AJU PRESS - ASIA NEWS HUB

Journalist

Han Young-hoon han@ajunews.com

Microsoft Seeks to Reduce Dependence on OpenAI by Targeting AI Startups Microsoft is exploring acquisition and investment opportunities in artificial intelligence (AI) startups to reduce its dependence on OpenAI. The company aims to maintain its collaboration with OpenAI while simultaneously expanding its own AI models and talent pool to broaden its technological options. According to Reuters, on May 13, Microsoft is preparing a strategy to lessen its reliance on long-term partner OpenAI by considering potential acquisitions and investments in AI startups. Sources familiar with the matter indicated that this move is part of Microsoft's efforts to secure AI talent and develop advanced AI models by 2027. Microsoft had previously considered acquiring Cursor, a startup that provides AI tools for software developers to write and modify code. However, discussions were reportedly halted due to internal concerns that acquiring Cursor could face antitrust scrutiny, especially since Microsoft already owns GitHub Copilot. The company is also in discussions with Inception, an AI startup founded by researchers at Stanford University. Inception is developing language models using a diffusion-based approach, distinct from existing large language models (LLMs). Microsoft's venture capital arm, M12, participated in a $50 million initial investment in Inception at the end of last year. Inception has recently hired an investment bank to explore potential sale options, with reports suggesting it is seeking over $1 billion. However, discussions are ongoing, and it remains uncertain whether a deal will materialize. The push to enhance its own AI capabilities comes amid evolving dynamics in Microsoft's relationship with OpenAI. Microsoft began its partnership with OpenAI in 2019 with a $1 billion investment. Following the success of ChatGPT in late 2022, Microsoft actively integrated OpenAI's technology into its products and Azure cloud services. As the collaboration expanded, the interests of both parties became increasingly complex. Reuters reported that Microsoft faced contractual limitations in developing foundational models that could compete with OpenAI, which in turn believed that the computing resources provided by Microsoft were insufficient. Consequently, both companies have relaxed their agreements multiple times. In a securities filing on April 29, Microsoft disclosed that it had executed $11.8 billion of the $13 billion it promised to OpenAI. Additionally, a Microsoft corporate development executive testified in court that the company has spent over $100 billion on OpenAI investments, infrastructure development, and hosting costs.* This article has been translated by AI. 2026-05-14 11:18:35
Boston Fed President Calls for Interest Rate Hold Ahead of Wash's Appointment Susan Collins, President of the Boston Federal Reserve, stated that the benchmark interest rate should be maintained at its current level for the time being. As expectations for a rate cut grow ahead of Kevin Warsh's upcoming appointment as the new chair of the Federal Reserve, there is increasing support within the Fed for keeping rates steady. Some officials have not ruled out the possibility of further rate hikes. According to a speech released before an event at the Boston Economic Club on May 13, Collins noted, "With inflation exceeding target levels for over five years, patience is wearing thin regarding temporary factors that could lead to another supply shock." Collins predicted that even if the conflict in the Middle East is resolved relatively soon, inflation is likely to decline only marginally this year. He emphasized, "It is important to maintain the current somewhat restrictive monetary policy stance for a while longer." Collins' remarks contrast with the market's growing expectations for a rate cut following Warsh's appointment. Market analysts believe that President Donald Trump’s public criticism of Jerome Powell, the current chair, has increased pressure for a rate cut, and that expectations for a shift in monetary policy may rise once Warsh takes office. However, the Fed's internal assessment differs. In a prolonged high-inflation environment, concerns are growing that if supply shocks from the Middle East conflict continue, maintaining a steady rate may be more necessary than an early cut. Internal disagreements were evident during last month’s Federal Open Market Committee (FOMC) meeting, where three voting members opposed the possibility of a rate cut as the next policy direction. Collins also expressed agreement with these dissenting views in an interview with Bloomberg last week. In his speech, Collins left the door open for the possibility of additional rate hikes. He stated, "While it is not the most likely scenario, we should consider that some policy tightening may be necessary to bring inflation back to 2% in a timely manner."* This article has been translated by AI. 2026-05-14 09:38:08
