Microsoft Closes Gap with Anthropic in Six Months, Launches In-House Reasoning Model

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an artificial intelligence (AI)-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six customized news articles tailored to each reader type.

1. From Ally to Rival… Microsoft Unveils First In-House Reasoning Model Targeting OpenAI and Anthropic

- Key Summary: At its annual developer conference "Build," Microsoft unveiled seven in-house models including the reasoning model "MAI-Thinking-1," declaring its transition from an AI platform company to a service provider directly offering models. MAI-Thinking-1 has 35 billion active parameters and is evaluated as offering token cost efficiency up to 10 times that of GPT-5.5. Microsoft CEO Mustafa Suleyman said in an FT interview, "We have closed the gap with Anthropic in six months." Also unveiled were "Scout," a 24-hour AI agent, and "Surface RTX Spark Devbox," an AI PC jointly developed with Nvidia. Following Microsoft's conversion of its OpenAI exclusive license into a non-exclusive contract, the launch of in-house models marks the full-fledged start of an AI infrastructure vertical integration strategy, analysts say.

2. 'NAND Powerhouse' Japan's Kioxia Closes In on Toyota's Market Cap

- Key Summary: Kioxia shares rose 7% from the previous day to 83,140 yen, briefly pushing its market cap above 45 trillion yen (about 427 trillion won) and momentarily overtaking Toyota intraday. Ranked just 169th in market cap last June, Kioxia has seen its share price soar more than 3,900% over the past year, and operating profit for fiscal year 2025 jumped 93.4% from a year earlier to 876.2 billion yen. Increased NAND demand from expanded AI data center investment is driving both share prices and earnings, and Kioxia plans to invest 2.1 trillion yen in capital expenditure and R&D through March 2029. First-quarter combined revenue of the world's top five NAND companies totaled $38.9 billion, up 83.7% from the previous quarter, led by Samsung Electronics (005930.KS) (31.6%), SK hynix (000660.KS) (17.6%), and Kioxia (13.9%).

3. US Private Payrolls Add 122,000 in May… Beat Forecasts as Labor Market Holds Up

- Key Summary: US private-sector employment compiled by ADP rose by 122,000 in May, exceeding both April's gain (109,000) and the expert forecast (110,000). Education and health services added 57,000 jobs, while trade, transportation, and utilities added 36,000. Annual pay growth for existing workers held steady at 4.4%. ADP suggested that productivity gains from the spread of AI technology may have contributed to a decline in some office jobs. With continued labor market strength, analysts say the Federal Reserve's rate cut timing could be delayed, and the official non-farm payrolls report is scheduled for release on the 5th.

4. Iran Strikes Kuwait Airport… Targets Civilian Facilities Again

- Key Summary: Iran struck Terminal 1 of Kuwait International Airport, causing casualties and facility damage, with all flights suspended again just two days after operations resumed. Iran's Islamic Revolutionary Guard Corps (IRGC) launched missile and drone attacks on the US Navy's Fifth Fleet base in Bahrain and US military facilities in Kuwait, but US Central Command stated, "All of Iran's attacks failed." US forces, citing self-defense, struck Iranian ground control facilities on Qeshm Island near the Strait of Hormuz, where major crude oil storage facilities are located. President Trump and Secretary of State Rubio expressed willingness to continue negotiations, but differences between the US and Iran over the nuclear program persist, leaving uncertainty in place.

5. US Government Eases Pre-Launch AI Model Verification Period from 90 Days to 30 Days

- Key Summary: President Trump signed an executive order mandating government pre-launch verification of high-performance AI models, with the verification period shortened from the originally proposed 90 days to 30 days. The Treasury, Defense, and Homeland Security Departments will establish a classified benchmarking system, and AI developers will form a voluntary cooperation framework with the government. Big Tech firms including Google, Microsoft, and OpenAI welcomed the move but are closely watching its impact going forward. The deregulatory direction could accelerate the pace at which US AI companies launch their models, analysts say.

6. Musk Earns $5.5 Billion an Hour… Closing In on Humanity's First Trillionaire

- Key Summary: SpaceX is pursuing a $75 billion IPO at $135 per share, targeting a corporate valuation of $1.75 trillion (about 2,665 trillion won), with a Nasdaq listing scheduled for the 12th of this month. Before listing, Musk's net worth is estimated at about $970 billion, and at the target valuation, the value of his stake alone would exceed $700 billion, raising the strong possibility that his net worth will surpass $1 trillion. However, Morningstar valued SpaceX's fair value at $780 billion, warning that it is "significantly overvalued." Because the IPO consists entirely of newly issued shares, all proceeds will flow into the company, and fixing the offering price before the roadshow is considered unusual.