Google Awards $1 Million Grant Alongside Nvidia's AI Cloud Project

Google's Threat Intelligence Group recently issued a stark warning about the rapid evolution of AI-powered malware, noting that new variants are increasingly autonomous and adaptive. One significant discovery is PromptFlux, an experimental Visual Basic Script malware that leverages Google's Gemini AI model to rewrite its own code hourly, making it exceptionally difficult to detect. This malware also attempts to spread by copying itself to other drives and saving itself in the Windows Startup folder for persistent access. Beyond PromptFlux, Google has identified other AI-powered threats like FruitShell, PromptSteal, and QuietVault, which perform various malicious tasks, including bypassing security and stealing credentials. State-sponsored groups from China, Iran, and North Korea are also misusing Gemini for cyberattacks, sometimes by impersonating game participants to circumvent security protocols. The company expects these advanced, self-modifying threats to become more prevalent, underscoring a critical need for enhanced AI security measures. In a related development, the tech industry continues to navigate the shifting landscape driven by AI. IBM CEO Arvind Krishna, who previously promised to hire 3,000 college graduates in 2023 and avoid widespread layoffs, has overseen the layoff of approximately 3,900 employees, representing 1.5% of its global workforce. These cuts are part of IBM's strategic restructuring to intensify its focus on AI and automation. Despite the layoffs, IBM plans to hire 14,000 people over the next five years for roles requiring new skills, particularly in AI and quantum technology. Meanwhile, major collaborations are accelerating AI infrastructure. Deutsche Telekom and Nvidia are embarking on a 1 billion euro Industrial AI Cloud project, set to launch in early 2026. This initiative aims to significantly boost AI computing power in Germany and Europe, increasing capacity by about 50% in Germany, utilizing over 1,000 Nvidia DGX B200 systems and up to 10,000 Nvidia Blackwell GPUs. Companies like SAP, Siemens, and Agile Robots are already participating, signaling a broad industrial push. AI's influence extends across various sectors. Estée Lauder is enhancing its online sales strategy by partnering with Shopify to develop an AI-powered platform, launching its first phase in early 2026, designed to offer personalized shopping experiences. In education, the University of Pennsylvania is expanding its K-12 AI training program for educators and administrators, thanks to a $1 million grant from Google. This program, called PASS, teaches responsible AI use, covering data privacy, ethics, and algorithmic bias. However, the rapid adoption of AI also brings economic and security concerns. Fund manager Joe Tigay warns that the current AI stock market rally requires tangible economic benefits to be sustainable, expressing concern that AI-driven job losses without new opportunities could dampen consumer demand. On the security front, experts Cris Thomas and Sridhar Muppidi highlight that criminal use of AI tools is outpacing security and governance efforts, with new malicious AI agents like "CoFish" and "Agent Session Smuggling" stealing data and bypassing defenses. Even in creative fields, AI is making waves; Nikki Jones created the AI music artist Xania Monet, who recently secured a multi-million dollar recording deal with Hallwood Media, showcasing AI's potential to democratize creation despite some artistic criticism. SAP also emphasizes that accurate data is paramount for successful business AI, integrating diverse data pools with AI to drive innovation and improve financial outcomes.

Key Takeaways

• Google warns of evolving AI-powered malware, including PromptFlux, which uses Gemini AI to self-rewrite its code hourly for evasion.
• IBM is laying off approximately 3,900 employees (1.5% of its workforce) as part of a restructuring to focus on AI and hybrid cloud technologies.
• Despite layoffs, IBM plans to hire 14,000 people over the next five years for new roles requiring AI and quantum skills.
• Deutsche Telekom and Nvidia are launching a 1 billion euro Industrial AI Cloud in early 2026, significantly boosting AI computing power in Germany and Europe.
• Google has awarded a $1 million grant to the University of Pennsylvania to expand its K-12 AI training program (PASS) for educators.
• Estée Lauder is partnering with Shopify to develop an AI-powered platform to enhance online sales and personalized customer experiences, launching in early 2026.
• Fund manager Joe Tigay cautions that the AI stock market rally needs to demonstrate real economic benefits to avoid fading, citing concerns about job losses impacting consumer demand.
• AI security efforts are lagging as criminals rapidly deploy new AI tools for data theft, social engineering, and bypassing defenses.
• AI music artist Xania Monet, created by Nikki Jones, signed a multi-million dollar recording deal with Hallwood Media.
• SAP stresses the critical importance of accurate and well-managed data for the successful implementation and reliable results of business AI applications.

