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DeepLearning.AI - The Batch

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Meta’s Agent Security, The Navier-Stokes Controversy, Fraud on Claude

<figure><img src="https://imgproxy.citrusreader.com/CeUqqBkiQw-UqRgufJqVIcNYf0-Uqe4D6W54bxqUUnQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQWdlbnQtT3ZlcnJ1bjNfMTIwMHB4LmpwZw" alt="Meta’s Agent Security, The Navier-Stokes Controversy, Fraud on Claude" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: The loudest voices stoking fears about AI dangers have made tremendous headway in the past two weeks.</blockquote><p>Dear friends,</p><p>The loudest voices stoking fears about AI dangers have made tremendous headway in the past two weeks. AI technology has not taken some unexpected, dangerous turn, but the hype around it — propelled by what appears to be a well orchestrated PR campaign — has drummed up considerable fear. I worry that it represents a setback for our field.</p><p>I&nbsp;<a href="https://www.deeplearning.ai/the-batch/the-psychology-of-ai-doom" rel="noopener">have</a>&nbsp;<a href="https://www.deeplearning.ai/the-batch/existential-risk-i-dont-get-it" rel="noopener">written</a>&nbsp;<a href="https://www.deeplearning.ai/the-batch/time-to-push-back-on-ai-pessimism" rel="noopener">frequently</a>&nbsp;that fears of AI are overhyped. AI’s capabilities can be uncannily human-like and unpredictable, and it’s rational to worry when people who are directly involved express concerns. But I see the problems as a sign of the engineering work ahead, rather than insurmountable barriers or the sky falling. AI technology continues to advance — which is a good thing! — but technical advances, poorly understood by the public, give those who seek to generate hype repeated opportunities to do so.</p><p>First, I don’t see any step up in the risk of human extinction from AI compared to a few months ago. The theories about this remain the same fantastical, science fiction scenarios as a few months ago. The biggest change in AI risk is its cybersecurity capabilities — a topic which we should take seriously — but this, too, will not lead to the end of the world.</p><p>The most notable recent event leading to increased fear was when an OpenAI team deployed an agent swarm that hacked into Hugging Face. Much of the popular press contained significant hype. For example, some publications reported that a swarm of 1,200 agents carried out the attack. While this was technically accurate, as I write this, I have about 1,300 processes running on my laptop. Yes, the ability to get large swarms of agents to work in parallel on a task is a significant technical advance, and, in computing, many processes run at the same time. So this shouldn’t be seen as some magical capability.</p><p>Additionally, OpenAI’s buggy sandboxing and monitoring processes were key to enabling this incident. Fixing these bugs and putting in place improved monitoring would be appropriate fixes, not pausing AI. There are many well known ways to attack software systems. The main advantage of AI agents is that they are relentless. They will tirelessly try many tactics — and have the patience to chain vulnerabilities together — that previously would have taken an infeasible amount of human effort. But in the long term, I believe the advantage will lie with defenders (because they have more information with which to identify bugs, which they can fix), but the cyber-threat landscape has changed significantly. There are still bottlenecks to identifying and exploiting a vulnerability. AI agents still have to try a lot of things to see what works, and taking these actions takes time and might be detected by defenders. This is why, even though it is now easy to obtain versions of leading open weight models that have had their guardrails removed or weakened, so they will not refuse to try to execute cyber attacks, the world has not ended.</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/LkdjvkVB3YclWCRsY4bkMLAcggSS-nS3CntjFtVpjq4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvMjAyNi4wOS4xOC1BbmRyZXdzLUxldHRlci53ZWJw" class="kg-image" alt="Cartoon of man dropping hammer next to woman on blue background, emphasizing tool accident and reaction." loading="lazy" width="1200" height="672" srcset="https://imgproxy.citrusreader.com/zyvXM1MMAo47TAINdHLJG0Ys6jab3eDQn4v6L8LxNtM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5LzIwMjYuMDkuMTgtQW5kcmV3cy1MZXR0ZXIud2VicA 600w, https://imgproxy.citrusreader.com/riSEWzvZyfZrZOFUz_A_NsulZ0iWocf66RLSZhtQGkM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS8yMDI2LjA5LjE4LUFuZHJld3MtTGV0dGVyLndlYnA 1000w, https://imgproxy.citrusreader.com/LkdjvkVB3YclWCRsY4bkMLAcggSS-nS3CntjFtVpjq4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvMjAyNi4wOS4xOC1BbmRyZXdzLUxldHRlci53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p>I am also concerned about the anthropomorphization&nbsp;of AI in a lot of reporting, where LLMs and agents are unnecessarily treated as if they were people. If I wield a hammer, miss a nail, and accidentally dent the wall, it’s not the fault of the hammer. The problem lies in how I used the hammer. Similarly, if I prompt an agent and it hacks into someone else’s system, the responsibility lies with me, not the agent.&nbsp;</p><p>Of course, we want to build systems that are as safe and predictable as possible. (For example, an unsafe hammer would be one whose head randomly flies off under normal use.) Today’s agentic systems are not predictable, but I see no reason why, by applying sound engineering practices, we won’t be able to make them extremely safe to use. One new element in the forecasts of AI-enabled doom is AI companies disclaiming responsibility for their own products. “I didn’t do it; my out-of-control agent did!” There’s a balance to be struck between the responsibility of the tool maker and the tool user, but when something goes wrong, let’s hold the people building and/or using the hammer responsible, rather than the hammer. (By the way, if you’re worried about AI bioweapon risk, David Bellamy has a great&nbsp;<a href="https://x.com/davidrbellamy/status/2099187370407112758" rel="noopener noreferrer" target="_blank">post</a>&nbsp;on why this, too, is overhyped. Briefly, the bottleneck in building a bioweapon is not intelligence, but lab work and manufacturing.)</p><p>Pausing AI progress will create much more harm than benefit. First, our adversaries will certainly not slow down. Second, engineering requires discovering problems empirically so we can fix them. If we pause AI by a decade, we will also delay finding and implementing safety engineering fixes by about the same duration.</p><p>Of course, the incentive to stoke fears — for regulatory capture, to garner attention, or to make one’s technology seem more powerful — remains the same as before. Disclaiming responsibility is a new one. Taking a hard technical look at the actual risks however, I see little factual basis for the degree of fear that’s been stoked up. We still have hard research and engineering work ahead to improve AI safety, but the beneficial applications continue to vastly outweigh the risks, and we should keep building.&nbsp;</p><p>Andrew&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><h2></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/hD5KiikUOocfgh07HwotVGcTlQmocnylCSscVR9Khvo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvdW5uYW1lZC0tMS0tMS53ZWJw" class="kg-image" alt="Access AI engineering learning with Andrew Ng. Download on iOS and Android platforms." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/176BWykkJ0tFiuPWYL4i6DLZy2M2PZ60WET-BL0ed2I/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L3VubmFtZWQtLTEtLTEud2VicA 600w, https://imgproxy.citrusreader.com/kbnvUpUmyHvg9oRqhGOqbluQ9poJ37Zms5Q2Fmgg-AE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS91bm5hbWVkLS0xLS0xLndlYnA 1000w, https://imgproxy.citrusreader.com/hD5KiikUOocfgh07HwotVGcTlQmocnylCSscVR9Khvo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvdW5uYW1lZC0tMS0tMS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p>Your desk shouldn’t be the only place where you can learn. The DeepLearning.AI app lets you follow the latest news and track your course progress anywhere and everywhere, on your commute or coffee break.&nbsp;<a href="https://dlai.onelink.me/kfDj/batch_ad" rel="noopener noreferrer" target="_blank">Download the app on iOS and Android</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/34af-uQC2-zt162Ziigax8YfrJu_fv7_4lbdBc98l00/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTVVTRS0tMS0ud2VicA" class="kg-image" alt="Flowchart illustrates data process from user control to external services in Meta's Muse AI agent system." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/5uZv_t9QVQTnAH_tRFsYXg5Fk_Dx519iW11eu8BS3Sc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L01VU0UtLTEtLndlYnA 600w, https://imgproxy.citrusreader.com/X4DB72TSlHYYZmJeotTGIjGaSB3sCn68EyiTqU8lCvU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9NVVNFLS0xLS53ZWJw 1000w, https://imgproxy.citrusreader.com/34af-uQC2-zt162Ziigax8YfrJu_fv7_4lbdBc98l00/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTVVTRS0tMS0ud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="how-to-secure-agents-for-the-masses">How To Secure&nbsp;Agents for the Masses</h1><p>A malicious web page can fool an AI agent into working against you. Meta built an agent on the assumption that such an event will happen, and designed it so that such prompt-injection exploits won’t lead the agent astray.</p><p><strong>What’s new:</strong>&nbsp;Meta&nbsp;<a href="https://about.fb.com/news/2026/09/introducing-muse-personal-ai-agent/" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;Muse, a personal AI agent based on the Muse Spark 1.3 model. Controlled via the Muse app or WhatsApp, it reads and sends emails, browses the web, fills out forms, makes purchases, and keeps working even if the Muse app is closed. Interactions train Meta models unless users opt out.</p><ul><li><strong>Features:</strong>&nbsp;Connects to apps including browsers, email clients, calendars, Instagram, and Facebook as well as cars, smart-home devices; selectable read and/or write access per service; scheduled and event-triggered background operation; memory is readable, editable, forgettable; activity log; output includes documents, PDFs, web pages, dashboards; transactions via Stripe Link; support planned for Shop Pay and 1Password</li><li><strong>Availability:</strong>&nbsp;U.S. only,&nbsp;<a href="https://www.pbs.org/newshour/nation/meta-launches-personal-ai-agent-muse-to-help-with-everyday-tasks" rel="noopener noreferrer" target="_blank">18 and over</a>&nbsp;via iOS, Android,&nbsp;<a href="http://muse.ai/" rel="noopener noreferrer" target="_blank">muse.ai</a>, WhatsApp</li><li><strong>Price:</strong>&nbsp;Free (up to 100 million tokens per week), $20 (up to 500 million tokens per week) and $100 (up to 3 billion tokens per week)</li><li><strong>License:</strong>&nbsp;Proprietary</li><li><strong>Undisclosed:</strong>&nbsp;Muse Spark 1.3 parameter count, architecture, knowledge cutoff, and training data; Muse prompt-injection classifier evaluations; Muse agent evaluations</li></ul><p><strong>How it works:</strong>&nbsp;Muse agents are designed with security in mind. Each agent runs on a VM (an isolated, dedicated virtual machine with a Linux operating system, browser, storage, and memory). The VM holds the agent’s workspace, the user’s files, and credentials for every connected service. To protect against attempts prompt-injection attacks, the VM is divided into two zones: (i) a sealed runtime cell where the agent and its tools handle untrusted data and (ii) services outside the cell that hold passwords and decide what the agent can do.</p><ul><li>The agent’s harness, the user’s workspace, and tools sit inside a Linux container with its own file system and virtual network interface. The VM limits its requests to the operating system and privileges it holds there, and administrator rights inside the runtime cell do not extend to the host machine. The cell can reach external services only via local channels. Operating-system outines verify&nbsp;which process is on each end, and the channels carry no passwords or access tokens.</li><li>Muse Spark 1.3 never sees credentials. A credential service outside the runtime cell processes passwords and access tokens, while the agent works with stand-in tokens. A separate agent called Sentinel, which runs on the same VM but outside the runtime cell, approves each request and swaps in the real credentials as the request leaves the VM. Meta says this makes it impossible for malefactors to steal credentials via prompt injection, since the agent holds no credentials. Connectors to external services like calendars run outside the cell as well, and they receive only the credentials they need. The email connector strips temporary passcodes and password-reset links before the agent reads a message.</li><li>Only Sentinel can permit an action proposed by Muse Spark 1.3. It inspects outbound each request and checks each connector’s call against permissions the user has set; then Sentinal allows it, denies it, or asks the user to decide. The&nbsp;system also tracks which tool processes have read user data. A process that hasn’t read user data can reach a short list of pre-approved destinations on its own, while one that has must ask the user for approval.</li><li>When Sentinel asks for user input, the agent stops, and the request goes to the Muse app as a system dialog rather than as a message in the conversation. This way, prompt-injected text can’t manufacture a user’s approval. An approval is bound to one connector or destination and purpose. Users can constrain approvals to cover one action, session, task, or time span, or all future uses. Sending emails and making purchases always requires user verification, and purchases on unfamiliar sites use a single-use card number from Stripe’s Link wallet, valid only for the specific merchant, amount, and time span.