, it took five weeks of clever usage of simple hardware, combined with complex software. From here, a lot of reverse engineering is done to find further vulnerabilities.

The exploit hasn't been released (yet), neither have the dumps of the system have been uploaded but George is a very trusted source, unlike previous fake attempts to hack the system. What will come of this? Only time will tell if the upcoming hack will require a hardmod, or softmod. He also disclosed that the exploit he found can't easily be patched by Sony.

Many more updates to come, so have up to date ps3 hacking news here at MforMature. Fell free to discuss this on our forums and speculate on what's to come. Also, check out George's blog to get more details and enjoy the anticipation!

Source: Geohot's PS3 Blog
Discuss: MforMature Forums

George Hotz is a twenty year old hacking prodigy who was the first person to successfully unlock an iPhone. Since then, he has released multiple jailbreaking tools, software iPhone unlocks and has been busy with college, etc. It's been no secret that Hotz was interested in hacking the PS3. He began posting PS3 security information on his Twitter page about a month ago. Now he has a blog set up, with many technical posts documenting multiple attacks planned and attempted.

No "tools" have been publicly released by George, as no actual arbitrary code has been run, but George seems fairly confident he will find an exploit. Take a glance over at his blog for a good read, and lots of information on the PS3 security system.

Will this lead to piracy? Not directly from this hack at least. George stated, "..all bluray hacks are off the table, couldn't care less about people playing "backup" games", therefore game sales won't suffer from this, unlike the Playstation Portable. Stay tuned for updates regarding his reverse engineering. Any major breakthroughs will be posted.

Visit: Geohot's PS3 Blog