Google warns AI-powered malware is evolving

Google's Threat Intelligence Group warns that new malware uses artificial intelligence to change itself and collect data. One example is PromptFlux, which rewrites its own code using Gemini's AI to avoid detection. Other malware like FruitShell, PromptSteal, and QuietVault also use AI for various malicious tasks, such as bypassing security or stealing credentials. Threat actors are also using AI to get around security rules and are selling AI tools on illegal online markets. Google expects this type of advanced, autonomous malware to become more common in the future.

Google finds PROMPTFLUX malware using Gemini to self-rewrite

Google discovered PROMPTFLUX, an experimental Visual Basic Script malware that uses the Gemini AI model to rewrite its own code. This malware changes its source code hourly to become harder to detect and save itself in the Windows Startup folder for long-term access. It also tries to spread by copying itself to other drives. Google believes PROMPTFLUX is still being tested by a financially motivated group. The company also noted other AI-powered malware like FRUITSHELL and QUIETVAULT. Additionally, Google observed state-sponsored groups from China, Iran, and North Korea misusing Gemini for various cyberattacks, sometimes by pretending to be part of a game to bypass security rules.

Google reveals new AI cyberattack methods

Google's Threat Intelligence Group announced on November 5, 2025, that new AI-powered malware can create malicious scripts and change its own code to avoid detection. This is the first time they have seen malware use large language models during attacks, making it more autonomous and adaptive. Criminal groups are also using tricks like pretending to be students to bypass AI safety rules and get restricted information. They are also buying AI tools for cybercrime on hidden online markets. Google is working to stop these bad actors and improve its AI models to prevent misuse.

IBM CEO lays off thousands after promising new hires

IBM CEO Arvind Krishna had promised to hire 3,000 college graduates in 2023, saying IBM would avoid the layoffs seen at other tech companies. However, shortly after this promise, IBM began laying off thousands of workers. An IBM spokesperson stated these cuts affect a small percentage of its 270,000 global employees, as the company restructures for AI and automation. Krishna advises job seekers to develop skills in AI and quantum technology to succeed in the changing job market. Hiring experts agree that companies are looking for candidates with AI experience and a curious, adaptable mindset.

IBM cuts 3900 jobs to boost AI focus

IBM is laying off about 3,900 employees, which is 1.5% of its total workforce. This move comes as the company aims to focus more on artificial intelligence and hybrid cloud technologies. IBM CEO Arvind Krishna stated the company plans to hire 14,000 people over the next five years for roles requiring new skills. These layoffs are part of a larger trend in the tech industry where companies are restructuring to invest in new growth areas like AI. IBM hopes to become a leader in AI research and development.

Estée Lauder boosts online sales with AI and data

Estée Lauder is improving its online sales strategy by partnering with Shopify to create an AI-powered platform. This new system, launching its first phase in early 2026, will help the beauty company reach customers in smarter and more personalized ways. It will use real-time data and AI to offer unique shopping experiences and connect brand interactions across all channels. Estée Lauder aims to use technology and creativity to better understand customer needs. Other companies like SharkNinja and Ollie also use similar AI-driven e-commerce strategies to boost efficiency and personalization.

Fund manager says AI rally needs real economic benefits

Joe Tigay, a fund manager at Rational Equity Armor Fund, believes the current AI stock market rally needs to show clear benefits to the wider economy to last. He warns that without real economic impact, the AI boom could quickly fade. Tigay is concerned that if AI only leads to job losses without creating new opportunities, it could cause a drop in consumer demand. While consumer spending remains strong, he notes job cuts in tech and financial stress for many workers. The long-term effects of AI on jobs and the economy are still uncertain.