</li><li>Meta trained Muse Spark 1.3 to resist prompt injections and added three layers of additional protection. (i) Data from a source outside the system is labeled untrusted as it enters the model’s context. (ii) An ensemble of classifiers, which were trained separately from the model, screens every file and tool output. This process runs outside the cell, so that an attacker can’t disable it. (iii) In the browser, a sub-agent reads a structured summary of each page — the accessibility tree that screen readers use — instead of the page’s code. It can’t run JavaScript, so instructions buried in scripts or markup never reach it. Other classifiers watch for injection attempts hidden in page text, images, and downloads, and still others block the agent if it tries to route personal data to a destination the task didn’t call for.</li></ul><p><strong>Yes, but:</strong>&nbsp;Meta says it evaluated Muse Spark 1.3’s ability to resist prompt injections using an unpublished dataset, and it has not provided accuracy metrics for the classifiers that screen incoming data. Instead, the company offers a bug bounty of up to $300,000 for a valid report and up to $130,000 for a successful prompt injection.&nbsp;</p><p><strong>Behind the news:</strong>&nbsp;Muse incorporates design features proposed by security researchers before Meta’s current AI lab existed. In April 2025, Google DeepMind and ETH Zurich researchers led by Edoardo Debenedetti proposed&nbsp;<a href="https://arxiv.org/abs/2503.18813" rel="noopener noreferrer" target="_blank">CaMeL</a>, which separates a model that plans from a model that reads untrusted data and enforces written policies before tool calls. Two months later, independent developer Simon Willison identified the “<a href="https://simonwillison.net/2025/Jun/16/the-lethal-trifecta/" rel="noopener noreferrer" target="_blank">lethal trifecta</a>” for AI agents: private data, untrusted content, and a way to send data out. Willison argued that the only safe option is to avoid combining them. Muse processes all three but routes outgoing data through a component the model can’t override, according to Meta. A classifier trained on past prompt injections may catch 99 percent of new ones, but that remains an unacceptable risk, Willison&nbsp;<a href="https://simonwillison.net/2025/Apr/11/camel/" rel="noopener noreferrer" target="_blank">wrote.</a>&nbsp;Accordingly, Meta built the container, credential separation, and Sentinel to hold when initial layers fail.</p><p><strong>Why it matters:</strong>&nbsp;Security is a major risk for current agents. Most agentic harnesses include a system prompt that tells the model to ignore instructions it finds in content and a classifier that recognizes such instructions, but clever hackers can evade these defenses. Meta assumes the model will be fooled, and it built controls at the operating-system level that should hold regardless of the model’s actions. Meta detailed the protections that sit outside the model: a container the agent can’t escape, credentials it can’t hold, a gatekeeper it can’t override, and approvals that don’t pass through conversations. Developers who build agents for sensitive tasks can adapt this approach.</p><p><strong>We’re thinking:</strong>&nbsp;Meta says it will release Muse Spark’s weights eventually. But it’s the harness, more than the model, that keeps the Muse agent safe. We hope Meta will open-source&nbsp;that software, too.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/M3GWLLh6agULpV4Ct1slfX4bJPiREq2UAPKB5UZuFtA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTkFWSUVSU1RPS0VTLndlYnA" class="kg-image" alt="Dynamic spiral of blue and brown lines showcases the concept of axial stretching in fluid dynamics. " loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/fk57223Ss-onnJ-JhkA5d01Szll-6azQ3odp4a47dmc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L05BVklFUlNUT0tFUy53ZWJw 600w, https://imgproxy.citrusreader.com/wIrJIGf3ehMtFkEPMOEnHqdQW7laHRchC8wSAdds-Cc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9OQVZJRVJTVE9LRVMud2VicA 1000w, https://imgproxy.citrusreader.com/M3GWLLh6agULpV4Ct1slfX4bJPiREq2UAPKB5UZuFtA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTkFWSUVSU1RPS0VTLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="inside-the-dispute-over-a-landmark-agent-driven-mathematical-proof">Inside the Dispute Over A Landmark Agent-Driven Mathematical Proof</h1><p>OpenAI agents solved a longstanding mathematical problem that carries a $1 million prize, but many obervers question whether the agents drew on unpublished work by two mathematicians.</p><p><strong>What's new:</strong>&nbsp;On September 8, OpenAI&nbsp;<a href="https://openai.com/index/navier-stokes-solution" rel="noopener noreferrer" target="_blank">announced</a>&nbsp;that an unreleased model had produced a proof addressing an unsolved problem in fluid dynamics: Whether the equations known as Navier-Stokes have solutions that are, in fact, physically impossible. The proof, which took 10,000 agents 88 hours to produce, shows the answer is yes: Under the right conditions, the equations break down. However, mathematicians Tristan Buckmaster and Levent Alpöge had been using OpenAI Codex to solve the same problem and Buckmaster had discussed the project with OpenAI personnel. OpenAI published its proof only one day after they had published proofs of related equations, raising suspicions that OpenAI’s agents had seen their work, perhaps via models that had been trained on their data.</p><p><strong>What the agents proved:</strong>&nbsp;The Navier-Stokes equations describe how fluids move, from water in pipes to air over a wing. For decades, mathematicians have tried to determine whether these equations always produce “smooth” solutions — no sudden jumps or infinite speeds — or whether they can predict an infinite speed, which no real fluid can reach. Either answer would settle the problem, a problem selected for a $1 million Millennium Prize funded by Clay Mathematics Institute. OpenAI’s proof demonstrates that under a smooth external force, a fluid's speed can increase beyond finite limits even as its energy remains finite. Clay”s official&nbsp;<a href="https://www.claymath.org/millennium/navier-stokes-equation/" rel="noopener noreferrer" target="_blank">problem statement</a>&nbsp;allows this result. (The harder version that most mathematicians have in mind, an infinite speed or sudden jump with no outside force at all, remains an open problem.)</p><p><strong>Prize pursuits:</strong>&nbsp;OpenAI published a 166-page&nbsp;<a href="https://cdn.openai.com/pdf/32d9f210-8b73-45e0-91bc-82a30aef8a9a/navier-stokes.pdf" rel="noopener noreferrer" target="_blank">paper</a>&nbsp;as well as the agent-written code in Lean, a programming language that lets computers check mathematical proofs line by line. The underlying model’s name, size, and training data are undisclosed. OpenAI says only that it is “significantly more capable than GPT-6 Astra” and was built by “large-scale reinforcement learning on top of a previously pretrained model.”</p><ul><li>On September 1, after hearing rumors that agents elsewhere were solving Millennium problems, OpenAI launched groups of agents tasked with solving the open problems. Each agent could read a cached snapshot of the web, run code, and message others in its group.</li><li>A group of nearly 100 agents solved a related question about Euler equations — simplified cases of the Navier-Stokes equations — in about 50 hours. OpenAI then shifted agents from the other problems to Navier-Stokes. That group, which grew to 10,000 concurrent agents, reached its conclusion 88 hours after launch, on September 5. Formalizing the steps in Lean took another 17 hours.</li><li>Altogether the agents exchanged 4.9 million messages and generated about 300 billion output tokens. OpenAI did not disclose the cost. Estimates range between&nbsp;<a href="https://fortune.com/2026/09/08/openai-says-it-cracked-navier-stokes-math-grand-challenge-buckmaster-accusation-cheating-intimidation-tao-lament/" rel="noopener noreferrer" target="_blank">$2 million</a>&nbsp;and&nbsp;<a href="https://techcrunch.com/2026/09/08/openai-fought-dirty-on-career-making-math-problem-says-nyu-mathematician/" rel="noopener noreferrer" target="_blank">$22.5 million</a>&nbsp;based on GPT-6 Astra’s list price.</li><li>So far, no independent review of OpenAI’s proof has been completed. Clay's&nbsp;<a href="https://www.claymath.org/millennium-problems/rules/" rel="noopener noreferrer" target="_blank">rules</a>&nbsp;require publication, a two-year wait, and general acceptance and review by expert mathematicians before it will consider a solution. OpenAI says it isn't seeking the prize.</li></ul><p><strong>The controversy:&nbsp;</strong>Hours before OpenAI’s announcement, NYU mathematician Tristan Buckmaster&nbsp;<a href="https://cims.nyu.edu/~tristanb/statement.pdf" rel="noopener noreferrer" target="_blank">posted</a>&nbsp;a statement that accused OpenAI researcher Sébastien Bubeck of pressuring him over credit for related work he had done with Levent Alpöge, who works at Anthropic. Buckmaster said he and Alpöge had spent most of a year using OpenAI Codex and Anthropic Claude to chase the same kind of proof, building on an approach opened years earlier by mathematicians Diego Córdoba and Luis Martínez-Zoroa, whom Buckmaster credits with “the basic idea of this program.” Buckmaster and Alpöge had posted Lean-verified proofs of three simpler fluid equations, including Navier-Stokes variations, on September 7.</p><ul><li>Buckmaster said his collaboration with Alpöge is personal, not institutional, and that he paid for it out of his own research funds, “including footing a large bill to OpenAI.” He spoke twice by phone with OpenAI’s Bubeck on September 6 and asked whether OpenAI's model had been trained on, or had access to, the Codex sessions where he and Alpöge had been putting drafts. He says he was told the model didn’t look up user data, but his question about training went unanswered. He also says Bubeck proposed that Buckmaster himself&nbsp;write up OpenAI’s result without naming Alpöge because Alpöge works at Anthropic. Bubeck&nbsp;<a href="https://x.com/SebastienBubeck/status/2097379411691516310" rel="noopener noreferrer" target="_blank">posted</a>&nbsp;on the X social network that he never sought to omit Alpöge’s name.</li><li>On September 8, OpenAI said that neither its researchers nor its agents saw the pair’s work before publication and that no specific user data was accessed — but it could not determine whether the company had used their activities to improve its models. On September 10, OpenAI replaced that sentence: Following an investigation, it said, Buckmaster's Codex prompts over the two months prior to the announcement “could not have influenced the system in any way, including through training.” However, OpenAI did not address whether earlier Codex prompts may have influenced the system.</li></ul><p><strong>Behind the news:</strong>&nbsp;The race to build math-savvy AI has entered an especially intense phase. Four days before OpenAI's announcement, Anthropic&nbsp;<a href="https://www.anthropic.com/research/formalizing-fermats-last-theorem" rel="noopener noreferrer" target="_blank">announced</a>&nbsp;that a Claude model had produced the first complete Lean proof of Fermat’s Last Theorem. A research model roughly comparable to Claude Fable 5.1 worked on its own for 11 days and used about 6 billion output tokens — 2 percent of OpenAI’s tally. This proof drew no dispute. It contained no new mathematical inventions. Anthropic built on, credited, and had the result endorsed by Kevin Buzzard, whose Imperial College team has been formalizing the theorem since 2024.&nbsp;</p><p><strong>Why it matters:</strong>&nbsp;Buckmaster called OpenAI’s Navier-Stokes proof a “Deep Blue-Kasparov moment,” referring to the pivotal series of chess matches in 1996 and 1997 in which IBM’s Deep Blue computer defeated world champion Gary Kasparov. Some pundits&nbsp;<a href="https://www.technologyreview.com/2026/09/08/1143747/what-openais-latest-controversy-tells-us-about-the-future-of-math/" rel="noopener noreferrer" target="_blank">question</a>&nbsp;whether mathematician might be an endangered job title. However, Buckmaster noted that the important thing is the sheer speed with which mathematicians and LLMs working together can make progress. Nonetheless, a formally correct proof doesn’t tell you why it works, whether the problem statement is correct, or what meanings can be drawn from it. While automated verification has become relatively inexpensive, human-readable understanding remains costly.</p><p><strong>We're thinking:</strong>&nbsp;The questions around whether OpenAI used the mathematicians’ work is an important reminder to check the privacy settings of your LLM provider, and to consider zero data-retention options if you’re processing sensitive data that you don’t want a provider&nbsp;to use.&nbsp;</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/sy1wSYH3ge6b8AKvsStBK10O9UrI7e4m-u6dqsbM3y4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvRElWRVJTSU9OLS0xLS53ZWJw" class="kg-image" alt="Four-step process diagram shows misuse of AI models with fake accounts, data harvesting, cleaning, and training." