Musk's xAI forays into agentic coding with new model

South Korea plans a record 8.1% budget increase for 2026, reaching 728 trillion won ($525.42 billion), with $7.27 billion dedicated to artificial intelligence initiatives. This ambitious fiscal stimulus aims to position South Korea among the top three global AI leaders by 2028 and achieve 3% annual GDP growth. Key focus areas include AI semiconductors, robotics, data centers, tax incentives, and regulatory streamlining. President Lee Jae-myung has departed from prior fiscal restraint with over $20 billion in stimulus to address demographic challenges and economic pressures. The strategy supports major investments by companies like Samsung and Hyundai while strengthening South Korea's role in U.S.-led tech supply chains amid competition with China. The budget bill awaits legislative approval.

Marvell Technology reported strong Q2 2026 revenue of $2.006 billion, with 58% year-over-year growth driven by AI data center chips. Despite this success, the company's stock dropped 8% following disappointing Q3 guidance. Data center sales reached $1.51 billion, representing 74% of total revenue. Marvell has strategically reallocated $2.5 billion from automotive businesses to AI R&D and expanded partnerships with AWS and NVIDIA. While analysts project Marvell capturing 20% of the $55 billion custom AI chip market by 2028, investors remain concerned about margin pressures, high R&D spending, and future execution challenges.

AI startups are driving innovation across the tech industry, developing tools that enhance workflows and create new business opportunities. Major tech companies like Microsoft, Google, and Amazon are investing heavily in AI through partnerships and acquisitions, while integrating AI capabilities into their services. ChatGPT, Gemini, and Bedrock exemplify this trend. AI adoption is growing in finance, healthcare, and retail, enabling advances in fraud detection, diagnostics, and supply chain optimization. However, regulatory concerns about privacy, bias, and employment impacts are emerging. Despite these challenges, AI innovation continues to accelerate, with collaborations between established companies and startups shaping the future technological landscape.

Dell Technologies has raised its annual forecasts due to booming AI server demand, now projecting revenue of $105-109 billion for the fiscal year. AI server sales are expected to reach $20 billion this year, with second-quarter infrastructure revenue up 44%. Despite strong AI performance, storage sales declined 3%. The company shipped $10 billion in AI solutions in the first half of its fiscal year, already exceeding last year's total.