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Alphabet Pushes New Gemini Models To Strengthen Its AI And Cybersecurity Position

Alphabet has introduced three new Gemini models, expanding its AI portfolio with a stronger focus on enterprise customers, cybersecurity and lower operating costs.

The launches include Gemini 3.5 Flash Cyber, a security-focused model designed to identify and patch software vulnerabilities, alongside updated Flash and Flash-Lite models aimed at improving efficiency for developers and businesses.

Cybersecurity Becomes A Bigger Focus

Gemini 3.5 Flash Cyber will initially be available through a pilot program for governments and selected partners. Google said the model is priced below larger alternatives on a per-token basis, reducing costs for organisations running security workloads at scale.

The launch comes as AI companies increasingly compete in automated software security. Anthropic has already entered the segment with its Mythos model, making cybersecurity another key area of competition among foundation model providers.

Lower Costs, Higher Efficiency

Google also unveiled Gemini 3.6 Flash, which improves coding, multimodal and knowledge-work capabilities while using up to 17% fewer tokens than the previous version.

The company is also expanding Gemini 3.5 Flash-Lite, its fastest and lowest-cost model in the 3.5 family. It is intended for high-volume workloads and smaller tasks within AI agent systems, where cost and speed are often as important as model performance.

Competition Continues To Intensify

The announcements come ahead of Alphabet’s earnings report and as Chinese AI developers continue to expand their presence in the market.

Moonshot AI recently limited new subscriptions and API access for its Kimi K3 model after demand exceeded available capacity. Alibaba is also promoting its Qwen 3.8 Max model as one of the strongest performers in the sector.

The rapid growth in demand has increased pressure on AI companies to expand computing capacity alongside model development.

Alphabet Leans On Its Infrastructure

Google’s vertically integrated approach gives it greater control over AI infrastructure through its custom chips, cloud platform and in-house model development.

The company is also reportedly developing a new chip that could run Gemini models up to 10 times more efficiently. A Google Cloud spokesperson said the company continues to explore new hardware and software designs to improve performance and reduce the cost of serving AI models.

Gemini Road Map Advances

Google also provided an update on its broader Gemini roadmap. Gemini 3.5 Pro is now being tested with selected partners ahead of a wider release, while the company has begun what it describes as its largest pretraining run yet for Gemini 4.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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