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/mSWYJbNYRGdA5JwkkYUWtu6vLGM__BT_LB2K0T8zdaQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0RJVkVSU0lPTi0tMS0ud2VicA 600w, https://imgproxy.citrusreader.com/X3W5sBYq2HfSEizI_mIN041iPFLd4VfOpAx7TJLNrGk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9ESVZFUlNJT04tLTEtLndlYnA 1000w, https://imgproxy.citrusreader.com/sy1wSYH3ge6b8AKvsStBK10O9UrI7e4m-u6dqsbM3y4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvRElWRVJTSU9OLS0xLS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="some-kimi-and-deepseek-users-were-served-claude-instead-anthropic-says">Some Kimi and DeepSeek Users Were Served&nbsp;Claude Instead, Anthropic Says</h1><p>Anthropic accused seven Chinese AI developers, including Moonshot AI, Alibaba, and DeepSeek, of misusing its Claude models to mislead their customers and improve their own models.</p><p><strong>What’s new:</strong>&nbsp;In a lengthy&nbsp;<a href="https://www.anthropic.com/threat-intelligence-report-september-2026" rel="noopener noreferrer" target="_blank">report</a>, Anthropic alleged that the China-based companies presented Claude’s responses to their customers’ queries as their own models’ responses, and distilled Claude’s responses into their models. The report details several ways in which these companies violated Claude’s terms of services between February and August 2026. The violations included gaining access to Claude through gray markets outside China and using it in scams, espionage, and designing biological or autonomous weapons.</p><p><strong>How it works:</strong>&nbsp;Anthropic’s allegations focus on&nbsp;<a href="https://huggingface.co/blog/Kseniase/kd" rel="noopener noreferrer" target="_blank">distillation</a>, a technique in which a teacher model generates responses to queries that are used to train a student model. Anthropic acknowledges that distillation is a legitimate training method, but the company objects to large-scale efforts to extract Claude’s reasoning capabilities – which it says the companies are doing via fraudulent methods&nbsp;– and recreating it in another model at a fraction of the cost and computation power. Anthropic calls this “illicit” distillation.</p><ul><li>Claude is blocked in mainland China. Anthropic said the companies used&nbsp;<a href="https://www.deeplearning.ai/the-batch/inside-the-gray-market-for-llm-access" rel="noopener">transfer stations</a>&nbsp;to bypass geographic restrictions. Several used false identities to create accounts, entered fake or stolen credit-card numbers, and used stolen API keys, according to Anthropic.</li><li>Alibaba, DeepSeek, Moonshot AI, Xiaomi, and Ziphu (also known as&nbsp;<a href="http://z.ai/" target="_blank" rel="noopener noreferrer">Z.ai</a>) ran distillation campaigns that aimed to extract Claude’s reasoning transcripts via hundreds or thousands of fraudulent accounts, According to Anthropic.</li><li>Between May and June 2026, Alibaba ran the largest distillation effort Anthropic had identified to date, involving 151 million exchanges. Alibaba accessed Claude through 5,000 fraudulent accounts, Anthropic said.</li><li>Zhipu created cybersecurity challenges and used leading U.S. AI models to solve and evaluate them, with the goal of incorporating those capabilities into its own models, Anthropic alleged. Zhipu initially targeted Anthropic’s Fable model, but abandoned the effort after Fable’s stronger cyber safeguards limited the usefulness of the responses, according to the report. Zhipu then switched to Opus 4.6 and another U.S. frontier model specifically because their safeguards appeared to be weaker.</li><li>DeepSeek, Moonshot AI, and others allegedly diverted their own customers’ queries to Claude and presented its output as that of the other models. Anthropic documented several instances in which sensitive information was submitted to Claude in this way. Among the users, Anthropic said, it identified a member of the People’s Liberation Army, an employee of a Chinese state-owned enterprise, and an agent of a Russian defense agency.</li></ul><p><strong>Behind the news:</strong>&nbsp;Distillation has come under scrutiny by leading U.S. AI developers and policymakers, many of whom wish to protect proprietary American technology.</p><ul><li>Anthropic&nbsp;<a href="https://www.anthropic.com/news/detecting-and-preventing-distillation-attacks" rel="noopener noreferrer" target="_blank">accused</a>&nbsp;DeepSeek, Moonshot, and MiniMax of “industrial-scale” distillation efforts earlier this year.</li><li>In April, Michael Kratsios of the White House Office of Science and Technology issued a memo that acknowledged wide-scale distillation as an adversarial threat and said the U.S. would build defensive strategies.</li><li>In July, Kratsios&nbsp;<a href="https://x.com/mkratsios47/status/2079933645888880708" rel="noopener noreferrer" target="_blank">posted</a>&nbsp;on the X social network that Moonshot AI had distilled Anthropic’s Claude Fable in developing its own Kimi K3. He called such large-scale distillation efforts “unacceptable attempts to steal U.S. technology.”&nbsp;</li></ul><p><strong>Why it matters:</strong>&nbsp;The legitimacy of distillation as a way to build models that are intended to compete with the very models being distilled is a subject of debate. But routing customer input to a third party without their knowledge and presenting the output as one’s own could be called fraud. Such practices erode public confidence in AI companies’ commitment to information privacy and security, and they undermine trust in the AI industry as a whole.&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;You can’t distill your way to a frontier model. While distillation can be helpful for training models, the labs that Anthropic is accusing have achieved significant technical breakthroughs, many of them published openly,&nbsp;that were critical to their competitive models. The claims that these companies are distilling U.S. models has created a mistaken impression that their competitive strength stems solely from distillation, when their technical innovations have been&nbsp;a more important factor.&nbsp;</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/0lozM9Pcon_latU35L4lNqJDBeDwBX_pJt0YAb2VC7g/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvUFJPQUNUSVZFLS0xLS53ZWJw" class="kg-image" alt="The diagram illustrates agents exchanging data to enhance decision-making by recalling relevant information." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/-vHOl2vaJA5B1_jObByv1_znhZHov2OILE9WvVtKh6U/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L1BST0FDVElWRS0tMS0ud2VicA 600w, https://imgproxy.citrusreader.com/ggDLnx8VV-KE7vAIkWfzGFDiLp-VDJbFFNG7Eqs_nRw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9QUk9BQ1RJVkUtLTEtLndlYnA 1000w, https://imgproxy.citrusreader.com/0lozM9Pcon_latU35L4lNqJDBeDwBX_pJt0YAb2VC7g/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvUFJPQUNUSVZFLS0xLS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="even-agents-benefit-from-reminders">Even&nbsp;Agents Benefit From&nbsp;Reminders</h1><p>Agents can lose track of what happened earlier as their trajectories grow, either by truncating their contexts or by missing relevant information among irrelevant tokens. A fresh approach pairs an agent that performs actions with a separate agent that decides when to remind it of what it needs to know.</p><p><strong>What’s new:</strong>&nbsp;Yifan Wu and colleagues at Meta AI introduced a&nbsp;<a href="https://arxiv.org/abs/2607.08716" rel="noopener noreferrer" target="_blank">Proactive Memory Agent</a>&nbsp;that runs alongside a typical agent to maintain and selectively highlight information relevant to the current problem. The memory agent increased the action agent’s performance on all benchmarks the authors tested.</p><p><strong>Key insight:</strong>&nbsp;Solving problems that accrue a long context, an agent carries information such as requirements, failed commands, and useful observations in its history — yet that information may not shape its next decision. Highlighting relevant memories can counteract such shortcomings without overwhelming the agent’s attention.</p><p><strong>How it works:</strong>&nbsp;The authors built larger and smaller systems that paired a action agent with a memory agent. The action agents were based on Claude Sonnet 4.5, Claude Opus 4.6, or Qwen3.5-122B-A10B (which presumably is much smaller). The memory agents were based on Claude Opus 4.6 or, in the smaller system — after supervised fine-tuning and reinforcement learning on&nbsp;<a href="https://arxiv.org/abs/2607.10891" rel="noopener noreferrer" target="_blank">SETA</a>&nbsp;command-line problems — Qwen3.5-27B.</p><ul><li>Given a description of a problem and the action agent’s eight most recent outputs or tool calls, the memory agent updated a set of problem-related notes that included facts, environment details such as the current working directory, successful fixes to issues encountered earlier, unfinished parts of the problem, and failed commands (to avoid repeating them).</li><li>At every step, the memory agent added to the action agent’s input either nothing or a short reminder. A reminder could point to a part of the problem the action agent had ignored, a fact of the environment (for instance, available tools), or a command that had failed.</li></ul><p><strong>Results:</strong>&nbsp;In the larger system, the memory model raised the success rates of Claude Sonnet 4.5 and Claude Opus 4.5 on Terminal-Bench 2.0 and τ2-Bench. In the smaller system, it raised the fine-tuned Qwen3.5-27’s performance on Terminal-Bench 2.0.</p><ul><li>On Terminal-Bench 2.0, which contains 85 command-line problems, Claude Sonnet 4.5 reached 45.9 percent success with the larger memory model versus 37.6 percent without it. Similarly, Claude Opus 4.6 reached 45.9 percent with the memory model versus 43.5 percent without it. Qwen3.5-27B achieved 41.1 percent success with the smaller memory model and 37.6 percent without it.</li><li>On τ2-Bench, which contains 278 airline, retail, and telecom problems, Claude Sonnet 4.5 reached 61.8 percent with the memory model versus 55.0 percent without it. Claude Opus 4.6 with the memory model reached 68.7 percent versus 66.2 percent without it. (The authors didn’t test the smaller system on τ2-Bench.</li></ul><p><strong>Why it matters:</strong>&nbsp;Using a separate agent to manage an agent’s context improves its performance decisively on the problems in this study. The memory agent doesn’t touch the model that actually does the work, so you can bolt it onto existing agents without retraining. It also means you can easily experiment with swapping models or agentic frameworks.</p><p><strong>We're thinking:</strong>&nbsp;In a separate result, the authors found that their system outperformed one that reminded the action agent of relevant information at every step. Apparently reminding an agent is not enough. It’s necessary to remind it at the right moments.</p>

2026/9/18
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OpenAI and Anthropic fight it out for the top overall spot, while Google, Meta, and Microsoft all release transcription models

<figure><img src="https://imgproxy.citrusreader.com/7pBsNr4ZaGd7ErcX66UWQplMa2-kAdOf65bFjKRKNAc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRW5naW5lZXJpbmctc2tpbGxzLW1hcC0tLS0tU2hhcGluZy10aGUtQnVpbGQud2VicA" alt="OpenAI and Anthropic fight it out for the top overall spot, while Google, Meta, and Microsoft all release transcription models" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: When you’re skilled at AI Engineering, your best work won’t be merely implementing a product that someone else...</blockquote><p>Dear friends,<br><br>When you’re skilled at AI Engineering, your best work won’t be merely implementing a product that someone else spec’ed out. Instead, you will actively shape the build.</p><p>Before modern AI tools accelerated and expanded what a single developer could do, tech companies established the practice of having product managers (PMs) and designers specify what should be built and then developers build it. Perhaps a project manager additionally drives the timeline. However, these roles are blurring. A developer who is skilled at AI engineering not only builds software but participates in these other roles. (Similarly, product managers and designers are gaining AI Engineering skills and participating in building software.)</p><p>This change is vastly accelerating software development. When you know how to shape the build, you can move faster without waiting for a PM to figure out what to do.</p><p>The key skills for shaping the build are:</p><ul><li>Driving the build loop</li><li>Making product decisions</li><li>Communicating and leading</li><li>High-agency ownership</li></ul><p><strong>Driving the build loop.&nbsp;</strong>Most software is built via a loop in which you write some code, then get some feedback, and decide what to do next. As a skilled AI engineer, you play a key role in driving this loop, repeatedly deciding on the next step to move your project forward. You have a bias for action, and drive this loop at the high velocity that AI has made possible.</p><p>For example, you might decide to build a quick prototype to test a technical concept or user feature, build an MVP (minimum viable product) to take to users to demonstrate value, add features, or invest in an enterprise-grade system. You frequently ship in small batches to keep up velocity. You know when to get feedback from users or other stakeholders, or when to run a technical experiment (such as train a model) to gather information to decide the next step. You make these decisions taking into account the product vision, stage of the project, technical feasibility, key risks, effort, and budget. For more mature projects, you know how to define key metrics and project-manage to drive improvements to those metrics.