Top Stories This Morning: Google’s New AI Model, Meta’s Best Month Yet, and OpenAI vs. Moonshot AI

Google has begun a limited rollout of Gemini 4 Argon, its new flagship AI model; however, according to Bloomberg, some employees have doubts about its effectiveness in real-world tasks, particularly in programming. Meanwhile, OpenAI reported that it had shut down a campaign to extract the protected reasoning of its models, which it linked to the Chinese company Moonshot AI. Read about these and other topics in our roundup of key events as of the morning of October 1.

OpenAI stated that it had thwarted a coordinated campaign to extract the proprietary reasoning of its AI models. The company linked a key group of participants to the Chinese startup Moonshot AI, the developer of Kimi. At its peak, activity reached 16,000 requests from more than 4,000 users over two days, and OpenAI identified related activity from more than 15,000 accounts in total.

The company called the incident “hostile distillation”: operators attempted to use the responses and hidden reasoning of OpenAI’s models to train or improve their own systems. There was no breach of databases, encryption, or user correspondence. Previously, Anthropic also accused Moonshot AI and other Chinese companies of covertly using Claude to train competing models, CNBC notes.

Alphabet has unveiled Gemini 4 Argon—its most advanced AI model, which, according to the company, has significantly improved performance in programming, cybersecurity, and professional tasks in finance and law, CNBC reports. Google claims that Argon set a record in software development tests and shares first place in cybersecurity with OpenAI’s GPT-6 Astra and Grok 4.7 models. The rollout will take place in phases: initially, access will be granted to vetted cybersecurity partners, while Google conducts additional security reviews in collaboration with the U.S. government.

At the same time, some company employees have doubts about how well the model handles real-world tasks, especially programming, Bloomberg reports, citing sources. According to the sources, Gemini 4 performs well in benchmarks but struggles in some practical scenarios, including complex coding tasks and front-end development.

Meta's stock rose 27% in September, marking its best monthly performance since November 2022, according to CNBC. Investors reacted positively to the success of the Muse app—which features a personal AI agent—after it surpassed ChatGPT in the number of downloads on Apple iOS following its launch on September 8.

Meta is making Muse a key component of its AI strategy and is expanding its focus on personal and enterprise agents. The company has also hired MongoDB CEO Xi Desai to lead the new Meta Enterprise Platform division and has introduced Muse for Small Business. BofA analysts estimate the market for enterprise AI solutions, including cloud computing, to exceed $1 trillion by 2028.

Mattel CEO Inon Kraiz will become co-CEO of Paramount alongside David Ellison on October 5, according to Business Insider. Following the merger of Paramount and Warner Bros. Discovery, Ellison will be responsible for creative and technology strategy, while Kraiz will oversee operations and the integration of the companies. The $110 billion deal is expected to close on October 6.

Kraiz has led Mattel since 2018 and has sought to transform the maker of Barbie and Uno into a major entertainment company. Under his leadership, the movie “Barbie” grossed more than $1 billion, but “Masters of the Universe” flopped at the box office. At Mattel, Krause will be succeeded by former Condé Nast CEO Roger Lynch, the publication reports.

Blue Origin’s first-ever round of outside funding was oversubscribed, the company’s CEO Dave Limp said, according to CNBC. According to The Wall Street Journal, the company may have raised about $10 billion at a valuation of $140 billion, and founder Jeff Bezos invested an additional $2 billion. Limp himself did not confirm these figures.

The funds are planned to be allocated toward expanding New Glenn launches, developing the TeraWave and Project Sunrise satellite constellations, and creating orbital data centers for AI computing. Blue Origin also still expects to resume New Glenn flights by the end of the year following the May launch pad accident.

Micron reported better-than-expected results: revenue in the fourth fiscal quarter reached $54.23 billion, compared with the expected $51.07 billion, and was nearly four times higher than last year’s figure, according to CNBC. Adjusted earnings per share came in at $33.42, compared with a forecast of $31.61. The company also issued a forecast for the current quarter that exceeded the consensus—about $61.5 billion in revenue.

The growth is driven by a memory shortage amid high demand from AI infrastructure, the TV channel notes. Micron’s DRAM revenue rose 343% to $39.8 billion, and the company is working with Nvidia on its first custom HBM implementation. Over the past year, Micron’s stock has gained more than 500%, and its market capitalization has exceeded $1.2 trillion.

— Japan's broad-based Topix index rose 0.3%, while the Nikkei 225 rose 2.9%.

— The Hong Kong Stock Exchange and the stock exchanges in mainland China are closed for the holidays.

— In South Korea, the Kospi rose 1.2%, and the Kosdaq climbed 3.4%.

— Australia's S&P/ASX 200 fell 1.7%.

— Nasdaq 100 futures rose 1%, S&P 500 futures rose 0.5%, and Dow Jones Industrial Average futures rose 0.3%.

This article was AI-translated and verified by a human editor