Google Removes Gemma AI, Nvidia $3T, Microsoft Copilot Gains

Google recently removed its Gemma AI model from its AI Studio platform on November 2, 2025, after Senator Martha Blackburn accused the model of defamation. Blackburn stated Gemma produced untrue accusations of sexual misconduct, with supporting links leading to error pages. Google acknowledged "hallucinations" as a known issue they are working to fix, though Gemma remains accessible to developers via an API. This incident occurs amidst a significant surge in AI investment, with companies planning to pour $432 billion into AI infrastructure by 2026. This substantial growth, however, prompts concerns about a potential market bubble, with some financial predictions for AI companies, like 65 percent operating margins, appearing overly optimistic compared to historical leaders such as Intel. Charles Schwab's chief investment strategist, Liz Ann Sonders, cautions that while the current AI boom differs from the dot-com era, investor disappointment could still negatively impact markets and the economy if high expectations are not met. Nvidia, for instance, has already reached a $3 trillion market cap, showcasing the strong performance of some tech leaders. Despite these market anxieties, AI continues to demonstrate considerable productivity gains. Microsoft CEO Satya Nadella highlights "jagged AI" systems, rather than distant Artificial General Intelligence (AGI), as the drivers of real-world returns, noting that tools like M365 Copilot are smoothing out complex tasks. A study of 5,000 software developers using Copilot found productivity gains exceeding 26 percent. Alphabet CEO Sundar Pichai also reported extensive productivity improvements from AI across Google's services. The impact on the job market is multifaceted. Demand for AI and Machine Learning jobs is projected to rise by 35 percent by 2026, creating opportunities for roles like AI engineers and data scientists. Cybersecurity experts and cloud engineers skilled in platforms like AWS and Azure are also in high demand. However, AI and automation are also contributing to job reductions, as seen with UPS cutting 14,000 corporate jobs and 35,000 total due to automation. It is important to note that recent layoffs at major companies like Amazon, UPS, and Target are primarily due to economic uncertainty, changing consumer demand, and business adjustments, rather than AI itself. Academically, AI topics now dominate business education papers on the Social Science Research Network (SSRN), with many exploring AI's effects on financial and labor markets. Reflecting this growing interest, North Dakota State University (NDSU) launched a new online undergraduate certificate in human factors in AI, a 12-credit program designed to combine human and technology strengths. As the US stock market rally continues, with the S&P 500 ending October up 2.3 percent, investors remain watchful of the strength of the AI trade and Federal Reserve interest rate decisions.

Key Takeaways

  • Google removed its Gemma AI model from AI Studio on November 2, 2025, following a defamation claim by Senator Martha Blackburn.
  • The AI infrastructure market is projected to reach $432 billion by 2026, raising concerns about a potential market bubble due to high financial predictions and physical limits.
  • Microsoft's M365 Copilot demonstrated over 26 percent productivity gains for software developers in real-world settings.
  • Microsoft CEO Satya Nadella emphasizes "jagged AI" systems for real-world returns, while Alphabet CEO Sundar Pichai notes extensive AI productivity gains across Google's services.
  • Nvidia has reached a $3 trillion market cap, highlighting the strong performance of some tech leaders in the AI sector.
  • The job market for AI and Machine Learning roles is expected to grow by 35 percent by 2026, with high demand for AI engineers and data scientists.
  • Automation, including AI, is contributing to job reductions, with UPS cutting 35,000 total jobs.
  • Layoffs at major companies like Amazon, UPS, and Target are primarily attributed to economic uncertainty and business adjustments, not mainly AI.
  • North Dakota State University (NDSU) launched a new 12-credit online undergraduate certificate in human factors in AI.
  • AI topics dominate business education paper downloads on the Social Science Research Network (SSRN), exploring AI's impact on financial and labor markets.

Google removes Gemma AI after defamation claim

Google removed its Gemma AI model from its AI Studio platform. This action followed accusations from Senator Martha Blackburn. She stated that Gemma's fabrications were not harmless "hallucinations." Instead, Senator Blackburn called them an act of defamation produced and distributed by a Google-owned AI model.