</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/6UZQqRNGYeBWUY1VBNVFPRc7xCLyk2vGvaA08oAPTTw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRW5naW5lZXJpbmctc2tpbGxzLW1hcC0tLS0tU2hhcGluZy10aGUtQnVpbGQtMS53ZWJw" class="kg-image" alt loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/NyL99TrFyfY3KeC23rTG9-UbFpewXzznuFhzLl8o-lE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0FJLUVuZ2luZWVyaW5nLXNraWxscy1tYXAtLS0tLVNoYXBpbmctdGhlLUJ1aWxkLTEud2VicA 600w, https://imgproxy.citrusreader.com/3ypWIxQaYa7OKj3HUXjXraNPj97ukiwKbhUyRVV87fA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9BSS1FbmdpbmVlcmluZy1za2lsbHMtbWFwLS0tLS1TaGFwaW5nLXRoZS1CdWlsZC0xLndlYnA 1000w, https://imgproxy.citrusreader.com/6UZQqRNGYeBWUY1VBNVFPRc7xCLyk2vGvaA08oAPTTw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRW5naW5lZXJpbmctc2tpbGxzLW1hcC0tLS0tU2hhcGluZy10aGUtQnVpbGQtMS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p><strong>Making product decisions.&nbsp;</strong>Developers don’t have to become PMs, but you will make decisions the product spec doesn’t cover. If you are asked to build without a spec, you know how to develop one.</p><p>You have product sense that enables you to pick a product direction that meets real user needs, without having to wait for a PM to make every decision. You also have at least a basic design sense, and can build things that aren’t just functional but pleasing to use. You also have some basic business sense, so you can think through issues like go-to-market, market size, unit economics, and profit and loss (P&amp;L) and make tradeoffs that are economically sensible. Your ability to make product decisions is rooted in your user empathy. Further, you continually hone this empathy using a wide range of methods, such as quick informal interviews with 2-3 users, surveys of hundreds of users, large-scale A/B tests, or analyzing the behaviors of thousands or millions of users. You use the resulting input to improve your understanding of users.</p><p><strong>Communicating and leading.</strong>&nbsp;Your skills in AI Engineering enable you to participate in a broader scope of work than traditional software development allowed. I’ve written previously about how specialized developers (like frontend developers) are now likely to play a broader full-stack role. AI Engineering skills open the door to expanding your scope even beyond this: You might participate in other functions that affect your project like marketing, finance, legal, and so on. This makes your ability to communicate with these other functions more important than before — you can play a key role moving your project forward by aligning and coordinating among stakeholders. (Communication skills also form an important foundation for speaking with users to hone user empathy.)</p><p>Additionally, because AI technology is rapidly evolving, many people outside of engineering are trying to understand the technology, its impact on their jobs, and the new practices and products it makes possible. Your technical skill in AI Engineering puts you ahead of the game and allows you to play a unique role in shaping these perspectives. For example, you can explain why certain initiatives may be technically feasible or not. This allows you to help lead your broader organization forward.&nbsp;</p><p><strong>High-agency ownership.&nbsp;</strong>AI engineering skills give you vast opportunities to make a difference. However, many people — including some executives — do not yet understand what AI can do and therefore do not know what are good project directions. This creates an opening for someone with technical skill to bridge this gap: You can spot problems, propose solutions, and execute on them — being respectful of the organization’s priorities and constraints, but without waiting for precise top-down direction. This skill requires a high degree of agency, in which you identify opportunities, prioritize what matters, and act on them. Additionally, you know how to own an initiative end-to-end, take accountability for issues that arise, act in the face of ambiguity, persist through setbacks, and measure your work not just by task completion, but according to the value you create.</p><p>Finally, you invest in improving your skills. You track the technology frontier, pick up new tools, tune your workflows, and keep on learning — so you become better over time.</p><p>The opportunity to not just build but to shape the build makes AI Engineering more exciting than traditional software development. You are more empowered, have broader scope, and make more decisions. But doing all this well requires a larger set of skills. DeepLearning.AI’s focus is to help you, if you wish, become skilled at AI Engineering.</p><p>I look forward to the road ahead!</p><p>Andrew&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/5Rctyk7zNgx39aalqTnc1bFWlVh0CTpCfOmY6squPkc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRGV2LS0tVGhlLUJhdGNoLS0xLS53ZWJw" class="kg-image" alt="AI Dev New York City 2026 Early Bird Tickets Now Available. Andrew Ng's AI Developer Conference returns this November" loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/9x3SCoTH_ZWbuFQXBNw-c_6zRmcc2b1xv7QbN82OWQw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0FJLURldi0tLVRoZS1CYXRjaC0tMS0ud2VicA 600w, https://imgproxy.citrusreader.com/AxjQtMifEmbWIz9WX4Z-tZ1UxB3-2KQvQbDlhx69fD0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9BSS1EZXYtLS1UaGUtQmF0Y2gtLTEtLndlYnA 1000w, https://imgproxy.citrusreader.com/5Rctyk7zNgx39aalqTnc1bFWlVh0CTpCfOmY6squPkc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRGV2LS0tVGhlLUJhdGNoLS0xLS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p>AI Dev brings together developers who build with AI every day. You'll hear from engineers at the companies shipping agents, models, and infrastructure, then meet them in person on the demo floor. Join us in New York City on November 30 and December 1.&nbsp;<a href="https://ai-dev.deeplearning.ai/?utm_id=nyc&amp;utm_content=earlybird">Get early bird tickets</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/iY28Con3A5PQkybo2vkPfwGQ5xc55q11mCHqqcqy4js/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQVNUUkEud2VicA" class="kg-image" alt="A graph shows GPT-6 Astra's accuracy over cost, with stars marking its top performance at lower API costs." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/3phCo4BuCDyxpb2EANR5jeG_unFqUYDPOLwYzTxk42c/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0FTVFJBLndlYnA 600w, https://imgproxy.citrusreader.com/5sbYmXN8EOjFhf0D8lT1u1uAtipmLi_P7VmzfK4n3wk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9BU1RSQS53ZWJw 1000w, https://imgproxy.citrusreader.com/iY28Con3A5PQkybo2vkPfwGQ5xc55q11mCHqqcqy4js/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQVNUUkEud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="gpt-6-astra-is-a-star">GPT-6 Astra Is a&nbsp;Star</h1><p>OpenAI’s new model tops or comes close to topping AI leaderboards, and it does so using a fraction of the tokens and at a fraction of the cost of the few models that outperform it.</p><p><strong>What’s new</strong>: OpenAI&nbsp;<a href="https://openai.com/index/gpt-6-astra/" rel="noopener noreferrer" target="_blank">launched</a>&nbsp;GPT-6 Astra, its flagship vision-language model. OpenAI says it’s the first model that meets the “critical” cybersecurity level of its Preparedness Framework, a scale of model risk. The company limits the model’s most advanced cyber abilities to selected&nbsp;organizations.</p><ul><li><strong>Input/output</strong>: Text and images in (up to 1,050,000 tokens), text out (up to 128,000 tokens, 71.3 tokens per second)</li><li><strong>Knowledge cutoff</strong>: April 30, 2026</li><li><strong>Features</strong>: Five reasoning levels (low, medium, high, xhigh, and max); tool use including computer use, shell, code interpreter, and web and file search; asynchronous tool calls that let the model keep reasoning while an application runs a tool; mid-turn steering; reasoning level adjustable mid-conversation without invalidating cache; compaction (summarizing earlier turns to free context); retained reasoning between calls; in Codex, the model can write notes to itself and can search earlier context, instead of compacting (experimental); fast mode</li><li><strong>Performance</strong>: First on ARC-AGI-3 and Arena AI’s WebDev leaderboard, second on Artificial Analysis’ Intelligence Index v4.2 (55), tied for first on Intelligence Index v4.3 (53), third on Vals AI’s Vals Index</li><li><strong>Availability/price</strong>: GPT-6 Astra for ChatGPT Plus, Pro, Business, and Enterprise, API $10/$1/$12.50/$50 per million input/cached input/cache write/output tokens, requests greater than 272,000 input tokens cost 2 times input and cache rates and 1.5 times output rates, batch and flex cost half the standard price, fast mode costs twice the standard price</li><li><strong>Weights/license:</strong>&nbsp;Proprietary</li><li><strong>Undisclosed</strong>: Parameter count, architecture, training data and methods</li></ul><p><strong>How it works</strong>: OpenAI disclosed little about GPT-6 Astra’s architecture, parameter count, or training. The company did share some details about training scale, safety features, and model inference.</p><ul><li>According to OpenAI’s vice president of research Aidan Clark, the team trained Astra on more than 100,000 GPUs, its largest run yet, and the first in which earlier OpenAI models played a key role in supervising training.</li><li>OpenAI trained the model on examples of its&nbsp;<a href="https://model-spec.openai.com/2026-08-18.html" rel="noopener noreferrer" target="_blank">Model Spec</a>&nbsp;applied to real-world situations and the company’s alignment preferences. OpenAI says it incorporated alignment into pretraining data selection&nbsp;and grading during reinforcement learning. It also trained the model to recognize attacks generated by&nbsp;<a href="https://arxiv.org/abs/2607.26115" rel="noopener noreferrer" target="_blank">GPT-Red</a>, its automated red-teaming agent, to resist jailbreaks and prompt injections, instructions hidden in inputs that try to make the model violate its intended behavior.</li><li>In Codex, Astra can record detailed notes that persist as a conversation nears its context limit, instead of compacting a long session into a single summary, making more&nbsp;information&nbsp;searchable. The feature is experimental and off by default. When accessed via&nbsp;the API, the model can pass its hidden reasoning from one call to the next and compact long conversations, two settings behind OpenAI’s ARC-AGI-3 result.</li><li>Classifiers review the model’s reasoning and actions on every call that uses tools and can interrupt work they deem unauthorized. When using ChatGPT or Codex, a flagged task pauses for the user’s approval before it can continue; when accessed via the API, the request ends and cannot be resumed. The checks run alongside the model rather than ahead of it, and OpenAI warns users that an action may finish before it is flagged. The launched model also refuses to write proof-of-concept exploits, working code that demonstrates software vulnerabilities. OpenAI says more permissive safeguards will be permitted for defenders selected to&nbsp;participate in&nbsp;the company’s Daybreak program.</li></ul><p><strong>Performance</strong>: Independent evaluations put GPT-6 Astra at or near the top of many tests, but at a lower cost and time per task than the few models that beat it. It leads ARC-AGI-3 and Arena AI’s WebDev leaderboard, ranked second on Artificial Analysis’ Intelligence Index (v4.2) behind Claude Fable 5.1 (before an update in the index put the two models into a virtual tie), and ranked third on Vals AI’s index behind Claude Fable 5.1 and Claude Opus 5.</p><ul><li>On ARC-AGI-3, interactive puzzle environments in which an agent must discover each game’s rules and goals by exploring, GPT-6 Astra set to max reasoning&nbsp;<a href="https://arcprize.org/blog/astra" rel="noopener noreferrer" target="_blank">solved</a>&nbsp;62.7 percent of the semi-private test set at a cost of $26,098 under ARC Prize’s standard harness, up from the previous best of 30.2 percent by Claude Opus 5 set to high reasoning. Under ARC Prize’s Provider Adapter harness, which calls OpenAI’s API with the model’s hidden reasoning preserved from one request to the next and long histories compacted, GPT-6 Astra set to high reasoning aced the test (99.9 percent, $18,817). GPT-6 Astra used fewer actions than the median human tester on 96 percent of levels and 57.3 percent fewer actions per level.</li><li>On Artificial Analysis’ Intelligence Index v4.2, a composite of 10 evaluations of math, science, coding, and reasoning, GPT-6 Astra set to max reasoning (55, $2.57, and 5.2 minutes per task) ranks second, ahead of Claude Opus 5 set to max reasoning (54) and GPT-5.6 Sol set to max reasoning (51, $1.25, and 5 minutes per task), but trailing Claude Fable 5.1 set to max reasoning with fallback (57, $6.12, and 9.9 minutes per task). The evaluator found that GPT-6 Astra, set to various reasoning levels, leads four individual evaluations: GDP.pdf (33.2 percent), a test with answers whose evidence is scattered through long PDFs; AA-Omniscience (44), which scores factual recall while penalizing confident wrong answers; GPQA Diamond (96.3 percent), PhD-level science questions; and MMMU-Pro (87 percent), college-level questions that require reading charts and diagrams. On the newly-released v4.3 update, GPT-6 Astra tied Claude Fable 5.1 with fallback for first (53), helped by two swapped component tests: Terminal-Bench updated&nbsp;to v4.0 and AutomationBench-AA replaced 𝜏³-Banking.</li><li>On the Vals Index, economic sector-related benchmarks weighted by each benchmark field’s share of the U.S. GDP, GPT-6 Astra set to max reasoning (66.61 percent, $19.09 and 25 minutes per task) outperformed Claude Fable 5 set to max reasoning with fallback (66.04 percent, $28.73 and 38 minutes per task) but trailed Claude Fable 5.1 set to max reasoning with fallback (68.83 percent, $28.92 and 76 minutes per task) and Claude Opus 5 set to max reasoning (67.21 percent, $18.81 and 56 minutes per task). Among Vals AI’s component tests, GPT-6 Astra set to max reasoning leads Code Migration (67.74 percent), rewriting software in another programming language; BioMysteryBench (79.26 percent), open-ended analysis of biological datasets with standard bioinformatics tools; and Terminal-Bench 2.1 (87.27 percent), multistep tasks carried out in a command line.