Senate Confirms Kevin Warsh as Fed Chair; First Test is Interest Rate Cut The U.S. Senate has confirmed Kevin Warsh as the new chair of the Federal Reserve. On May 13, local time, the Senate approved Warsh's nomination with a vote of 54 in favor and 45 against. All Republican senators supported the nomination, while only Senator Jon Tester from the Democratic Party voted in favor. Warsh is set to succeed Jerome Powell, whose term ends on May 15. The term for the Fed chair is four years. Warsh's first major challenge will be the Federal Open Market Committee (FOMC) meeting scheduled for June 16-17. Market observers are keen to see if he will signal a potential interest rate cut during his inaugural meeting. President Donald Trump has publicly criticized Powell and pressured for interest rate cuts, which has shaped expectations around Warsh's nomination. However, recent inflation data has weakened the case for an early rate cut. The Consumer Price Index (CPI) for April rose by 3.8% compared to the same month last year, while the Producer Price Index (PPI) increased by 6.0% year-over-year. Rising energy prices due to the conflict between the U.S. and Iran are also contributing to inflationary pressures. If rising oil prices simultaneously affect consumer and producer prices, it could complicate the Fed's policy decisions. Warsh has recently argued for the possibility of interest rate cuts based on improvements in productivity due to artificial intelligence, a reduction in long-term bond holdings, and alternative price indices. However, this rationale will need to undergo internal scrutiny and persuasion within the Fed. Market participants are closely watching how Warsh will navigate the demands for rate cuts from the White House against the backdrop of inflationary pressures. The first FOMC meeting will likely provide insights into the new chair's policy direction and the Fed's independence.* This article has been translated by AI. 2026-05-14 08:36:15
Trump Claims U.S. Holds Negotiation Advantage Over Iran Amid Hormuz Tensions President Donald Trump emphasized that the United States maintains a negotiating advantage over Iran, even as hostilities in the Hormuz Strait have resumed. He suggested that rather than viewing the renewed clashes as a sign of escalating conflict, it indicates Iran's increasing urgency to reach an agreement. On May 7, during a visit to the construction site of the Lincoln Memorial in Washington, D.C., Trump told reporters, "Negotiations are going very well." He added, "Iran wants an agreement much more desperately than I do," highlighting that despite military exchanges in the Hormuz Strait, the framework for a ceasefire and negotiations remains intact. Trump downplayed the significance of the recent clashes, calling Iran's attacks "minor" and asserting, "We completely obliterated them." His comments reflected a belief that the resumption of military conflict has not disrupted the negotiation process. He continued to apply pressure for an agreement, warning that if Iran rejects a deal and hostilities escalate, "you will see a massive flash coming from Iran," urging them to sign the agreement quickly. This statement suggests that while negotiations remain open, he is prepared for military action if necessary. Regarding the content of the proposed agreement, Trump described it as more extensive than the one-page document that has been previously reported. He stated that it would ensure Iran does not acquire nuclear weapons and would include provisions related to the transfer of nuclear materials. Trump maintained skepticism about Iran's willingness to comply with U.S. demands, stating, "Even if they agree, the next day they will say something different, so it doesn’t mean much." He also dismissed concerns about the economic burden of a prolonged conflict, telling reporters, "Gas prices have dropped significantly," indicating that he prioritizes negotiation leverage and control over the costs of military engagement.* This article has been translated by AI. 2026-05-08 16:03:31
Gold Prices Rise Amid U.S.-Iran Tensions, Testing $4,800 Level Gold prices increased as tensions between the United States and Iran escalated. The international gold price is being discussed as potentially testing $4,800 per ounce (approximately 7.05 million won). According to the Wall Street Journal (WSJ) on May 8, the spot price of gold rose by 0.4% to $4,697.55 per ounce (about 6.90 million won) in early Asian trading. The WSJ reported that the rise in gold prices is attributed to a heightened preference for safe-haven assets amid increasing tensions between the U.S. and Iran. Simon-Peter Masabni, head of business development at XS.com, stated, "As long as gold remains above $4,680 per ounce (approximately 6.87 million won), the upward trend is maintained." He explained that this level is acting as an immediate support line, and the recent breakout has triggered buying from automated trading programs and institutional funds. Masabni noted that if the upward momentum continues, there is a greater likelihood of testing the psychological resistance level of $4,800. During trading, the spot price of gold reached $4,725.32 (about 6.94 million won), increasing its gain to 1.0%. Bas Koijman, CEO of DHF Capital, remarked, "Investors will look for clues about the economy and the direction of the Federal Reserve's monetary policy through U.S. employment indicators."* This article has been translated by AI. 2026-05-08 15:45:58
