Copyright lawsuits are piling up against Brave Software, which stands accused of scraping articles from outlets like The New York Times, The Daily News, Chicago Tribune, and Orlando Sentinel. The browser company allegedly fed that content to AI developers including Anthropic, Perplexity, Mistral, xAI, and Cohere. The latest suits follow a prior complaint from the New York Times and highlight growing tension between publishers and AI firms over content use.
Apple is facing its own legal challenge. Authors filed an amended class action claiming the company willfully used millions of copyrighted works without permission to train its Apple Intelligence product. The suit, filed in US federal court, adds to a wave of intellectual property disputes shaking the AI industry.
On the stock market side, Twilio is gaining ground on Palantir. Analysts predict Twilio will outperform its rival in the AI software space, citing a 46% rise in 2026 so far versus flat performance for Palantir. Twilio's Q2 revenue grew 20% year over year to $1.56 billion, and its Q4 guidance of roughly $1.6 billion beat expectations. The company also raised its 2026 revenue growth forecast to 20% and is building conversational voice AI tools for automation agents.
Dynatrace shares dropped 14% after its Arize AI acquisition pressured margin guidance. Quarterly revenue reached $579.9 million and annual recurring revenue hit $2.207 billion, but the margin midpoint fell 1.5 percentage points to 28.125%. Investors now want proof the deal can drive spending and restore profitability.
Microsoft delivered strong third quarter results, with M365 growth at 18% and Azure at 48%. The company launched consolidated Copilot tools and over a dozen MAI models, and its P/E multiple expanded from 19 to 25 times forward earnings. AustralianSuper, a A$430 billion pension fund, is also backing AI infrastructure, holding about A$3.05 billion in Nvidia and roughly A$2.3 billion each in Microsoft and Alphabet, betting that chipmakers and data centers will weather market turbulence better than model developers.
BlackRock warns investors must see real returns on AI spending after Nasdaq posted its worst month since March 2025. Hyperscaler capex climbed to about $650 billion from $360 billion, but incremental margins slipped to 28% from 40%. S&P 500 earnings growth outside megacaps reached about 29%, outpacing the 18% posted by megacap firms.
New research on AI reasoning shows that lightweight rewards can help models trust their own step-by-step thinking more. Researchers tested four reward types on small models using GSM8K and StrategyQA, finding some improvement in reasoning reliance but also a clear trade-off with accuracy and robustness.
Chinese AI models still trail Anthropic and OpenAI according to new rankings, suggesting the global competition may be less close than some believe. The findings point to a persistent capability gap that a new evaluation method makes more visible.
Shadow AI is becoming a real security concern. A DNSFilter survey of 400 IT professionals found that 20.1% of organizations suffered a security incident from an unapproved AI tool. AI governance is now the top security spending priority at 40.3%, ahead of cloud security at 25.5%. Yet 36.8% of organizations let employees approve AI tool access on their own. DNSFilter processed 3.4 billion AI tool requests in August 2026 from over 43,000 organizations.
The Malaysian ringgit weakened to 4.0735/0775 against the dollar as investors pulled back from AI-related trades. Malaysia's semiconductor industry has benefited from the AI boom, but concerns about a possible AI bubble, US midterm elections, and jobs data kept market sentiment cautious.
Key Takeaways
- <ul><li>Brave Software faces multiple copyright lawsuits from The New York Times, The Daily News, Chicago Tribune, and Orlando Sentinel for allegedly scraping articles and sharing them with AI developers including Anthropic, Perplexity, Mistral, xAI, and Cohere.</li></ul>
- <ul><li>Authors sued Apple in US federal court, accusing the company of willfully using millions of copyrighted works to train its Apple Intelligence AI product.</li></ul>
- <ul><li>Twilio is expected to outperform Palantir in the AI software space, with Q2 revenue up 20% year over year to $1.56 billion and a raised 2026 growth forecast of 20%.</li></ul>
- <ul><li>Dynatrace shares fell 14% after its Arize AI acquisition weighed on margin guidance, dropping the midpoint 1.5 percentage points to 28.125%.</li></ul>
- <ul><li>Microsoft reported strong Q3 results with M365 growth at 18%, Azure at 48%, and a P/E multiple expansion from 19 to 25 times forward earnings.</li></ul>
- <ul><li>AustralianSuper, a A$430 billion pension fund, holds about A$3.05 billion in Nvidia and roughly A$2.3 billion each in Microsoft and Alphabet, focusing on AI infrastructure over model developers.</li></ul>
- <ul><li>BlackRock says investors now demand proof of AI returns after Nasdaq's worst month since March 2025, as hyperscaler capex rose to $650 billion but incremental margins fell to 28% from 40%.</li></ul>
- <ul><li>New research finds lightweight rewards can improve AI models' reliance on step-by-step reasoning, but introduce a trade-off with accuracy and paraphrase robustness.</li></ul>
- <ul><li>Chinese AI models trail Anthropic and OpenAI in new rankings, suggesting a persistent capability gap in the global AI competition.</li></ul>
- <ul><li>A DNSFilter survey found 20.1% of organizations suffered a Shadow AI security incident, with AI governance now the top security spending priority at 40.3%.</li></ul>
Three more news outlets sue Brave for scraping copyrighted content
The Daily News, Chicago Tribune, and Orlando Sentinel filed copyright lawsuits against Brave Software. They accuse Brave of copying their articles and sharing them with AI companies like Anthropic, Perplexity, Mistral, xAI, and Cohere. This follows a similar lawsuit from the New York Times. Brave allegedly sells stolen publisher content to third parties building AI products.