</li><li>OpenAI’s own tests show large gains in computer use. On Agents’ Last Exam, professional tasks performed in real software, GPT-6 Astra achieved 59.3 percent, higher than Claude Opus 5 (55.5 percent) and GPT-5.6 Sol (53.6 percent), while using roughly 65 percent fewer tokens than Claude Opus 5. On an offline subset of OSWorld 2.0, in which an agent operates a desktop, GPT-6 Astra achieved 72.6 percent at roughly 40 minutes per task in latency simulations, higher and faster than GPT-5.6 Sol (65.7 percent, 75 minutes).</li></ul><p><strong>Behind the news:</strong>&nbsp;GPT-6 Astra is the second frontier model this summer to reach users behind safeguards built for its cybersecurity abilities. Anthropic set the template in June, giving&nbsp;<a href="https://www.deeplearning.ai/the-batch/behold-mythos" rel="noopener">Claude Mythos 5</a>&nbsp;to selected partners and giving everyone else Claude Fable 5. The U.S. government then suspended general access to Fable 5 until Anthropic added further cyber safeguards. OpenAI subsequently delayed releases of GPT-5.6 models so they could be tested by the U.S. government. In July, during cybersecurity tests conducted with reduced safeguards, an internal research model and GPT-5.6 Sol agents escaped their test environments and&nbsp;<a href="https://openai.com/index/hugging-face-incident-and-the-road-ahead/" rel="noopener noreferrer" target="_blank">compromised</a>&nbsp;Hugging Face’s servers. OpenAI&nbsp;<a href="https://openai.com/index/responding-next-frontier-critical-cyber-capabilities/" rel="noopener noreferrer" target="_blank">says</a>&nbsp;Astra was not involved. The company&nbsp;<a href="https://openai.com/index/path-to-astra/" rel="noopener noreferrer" target="_blank">paused</a>&nbsp;frontier reinforcement learning for two weeks, then designated Astra “critical” on September 1. Competitors shipped while OpenAI hardened. The same day, Anthropic released Claude Fable 5.1 at the same price per million tokens that OpenAI charges for Astra.</p><p><strong>Why it matters</strong>: Per-token prices alone have long been a poor guide to what a model costs to run, and GPT-6 Astra shows that reasoning level is becoming one too. Its per-token price is 2.5 times GPT-5.6 Sol’s, yet it completed Artificial Analysis’ agentic coding tasks for about the same price by using a third as many tokens. On ARC-AGI-3, when set to higher reasoning levels, GPT-6 Astra cost less than when set to lower reasoning levels because it solved games in fewer moves. A model or reasoning level that looks expensive per token may prove cheaper for some tasks, and a seemingly cheap model or reasoning level may turn out to be pricey for others. Developers should carefully measure models’ cost per task on their own setup.</p><p><strong>We’re thinking:&nbsp;</strong>ARC Prize built ARC-AGI-3 around action efficiency (the number of moves an agent needs to learn a new game) because it assumed the performance gap between people and models would hold. GPT-6 Astra needed fewer moves than the median human on 96 percent of levels. ARC Prize said the result doesn’t prove artificial general intelligence, noting that its games are closed and deterministic. We agree with both points. The benchmark did its job by pointing to what ARC Prize says it will measure next: problems with no fixed answer.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/Xg3H8rIxaE0WHfz3_DU7ryPqKQan2gn9Vg79QPkCtpQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvRkFCTEU1LjEud2VicA" class="kg-image" alt="Graph trends show steady ECI increase from 120 to 170, highlighting models like Opus and Mythos enhancing capability." loading="lazy" width="1200" height="674" srcset="https://imgproxy.citrusreader.com/DsQjzWtvJwxObnwW4QJaAlfCSlELY0zBCf92URhmbW8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0ZBQkxFNS4xLndlYnA 600w, https://imgproxy.citrusreader.com/9W1n-GCd-8N3On-FNinbrUWcTrWtU9E4dBs7EO3znFo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9GQUJMRTUuMS53ZWJw 1000w, https://imgproxy.citrusreader.com/Xg3H8rIxaE0WHfz3_DU7ryPqKQan2gn9Vg79QPkCtpQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvRkFCTEU1LjEud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="fable-holds-the-top-spot-for-now">Fable Holds The Top Spot (For Now)</h1><p>While last week’s OpenAI launch may have made a bigger splash, Anthropic’s new model remains an agentic workhorse, with top marks on independent evaluations from Artificial Analysis and Vals AI.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;Anthropic&nbsp;<a href="https://www.anthropic.com/claude-fable-and-mythos-5-1" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;Claude Fable 5.1 and Claude Mythos 5.1. Fable and Mythos are two titles for the same model, differing only in safeguards and fallbacks. Anyone can use Claude Fable 5.1, but only cybersecurity or life sciences organizations in the United States selected by Anthropic can use Claude Mythos 5.1.</p><ul><li><strong>Input/output:</strong>&nbsp;Text and images in (up to 1 million tokens), text out (up to 128,000 tokens, 69 tokens per second)</li><li><strong>Knowledge cutoff:</strong>&nbsp;June 2026</li><li><strong>Features:&nbsp;</strong>Reasoning always on, five levels (low, medium, high, xhigh, and max,&nbsp;defaults to high), reasoning levels can change mid-conversation without invalidating cache (beta), tool use with optional readable progress updates (beta), prompt caching, per-turn system messages (beta), statistical watermarking of generated text, optional fallback to Claude Opus 4.8 or Claude Opus 5 for prompts that trigger bio or cyber classifiers</li><li><strong>Performance:</strong>&nbsp;Claude Fable 5.1 with fallback ties for first on Artificial Analysis’ recently updated Intelligence Index v4.3 (53) and leads Vals AI’s Vals Index (68.83 percent)</li><li><strong>Availability/price:</strong>&nbsp;Via Claude.ai and Claude API, and external providers such as Amazon Web Services, Google Cloud, and Microsoft Azure; Claude Mythos 5.1 only via Project Glasswing, both models via API at $10/$0.25/$50 per million input/cached/output tokens, cache writes $12.50/$20 per million tokens, batch processing $5/$25 per million input/output tokens; both models require 30-day data retention, and Zero Data Retention is only available with Anthropic’s authorization.</li><li><strong>Weights/license:</strong>&nbsp;Proprietary</li><li><strong>Undisclosed:</strong>&nbsp;Parameter count, architecture, specific training data and methods</li></ul><p><strong>How it works:</strong>&nbsp;Anthropic disclosed little about how it built the model beyond its training data, reasoning controls, and safeguards.</p><ul><li>Anthropic trained the model on private and public datasets, including data from public websites gathered with their ClaudeBot web crawler and synthetic data generated by other models. The company then fine-tuned the model to align with values it defined using a&nbsp;<a href="https://www.anthropic.com/constitution" rel="noopener noreferrer" target="_blank">constitution</a>.</li><li>Claude Fable 5.1 can read earlier Claude models’ reasoning, but earlier models can’t read its reasoning, and, for accounts created on or after August 31, editing an earlier conversation turn invalidates it. Anthropic says this change removes a documented way to extract a model's reasoning.</li><li>A probe reads the model’s activations — rather than its text output — and routes anything cybersecurity-related to a large language model classifier trained to judge whether to block the exchange. Anthropic&nbsp;<a href="https://www.anthropic.com/research/next-generation-constitutional-classifiers" rel="noopener noreferrer" target="_blank">says</a>&nbsp;the probes and classifier complement one another, each seeing what the other misses.</li><li>Anthropic says that unlike Claude Fable 5, Claude Fable 5.1 is permitted to complete purely defensive cybersecurity work such as finding vulnerabilities in human-readable source code, but not in compiled binaries. It still falls back to Opus 4.8 or Opus 5 on what Anthropic deems to be&nbsp;dangerous tasks such as penetration testing, exploit writing, and scanning compiled binaries for vulnerabilities.</li></ul><p><strong>Performance:&nbsp;</strong>One independent evaluator ranked Claude Fable 5.1 and GPT-6 Astra as tied for first. Another evaluator placed Claude Fable 5.1 just above GPT-6 Astra. It leads in long-running work that uses tools, but it trails GPT-6 Astra on overall knowledge, computer use, and multistep tasks in terminal. Claude Fable 5.1 maintains a slight edge, but costs more money and time per task.</p><ul><li>On Artificial Analysis’ Intelligence Index v4.3, a composite of 10&nbsp;evaluations of math, science, coding, and reasoning, Claude Fable 5.1 set to max reasoning with fallback (53, $7.63 and 12.2 minutes per task) tied for the highest score with GPT-6 Astra set to max reasoning (53, $3.26 and 8.2 minutes per task). It outperformedClaude Opus 5 at max reasoning (51, $5.86 and 13.9 minutes per task). Requests routed to Claude Opus 4.8 or Claude Opus 5 produced about 4 percent of the output tokens the evaluator measured.</li><li>Claude Fable 5.1 set to max reasoning with fallback leads two of Artificial Analysis’ Intelligence Index’s hardest components: AA-Briefcase (1662 Elo, $22.71 and 70.2 minutes per task), which grades multi-week knowledge work projects, each with many tasks and thousands of source files; GDPval-AA v2 (1,764 Elo, $9.77 and 60 turns per task), an adaptation of OpenAI’s test of economically useful tasks across 44 occupations. It also leads SciCode (63.1 percent), which tests&nbsp;models’ ability to write Python for scientific computing problems, and Humanity's Last Exam (59.1 percent), expert-written questions spanning mathematics, humanities, and natural sciences.</li><li>On the Vals Index, Vals AI’s composite spanning coding, law, medicine, tax, finance, and scientific reasoning, Claude Fable 5.1 set to max reasoning with fallback (68.83 percent, $28.92 and 76 minutes per task) ranks first, ahead of Claude Opus 5 set to max reasoning (67.21 percent, $18.81 and 56 minutes per task) and GPT-6 Astra set to max reasoning (66.61 percent, $19.09 and 25 minutes per task).</li></ul><p><strong>Yes, but:</strong>&nbsp;Anthropic’s published cybersecurity evaluations all belong to Claude Mythos 5.1 with safeguards off, a configuration most users cannot access. Anthropic says that configuration has the strongest cyber capability of any model it has released and that it sits in the lower of its Frontier Compliance Framework’s&nbsp;two risk tiers but close to the higher tier, reserved for models that can complete novel, autonomous attacks.</p><p><strong>Behind the news:&nbsp;</strong>Independent benchmarks have presented a moving target this week. Claude Fable 5.1 arrived on September 1. OpenAI’s GPT-6 Astra arrived two days later, initially scoring two points less than Claude Fable 5.1 on Artificial Analysis’ Intelligence Index. Then the scoreboard flickered and resumed with new numbers. On September 4, Artificial Analysis shipped Intelligence Index v4.2, retiring GPQA-Diamond because models had saturated it, adding two harder tests, and doubling the share of the index scored on private tests to 40 percent, which it says reduces labs' ability to game evaluations. The organization called this an expedited interim update because the frontier was moving too fast to wait for its completed v5 Index. On September 7, Artificial Analysis upgraded their index again, upgrading Terminal-Bench to v4 and adding AutomationBench-AA. After these changes,&nbsp;Claude Fable 5.1 and GPT-6 Astra tied for first.</p><p><strong>Why it matters:</strong>&nbsp;Anthropic named three issues that Claude Fable 5.1 was built to fix: high cost per task, data retention policies that disappointed enterprise customers, and overly restrictive safeguards. Independent testing supports just one of these unresolved issues to be fixed. Cost per task rose about 20 percent over Claude Fable 5 even after a 75 percent cut to the price of cached input. The 30-day data retention rule still applies to everyone except eligible enterprise customers, who can use zero data retention now and move to Enterprise Frontier Safeguards, which store customer data on their own infrastructure rather than Anthropic’s, later this fall. Only the safeguards are loosened, but not completely. According to Anthropic, developers should expect roughly 60 percent fewer cyber interventions per session in Claude Code.</p><p><strong>We're thinking:&nbsp;</strong>A top score on a benchmark has an ever-shrinking shelf life, not only because new models arrive every week, but also because the evaluation that crowns a model this month may not exist by the next month — or even the next week!</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/WbQx8k86YxPd8ESjxuS8PIGpxsunnhOVeqCyZj9klys/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVFJBTlNDUklCRS0xLndlYnA" class="kg-image" alt="Bar graph showing word error rates of 31 transcription models with Muse Voice at the lowest error rate." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/fYuF_fieP2hoJ4F_NHZ8Ttzkd-5voIIflDqkYbz6Kgc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L1RSQU5TQ1JJQkUtMS53ZWJw 600w, https://imgproxy.citrusreader.com/eriVCIfeBUzktEXG3OlwdKp7HOfdPqF8VooiV_rtSzQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9UUkFOU0NSSUJFLTEud2VicA 1000w, https://imgproxy.citrusreader.com/WbQx8k86YxPd8ESjxuS8PIGpxsunnhOVeqCyZj9klys/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVFJBTlNDUklCRS0xLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="transcription-battles-heat-up">Transcription Battles Heat Up</h1><p>Speech recognition, a core but sometimes overlooked AI technology in the age of generative models, is having a moment. Google, Meta, and Microsoft each recently unveiled speech-to-text models, adding to an increasingly-competitive menu of transcription options.