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South Koreas main conservative candidate Kim Moon Soo has conceded defeat in the presidential election. Kim, the candidate of the People Power Party, told a news conference early Wednesday that he humbly accepts [the] peoples choice and congratulates his liberal rival Lee Jae-myung for winning the election. Kim spoke as voter turnouts and media projections showed Lee was expected to win the election to succeed Yoon Suk Yeol, a conservative who was removed from office in April over his ill-fated brief imposition of martial law. THIS IS A BREAKING NEWS UPDATE. APs earlier story follows below. South Koreas liberal opposition candidate Lee Jae-myung was expected to win an early presidential election on Tuesday, vote counts and media projections suggested. The victory would cap months of political turmoil triggered by the stunning but brief imposition of martial law by the now ousted conservative leader Yoon Suk Yeol. It was unclear whether Lees election would cause any major, immediate shift in South Koreas foreign policy. Lee, previously accused by critics of tilting toward China and North Korea and away from the U.S. and Japan, has repeatedly stressed South Korea’s alliance with the U.S. as the foundation of its foreign policy. The toughest external challenges awaiting a new president are U.S. President Donald Trumps tariff policy and North Koreas advancing nuclear program. But experts say whoever becomes president in South Korea can’t do much to secure major progress in South Koreas favor on those issues. With 73% of ballots counted as of 1 a.m. Wednesday, Lee, the Democratic Party candidate, led with more than 48% of the votes, trailed by main conservative People Power Party candidate Kim Moon Soo with 42.9%. South Koreas major media outlets were analyzing that Lees victory was certain. The exit poll by South Koreas three major television stationsKBS, MBC, and SBSearlier showed Lee projected to obtain 51.7% of total votes cast, beating Kim with 39.3%. Preelection surveys suggested Lee appeared headed for an easy win, riding on deep public frustration over the conservatives in the wake of Yoons martial law debacle that plunged South Korea into political turmoil. With the vote counting still underway, its premature to say anything definitively, but if the results stand as they are now, I pay my respects to the great decision of our people, Lee said outside his apartment in Incheon, just west of Seoul, as his supporters shouted his name. Hundreds of Lee supporters separately gathered outside the National Assembly in Seoul, waving Korean flags and singing. Nearly 80% of the countrys 44.4 million eligible voters cast ballots, according to an interim tally. Thats one of the highest turnouts for a presidential election in South Korea, reflecting public eagerness to move past the political turmoil. The winning candidate will immediately be sworn in as president Wednesday for a single, full term of five years without the typical two-month transition period. Pragmatic diplomacy Lee, who served as governor of Gyeonggi province and mayor of Seongnam city, has been a highly divisive figure in politics for years. As a former child laborer known for his inspirational rags-to-riches story, Lee came to fame through biting criticism of the countrys conservative establishment and calls to build a more assertive South Korea in foreign policy. That rhetoric has given him an image as someone who can institute sweeping reforms and fix the countrys deep-seated economic inequality and corruption. His critics view him as a dangerous populist who relies on political division and backpedals on promises too easily. On foreign policy, Lee has has steadfastly vowed to pursue pragmatic diplomacy. He has promised to solidify a trilateral Seoul-Washington-Tokyo partnership, a stance that isn’t much different from the position held by South Koreas conservatives. He said he would pursue better ties with North Korea but acknowledged that it would be very difficult to realize a summit with North Korean leader Kim Jong Un anytime soon. This signals Lee won’t likely initiate any drastic steps meant to improve relations with North Korea. Experts say there arent many diplomatic options for South Korea as it tries to address Trumps tariff hikes and calls for South Korea to pay more for the cost of the U.S. military presence, as well as North Koreas headlong pursuit of nuclear weapons. Experts say that has made both Lee and Kim Moon Soo avoid unveiling ambitious foreign policy goals. Paik Wooyeal, a professor at Seouls Yonsei University, said foreign policy strategists for Lee understand there isnt much South Korea can do to bring about a denuclearization of North Korea. Paik said