Brave sued for supplying news articles to major AI developers
Brave, a San Francisco-based browser and AI search company, faces copyright lawsuits from The New York Times and other publishers. The complaints allege Brave scraped copyrighted news articles for its search engine. Brave reportedly sold access to that content to AI developers including Anthropic, Perplexity, and Mistral.
Authors sue Apple for using copyrighted works in Apple Intelligence
Authors filed an amended class action complaint against Apple, accusing the company of willfully infringing millions of registered copyrighted works. The lawsuit claims Apple used these works without permission or payment to build and train its Apple Intelligence AI product. The complaint was filed in US federal court.
Twilio stock expected to outperform Palantir in 2026
Wall Street analysts predict Twilio will outperform Palantir in the AI software space. Twilio rose 46% in 2026 while Palantir stayed flat. Twilio has a 12-month price target of $274, implying 32% upside. Its Q2 revenue grew 20% year over year to $1.56 billion, and it is integrating AI tools into its cloud communications platform.
Twilio cheaper than Palantir and set to outperform, analysts say
Analysts say Twilio stock is likely to outperform Palantir due to its lower valuation and steady growth. Twilio's Q4 revenue guidance of about $1.6 billion beat expectations. The company raised its 2026 revenue growth estimate to 20%. Its conversational voice AI tools help customers build automation agents, and existing customers are spending more on its services.
New rewards help AI models rely on their own reasoning
Researchers studied four lightweight rewards to make AI models trust their step-by-step reasoning more. They added these rewards to group relative policy optimization and tested two small models on GSM8K and StrategyQA. Some setups improved reliance on reasoning edits, but results varied for accuracy and paraphrase robustness. The study confirms a trade-off between reasoning reliance and performance.
Chinese AI models trail Anthropic and OpenAI in new rankings
A new way of measuring AI performance suggests China's challenge to OpenAI and Anthropic may be overstated. The rankings show that Chinese AI models fall behind those from Anthropic and OpenAI. The findings point to a gap in capabilities that the new evaluation method makes clearer. This could change how people view the global AI competition.
Ringgit weakens as investors retreat from AI-related trades
The Malaysian ringgit fell to 4.0735/0775 against the US dollar from Monday's close of 4.0695/0735. Investors pulled back from AI-related trading, putting pressure on the currency. Malaysia has benefited from the AI investment boom through its semiconductor industry. Experts said concerns about an AI bubble, US midterm elections, and jobs data kept market sentiment cautious.
One in five organizations hit by Shadow AI incidents
A DNSFilter survey of 400 IT professionals found that 20.1% of organizations suffered a security incident from an unapproved AI tool connection. AI governance is now the top security spending priority at 40.3%, ahead of cloud security at 25.5%. However, 36.8% of organizations let employees approve AI tool access on their own and notify IT later. DNSFilter processed 3.4 billion AI tool requests in August 2026 from over 43,000 organizations.
Dynatrace stock drops 14% after AI acquisition hits margins
Dynatrace shares fell 14% after its AI acquisition weighed on margin guidance. Quarterly revenue reached $579.9 million and annual recurring revenue hit $2.207 billion. The margin midpoint dropped 1.5 percentage points to 28.125%. The company now needs to show that the Arize acquisition can drive more customer spending and help rebuild margins.
Microsoft accelerates with AI innovations and strong Azure growth
Microsoft reported strong third quarter results with M365 growth at 18% and Azure growth at 48%. The company launched new products including consolidated Copilot tools and over a dozen MAI models. Azure's commercial backlog grew with demand from enterprise customers. Its P/E multiple rose from 19 to 25 times forward earnings.
AustralianSuper sticks with AI infrastructure investments
AustralianSuper, a A$430 billion pension fund, plans to focus on AI picks and shovels like chipmakers and data centers. It holds about A$3.05 billion in Nvidia and about A$2.3 billion each in Microsoft and Alphabet. The fund believes infrastructure providers will weather AI market turbulence better than model developers.
BlackRock says investors must see returns on AI spending
BlackRock says investors now demand proof that AI spending will deliver returns after Nasdaq's worst month since March 2025. Earnings growth for S&P 500 companies outside the megacaps reached about 29% versus 18% for the megacaps. Hyperscaler capex rose to about $650 billion from $360 billion while incremental margins fell to 28% from 40%.
Sources
- Three more news organizations claim Brave scraped their websites for copyrighted content | MLex | Specialist news and analysis on legal risk and regulation
- Brave accused in US of supplying copyrighted journalism to major AI developers | MLex | Specialist news and analysis on legal risk and regulation
- Authors file amended US copyright claims against Apple over AI model | MLex | Specialist news and analysis on legal risk and regulation
- Prediction: This Artificial Intelligence (AI) Software Stock Will Outperform Palantir, According to Wall Street (Hint: It’s Significantly Cheaper)
- Prediction: This Artificial Intelligence (AI) Software Stock Will Outperform Palantir, According to Wall Street (Hint: It’s Significantly Cheaper)
- Chain of Faith: Policy-Internal Rewards for Reasoning Reliance
- Chinese AI models fall behind Anthropic, OpenAI in new AI rankings
- Ringgit edges lower as investors pull back from AI-related trades
- DNSFilter Research Finds One in Five Organizations Have Been Hit by Shadow AI Incidents as AI Governance Tops Security Spending Plans
- Dynatrace Stocks Slide 14% as AI Acquisition Weighs on Margin Guidance
- Microsoft Corporation (MSFT) Is Betting Big on AI: Is Its Growth Story Just Getting Started?
- AustralianSuper digs down on AI 'picks and shovels' to ride out global AI upheaval
- Nasdaq’s worst month since March 2025 puts returns on AI spending in focus, says BlackRock
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