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;Google’s Gemini 3.5 Transcribe,&nbsp;<a href="https://blog.google/innovation-and-ai/models-and-research/gemini-models/gemini-3-5-transcribe/" rel="noopener noreferrer" target="_blank">released</a>&nbsp;on August 26, aims to turn speech into a clean transcript that can be used in broader AI workflows. Meta's Muse Voice Transcribe&nbsp;<a href="https://research.meta.ai/blog/introducing-muse-voice-transcribe" rel="noopener noreferrer" target="_blank">launched</a>&nbsp;on September 1 and is designed as a real-time listening layer that can transcribe speech, distinguish among speakers, and detect when users begin and finish speaking. Microsoft claims that MAI-Transcribe-2,&nbsp;<a href="https://microsoft.ai/news/mai-transcribe-2-is-the-fastest-most-accurate-and-cheapest-speech-recognition-model-in-the-world/" rel="noopener noreferrer" target="_blank">released</a>&nbsp;September 3, is&nbsp;faster and more accurate than any other model on the market.</p><ul><li><strong>Performance</strong>: On the Artificial Analysis Word Error Rate speech-to-text benchmark, all three models had an error rate less than 4 percent, ranking among the top models on benchmarks for streaming and non-streaming&nbsp;uses. Muse Voice Transcribe has the lowest word error rate among streaming models, and MAI-Transcribe-2 has the lowest among non-streaming models.</li><li><strong>Price:</strong>&nbsp;Google bills Gemini 3.5 Transcribe on a per-token basis for audio input and text output, averaging roughly $0.005 per minute (~$0.30/hour) for pre-recorded files and $0.009 per minute (~$0.54/hour) for real-time streaming. Muse Voice Transcribe is $0.18 per hour of audio processed or $3 per 1,000 minutes. MAI-Transcribe-2 is priced at $0.10 per hour of audio through the end of the year.</li><li><strong>Availability:</strong>&nbsp;Gemini 3.5 Transcribe is available through the Gemini API. Muse is available through the Meta Model API, Meta AI for Mac, and Muse Code, and MAI-Transcribe-2 is available in&nbsp;<a href="https://ai.azure.com/catalog/models/MAI-Transcribe-2" rel="noopener noreferrer" target="_blank">public preview</a>&nbsp;through Azure Speech.</li><li><strong>Capabilities:</strong>&nbsp;All three models can distinguish different speakers, also known as diarization. Google’s model transcribes over 85 languages, removes filler words, gives word-level time stamps, and can detect up to 8 different speakers. Muse Voice Transcribe supports more than an hour of audio and can distinguish between over 20 speakers. The model trained on over 70 languages, and over 25 languages have been “extensively verified.” Microsoft’s MAI-Transcribe-2 can transcribe over 60 languages. Microsoft states that an hour of audio can be transcribed in 10 seconds, which is five times faster than Google’s model.</li><li><strong>Undisclosed:</strong>&nbsp;Model architecture, training data, technical papers</li></ul><p><strong>How it works:</strong>&nbsp;None of the companies disclosed much information about how their models were built, or how they differ from their predecessors in any terms other than performance.</p><ul><li>Meta revealed that Muse Voice Transcribe is trained to identify context before transcribing a word. The model breaks audio into 80-millisecond chunks — 12.5 per second — each of which is transformed into a single soft token. At each chunk, Muse either emits a text token or predicts a special “next audio” token, allowing it to keep listening to the next chunk. This means the model can gather more audio context when needed before generating text while transcribing easier portions more quickly. Meta calls this process “adaptive delay.” Meta trained Muse Voice Transcribe to learn the tradeoff between accuracy and speed: it is rewarded for transcribing words correctly, but penalized for taking too long to do so.</li></ul><p><strong>Performance:&nbsp;</strong>Google’s model reported a 4 percent error rate for streaming and 2.6 percent error rate for non-streaming use cases (lower is better). Meta reported a 3.1 percent error rate for streaming. Microsoft’s model was not ranked for streaming, and obtained a 2 percent error rate for non-streaming. It also obtained a 5.2 percent word error rate on the&nbsp;multilingual benchmark&nbsp;FLEURS, making it the top-ranked model for this assessment.</p><p><strong>Behind the news:</strong>&nbsp;The releases are part of a broader push this year to make speech-to-text faster and more capable, with new real-time models from&nbsp;<a href="https://openai.com/index/advancing-voice-intelligence-with-new-models-in-the-api/" rel="noopener noreferrer" target="_blank">OpenAI</a>,&nbsp;<a href="https://x.ai/news/grok-stt-and-tts-apis" rel="noopener noreferrer" target="_blank">xAI</a>&nbsp;and&nbsp;<a href="https://blogs.nvidia.com/blog/open-models-data-tools-accelerate-ai/" rel="noopener noreferrer" target="_blank">NVIDIA</a>&nbsp;competing alongside Meta, Google, and Microsoft.</p><p><strong>Why it matters:</strong>&nbsp;Speech recognition is a critical component for AI voice agents and&nbsp;<a href="https://www.deeplearning.ai/the-batch/openai-challenges-speech-to-speech-leaders" rel="noopener">voice in, voice out</a>&nbsp;systems. It’s also a particularly unforgiving modality, where any error is judged harshly in real-time and can propagate more errors downstream. Speech recognition is also ruthless when considering costs, since trained human agents can still staff many positions competitively. As companies race to build agents that can talk with people in real time, they are competing to improve transcription accuracy, reduce latency, and make systems more robust to the messy conditions of real-world speech, while keeping their costs low. Rich rewards accrue to the winners; the existing voice agent industry is huge, and nearly any application can benefit from adding voice input.</p><p><strong>We’re thinking:</strong>&nbsp;We remain excited about voice applications. As we’ve&nbsp;<a href="https://www.deeplearning.ai/the-batch/what-ive-learned-building-voice-applications" rel="noopener">written before</a>, speech-to-text, an LLM, and text-to-speech frequently work together as a pipeline for voice applications. The system transcribes what a user says, processes it, and generates a spoken response. Faster and more accurate text-to-speech makes that final interaction more natural and responsive. Every improvement here brings us closer to voice interfaces that feel less like dictating to a machine and more like having a conversation — the holy grail for automated speech recognition.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/CKsQKdnA6GnxilLmtFYTROQhch3vz0c6AFJCC8fPeWg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQ09NUEFDVElORy53ZWJw" class="kg-image" alt="Flowcharts illustrate baseline, fixed-interval, and SelfCompact strategies for context management in models." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/I4ThEwjOVVPph7BnKvffOVlVlJqLLHOlFF8HI8BrRds/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0NPTVBBQ1RJTkcud2VicA 600w, https://imgproxy.citrusreader.com/vgGOQU7pv4LUIuvzWrchH41ThQcogKWRe4tmUDLsWCc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9DT01QQUNUSU5HLndlYnA 1000w, https://imgproxy.citrusreader.com/CKsQKdnA6GnxilLmtFYTROQhch3vz0c6AFJCC8fPeWg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQ09NUEFDVElORy53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="a-tool-for-better-context-management">A Tool&nbsp;for Better Context Management</h1><p>Models that make room in their context windows by discarding the oldest context can lose crucial information. Researchers developed a method that enables an agent to compact the context at meaningful stopping points.&nbsp;</p><p><strong>What's new:</strong>&nbsp;Tianjian Li and colleagues at Johns Hopkins University and Apple developed&nbsp;<a href="http://arxiv.org/abs/2606.23525" rel="noopener noreferrer" target="_blank">SelfCompact</a>, a agentic scaffold&nbsp;that provides a compaction tool a model can invoke and a rubric for its invocation. The approach requires no fine-tuning or external supervision.</p><p><strong>Key insight:</strong>&nbsp;In an agentic system, the right time to compact a model’s context depends as much on what the agent is doing as the number of tokens that have accumulated in the model’s context window. A well timed compaction can discard obsolete reasoning, while a poorly timed one can discard partial results the model still needs. A tool with instructions bridges this gap.</p><p><strong>How it works:</strong>&nbsp;SelfCompact adds to an agent’s toolkit a probe that evaluates the system’s traces periodically and a summarization tool. If the probe allows compacting, it invokes the tool to summarize the context. The same model that generates the traces writes the summary. (The authors experimented with Alibaba’s Qwen family.)</p><ul><li>Every 16,000 tokens, the probe appended to the model’s context a prompt that specified when to allow compacting and when to block it and asked the model to judge its own state. It checked whether a sub-task had been completed or the agent was making clear progress toward a definite outcome. If so, the probe allowed compacting. If instead the model was in the middle of a step or stuck, it blocked compacting.</li><li>When compaction occurred, the summarizer condensed the traces (typically 50,000 to 100,000 tokens) into a short summary (roughly 1,000 to 3,000 tokens), and generation resumed based on the summary.</li></ul><p><strong>Results:</strong>&nbsp;SelfCompact achieved higher accuracy than fixed-interval summarization (invoked when a model filled 30 percent of its context window) and no compaction (a dead stop when a model hit the limit) across six benchmarks.</p><ul><li>On IMO-Answerbench&nbsp;(competition mathematics problems), Qwen3-30B-A3B with SelfCompact achieved 52.1 percent accuracy. Fixed-interval summarization achieved 48.7 percent, and no compaction achieved 45.2 percent.</li><li>On BrowseComp-Plus&nbsp;(questions that require retrieving information from databases), GLM-4.7-Flash with SelfCompact achieved 54.1 percent accuracy. Fixed-interval summarization achieved 50.0 percent, and no compaction achieved 45.6 percent.</li><li>Replacing the rubric with a simpler prompt that simply asked the model whether it wanted to compact the context reduced SelfCompact performance to the level of fixed-interval summarization. This shows that the rubric, not compaction alone, drove the gains.</li></ul><p><strong>Why it matters:</strong>&nbsp;Most research on adaptive compaction trains models to decide when to compact their contexts via reinforcement learning or supervised fine-tuning. SelfCompact made these decisions effectively without any parameter updates.&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;The rubric approach introduces a new&nbsp;<a href="https://www.deeplearning.ai/the-batch/how-agents-can-improve-llm-performance" rel="noopener">agentic design pattern</a>: exposing a tool and giving the model explicit criteria for using it.</p>

2026/9/11
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Inside Key Changes in Data Policies, Ox Alpha Revealed, Taking Custom Models Beyond Fine-Tuning

<figure><img src="https://imgproxy.citrusreader.com/GhE4Enr-WMKLtz-ORCf525ke9AUauBhXy4YnZzjfL50/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTW9kZWxzUnVubmluZy10by1DYW1lcmE1XzEyMDBweC5qcGc" alt="Inside Key Changes in Data Policies, Ox Alpha Revealed, Taking Custom Models Beyond Fine-Tuning" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: A key AI engineering skill is using coding agents.</blockquote><p>Dear friends,</p><p>A key AI engineering skill is using coding agents. Your skill at steering them both to write code and to carry out non-code tasks, such as analyzing data or managing system operations, allows you to get a lot more done.</p><p>The rapid pace of evolution for coding agents means this skill, too, is evolving rapidly — faster than other top-level AI engineering skills. Proprietary agents (like Claude Code, Codex, and Cursor) and open agents (like OpenCode and Pi) progress in strides via both harness and model improvements. So keeping up with how to use coding agents requires a continuous process of experimentation, building, and learning.</p><p>In interviewing dozens of top AI Engineers and reflecting on our own team’s use of coding agents, we found a consistent high-level workflow for building software with them. The key steps are:</p><ul><li><strong>Planning</strong>. This includes (i) brainstorming, which may include research, experimentation, and understanding the existing codebase (if any) and (ii) writing a spec that captures requirements, technical design, and architecture, followed by generating an execution plan. You might also review the plan to interrogate key assumptions and check for security, overengineering, and other gaps.</li><li><strong>Execution</strong>, where you build, test, and verify, with the right balance between agent autonomy and human oversight. This involves (i) having the agent build the software, with a calibrated level of agent autonomy and (ii) verifying its output via automated and/or human checks.</li><li><strong>Deployment and monitoring</strong>, in which you (i) deploy, perhaps gated with a CI/CD pipeline or additional human gates, and (ii) use agents to watch logs, surface issues, and propose and execute improvements.</li></ul><p>This high-level workflow is similar to the one typically used to build software before coding agents. Now, we focus much less on code and instead focus on deciding what to build, designing the architecture, writing the spec, and verifying outputs.