Lee also doesnt share the Korean nationalistic zeal held by ex-liberal President Moon Jae-in, who met Kim Jong Un three times during his 2017-22 term. Impact of tariff hikes Lees government still could become engaged in a little bit of friction with the Trump administration, while a Kim Moon Soo government, which prioritizes relations with Washington, would likely offer more concessions to the U.S., said Chung Jin-young, a former dean of the Graduate School of Pan-Pacific International Studies at South Koreas Kyung Hee University. Chung predicted Lee wont be able to pursue overly drastic steps on foreign policy and security, given the countrys foreign exchange and financial markets are vulnerable to such changes. Lee has preached patience over Trumps tariff policy, arguing it would be a mistake to rush negotiations in pursuit of an early agreement with Washington. Kim Moon Soo has said he would meet with Trump as soon as possible. On Monday, South Korean trade officials held an emergency meeting to discuss a response to Trumps announcement that the U.S. will raise tariffs on steel and aluminum products to 50% beginning Wednesday. South Koreas central bank last week sharply lowered its 2025 growth outlook to 0.8%, citing the potential impact of Trumps tariff hikes and weak domestic demand worsened by the political turmoil of past months. Healing domestic divide The election serves as another defining moment in the countrys resilient democracy, but observers worry a domestic divide that worsened after Yoons martial law stunt is far from over and could pose a big political burden n the new president. The past six months saw large crowds of people rallying in the streets to either denounce or support Yoon, while a leadership vacuum caused by Yoons impeachment and ensuing formal dismissal rattled the countrys high-level diplomatic activities and financial markets. Lee has promised to heal the national split, but his vow to thoroughly hold those involved in Yoon’s martial law stunt accountable has sparked concerns that he would use investigations to launch political retaliations against his opponents. In a Facebook posting earlier Tuesday, Lee called for voters to deliver a stern and resolute judgement against the conservatives over martial law. In a campaign speech Monday, Lee claimed that a win by Kim Moon Soo would mean the return of the rebellion forces, the destruction of democracy and the deprival of peoples human rights. Kim, a former labor minister under Yoon, said that a Lee win would allow him to wield excessive power. Lee is now trying to seize all power in South Korea, Kim told one rally. By Hyung-Jin Kim and Kim Tong-Hyung, Associated Press
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American telehealth company Hims & Hers Health announced on Tuesday that it will be acquiring Zava, a leading European digital health company in an all cash acquisition set to close in the second half of 2025. Following the announcement, Hims’ stock price (HIMS) jumped 5.8% in premarket trading. (As of midday Tuesday, the stock was trading up just under one point.) The move will rapidly expand Hims & Hers reach, which has a current base of 2.4 million U.S. customers. As the only digital health company with over a decade of operations across Germany, France, Ireland, and the U.K., Zava has an active user base of 1.3 million. The demand for simpler, more personalized healthcare is universal, said Andrew Dudum, founder and CEO of Hims & Hers, in a press release. By leveraging Zava’s established European presence, cutting-edge technology, and deep customer understanding, we’re poised to fundamentally transform access to care for millions across Europe. Whether in rural towns, vibrant cities, or remote communities across Europe, people battling widespread, often silent chronic conditions like obesity, depression, and more will have access to the personalized, high-quality care they deserve. Expanding to Europe is additionally beneficial because the E.U.s universal healthcare policies make pharmaceuticals much more affordable relative to the U.S. This means that personalized telehealth services like Hims & Hers could become more widely accessible there. The medications are priced more competitively than in the U.S. so more people can actually afford it and we are seeing a huge demand, said Zava CEO David Meinertz in an interview with CNBC. The demand is increasing with additional strains on the statutory systems that telehealth can alleviate. Hims & Hers’ most recent earnings report in May revealed a revenue of $586 million for the quarter, an increase of 111% over the first quarter of last year, as the platform continues to expand. The company’s current market cap is $12.5 billion as of Tuesday.
