Abstract
Using {\it ab initio} band structure calculations and symmetry arguments, we show that the magnetic property of Ga$_{1-x}$Gd$_x$N is drastically different from TM-doped GaN. The coupling between Gd atoms in the alloy is antiferromagnetic, but the ferromagnetic phase can be stabilized by introducing electrons. Furthermore, we propose a model that may explain the recently observed colossal magnetic moments in this system, based on the polarization of donor electrons.
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