UAE Responds to Iranian Missile and Drone Threats Following US-Iran Clash The United Arab Emirates (UAE) has begun responding to missile and drone attacks from Iran shortly after a clash between the U.S. and Iran in the Strait of Hormuz. This escalation comes despite U.S. claims that a ceasefire announced a month ago remains in effect, as real-world confrontations continue in the Gulf region. According to the Associated Press on May 8, the UAE Ministry of Defense stated that its air defense systems are actively responding to missile and drone threats. Authorities have advised residents to avoid debris that may fall during interception efforts, and AP reported no immediate significant damage. This announcement followed a U.S.-Iran engagement in the Strait of Hormuz the previous day. U.S. Central Command (CENTCOM) reported that three U.S. Navy destroyers were attacked by Iranian missiles, drones, and small boats while transiting the strait, but no damage was sustained. In retaliation, the U.S. conducted strikes targeting Iranian missile and drone launch sites, as well as command and control facilities. Despite President Donald Trump asserting that the ceasefire remains intact after the clash, the situation on the ground suggests otherwise. The UAE's activation of air raid alerts and air defense responses indicates a reaffirmation that ceasefires and ongoing hostilities are separate issues.* This article has been translated by AI. 2026-05-08 15:37:47
Iran Continues Executions of Prisoners Amid War, Families Report Coercion Iran has been executing prisoners almost daily, according to human rights organizations. Reports indicate that families are often informed of the executions only after they occur, and some have faced pressure to remain silent about the events. On May 7, The Guardian reported that the Norway-based Iranian Human Rights NGO (IHRNGO) stated Iran has executed at least 24 individuals since March, with six of those executions occurring within just two days. Human rights groups believe this trend is expanding to include those involved in anti-government protests from January and prisoners accused of espionage amid the ongoing conflict involving the U.S. and Israel. Concerns have also been raised regarding the methods of execution. Families often receive notification only after the executions are carried out, and some have reported being pressured not to speak publicly. Authorities have allegedly withheld the bodies of the executed or conducted executions in undisclosed locations without informing the public. Specific cases have emerged, including the execution of Mehrab Abdollahzadeh, who was arrested during the 2022 'Women, Life, Freedom' protests. Kurdish prisoners Naser Bakherzadeh and Yagub Karimpoor were reportedly executed on charges of espionage for Israel. In Mashhad, three protesters arrested in connection with the January demonstrations were allegedly hanged in secret locations. Allegations of torture have also surfaced. The Guardian reported that some prisoners left letters and voice messages claiming they were subjected to physical and psychological torture to extract forced confessions before their executions. The Kurdistan Human Rights Network (KHRN) claimed that prisoners were moved to separate facilities and solitary confinement before execution, with families unable to retrieve the bodies. The scale of executions is significant. According to data cited by the UN Special Rapporteur on human rights in Iran, at least 1,600 executions were estimated to have taken place in 2025 alone. While most were related to drug offenses or murder, human rights organizations argue that the government is using the chaos of war to expand its crackdown on dissent.* This article has been translated by AI. 2026-05-08 15:26:16