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Two years after the launch of ChatGPT, return on investment in generative AI has been elusive, but one area stands out: software development. So-called code generation or code-gen startups are commanding sky-high valuations as corporate boardrooms look to use AI to aid, and sometimes to replace, expensive human software engineers. Cursor, a code generation startup based in San Francisco that can suggest and complete lines of code and write whole sections of code autonomously, raised $900 million at a $10 billion valuation in May from a whos who list of tech investors, including Thrive Capital, Andreessen Horowitz and Accel. Windsurf, a Mountain View-based startup behind the popular AI coding tool Codeium, attracted the attention of ChatGPT maker OpenAI, which is now in talks to acquire the company for $3 billion, sources familiar with the matter told Reuters. Its tool is known for translating plain English commands into code, sometimes called vibe coding, which allows people with no knowledge of computer languages to write software. OpenAI and Windsurf declined to comment on the acquisition. AI has automated all the repetitive, tedious work, said Scott Wu, CEO of code gen startup Cognition. The software engineers role has already changed dramatically. Its not about memorizing esoteric syntax anymore. Founders of code-gen startups and their investors believe they are in a land grab situation, with a shrinking window to gain a critical mass of users and establish their AI coding tool as the industry standard. But because most are built on AI foundation models developed elsewhere, such as OpenAI, Anthropic, or DeepSeek, their costs per query are also growing, and none are yet profitable. Theyre also at risk of being disrupted by Google, Microsoft and OpenAI, which all announced new code-gen products in May, and Anthropic is also working on one as well, two sources familiar with the matter told Reuters. The rapid growth of these startups is coming despite competing on big tech’s home turf. Microsofts GitHub Copilot, launched in 2021 and considered code-gens dominant player, grew to over $500 million in revenue last year, according to a source familiar with the matter. Microsoft declined to comment on GitHub Copilots revenue. On Microsofts earnings call in April, the company said the product has over 15 million users. Learn to code? As AI revolutionizes the industry, many jobs – particularly entry-level coding positions that are more basic and involve repetition – may be eliminated. Signalfire, a VC firm that tracks tech hiring, found that new hires with less than a year of experience fell 24% in 2024, a drop it attributes to tasks once assigned to entry-level software engineers are now being fulfilled in part with AI. Googles CEO also said in April that well over 30% of Googles code is now AI-generated, and Amazon CEO Andy Jassy said last year the company had saved the equivalent of 4,500 developer-years by using AI. Google and Amazon declined to comment. In May, Microsoft CEO Satya Nadella said at a conference that approximately 20 to 30% of their code is now AI-generated. The same month, the company announced layoffs of 6,000 workers globally, with over 40% of those being software developers in Microsofts home state, Washington. Were focused on creating AI that empowers developers to be more productive, creative, and save time, a Microsoft spokesperson said. This means some roles will change with the revolution of AI, but human intelligence remains at the center of the software development life cycle. Mounting losses Some vibe-coding platforms already boast substantial annualized revenues. Cursor, with just 60 employees, went from zero to $100 million in recurring revenue by January 2025, less than two years since its launch. Windsurf, founded in 2021, launched its code generation product in November 2024 and is already bringing in $50 million in annualized revenue, according to a source familiar with the company. But both startups operate with negative gross margins, meaning they spend more than they make, according to four investor sources familiar with their operations. The prices people are paying for coding assistants are going to get more expensive, Quinn Slack, CEO at coding startup Sourcegraph, told Reuters. To make the higher cost an easier pill to swallow for customers, Sourcegraph is now offering a drop-down menu to let users choose which models they want to work with, from open source models such as DeepSeek to the most advanced reasoning models from Anthropic and OpenAI so they can opt for cheaper models for basic questions. Both Cursor and Windsurf are led by recent MIT graduates in their twenties, and exemplify the gold rush era of the AI startup scene. I havent seen people working this hard since the first Internet boom, said Martin Casado, a general partner at Andreessen Horowitz, an investor in Anysphere, the company behind Cursor. Whats less clear is whether the dozen or so code-gen companies will be able to hang on to their customers as big tech moves in. In many cases, it’s less about who’s got the best technologyits about who is going to make the best use of that technology, and who’s going to be able to sell their products better than others, said Scott Raney, managing director at Redpoint Ventures, whose firm invested in Sourcegraph and Poolside, a software development startup thats building its own AI foundation model. Custom AI models Most of the AI coding startups currently rely on the Claude AI model from Anthropic, which crossed $3 billion in annualized revenue in May in part due to fees paid by code-gen companies. But some startups are attempting to build their own models. In May, Windsurf announced its first in-house AI models that are optimized for software engineering in a bid to control the user experience. Cursor has also hired a team of researchers to pre-train its own large frontier-level models, which could enable the company to not have to pay foundation model companies so much money, according to two sources familiar with the matter. Startups looking to train their own AI coding models face an uphill battle as it could easily cost millions to buy or rent the computing capacity needed to train a large language model. Replit earlier dropped plans to train its own model. Poolside, which has raised more than $600 million to make a coding-specific model, has announced a partnership with Amazon Web Services and is testing with customers, but hasnt made any product generally available yet. Another code gen startup Magic Dev, which raised nearly $500 million since 2023, told investors a frontier-level coding model was coming in summer 2024 but hasnt yet launched a product. Poolside declined to comment. Magic Dev did not respond to a request for comment. Anna Tong and Krystal Hu, Reuters
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