Google pulls Gemma AI after senator's defamation claim

Google removed its Gemma AI model from AI Studio on November 2, 2025. This happened after Senator Martha Blackburn accused Gemma of making false claims about her. She wrote to Google CEO Sundar Pichai, explaining that Gemma created untrue accusations of sexual misconduct. Blackburn noted that supporting links led to error pages and unrelated articles. Google stated that "hallucinations" are a known issue and they are working to fix them. Gemma remains available for developers through an API.

AI research dominates business paper downloads

Artificial intelligence topics dominate the most downloaded business education papers on the Social Science Research Network (SSRN). Michael Magoulias, SSRN's commercial director, noted that finance and technology papers are popular, especially those about AI. Many papers explore AI's impact on financial markets and labor markets, including hiring and workplace changes. One top paper, "AI and productivity," studied Copilot's use by 5,000 software developers. It found they had productivity gains of over 26 percent in real-world settings.

AI boom shows signs of a market bubble

Ryan T. Fulmer suggests the current AI infrastructure boom resembles past market bubbles. Companies plan to invest $432 billion in AI infrastructure by 2026, a huge increase from 2023. This growth faces physical limits like electricity supply, unlike past tech booms. Financial predictions for some AI companies, such as 65 percent operating margins, seem too high compared to historical leaders like Intel. History shows that while new technologies transform economies, initial infrastructure builders often lose money. The real opportunities come later when infrastructure is cheaper.

Top jobs for 2026 focus on AI and green energy

The job market in 2026 will see rapid growth in fields like artificial intelligence, data analytics, and green energy. Demand for AI and Machine Learning jobs is expected to rise by 35 percent, with roles like AI engineer and data scientist offering high salaries. Cybersecurity experts will also be in high demand due to increased digital threats. Data analysts and cloud engineers skilled in platforms like AWS and Azure will find many opportunities. Additionally, renewable energy and healthcare sectors will offer numerous jobs for environmental engineers and health data analysts.

AI disappointment could harm markets and economy

Liz Ann Sonders, Charles Schwab's chief investment strategist, believes the AI boom is not another dot-com bubble. However, she warns that investor disappointment in AI could still harm markets and the economy. She notes that today's tech leaders are stronger, like Nvidia reaching a $3 trillion market cap. Sonders cautions that if AI companies fail to meet very high investor expectations, even small misses could cause significant market reactions. She also points to a weakening jobs market and pressure on lower-income consumers as economic concerns.

Jagged AI will impact jobs despite AGI being distant

Microsoft CEO Satya Nadella believes "jagged AI" systems, not Artificial General Intelligence (AGI), will drive real-world returns. He stated AGI is still far off, but current AI tools like M365 Copilot are smoothing out "jagged edges" in tasks. Microsoft reported strong financial growth and high demand for AI, with significant spending on GPUs and CPUs. Alphabet CEO Sundar Pichai also noted extensive productivity gains from AI across Google's services. Despite these advancements, there are signs that AI is leading to job reductions, with UPS cutting 14,000 corporate jobs and 35,000 total due to automation.

US stocks rally faces AI and Fed concerns

The US stock market rally is heading into a busy week of company earnings reports. Investors are worried about the strength of the artificial intelligence trade and how much the Federal Reserve will cut interest rates. Despite these concerns, the S&P 500 ended October up 2.3 percent. This marks its sixth month in a row of gains.

Layoffs at major companies not mainly due to AI

Thousands of workers at major companies like Amazon, UPS, and Target are facing layoffs. These job cuts are mainly due to economic uncertainty, changing consumer demand, and business adjustments, not primarily artificial intelligence. Amazon is streamlining operations, while UPS is reducing staff due to a slowdown in package volume. Target is also adjusting its business model amid market changes. Experts say rising interest rates, inflation, and a global economic slowdown are the main reasons companies are cutting costs.

NDSU launches new AI certificate program

North Dakota State University (NDSU) launched a new online undergraduate certificate in human factors in AI. This program can be completed in less than two years and requires 12 credits. The online format offers flexibility and teaches versatile skills for future jobs. David Westermann, an Associate Professor of Communication at NDSU, stated the program focuses on combining human and technology strengths. Classes include 'AI and language modeling' and 'understanding media and social change'.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

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