White House Considers Restrictions on Anthropic's AI Model Mythos The potential for a shift in the White House's approach to artificial intelligence (AI) has emerged following the introduction of Anthropic's advanced AI model, Mythos. The Trump administration, which has previously prioritized deregulation and industry growth in the face of competition from China, is now considering increased oversight and access restrictions for cutting-edge models. According to the Wall Street Journal, U.S. Vice President JD Vance expressed concerns during a call last month with CEOs of major AI companies, including Sam Altman of OpenAI and Dario Amodei of Anthropic. He warned that models like Mythos could be exploited for cyberattacks targeting small-town banks, hospitals, and water facilities. Following this discussion, the White House began reviewing its response. An executive order outlining formal oversight procedures for advanced AI models is under consideration, and Anthropic has been asked to broaden the scope of Mythos's access to include critical digital infrastructure operators. The response is being coordinated by Sean Cankros, the Director of the National Cybersecurity Agency. Internal divisions within the White House have surfaced during this process. Some administration officials and congressional aides have expressed concerns about overreacting and rolling back policies, while those advocating for enhanced AI safety welcomed the discussions. Kevin Hassett, Chair of the White House National Economic Council, likened the oversight procedures for advanced AI to the FDA's review process for pharmaceuticals, further fueling the debate. Despite these discussions, the White House officially maintains a pro-industry stance. However, the controversy surrounding Mythos indicates a potential shift in policy. The Trump administration, while emphasizing deregulation, is beginning to recognize the need for separate management of high-risk advanced models. The discourse on AI policy is evolving from a focus on growth to also encompass the management of high-risk models.* This article has been translated by AI. 2026-05-08 15:00:08
French Prosecutors Intensify Pressure on Elon Musk Amid Expanded Investigation French prosecutors have escalated their investigation into Elon Musk and the social media platform X, transitioning the case into a judicial inquiry. The scope of the investigation now extends beyond the platform to include the artificial intelligence service Grok. According to Reuters on May 8, the Paris prosecutor's office has moved the case related to X into the judicial investigation phase. This means that a judge will now oversee the proceedings. Prosecutors are in the process of formally including X.AI Holdings, X, xAI, Musk, and Linda Yaccarino, the former CEO of X, as subjects of the investigation. This action signifies a shift to a more serious stage of inquiry, moving beyond preliminary investigations. Reuters reports that if the individuals do not comply with summonses, the investigating judge may issue warrants for their arrest. The allegations have broadened as well. According to the Associated Press, French authorities are examining issues related to the distribution of child sexual exploitation material, the dissemination of non-consensual sexual deepfakes, conspiracy to deny crimes against humanity, and suspicions of manipulating automated systems. The investigation also includes concerns that Grok generated sexually explicit deepfakes and Holocaust denial responses. Musk and Yaccarino were previously summoned for voluntary questioning in April but did not respond. Both Reuters and AP have reported that neither attended the summons. This investigation illustrates that French regulatory scrutiny is extending beyond X to Musk's AI ventures. Given that X and xAI are developing both a platform and generative AI, analysts suggest that the outcome of this investigation could increase operational burdens in Europe for Musk's businesses. 2026-05-08 14:00:18
Trump to Address Nation Early May 9 Amid Rising U.S.-Iran Tensions President Donald Trump is set to make a public address. The timing comes shortly after renewed tensions in the U.S.-Iran conflict, raising questions about whether he will discuss military actions, ceasefire management, or issues related to the Strait of Hormuz. The White House announced that Trump will speak at noon on May 8 in the Rose Garden. This translates to 1 a.m. on May 9 in South Korea. The specific topics or key messages of his address have not been disclosed. This speech coincides with heightened tensions between the U.S. and Iran. Just a day prior, three U.S. Navy destroyers were attacked in the Strait of Hormuz, prompting the U.S. to respond with retaliatory strikes. Despite this, Trump has maintained that a ceasefire is still in effect. Observers in Washington anticipate that the Iranian issue may be addressed during this speech, given the ongoing concerns about the ceasefire, subsequent negotiations, and navigation issues in the Strait of Hormuz. However, since the topics have not been made public, it is uncertain whether Trump will directly mention military actions against Iran. Markets are also closely watching the tone of this address. According to Reuters, concerns over disruptions to oil transport in the Strait of Hormuz due to renewed U.S.-Iran conflict have pushed Brent crude prices above $100 per barrel. Analysts suggest that the content of Trump's remarks could lead to increased volatility in oil prices and financial markets. 2026-05-08 13:53:05