Adobe's AI ARR Surges to $650M, Meta's Muse Slams Schwab

Key Takeaways

• <ul><li>Adobe's AI-first ending ARR exceeded $650 million, growing over 150% year over year in Q3 fiscal 2026.</li><li>Meta's Muse AI product caused Charles Schwab shares to fall 6%, now down over 8% since the announcement.</li><li>Rubrik launched Rubrik MCP and Rubrik Code Guardian, new AI-driven security tools for corporate AI agent access and vulnerability detection.</li><li>Recursion Pharmaceuticals signed a TxFM RNA Foundation Model License Agreement with Tempus AI for $12,000,000 over a two-year term.</li><li>Lumentum announced joint ECOC 2026 demonstrations with Qualcomm and Corning featuring an eight-wavelength DWDM ELSFP module.</li><li>Twist Bioscience connected its antibody characterization platform to Eli Lilly's AI drug discovery hub, Lilly TuneLab.</li><li>A malware campaign called FakeGit involved roughly 7,600 fake GitHub repositories and over 14 million downloads targeting AI tools.</li><li>Tether AI Research released the QVAC Genesis III dataset with 191.43 billion tokens across 159.6 million documents in 19 STEM fields.</li><li>The Vatican's AI advisor warns that big tech labs acting like a cartel could control AI's future.</li><li>The Export-Import Bank of Korea is considering a direct investment in AI chip startup DEEPX, with CEO Lokwon Kim discussing the potential deal.</li></ul>

Twist Bioscience Joins Lilly TuneLab AI Drug Discovery Hub

Twist Bioscience connected its antibody characterization platform to Lilly TuneLab, an AI and machine learning drug discovery hub built around Eli Lilly research data. The company's shares have risen sharply, with a 90-day return of 80.19% and a year-to-date return of 408.18%. The stock closed at US$164.60 after a slight 0.74% drop in the latest session. Investors have priced in significant optimism over the past three years, with total shareholder returns around 7x.

Rubrik Launches AI Security Tools Rubrik MCP and Code Guardian

Rubrik introduced Rubrik MCP and Rubrik Code Guardian, new AI-driven security tools designed to control corporate AI agent access to data and detect complex software vulnerabilities. The company's share price returned 50.12% over 90 days and 48.23% year to date. Its one-year total shareholder return stands at 37.33%. Investors have responded positively to Rubrik's AI security positioning.

Lumentum Unveils AI Optics Demos With Qualcomm and Corning

Lumentum Holdings announced joint ECOC 2026 demonstrations with Qualcomm and Corning, featuring an eight-wavelength DWDM ELSFP module for co-packaged and near-packaged architectures. The stock gained 144.92% year to date and 12.72% over the past 7 days, closing at US$945.67. A valuation analysis suggests the stock could be significantly undervalued if AI data center demand continues to grow. However, risks exist if AI optics orders slow or fixed costs pressure margins.

Recursion Pharmaceuticals Signs Tempus AI RNA Model Deal

Recursion Pharmaceuticals signed a TxFM RNA Foundation Model License Agreement with Tempus AI, which includes a US$12,000,000 fee and shared oncology data access over a two year term. The stock rose 25.00% over 7 days and 25.39% over 90 days, closing at US$4.05. However, the company's 1-year total shareholder return is down 15.80% and its 5-year return is down 82.33%. Recent enthusiasm follows a much weaker long-term performance.

Adobe Expands AI Customer Experience Partnership With Jet2

Adobe expanded its AI customer experience push through a new partnership with Jet2, deepening adoption of its customer-experience portfolio. In Q3 fiscal 2026, Adobe's Brand Visibility solution combined Adobe LLM Optimizer with Semrush's AI Optimization using nearly 300 million real-world AI search prompts. Paid Brand Visibility customers doubled sequentially, and AI-first ending ARR exceeded $650 million, growing over 150% year over year. Adobe Experience Manager, GenStudio, and Experience Platform applications each grew more than 20% year over year.

Adobe expands AI customer experience push with Jet2 partnership

Adobe is deepening its customer-experience portfolio through a partnership with Jet2. In Q3 fiscal 2026, Adobe's Brand Visibility solution combined Adobe LLM Optimizer with Semrush's AI Optimization. Paid Brand Visibility customers doubled sequentially. Ending ARR for Adobe Experience Manager, GenStudio and Experience Platform grew over 20% year over year. Adobe's AI-first ending ARR exceeded $650 million and grew more than 150% year over year.

Study reveals different results in hosted language model testing

Researchers studied how behavioral evaluations of hosted language models can produce different results. They examined replication, measurement sensitivity and persistence using Regent Chess. The Gemini 3.1 Flash-Lite deficit recurred on fresh games under its historical configuration. Under a rebuilt configuration the endpoint shifted, and under rebuilt conditions the comparison between Gemini 3.1 and Gemini 3.7 reversed sign. The findings highlight the need to index model behavior claims by tested identifier, serving period and configuration.

