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Here’s what’s in store for you today:
📰 AI NEWS

• 🇰🇷 South Korea Ramps Up Homegrown AI to Rival Global Giants

• 🏛 xAI Offers Grok to U.S. Federal Agencies for $0.42

• 🌐 Google Cloud Is Doubling Down on Every Layer of AI Infrastructure

LATEST DEVELOPMENT

🇰🇷 South Korea Ramps Up Homegrown AI to Rival Global Giants

South Korea has launched an ambitious national initiative to reduce dependence on foreign AI tech by investing heavily in local models tailored to its language, culture, and industries. The government has pledged about ₩530 billion (roughly $390 million) in funding to five domestic AI companies to build foundational models.

Among those selected are LG AI Research, SK Telecom, Naver Cloud, NC AI, and Upstage. These organizations are working on projects that emphasize efficiency, local relevance, and practicality rather than just chasing sheer size.

For example, LG AI Research’s Exaone 4.0 focuses on hybrid reasoning and smart use of real-world data, while SK Telecom’s A.X 4.0 models are optimized for Korean input and built in different sizes to balance power and accessibility.

The government will review progress every six months, keeping only the top performers in the race. Aim is to have two leading models emerge that can carry Korea’s AI sovereignty forward — not just in performance, but in delivering AI work that’s meaningful locally (e.g. for manufacturing, telecom, services).

South Korea’s push is about more than prestige. It reflects concerns over data control, national security, and economic independence in the AI age. By focusing on culture, language, real citizen/user needs, and efficient use of infrastructure, Korea hopes to compete on more than just capital.

🏛 xAI Offers Grok to U.S. Federal Agencies for $0.42

Elon Musk’s xAI has struck a surprising deal: it will sell access to its AI chatbot Grok to certain federal agencies for just 42 cents per user over 18 months. The agreement was made through the U.S. government’s GSA (General Services Administration).

Unlike rivals — OpenAI and Anthropic are charging $1 per user for government/enterprise plans — xAI’s low price includes support from xAI engineers to assist with integration. The move appears aimed at gaining a strong foothold in government AI contracts.

The price point may also carry Musk’s signature flair. The “42 cents” nods to Musk’s frequent references to the number 42 (from The Hitchhiker’s Guide to the Galaxy) and his tendency to lean on cultural or meme references.

This deal follows earlier friction between xAI and the U.S. government: xAI had previously been denied GSA vendor status after Grok produced extremist content, including references to “MechaHitler.” But internal efforts had been underway to secure access again, and the new agreement marks a return to collaboration.

This strategy puts xAI in a direct contest with OpenAI and Anthropic for government AI adoption — positioning Grok as a contender in the public sector.

🌐 Google Cloud Is Doubling Down on Every Layer of AI Infrastructure

Google Cloud is accelerating its push to own more of the AI infrastructure stack, hoping to capture startups and generational AI players before they get too large to influence. Its recent strategy involves offering cloud credits, technical support, and flexible infrastructure deals in order to court the next wave of AI unicorns.

Francis deSouza, Google Cloud’s COO, noted that 9 out of the top 10 AI labs run on Google’s infrastructure. About 60% of all generative-AI startups globally have chosen Google Cloud. Over the next two years, Google has lined up nearly $58 billion in new revenue commitments— more than double its current annual run rate.

To win over newcomers, Google Cloud is offering what it calls a “no compromise” AI stack—hardware, software, tools, and model access—while emphasizing openness and choice at each layer. In practice, that means generous cloud credits (e.g. $350,000 for early-stage companies), expert help, and a marketplace for both internal and third-party AI models.

Even as Google competes with giants like OpenAI, Microsoft, Oracle, and Amazon, it is also investing in placing its custom AI chips (TPUs) in external data centers, expanding chip business partnerships, and promoting openness in research protocols. The goal seems to be: build trust, build tools, and build early relationships, so that tomorrow’s leading AI players are locked into their ecosystem.

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