Introduction

Here are five especially important topics from overseas AI news on July 2. It was a day that brought developments across a wide range of fields, including business, technology, and policy.

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1. OpenAI Proposes Donating 5% Equity to a US Sovereign Wealth Fund

It has been reported that OpenAI CEO Sam Altman has proposed donating 5% of the company's equity (stake) to a US sovereign wealth fund. The move is reigniting the debate over mechanisms for sharing the economic gains of the AI boom with ordinary citizens.

Altman has long maintained that "the benefits of AI need to be returned to society as a whole," and this proposal is positioned as one concrete way to achieve that goal. That said, the creation of a sovereign wealth fund itself is still under discussion, and realizing the plan is expected to require policy-level consensus building.

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2. Anthropic Cuts Claude Code's System Prompt by 80% for Fable 5

According to Anthropic engineer Tariq Shihipar, the company has cut Claude Code's system prompt by 80%. The reason: the new Fable 5 model delivers high performance with fewer instructions and examples, and the company found that detailed guidelines can actually constrain the model's capabilities.

Shihipar noted that the Fable 5 model is "more imaginative" than previous models. The finding that excessive instructions suppress emergent capabilities could also influence prompt engineering best practices.

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3. China's Kling AI Raises $2 Billion to Expand in AI Video

Kling AI, a Chinese AI video generation company under Kuaishou, has reportedly raised $2 billion in funding. The funds are expected to go toward expanding its AI video generation infrastructure and accelerating its global rollout.

Competition in AI video generation is intensifying around the world, led by the likes of OpenAI's Sora. Kling AI already has a strong presence in the Chinese market, and this large-scale raise is widely seen as a bid to strengthen its competitiveness in global markets.

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4. Kimi K2.7 Code Now Available in GitHub Copilot

Kimi K2.7 Code, a coding-focused model from Moonshot AI, is now generally available in GitHub Copilot. Developers can now select Kimi K2.7 Code right within the GitHub Copilot interface.

The Kimi series is known for its long-context processing capabilities, and it is steadily expanding into practical use cases such as coding assistance. It is also notable that a China-born model has been integrated as GitHub Copilot continues to offer a choice of multiple models.

Also on the same day, poolside's Laguna-XS-2.1, another coding-focused model, was released on Hugging Face, broadening the range of coding models that can run locally.

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5. Portugal Unveils Its First Open-Source AI Model as Part of Europe's Push for AI Sovereignty

Portugal has unveiled its first open-source AI model. It is positioned as part of the push for "AI sovereignty (digital sovereignty)" being advanced by European countries.

Across Europe, efforts to cultivate homegrown AI foundation technologies are accelerating, as seen with France's Mistral AI and Germany's Aleph Alpha. Portugal's entry marks a new step toward greater AI self-sufficiency for Europe.

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Wrap-Up

July 2 brought major news across a wide range of areas: business developments in the AI industry (OpenAI's equity proposal, Kling AI's large-scale raise), technical evolution (Anthropic's prompt reduction), ecosystem expansion (Kimi K2.7 Code's Copilot integration), and policy moves (Portugal's AI sovereignty). In particular, Anthropic's discovery that "less prompting works better" could influence AI development practices going forward.