AI agents becoming new channel for malware distribution

A malware campaign called FakeGit involved roughly 7,600 fake GitHub repositories, 6,600 fraudulent profiles and over 14 million downloads. Gemini and ChatGPT independently recommended the same malicious walmart-mcp repository. Over 800 repositories impersonated AI skills and MCP servers, distributing SmartLoader and the StealC infostealer. Attackers exploit indirect prompt injection and trust signals like stars and downloads. Researchers identified 157 malicious skills and 632 vulnerabilities across two registries.

Meta's Muse AI product triggers Schwab stock selloff

Meta's consumer AI product Muse caused shares of Charles Schwab to fall 6% on Tuesday, touching the lowest level since early July. The stock is now down more than 8% since Meta announced Muse. Robinhood's stock rose to another year-to-date high after launching AI agents in May that can trade and manage portfolios on behalf of users. Traders see brokerage stocks as potential casualties of AI disruption.

Tether's QVAC Genesis III dataset boosts STEM AI training

Tether AI Research released the QVAC Genesis III dataset containing 191.43 billion tokens across 159.6 million documents in 19 STEM fields. A 1.7-billion-parameter model trained on the data achieved a 99.45% valid answer rate. The dataset uses Failure Analysis and Option-Level Reasoning methods to teach models to explain mistakes. It improved performance by up to 28.57 percentage points on ARC-Easy compared with Cosmopedia-v2. The research paper was accepted for presentation at COLM 2026.

Vatican AI Advisor Warns of Tech Industry Power Grab

Paolo Benanti, the Vatican's AI advisor appointed by Pope Francis, warns that big tech labs acting like a cartel could control AI's future. He says the public debate on how to govern AI is overdue and more urgent than fears about AI destroying humanity. He points to the pharmaceutical industry as an example where profit motives have limited access to important treatments. Benanti stresses that AI should serve all of humanity, not just a few powerful interests.

AI Could Fix Marketing Measurement, Experts Say

Experts at a Cannes panel say AI can improve marketing mix models that have been slow and biased. The main problem is that marketers focus on quick metrics like clicks instead of real business outcomes like sales. AI can now handle agentic media buying with clear goals for growth and automatically organize campaign data. However, the panelists stress that human guardrails are still needed to guide AI decisions and ensure marketing results are reported in terms finance teams understand.

Korea Bank Weighs Investment in AI Chip Maker DEEPX

The Export-Import Bank of Korea is considering a direct investment in AI chip startup DEEPX, with a decision possible late this year or early next year. DEEPX CEO Lokwon Kim met with the bank to discuss the potential investment. DEEPX has secured purchase orders for its DX-M1 neural processing unit from 77 companies across more than 10 countries. Its revenue has exceeded 20 billion won this year compared to about 3.3 billion won last year, and its edge AI chips are used in CCTV systems, industrial computers and drones.

US Treasury Chief Could Become National AI Czar

US Treasury Secretary Scott Bessent is a possible candidate to become President Donald Trump's new AI czar, according to a source familiar with the discussions. The potential appointment comes as lawmakers in Washington grow increasingly concerned about the risks posed by AI technology. The Treasury Department had no immediate comment on the report, and a second source confirmed that no final decision has been made yet. Trump has previously downplayed AI concerns and argued against additional regulation.

Sources

• Twist Bioscience (TWST) Joins Lilly TuneLab, Is The Stock Fully Priced?
• Is Rubrik (RBRK) Fully Valued Following Its New AI Security Launches?
• Lumentum Holdings (LITE) Could Be 81% Undervalued As AI Optics Push Builds
• Recursion Pharmaceuticals (RXRX) Shares Just Moved, So What Is Driving Attention Now?
• ADBE Expands AI Customer Experience Push With Jet2: What's Ahead?
• ADBE Expands AI Customer Experience Push With Jet2: What's Ahead?
• Replication Without Persistence in Hosted LLMs: Measurement Sensitivity in Action-Time Belief Evaluation
• AI Agents Are Becoming a New Malware Distribution Channel
• Meta's Muse reignites AI disruption fears. Traders are targeting this brokerage stock as next casualty
• QVAC Genesis III Dataset Advances STEM AI Training
• The Pope’s AI Guy Is Worried About ‘Cartel’ Behavior Among Big Labs
• Marketing’s Proxy Problem: Can AI Finally Connect Media Investment to Real Business Outcomes?
• Export-Import Bank of Korea Weighs Direct Investment in AI Chip Startup DEEPX
• US Treasury secretary could take on AI czar role, source says