Moonshot AI's open-source coding model Kimi K2.7 Code has been integrated into GitHub Copilot, marking the first time Copilot uses an open-source model. The model is hosted on Microsoft Azure by GitHub, available under a pay-as-you-go pricing model, and is rolling out to Copilot Pro, Pro+, and Max subscribers. GitHub plans to extend support to Business and Enterprise tiers and other platforms in the coming weeks. Released in June, Kimi K2.7 Code improves instruction-following in long-context scenarios, enhances long-range programming task performance, and reduces average token consumption by 30% compared to the K2.6 model.
On July 2, 2026, China's MIIT officially issued the first mandatory national standard for L2 advanced driver assistance systems (ADAS), co-drafted by Huawei, Xiaomi, BYD, Tesla, NIO, and XPeng, with enforcement starting January 1, 2027. BYD stated that its DiPilot system already exceeds the new standard. XPeng launched the MONA L03 SUV pre-sale at 143,800 yuan, featuring a 1,500 TOPS Turing chip and a second-generation VLA intelligent driving system. Ant Group's AI assistant 'A Bao' entered open beta on Alipay without invitation codes. DeepSeek experienced web and API service degradation but was restoring functionality. Huawei HarmonyOS 6 device count surpassed 70 million.
Multiple large enterprises are restricting employee access to high-end large language models to control surging AI costs. Citi blocked Claude Opus 4.6, 4.7, and GPT-5.5 on June 24; Adobe ended unlimited Claude access on June 30; Atlassian saw monthly AI costs jump from $5 million to over $15 million and introduced a cost dashboard. The shift from fixed annual contracts to per-token pricing has caused uncontrolled token consumption, with Accenture reporting massive waste on tasks like PDF-to-presentation conversion. GitHub plans to switch to open-source models and test per-user billing, while Amazon removed a leaderboard that inadvertently encouraged excessive AI use before imposing token caps.
On July 2, DeepSeek experienced a service degradation that affected both its web interface and API. The official status page confirmed the issue, stating the cause had been identified and a fix was in progress. In a separate announcement, DeepSeek revealed that the official V4 version is planned for mid-July, promising additional features and performance improvements. Following the V4 release, the API pricing strategy will be adjusted to introduce a peak/off-peak pricing mechanism.
Geely has announced the global premiere of its Galaxy TT electric sedan will take place on July 6, 2026, in Shanghai. The C-class AI pure electric model features a LiDAR sensor, an electric rear wing, and a 245 kW electric motor. It will be available with three battery capacities: 52.4 kWh delivering a range of 540 km, 63.8 kWh for 640 km, and 75.2 kWh offering either 650 km or 725 km. The car measures 4999 mm long, 1919 mm wide, and 1479 mm tall, with a 2920 mm wheelbase.
A UBS survey of about a dozen enterprise IT leaders reveals that roughly 60% of companies have implemented controls to tighten AI spending, driven by soaring token costs and insufficient ROI. The cost optimization push is causing some enterprises to significantly slow AI investment growth, though those in early AI adoption or with high returns remain less affected. Analysts expect model vendors like OpenAI and Anthropic to face the greatest near-term spending pressure, while open-source models such as DeepSeek and Chinese LLMs could benefit, especially for non-code use cases. Despite the pullback, UBS views the trend as a healthy industry adjustment, noting that enterprises are optimizing rather than halting AI use, and that next-generation models may further lower token costs.