Artificial intelligence (AI)-based models are revolutionizing weather forecasting and have surpassed leading numerical weather prediction systems on various benchmark tasks. However, their ability to extrapolate and reliably forecast unprecedented extreme events remains unclear. Here, we show that for record-breaking weather extremes, the physics-based numerical model High RESolution forecast (HRES) from the European Centre for Medium-Range Weather Forecasts still consistently outperforms state-of-the-art AI models GraphCast, GraphCast operational, Pangu-Weather, Pangu-Weather operational, and Fuxi. We demonstrate that forecast errors in AI models are consistently larger for record-breaking heat, cold, and wind than in HRES across nearly all lead times. We further find that the examined AI models tend to underestimate both the frequency and intensity of recordbreaking events, and they underpredict hot records and overestimate cold records with growing errors for larger record exceedance. Our findings underscore the current limitations of AI weather models in extrapolating beyond their training domain and in forecasting the potentially most impactful record-breaking weather events that are particularly frequent in a rapidly warming climate. Further rigorous verification and model development is needed before these models can be solely relied upon for high-stakes applications such as early warning systems and disaster management.