New NC budget keeps Khanmigo contract, but slashes funding from $10 million to $500,000

North Carolina lawmakers have decided to keep the contract for Khanmigo, an AI-powered teaching assistant developed by Khan Academy, but have significantly cut the funding from $10 million to just $500,000. This decision reflects a major shift in budget priorities, highlighting the challenges of balancing tech innovation with fiscal responsibility. While the reduced funding might limit the platform's reach and impact in schools, it still represents a commitment to integrating AI into educational resources, potentially paving the way for future enhancements and broader adoption.