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Google released Gemini 3.8 Flash, its third Flash model in six weeks, claiming it's their best reasoning and coding model yet (topping the DeepSWE leaderboard). Ars Technica reports: Gemini 3.8 Flash comes in two variations. There's the standard Flash, which Google describes as a "workhorse" model that's good for anything from agentic tasks to software development. Then we have Gemini 3.8 Flash Cyber, which runs on the same foundations but has been tuned for vulnerability detection and mitigation. For developers, Google has the same pitch as it did for the 3.7 Flash release just a couple of weeks ago. API access to the model is available at an "introductory rate" through the end of the year: $0.75 per million input tokens and $3.75 per million output tokens. The regular price will be $1.50 / $7.50, but it's likely there will be new models available long before the price changes. Google probably sees the lower prices as a necessity given that other AI labs have recently dropped token pricing to keep increasingly wary businesses engaged with AI tools. [...] Gemini 3.8 Flash will be available across the Google ecosystem starting today, but Gemini 3.8 Flash Cyber is currently limited to trusted testers and governments. Like the past Flash release, you'll need a Pro or Ultra subscription to access Gemini 3.8 Flash in the Gemini app, but you can always visit AI Studio if you want to tinker with it for free.

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An anonymous reader quotes a report from Wired: Michele Spagnuolo, the Google engineer arrested in May by U.S. authorities for alleged insider trading on Polymarket, is making a new bold bet. On Wednesday, his legal team filed a motion to dismiss the charges against him. Spagnuolo isn't outright denying that he made money using internal information from Google. Instead, his legal team says that the wagers were not financial instruments subject to regulation by the United States' Commodities Exchange Act but rather good old-fashioned international betting that the U.S. has no authority over. Spagnuolo, who has been placed on leave from Google, is accused of committing commodities fraud, wire fraud, and money laundering. Using the alias "AlphaRaccoon," he allegedly made a series of wagers on Polymarket's flagship platform that resulted in profits totaling over $1.2 million. According to the criminal complaint, "AlphaRaccoon" correctly wagered that the singer D4vd, who gained notoriety for his suspected connection to a grisly killing, would be Google's most-searched person of the year in 2025. (D4vd was later charged with murder; he pleaded not guilty.) [...] Spagnuolo's lawyers argue that defining swaps to include wagers like who the most-searched person on Google will be each year "would fly in the face of the statute's purpose and history" and lead to "absurd results." They say it would make it so that any wager in the world, from a charity raffle to a local Ping-Pong match, could be classified as a financial instrument. "Spagnuolo is basically making the same argument as the states that are suing prediction markets," says a financial services regulation expert Todd Phillips. "This is the issue that will likely go up to the Supreme Court." Featured Video In addition to disputing the idea that prediction markets offer swaps, Spagnuolo's legal team argues that the U.S. government had no jurisdiction over him in the first place because he's a non-U.S. citizen who was wagering on a non-U.S. platform. Although Polymarket is headquartered in New York, the company's flagship prediction market is banned in the United States and technically is administered by an ostensibly Panama-based entity known as Adventure One QSS. Spagnuolo was living in Zurich, Switzerland, when he allegedly made the Google-related trades on Polymarket. "The extraterritorial argument is interesting and raises the question of whether the U.S. should be the world's prediction markets cop," Philipps says. Spagnuolo's team also claims that the charges should be dismissed because the internal information he supposedly leveraged did not have any commercial value to Google.

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