</p><p>The duration of each step can vary significantly between projects, and steps can be omitted. For example, the spec for a greenfield (meaning built-from-scratch) prototype might be loosely described in a quickly written prompt, whereas the spec for a brownfield (pre-existing) project with many users might require much more effort to write and verify. Further, the workflow is highly iterative, and skilled developers know when feedback from a later step should lead them back to an earlier one. For example, if verification fails, they know how to steer the agent to rebuild and fix errors; or if monitoring surfaces issues, how to have agents update the system and redeploy.</p><p>To use coding agents effectively in this workflow, the key skills are:</p><ul><li>Directing the workflow</li><li>Enabling agent autonomy</li><li>Reviewing the work</li><li>Customizing the agent and its environment</li><li>Coding agent foundations</li></ul><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://imgproxy.citrusreader.com/qBwhvSuBaVRwW8yW-sDBA-hZWUJEWQOnk9z2BGO87eE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRW5naW5lZXJpbmctc2tpbGxzLW1hcC0tLS0tVXNpbmctQ29kaW5nLUFnZW50cy0xLndlYnA" class="kg-image" alt loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/XYRUjwEMoej0apyHOs-P7Vrvo1jjnMW3ytkPs-izS_U/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0FJLUVuZ2luZWVyaW5nLXNraWxscy1tYXAtLS0tLVVzaW5nLUNvZGluZy1BZ2VudHMtMS53ZWJw 600w, https://imgproxy.citrusreader.com/5gj_jp73crvjU9dlESysp83hq-vIJM_503OiZNS1Hgk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9BSS1FbmdpbmVlcmluZy1za2lsbHMtbWFwLS0tLS1Vc2luZy1Db2RpbmctQWdlbnRzLTEud2VicA 1000w, https://imgproxy.citrusreader.com/qBwhvSuBaVRwW8yW-sDBA-hZWUJEWQOnk9z2BGO87eE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvQUktRW5naW5lZXJpbmctc2tpbGxzLW1hcC0tLS0tVXNpbmctQ29kaW5nLUFnZW50cy0xLndlYnA 1200w" referrerpolicy="no-referrer"><figcaption><span style="white-space:pre-wrap">AI Engineering skills map — Using Coding Agents</span></figcaption></figure><p><strong>Directing the workflow.</strong>&nbsp;You know how to navigate each step of the workflow above. This involves deciding how much human and how much agent effort to spend on each and when to go back to an earlier step to iterate. It requires deeply understanding the tradeoffs of speed, cost, technical risk, and human effort, so you can decide how much to research and plan up front, when to retain human ownership over critical work, how to choose the architecture, how much detail to write into a set of planning artifacts (like a spec), and how to decompose the work into verifiable steps.</p><p><strong>Enabling agent autonomy.&nbsp;</strong>When applying a coding agent to the steps in the workflow, you choose the autonomy level: Do you watch it and go back-and-forth interactively or delegate a larger chunk of work to it? And when do you set a clear goal and have it loop until it succeeds? Additionally, you have to manage the context carefully for the agent. As the build proceeds through different phases, you will calibrate when to make sure key learnings, user feedback, and assumptions — including assumptions that changed partway through the build — are captured for the agent to use downstream. Additionally, you will decide when to set up many agents to run in parallel on a decomposition of the task — either by having a human or a higher-level agent orchestrate these other agents — and how to manage human attention across concurrent agent sessions. You also know how to run agents safely, setting permissions and gating actions appropriately to let development proceed quickly while limiting the risk of leaks, data loss, or other damage.</p><p><strong>Reviewing the work.&nbsp;</strong>The output of a coding agent is uncertain. We don’t know in advance what good ideas it might come up with and what bugs it will implement. Reviewing and verifying the output is a key step to ensure you are getting the result you want and to redirect the agent if not. You will design testing and validation that is matched to the task, applying both behavioral and functional verification as needed. You might also test user flows, perhaps having an agent provide screenshots as evidence of success or failure. For qualitative/behavioral evaluation, eval sets, perhaps with LLM-as-a-judge, can be used.</p><p>You also need to decide how much of these tests should be automated. Some workflows will have all testing and validation fully automated so the agent can check its work and know when it has succeeded in completing a task. You have to evaluate the tests to ensure they correspond to your aims, and you will evolve them if not. Additionally, you use agentic code review and run AI-enabled security and architecture audits. When AI review isn’t sufficient, you judiciously insert human reviews of the code behavior (and, infrequently, of code as well) while exploring how to automate this review further. Finally, you verify deployment and can operationalize monitoring and incident management with agents.</p><p><strong>Customizing the agent and its environment</strong>. Your ability to update both the agent and the environment it works in allows your agents to efficiently get the context they need, access tools, and build correctly and efficiently. You know how to integrate agent skills, plugins, and MCP servers. Occasionally you will prune them when they are no longer necessary (such as when a new model obviates an old skill). You can use hooks to automate repeatable parts of the development process, like triggering automated code reviews or CI/CD pipelines. You can also maintain the environment the agent works in: updating the standing context (such as AGENTS.md or CLAUDE.md) with information on the codebase, key architectural assumptions, code style, and data access patterns. You know how to preserve state across multiple sessions and across parallel agents, and accumulate agent learnings over time, perhaps by running post-run retrospectives to capture what did and did not work. You also know how to set up consistent conventions and structure to make your codebase navigable to the agent, and how to occasionally clear out agent-generated debt. When you work in a team, you consider how to coordinate context across different developers’ agents.</p><p><strong>Coding agent foundations.&nbsp;</strong>Finally, to make good decisions throughout, you have a good understanding of how coding agents work: how they carry out codebase search/retrieval, how they manage their context windows, how different operations (like adding tool calls, MCP servers, etc.) affect context, how agents and subagents interact, and how the agent is built by wrapping a harness around an LLM. This makes the agent less of a black box and helps you to recognize failure modes, such as overengineering a simple solution, losing rigor because the agent lacks an explicit verification process, stopping short of the goal, or agent actions that risk destruction of files or production data. It also helps you reason about the agent’s state and steer it by giving it the right prescription or context. And when monitoring a run, this understanding allows you to better spot when the agent goes off-track and requires your intervention.</p><p>I find that social media often gives oversimplified descriptions of how to use coding agents. For example, it is sometimes useful to get agents to run autonomously for hours and burn millions or tens of millions of tokens. But currently the practical utility of very long-horizon tasks — especially relative to their cost — has been amplified beyond reality. Instead, most effective coding agent use is a complex, highly iterative process, and being able to intervene with high-skill judgement gives much better results.</p><p>Your skill at using coding agents will make you an effective builder. This positions you to also steer the overall build. I will say more about this in next week’s letter.&nbsp;</p><p>Keep building!</p><p>Andrew</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/UoXOtx4prC8UpOyROJGPZtGjKf6z4-IOpr3BItzxZjE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVGhlLUJhdGNoLUJhbm5lci0yLndlYnA" class="kg-image" alt=" Discover spec-driven development using coding agents with JetBrains and DeepLearning.AI. Enroll today!" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/98oewbPstegUd5qoTRBzcRAP7XoMQjupASjjOxWH3Uo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L1RoZS1CYXRjaC1CYW5uZXItMi53ZWJw 600w, https://imgproxy.citrusreader.com/tfH4zXEn-r7DtJ7KQT9dd_I1fCUJGWLq_YICQIdhiG0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9UaGUtQmF0Y2gtQmFubmVyLTIud2VicA 1000w, https://imgproxy.citrusreader.com/UoXOtx4prC8UpOyROJGPZtGjKf6z4-IOpr3BItzxZjE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVGhlLUJhdGNoLUJhbm5lci0yLndlYnA 1200w" referrerpolicy="no-referrer"></figure><p>Most advice about coding agents stops at "give it better context." In Spec-Driven Development, built with JetBrains, Paul Everitt teaches the method: project constitutions, a feature spec for each change, and a plan-implement-verify loop.&nbsp;<a href="https://www.deeplearning.ai/courses/spec-driven-development-with-coding-agents" rel="noopener">Join in for free</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/oU15eGBdyp19en4_4PAmh_HjCCN37688a9FIuyo5AIs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvUkVURU5USU9OLndlYnA" class="kg-image" alt="Flowchart illustrating data storage and review process, highlighting customer and OpenAI roles in data handling." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/oZaoiVRqgJKbkaIFrNEwH-Ueh_WboB4SIG9MJbe6TKM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L1JFVEVOVElPTi53ZWJw 600w, https://imgproxy.citrusreader.com/qG2MiJJcxKUa9JAwDjLCoZnkFoYATOf86E21bUY6YLU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9SRVRFTlRJT04ud2VicA 1000w, https://imgproxy.citrusreader.com/oU15eGBdyp19en4_4PAmh_HjCCN37688a9FIuyo5AIs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvUkVURU5USU9OLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="comparing-openai-and-anthropic%E2%80%99s-data-retention-policies">Comparing OpenAI and Anthropic’s Data Retention Policies</h1><p>Anyone who sends private data to an AI model or service deserves a clear answer to three questions: (i) Where do they store it? (ii) How long do they keep it? and (iii) What, if anything, will they do with it (such as train on it, show to humans, etc.) This week, business customers for two leading companies got two responses: one leaked, then confirmed, and another previewed. Technical details are scarce for both.&nbsp;</p><p><strong>What’s new at Anthropic:</strong>&nbsp;Since June, businesses using Claude Fable 5 have been required to let Anthropic keep their conversations for 30 days. Now Anthropic will soften that rule, with a new program called&nbsp;<a href="https://www.anthropic.com/news/enterprise-frontier-safeguards" rel="noopener noreferrer" target="_blank">Enterprise Frontier Safeguards</a>&nbsp;(EFS) that will require companies with zero data retention (ZDR) policies to keep the data on their own servers&nbsp;or those of specific cloud providers instead. Until EFS is available sometime this fall, eligible&nbsp;enterprise customers will be able to use Fable 5 and Fable 5.1 without Anthropic retaining any data.&nbsp;</p><p><strong>Meanwhile&nbsp;at OpenAI:&nbsp;</strong>One day before&nbsp;<em>Bloomberg</em>&nbsp;broke the Anthropic news, OpenAI&nbsp;<a href="https://openai.com/index/offering-zero-data-retention-for-frontier-models/" rel="noopener noreferrer" target="_blank">published</a>&nbsp;a post promising that for business customers, its most capable models come with ZDR. This&nbsp;means OpenAI never logs a business’s prompts and replies. It’s offered to approved businesses that plug the models into their own software. The post also previewed Private Safety Processing (PSP), a system meant to spot misuse spread across many requests without OpenAI reading the prompts.</p><p><strong>How it works:</strong>&nbsp;Both companies describe the same method: software watches requests over time and flags patterns. No human review is required. Here is what neither explains: “Our employees can’t see it” is not the same as “our systems can’t see it.” To scan the data, software the company wrote has to unlock and read it, wherever it is stored. Sholto Douglas, a member of Anthropic’s technical staff,&nbsp;<a href="https://x.com/_sholtodouglas/status/2090556617922335027" rel="noopener noreferrer" target="_blank">described</a>&nbsp;the plan on X as monitoring “done via automated systems we provide to you.” Here’s where each company stands.</p><ul><li><strong>In force today:</strong>&nbsp;Anthropic keeps Fable 5 and Mythos 5 conversations for 30 days on every platform, per&nbsp;<a href="https://support.claude.com/en/articles/15425996-data-retention-practices-for-mythos-class-models" rel="noopener noreferrer" target="_blank">its help center</a>. Further, content that the company flags according to a process set at its discretion can be kept up to two years under its&nbsp;<a href="https://privacy.claude.com/en/articles/7996866-how-long-do-you-store-my-organization-s-data" rel="noopener noreferrer" target="_blank">general policy</a>, and&nbsp;reviewers Anthropic approves can read it through a logged process. OpenAI says its staff&nbsp;can’t see ZDR customers’ conversations, except where required by federal law.</li><li><strong>What’s been promised:</strong>&nbsp;Anthropic will require data to be retained for the same 30 days, but stored on the customer’s servers — either their own or through a third-party provider such as Google Cloud, Microsoft Foundry, or Amazon Web Services. (Disclosure: Andrew Ng is a member of Amazon’s board.) The 30 day requirement will&nbsp;stay, but the data will sit on the customer’s designated servers instead of Anthropic’s, and customers have the option to manage their own encryption keys, audit logs, and other security data. OpenAI’s Private Safety Processing will scan data held on the customer’s servers or encrypted on OpenAI’s with keys OpenAI says its staff doesn’t have, and report back only a label for the type of activity, not the content.