This week’s stories are about tech, startup and AI, coming from the EU, Korea and the USA
1-OpenAI signs $200M deal with Pentagon
OpenAI, the company behind ChatGPT, signed a U.S. Department of Defense contract worth up to $200 million to help develop artificial intelligence systems for national security and administrative tasks, the company announced.
I saw this story at Techcrunch and the agreement allows OpenAI to assist in building prototype systems using its advanced AI models for uses such as improving military healthcare access, streamlining data processing, and bolstering cyber defense. OpenAI said all applications must comply with its usage policies, the story noted.
The Defense Department framed the initiative more broadly, stating the award will fund “prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains.” It remains unclear whether the reference to “warfighting” includes direct weapons development — a practice OpenAI’s user guidelines prohibit — though the company quietly removed explicit bans on “military and warfare” use from its terms in January.
The announcement also highlights possible tension between OpenAI and Microsoft, its largest investor. Microsoft, which holds extensive federal contracts and long-standing cloud security clearances, only received DoD approval in April for its Azure OpenAI Service to handle classified data, according to the story. Let me note that the Pentagon appears to be working directly with OpenAI through its new “OpenAI for Government” initiative, which also involves agencies like NASA, NIH, and the Treasury.
Both Microsoft and OpenAI declined to comment.
OpenAI signs $200M deal with Pentagon
2-EU unveils strategy to make Europe a startup powerhouse
The European Commission unveiled a new strategy aimed at turning Europe into a global hub for startups and scaleups, vowing to streamline regulation, boost financing and attract top tech talent.
The “EU Startup and Scaleup Strategy,” announced in Brussels, sets out a roadmap to make the European Union the best place in the world to launch and grow technology-driven companies, particularly in strategic sectors like artificial intelligence, biotech and clean energy. (By the way I have a story here about EU’s HPC factory)
The initiative tackles longstanding challenges that have held back Europe’s startup ecosystem, including fragmented regulations, weak venture capital markets and talent shortages. It promises a new legal regime to simplify cross-border operations, a €10 billion-plus Scaleup Europe Fund, and fast-track startup visas under a so-called “Blue Carpet” program.
The plan also includes targeted reforms to public procurement rules, employee stock option taxation and intellectual property valuation. A new scoreboard and annual survey will monitor progress, as the EU aims to significantly increase its share of global unicorns by 2027.
Analysts say the strategy is Europe’s most ambitious effort yet to catch up with the U.S. and China in tech innovation.
The Commission will report on the implementation of the strategy by the end of 2027.
EU unveils strategy to make Europe a startup powerhouse
3- Amazon to build Korea’s largest AI data center
SK Group is teaming up with Amazon Web Services to construct South Korea’s largest AI data center in Ulsan.
Construction is expected to begin later this month, with a groundbreaking ceremony slated for August. The facility will be located on a 36,000-square-meter plot in the Mipo Industrial Complex and will be powered by 60,000 graphics processing units (GPU), according to sources familiar with the plan.
Once complete, the data center will boast a power capacity of 103 megawatts, making it the country’s largest AI infrastructure. I saw this story Korea Herald and the development will proceed in two phases, with 40 megawatts expected to come online by November 2027 and full capacity reached by February 2029.
SK Telecom, the telecommunications subsidiary of SK Group, will oversee the project. CEO Ryu Young-sang previously unveiled plans for a hyperscale AI data center at the Mobile World Congress in Spain in March, according to the story.
While the total investment has not been disclosed, SK Telecom has pledged 3.4 trillion won (around 2,5 billion USD) toward AI infrastructure through 2028, with a significant portion expected to support the Ulsan facility, the story noted.
AWS, the world’s largest cloud provider, continues to expand in South Korea. It currently operates a data center in Seoul and began building a second facility in Incheon’s Seo District in late 2023. The company has committed to investing 7.85 trillion won (around 5.8 billion USD) in the country’s cloud infrastructure by 2027, the story concluded.