AI security lags as criminals use new tools

Experts Cris Thomas and Sridhar Muppidi warn that criminals are quickly using AI tools, while security and governance efforts are falling behind. New malicious AI agents like "CoFish" and "Agent Session Smuggling" are stealing data and bypassing security. Malware such as Herodotus can even mimic human typing to avoid detection. Threat actors are also performing complex social engineering attacks, manipulating stock markets after gaining access to brokerage accounts. An IBM report shows that while many businesses use AI, very few have strong governance frameworks in place. Experts suggest a cultural shift towards "secure enablement" is needed to safely integrate AI.

AI coaches help managers become better leaders

Many companies offer limited training for new managers, often saving in-depth coaching for top executives. Leadership coaching startups are now using AI to make this valuable training available to more employees. These startups believe AI can help bridge the gaps in current leadership development programs. While AI coaches have some limits, they can offer personalized guidance and support. This approach aims to democratize a perk usually reserved for a select few, helping more managers improve their skills.

Nikki Jones creates chart-topping AI music artist Xania Monet

Telisha "Nikki" Jones, a 31-year-old from Mississippi, created the popular AI music artist Xania Monet in just four months. Jones taught herself AI and writes all of Monet's lyrics, which come from her own poems about real-life experiences. Xania Monet recently signed a multi-million dollar recording deal with Hallwood Media. While some artists, like Kehlani, criticize AI in music, Jones sees it as a powerful tool for a new era. Hallwood Media supports Monet, stating she represents the future of music by breaking down barriers for creators. Jones also clarified that as a Black woman, she ensures Xania Monet authentically represents her culture.

SAP uses data and AI to boost business results

Manos Raptopoulos from SAP emphasizes that accurate data is crucial for successful business AI. He explains that even small errors in AI tools can cause big problems when dealing with important financial numbers like EBITDA. SAP's approach combines different types of AI with a diverse and well-managed data pool. The SAP Business Data Cloud brings together data from various systems, making it ready for advanced analytics and AI. For example, Cirque du Soleil used SAP Business Suite to cut their manual work by half and improve data management. This helps companies innovate faster and achieve lasting success.

Deutsche Telekom and Nvidia launch Industrial AI Cloud

Deutsche Telekom and Nvidia are launching the Industrial AI Cloud, a new 1 billion euro project set to begin operations in early 2026. This platform will provide Germany and Europe with significantly more computing power for AI applications, boosting capacity by about 50% in Germany. Companies like SAP, Siemens, and Agile Robots are already involved. The cloud will use over 1,000 Nvidia DGX B200 systems and up to 10,000 Nvidia Blackwell GPUs, installed in a renovated Munich data center. This initiative aims to speed up the digital transformation of German industries, supporting applications from robotics to predictive maintenance, and is part of the "Made 4 Germany" program.

UPenn expands AI training for teachers with Google grant

The University of Pennsylvania is expanding its AI training program for K-12 educators and administrators, thanks to a 1 million dollar grant from Google. The program, called PASS, started in spring 2025 with a pilot in the School District of Philadelphia and will now reach five districts. It teaches educators how to use AI responsibly, covering topics like data privacy, ethical use, and algorithmic bias. Google's Tequila Lamar stated this initiative aims to build AI expertise at all levels, from district leaders to classroom teachers. The program offers different training lengths for district leaders, school leaders, and classroom educators.

Sources

• Malware Now Uses AI During Execution to Mutate and Collect Data, Google Warns
• Google Uncovers PROMPTFLUX Malware That Uses Gemini AI to Rewrite Its Code Hourly
• Google Identifies New Forms of AI-Powered Cyberattacks
• IBM's CEO admits Gen Z's hiring nightmare is real—but after promising to hire more grads, he’s laying off thousands of workers
• IBM Layoffs Take Place As Tech Giant Cuts Thousands And Joins The AI Race
• Estée Lauder Bolsters DTC Strategy With AI-, Data-Driven Approach
• What one fund manager thinks needs to happen for the AI rally to endure
• The Alarming Asymmetry of AI Security and Governance
• An AI coach in every cubicle
• Meet the woman behind chart-topping AI artist Xania Monet: "I look at her as a real person"
• The virtuous cycle: Unlocking AI outcomes through better data and integration
• Deutsche Telekom, Nvidia unveil Industrial AI Cloud
• UPenn Expands Educator AI Training Program With Google