Microsoft has revealed that a China state-aligned hacking group called Storm-0940 used an AI tool named ARTEX to breach over 2,250 Microsoft 365 tenants. The attackers leveraged stolen ConnectWise cloud backup credentials to slip into customer environments, sometimes gaining privileged access in under three hours. In just one week, the campaign generated more than 151,000 failed logon events. Microsoft says ARTEX can run autonomous attacks with minimal human input, underscoring how agentic AI is reshaping offensive cyber operations.
The same campaign targeted hundreds of organizations across aerospace, defense, energy, and finance sectors since September 2026. Storm-0940 attempted sign-ins at roughly 2,900 attempts per minute. Because ConnectWise serves managed service providers, the breach created a dangerous single point of failure that could affect many downstream customers. Microsoft warned that these credential changes could act as a backdoor even after the original application is patched.
In separate market news, Nvidia, AMD, and Micron shares fell sharply during US premarket trading on Thursday. Nvidia dropped 2.4%, while AMD and Micron declined between 2.9% and 5.3%. The selloff reflected growing investor concern that heavy AI spending may not generate strong enough returns. Tesla cut its 2026 capital spending forecast to about $20 billion from over $25 billion, while Meta raised the lower end of its annual spending plan to $135 billion but kept the upper limit at $145 billion.
Meta shares plunged 8% on Thursday, their steepest drop since July, as the company announced plans to issue a new class of non-voting Class C shares to help fund AI development. Meta reported negative free cash flow of $2.12 billion in the third quarter, and the selloff spread to Nvidia, SpaceX, and other tech-related companies. Former Google CEO Eric Schmidt pushed back on bubble concerns, pointing to Anthropic's third quarter revenue of $16.8 billion as evidence that the AI investment wave is real. Schmidt, who owns roughly 1% of Anthropic valued at up to $20 billion, cautioned that China could gain an edge by offering free AI models to users in poorer countries.
Nvidia is also entering the CPU market, launching its first standalone processor to compete directly with AMD and Intel. CEO Jensen Huang described agentic AI as software that works through steps to reach a goal, noting that AI agents need CPUs to handle real-world tasks. The move signals growing competition as AI shifts from answering questions to completing tasks independently. Meanwhile, Climatiq launched PCF Studio, an AI-powered platform that helps companies calculate product carbon footprints using a database of over one million emission factors across more than 300 global regions. The tool has earned ISO certification for its methodology.
Key Takeaways
- Microsoft says Storm-0940 used AI tool ARTEX to breach over 2,250 Microsoft 365 tenants via ConnectWise credentials
- ARTEX can run autonomous attacks with minimal human input, generating over 151,000 failed logon events in one week
- Nvidia, AMD, and Micron shares fell 2.4% to 5.3% amid investor concerns over AI spending returns
- Meta shares dropped 8% after raising its lower-end AI spending forecast to $135 billion and reporting negative free cash flow of $2.12 billion
- Tesla cut 2026 capital spending to about $20 billion from over $25 billion
- Eric Schmidt says AI is not a bubble, citing Anthropic's Q3 revenue of $16.8 billion
- Nvidia is launching its first standalone CPU to compete with AMD and Intel in the agentic AI era
- Climatiq's PCF Studio uses AI to calculate product carbon footprints with over one million emission factors across 300 regions
- Storm-0940 targeted aerospace, defense, energy, and finance sectors since September 2026
- ConnectWise breach highlights trusted service providers as risky single points of failure
China-linked hackers used AI tool ARTEX to breach thousands of Microsoft 365 accounts
Microsoft says a China-state aligned group called Storm-0940 used an AI tool named ARTEX to attack over 2,250 Microsoft 365 tenants. The hackers used ConnectWise cloud backup as a springboard into customer environments. Some attacks gained privileged access in under three hours. The campaign generated over 151,000 failed logon events in one week. Microsoft said the AI tool can run autonomous attacks with little human input.
China-linked Storm-0940 used ARTEX AI in ConnectWise supply chain attack
Microsoft disclosed that Storm-0940, a China state-aligned actor, led a supply chain attack using the AI tool ARTEX. The group targeted hundreds of organizations across sectors like aerospace, defense, energy, and finance since September 2026. Storm-0940 attempted sign-ins to over 2,250 tenants at roughly 2,900 attempts per minute. The attackers used stolen ConnectWise app credentials to access customer environments without user sign-in. Microsoft said these changes could act as a backdoor even after the original app is fixed.
China-linked hackers use ARTEX AI to target ConnectWise and enterprise systems
A new campaign linked to China-based Storm-0940 used the AI tool ARTEX against ConnectWise Cloud Backup. ARTEX is an AI-driven penetration-testing tool that can automate many stages of a cyberattack. ConnectWise serves managed service providers, so a breach there can affect many customer organizations. The attack shows how trusted service providers can become risky single points of failure. The incident highlights the growing role of agentic AI in offensive cyber operations.
Nvidia, AMD, Micron stocks fall as investors question AI spending returns
Nvidia, AMD, and Micron shares dropped sharply in US premarket trading on Thursday. Nvidia fell 2.4%, while AMD and Micron declined between 2.9% and 5.3%. Tesla cut its 2026 capital spending forecast to about $20 billion from over $25 billion. Meta raised the lower end of its annual spending plan to $135 billion but kept the upper limit at $145 billion. Investors worry that high AI spending may not deliver strong enough returns.
