South Korea’s new administration has unveiled a five-year economic plan to build what it calls a ‘super-innovation economy’ by integrating AI across all sectors of society.
The strategy, led by President Lee Jae-myung, commits 100 trillion won (approximately US$71.5 billion) to position the country among the world’s top three AI powerhouses. Private firms will drive development, with government support for nationwide adoption.
Plans include a sovereign Korean-language AI model, humanoid robots for logistics and industry, and commercialising autonomous vehicles by 2027. Unmanned ships are targeted for completion by 2030, alongside widespread use of drones in firefighting and aviation.
AI will also be introduced into drug approvals, smart factories, welfare services, and tax administration, with AI-based tax consultations expected by 2026. Education initiatives and a national AI training data cluster will nurture talent and accelerate innovation.
Five domestic firms, including Naver Cloud, SK Telecom, and LG AI Research, will receive state support to build homegrown AI foundation models. Industry reports currently rank South Korea between sixth and 10th in global AI competitiveness.
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According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.
In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.
Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.
The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.
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OpenAI’s rollout of GPT-5 has faced criticism from users attached to older models, who say the new version lacks the character of its predecessors.
GPT-5 was designed as an all-in-one model, featuring a lightweight version for rapid responses and a reasoning version for complex tasks. A routing system determines which option to use, although users can manually select from several alternatives.
Modes include Auto, Fast, Thinking, Thinking mini, and Pro, with the last available to Pro subscribers for $200 monthly. Standard paid users can still access GPT-4o, GPT-4.1, 4o-mini, and even 3o through additional settings.
Chief executive Sam Altman has said the long-term goal is to give users more control over ChatGPT’s personality, making customisation a solution to concerns about style. He promised ample notice before permanently retiring older models.
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The Commonwealth Bank of Australia has reversed plans to cut 45 customer service roles following union pressure over the use of AI in its call centres.
The Finance Sector Union argued that CBA was not transparent about call volumes, taking the case to the Workplace Relations Tribunal. Staff reported rising workloads despite claims that the bank’s voice bot reduced calls by 2,000 weekly.
CBA admitted its redundancy assessment was flawed, stating that it had not fully considered the business needs. Impacted employees are being offered the option to remain in their current roles, relocate within the firm, or depart.
The Bank of Australia apologised and pledged to review internal processes. Chief executive Matt Comyn has promoted AI adoption, including a new partnership with OpenAI, but the union called the reversal a ‘massive win’ for workers.
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Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.
The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.
The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.
Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.
The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.
Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.
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Chief of Microsoft AI, Mustafa Suleyman, has urged AI firms to stop suggesting their models are conscious, warning of growing risks from unhealthy human attachments to AI systems.
In a blog post, he described the phenomenon as Seemingly Conscious AI, where models mimic human responses convincingly enough to give users the illusion of feeling and thought. He cautioned that this could fuel AI rights, welfare, or citizenship advocacy.
Suleyman stressed that such beliefs could emerge even among people without prior mental health issues. He called on the industry to develop guardrails that prevent or counter perceptions of AI consciousness.
AI companions, a fast-growing product category, were highlighted as requiring urgent safeguards. Microsoft AI chief’s comments follow recent controversies, including OpenAI’s decision to temporarily deprecate GPT-4o, which drew protests from users emotionally attached to the model.
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Meta is launching a research lab focused on superintelligence, led by Scale AI founder Alexandr Wang, in an attempt to regain ground in the global AI race.
Mark Zuckerberg is reportedly in talks to invest billions into Scale, reflecting strong confidence in Wang’s data-driven approach and industry influence.
While Meta’s past efforts with its Llama models gained traction, its latest release, Llama 4, failed to meet expectations and drew criticism.
Wang’s appointment arrives during an ongoing talent exodus from Meta, with several senior AI researchers departing for rivals or founding startups.
The new lab is separate from Meta’s existing FAIR division, led by Yann LeCun, who has dismissed the idea of chasing superintelligence. Meta’s partnership with Scale mirrors deals by Microsoft, Amazon, and Google, aiming to secure top AI talent without formal acquisitions.
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Databricks has secured a fresh funding round that pushes its valuation beyond $100bn, cementing its place among the world’s most valuable private tech firms. The Series K deal marks a sharp rise from the company’s $62bn figure in late 2024 and underscores investor confidence in its long-term AI strategy.
The new capital will accelerate Databricks’ global expansion, fuel acquisitions in the AI space, and support product innovation. Upcoming launches include Agent Bricks, a platform for enterprise-grade AI agents, and Lakebase, a new operational database that extends the company’s ecosystem.
Chief executive Ali Ghodsi said the round was oversubscribed, reflecting strong investor demand. He emphasised that businesses can leverage enterprise data to create secure AI apps and agents, noting that this momentum supports Databricks’ growth across 15,000 customers.
The company has also expanded its role in the broader AI ecosystem through partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Last year, it opened a European headquarters in London to cement the UK as a key market and strengthen ties with global enterprises.
Databricks has avoided confirming an IPO timeline, though Ghodsi told CNBC that investor appetite surged after fintech Figma’s listing. With Klarna now eyeing a return to New York, Databricks’ soaring valuation highlights how leading AI firms continue to attract capital even as market conditions shift.
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OpenAI chief Sam Altman has warned that the US may be underestimating China’s rapid advancement in AI.
Speaking to CNBC, Altman explained that China’s use of open-source models and its manufacturing capacity may allow it to move faster in some areas of development.
He questioned the effectiveness of export controls, noting that chip restrictions may not be enough to curb long-term innovation. Chinese firms like DeepSeek and MoonshotAI are gaining traction with open-weight models that rival US offerings in cost and capability.
Altman’s comments echo concerns voiced earlier by Nvidia’s CEO, who said firms like Huawei continue to grow despite restrictions.
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Elon Musk has taken an unexpected conciliatory turn in his feud with Sam Altman by praising a ChatGPT-5 response, ‘I don’t know’, as more valuable than overconfident answers. Musk described it as ‘a great answer’ from the AI chatbot.
At one point, xAI’s Grok chat assistant sided with Altman, while ChatGPT offered a supportive nod to Musk. These chatbot alignments have introduced confusion and irony into a clash already rich with irony.
Musk’s praise of a modest AI response contrasts sharply with the often intense claims of supremacy. It signals a rare acknowledgement of restraint and clarity, even from an avowed critic of OpenAI.
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