Meta shares plunge 8% as AI investment costs spark tech stock selloff
Meta shares fell 8% on Thursday, their steepest drop since July, over concerns about AI spending costs. Meta plans to issue a new class of non-voting Class C shares to help fund AI development. The company raised the lower end of its annual spending forecast to $135 billion from $130 billion. Meta reported negative free cash flow of $2.12 billion in the third quarter. The selloff spread to Nvidia, SpaceX, and other tech-related companies.
Climatiq launches AI-powered tool for product carbon footprints
Climatiq released PCF Studio, a platform that helps companies calculate product carbon footprints using AI. The tool uses a database of over one million emission factors covering more than 300 global regions. It has earned ISO certification for its methodology. The platform helps businesses meet supply chain sustainability requirements and respond to requests for proposals with accurate emissions data.
5 AI training programs for aspiring engineers
Five programs help aspiring AI engineers build skills from the ground up. They include Python for Everybody and AI for Everyone from the University of Michigan, Machine Learning and Deep Learning Specialization from Stanford, and Cloud AI Engineer from Google Cloud. All are available on Coursera except the Google Cloud program. The courses cover Python, machine learning, neural networks, model evaluation, and cloud-based AI engineering.
3 trading platform stocks positioned for AI and market volatility
Futu Holdings, Swissquote Group Holding, and UP Fintech Holding are three trading platforms well positioned for AI-driven market changes. Futu operates Futubull and moomoo with about 3.84 million funded accounts as of Q2 2026. Swissquote uses AI tools like GitHub Copilot and Claude to improve developer output. UP Fintech runs Tiger Trade and serves investors across Singapore, Hong Kong, Australia, New Zealand, and the U.S.
Nvidia enters the CPU market dominated by AMD and Intel
Nvidia is launching its first standalone CPU to compete in a market long controlled by AMD and Intel. AI agents need CPUs to handle real-world tasks, which is driving demand beyond graphics processing units. Nvidia CEO Jensen Huang described agentic AI as software that works through steps to reach a goal. The move signals growing competition in processor technology as AI shifts from answering questions to completing tasks independently.
Education Days 2026 offers free AI courses for professionals
Education Days 2026 runs from October 23 to November 2 and offers over 20 free online events on AI use in the workplace. Sessions cover topics from human resources and marketing to finance, law, retail, fashion, sport, and cybersecurity. The program is organized by Sole 24 Ore Business School. Speakers include professionals from companies like Pinko, Rossignol Group, and Datapizza. A 2025 Istat report found that 58.6 percent of Italian companies wanting to adopt AI cited lack of skills as the main barrier.
Eric Schmidt says AI is not a bubble as Anthropic grows fast
Former Google CEO Eric Schmidt says AI is not a bubble. He points to Anthropic's rapid revenue growth as proof. Anthropic's third quarter revenue reached $16.8 billion. Schmidt owns about 1% of Anthropic, a stake worth up to $20 billion. He warns China could win the AI race by gaining users in poorer countries with free models.
ClariEdge dataset improves RAG query clarification with small model
Researchers introduced ClariEdge, a dataset of about 3,900 examples for handling ambiguous queries in retrieval-augmented generation. A lightweight fine-tuned LoRA model achieved 96.6% classification accuracy. It outperformed larger models in both classification and clarification quality. The dataset includes hard negatives to help separate truly ambiguous queries from resolvable ones. The model works in both pre-retrieval and post-retrieval stages.
Creator content shapes how AI recommends products to shoppers
Creator reviews and product experiences help AI form better shopping recommendations. AI uses content from creators to understand product quality and consumer sentiment. Google and OpenAI signed data-sharing deals with Reddit in 2024. A survey of 2,200 consumers found people want credible creator perspectives in AI recommendations. Brands are urged to partner with trusted creators and use structured data so AI can identify their content.
Sources
- Chinese State Hackers Used AI Agent ‘ARTEX’ To Breach Over 2,250 Microsoft 365 Tenants In Hours, Microsoft Says
- China-Linked Hackers Use ARTEX AI Agents to Abuse ConnectWise Supply Chain Attack
- China-Linked Hackers Use ARTEX AI to Target ConnectWise and Gain Access to Enterprise Systems
- Nvidia, AMD, Micron fall sharply: why Wall Street is punishing AI spending either way
- Meta shares plunge 8% as soaring AI investment costs trigger tech stock selloff
- Climatiq: Product Carbon Footprints, AI & Supply Chain Data
- From Data and Models to Cloud-Based AI: 5 Programs for Aspiring Engineers
- 3 Trading Platform Stocks Built For AI And Market Volatility
- What Does an AI Agent Need a CPU For? Why Nvidia Wants In on the Business Dominated by AMD and Intel
- Education Days 2026: free online courses to bridge the AI skills gap
- Eric Schmidt Rejects AI Bubble Fears, Says Anthropic Is Growing Twice as Fast as Google Did
- A Small Model Asks Better: Fine-Tuning Query Clarification for Retrieval-Augmented Generation
- Creator content shapes AI product recommendations
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