</li><li><strong>Why both companies&nbsp;say they need this:</strong>&nbsp;The primary threats EFS and PSP are designed to address are cyberattacks. Some attacks show up only across many requests. Anthropic’s help center cites spying by governments and “best-of-N” jailbreaking, where an attacker rewords a blocked request hundreds of times until one version gets through.</li><li><strong>Undisclosed:</strong>&nbsp;It remains unclear how either company’s software reads data they claim they can’t see. OpenAI has promised a technical paper for PSP in September;&nbsp;Anthropic&nbsp;<a href="https://trust.anthropic.com/resources?s=7ksqkied5hn0pocsj206m&amp;name=%5Banthropic%5D-security-and-privacy-design-of-anthropic-data-retention-and-review" rel="noopener noreferrer" target="_blank">published</a>&nbsp;one for its June data retention policy but has&nbsp;given few technical details about how EFS&nbsp;would work. Neither company has disclosed the specific criteria that they apply to consider something a “cyberattack” or&nbsp;“unsafe.”</li></ul><p><strong>Behind the news:</strong>&nbsp;Anthropic’s June rule forced an exception to the ZDR contracts some business customers already had. These customers had to switch retention on to use the new models at all. Consequently, many businesses declined to use Fable 5. As we&nbsp;<a href="https://www.deeplearning.ai/the-batch/claudes-benchmark-problems" rel="noopener">reported</a>&nbsp;in June, the ARC Prize Foundation also declined to run its verified tests of Fable 5 rather than expose its private test questions. Anthropic has since acknowledged the cost; in an August risk report it&nbsp;<a href="https://www.axios.com/2026/08/19/openai-previews-zero-retention-safety-system-as-anthropic-requires-data-logs" rel="noopener noreferrer" target="_blank">wrote</a>&nbsp;that the rule would “be unpopular with customers who have come to expect zero retention” and could hurt its business if rivals didn’t do the same. OpenAI has not; its post reaffirmed zero retention.</p><p><strong>Why it matters:</strong>&nbsp;Businesses are deciding now whether to trust these models with sensitive data based only on press releases. For regulated industries like law firms, hospitals, and banks, “we won’t train on your data” and “we don’t have your data” are different promises. Businesses also lack clarity on when Anthropic may change its definition of when someone is acting "unsafely" and may have their prompts — which often contain extremely sensitive data — read by Anthropic employees. And any data that can be found&nbsp;on a server&nbsp;can be compromised by an attacker or demanded by a court. Last year, in&nbsp;<em>The New York Times’</em>&nbsp;copyright suit, a court ordered OpenAI to preserve chat logs it would normally have deleted, even ones users had erased. OpenAI said ZDR customers were&nbsp;<a href="https://openai.com/index/response-to-nyt-data-demands/" rel="noopener noreferrer" target="_blank">unaffected</a>&nbsp;because it never had their data. Whether logs held on a customer’s servers could be reached in a suit against the AI company is a question neither company has addressed. Neither has published an independent audit of its design.&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;In 2024, we&nbsp;<a href="https://www.deeplearning.ai/the-batch/how-to-think-about-the-privacy-of-cloud-based-ai" rel="noopener">described</a>&nbsp;four levels of cloud AI privacy, and the strongest, where the provider cannot access your data at all, is the level that matters most for sensitive work. This is especially true given loopholes that give frontier labs discretion to apply whatever standard they wish to define what is “safe.” We contrast this with the simple privacy policies of many hyperscalers, where&nbsp;rules&nbsp;are much clearer: We expect them not to look at our data unless a warrant, court order, or other more predictable&nbsp;legal process requires them to. Both companies now say they can preserve user privacy while still catching misuse across many requests. Neither has shown how. Until both of them publish&nbsp;their designs, that’s a roadmap, not a guarantee.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/4LyXAIahwwAmyQ4Yr-Bw0PgoZ9daOcpu3Ag6LDP4tfI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvR0xNNS4zRkxBU0gud2VicA" class="kg-image" alt="The graph situates GLM-5.3-Flash high on performance with low cost, highlighted in red, among many AI models." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/fzKIcmak8jooMS4atCY56FBjxksXfqNxPoIUOrfhlJM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L0dMTTUuM0ZMQVNILndlYnA 600w, https://imgproxy.citrusreader.com/hP7tx1P48RfYTd8ivTTvqICvfZc8z8YBsQ4YL8qB0YQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9HTE01LjNGTEFTSC53ZWJw 1000w, https://imgproxy.citrusreader.com/4LyXAIahwwAmyQ4Yr-Bw0PgoZ9daOcpu3Ag6LDP4tfI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvR0xNNS4zRkxBU0gud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="ox-alpha-revealed-as-glm-53-flash"><strong>Ox Alpha Revealed as GLM-5.3-Flash</strong></h1><p>For over a week, the name and maker of the most-used model on OpenRouter remained unknown. Last week, it was publicly announced to be a new GLM series model — and in a surprise to many, the company says it served the model’s free, high-volume preview exclusively with Chinese-made chips. Now anyone can download its weights.</p><p><strong>What’s new:</strong>&nbsp;Z.ai&nbsp;<a href="https://z.ai/blog/glm-5.3-flash" rel="noopener noreferrer" target="_blank">released</a>&nbsp;GLM-5.3-Flash, a vision-language model it had previewed under the name “Ox Alpha.” It’s the company’s first vision model since April’s GLM-5V-Turbo, and the first model in the GLM-5 family whose vision capability was built from the start rather than added to a language model afterward.&nbsp;</p><ul><li><strong>Input/output:</strong>&nbsp;Text, images, and video in (up to 1,048,576 tokens), text out (up to 128,000 tokens, 44.6 tokens per second)</li><li><strong>Architecture:</strong>&nbsp;Hybrid mixture-of-experts transformer that combines linear and sparse attention, 320 billion parameters total, 18 billion active per token</li><li><strong>Features:</strong>&nbsp;Adjustable reasoning levels (low, high, and max, the default), reasoning cannot be deactivated, streaming output, tool calling, context caching</li><li><strong>Performance:</strong>&nbsp;Achieved 57 points on Artificial Analysis’ Intelligence Index; third among all models and best among open weights models on Artificial Analysis’ GDPval-AA v2 (real-world knowledge work tasks)</li><li><strong>Availability/price:&nbsp;</strong>Via GLM Coding Plan subscriptions ranging from $18 to $168 per month, API at $0.15/0.03/$0.50 per million input/cached/output tokens</li><li><strong>Weights/license:</strong>&nbsp;Free to download&nbsp;under the commercially permissive MIT license</li><li><strong>Undisclosed:</strong>&nbsp;Knowledge cutoff, pretraining data sources</li></ul><p><strong>How it works:</strong>&nbsp;Z.ai trained GLM-5.3-Flash on text, images, and video from the start rather than melding vision and text transformers afterward. Unlike the larger GLM-5.3, Z.ai pretrained this model from scratch and redesigned the attention layers to handle long inputs more efficiently.</p><ul><li>A first in the GLM series, the model mixes two kinds of attention. Linear attention, a memory-efficient variant whose cost grows in proportion to input length, attends to nearby context, while sparse attention attends to the full context. The company says the combination cuts attention computation to roughly one-third of GLM-5.3’s, and less than DeepSeek-V4-Flash and Kimi K3.</li><li>A step called IndexPool averages every four of the model’s lookup vectors into a single vector to reduce memory use as context approaches 1 million tokens. This, plus the hybrid attention mechanism, cut GLM-5.3-Flash’s key-value cache to less than a quarter of GLM-5.3’s, but remains higher than DeepSeek or Kimi’s best numbers</li><li>The company pretrained the model on a 30-trillion-token multimodal corpus. It used&nbsp;<a href="https://arxiv.org/abs/2512.24880" rel="noopener noreferrer" target="_blank">Manifold-Constrained Hyper-Connections</a>, a technique developed by DeepSeek that splits the typical layer-to-layer connection into several parallel connections and keeps those paths stable as they combine.The company says this helped the model scale efficiently.</li><li>To generate training data, Z.ai had the model work in environments where it could render a frontend, a game, or a 3D scene, see the result, and revise. The company then trained the model on those attempts. For front-end work, Z.ai says it tried reinforcement learning that scored the model on how the rendered page turned out</li><li>At inference, the model sends&nbsp;each token through 8 of 288 experts and uses around half the network layers (45) as GLM-4.5 (92). A multi-token prediction layer, which drafts several tokens ahead for the main model to check, speeds generation.</li></ul><p><strong>Performance:</strong>&nbsp;Independent evaluations place GLM-5.3-Flash just below the top open weights models, while costing roughly an eighth per task of the open weights models just above it. Leading proprietary models cost between 10 to 35 times per task. GLM-5.3-Flash leads all other open weights models tested on one evaluation of real-world work and completes long-running coding tasks nearly as well as the larger GLM-5.3, which costs 16&nbsp;times more per task.</p><ul><li>GLM-5.3-Flash achieved 57 on Artificial Analysis’ Intelligence Index, a composite of nine evaluations of economically useful tasks, at an average of just $0.09 per task. At a fraction of the price, it approached the open weights leaders&nbsp;Kimi K3 and GLM-5.3 (both set to max reasoning, tied at 60, $0.84 and $0.68 per task, respectively). It matched Claude Opus 4.8 set to max reasoning ($2.03 per task), and outperformed Gemini 3.7 Flash (56, $0.40 per task).</li><li>GLM-5.3-Flash (1,765 Elo) ranked third on Artificial Analysis’ GDPval-AA v2, a head-to-head ranking of models on tasks in economically useful fields, behind Claude Opus 5 set to max reasoning (1,824 Elo) or xhigh reasoning (1,797) and ahead of Grok GLM-5.3 set to max reasoning (1,758) and Grok 4.6 set to xhigh reasoning (1,755)</li><li>GLM-5.3-Flash was able to one-shot 63 percent of problems posed by DeepSWE v.1.1, a test of software engineering skills whose coding tasks are written from scratch rather than taken from public repositories. On this benchmark it cost $0.24 per task, against 69 percent at $3.99 for GLM-5.3 and 74 percent at $11.84 for Claude Opus 5 set to max reasoning. DeepSeek V4 Flash, a comparably sized model, solved 53 percent at twice the cost.</li><li>The model is verbose and slow, particularly for a model its size. The model used 150 million tokens to complete the Artificial Analysis’ Intelligence Index, more than the median (110 million). On multiple hardware providers, it generates an average of 45 tokens per second, significantly slower than GLM-5.3 (78 tokens per second) and the typical model tested by Artificial Analysis (69 tokens per second).</li></ul><p><strong>Behind the news:</strong>&nbsp;For a week before the launch, Z.ai introduced its preview of GLM-5.3-Flash anonymously, available free and exclusively on the coding harness OpenCode and on the model marketplace OpenRouter for a week before launch. This way, it was able to collect feedback from developers unaware whose model they were testing. The company says Ox Alpha became the most popular model on those services that week. Users speculated that the mystery model belonged to the GLM family within days based on its tokenizer outputs. On August 26, Z.ai confirmed&nbsp;the model and released its weights under a standard MIT license. Two days later, the company released weights for its&nbsp;<a href="https://www.deeplearning.ai/the-batch/glm-5-3-makes-cybersecurity-gains" rel="noopener">flagship GLM-5.3</a>&nbsp;under a license similar to MIT but added&nbsp;a clause requiring any business whose revenue surpasses $10 billion to pass a security review by Z.ai before using the weights commercially.&nbsp;</p><p><strong>Why it matters:</strong>&nbsp;While GLM-5.3 still outpaces GLM-5.3 Flash (and virtually all open models) on text benchmarks, Z.ai’s cheap model is also the more advanced and versatile one, for now. GLM-5.3 is merely a highly capable fine-tune, while Flash received a new base, architecture, and vision capability. The company says its next flagship model will inherit this multimodal, hybrid attention architecture, while also training on more data and showing greater capabilities. Months ago, GLM-5V-Turbo outpaced Claude Opus 4.6 on vision-language tasks; the next GLM series model may similarly challenge&nbsp;top proprietary multimodal models.</p><p><strong>We’re thinking:</strong>&nbsp;Ox Alpha’s anonymous preview created buzz and mystery but also allowed users to judge it on its merits (and deficits). Perhaps the biggest mystery revealed was its reliance on chips from China-based manufacturers. This shows that with the right memory optimization methods, companies can serve a cost-effective, high-performing model at scale on economically-priced hardware — albeit a somewhat smaller and slower model than&nbsp;we've come to expect from the cutting&nbsp;edge.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/SUWdBWkt4PWsQ_1oDpaJ7SflXwxGGZDErOqTbdzT-5Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVEhPTVNPTi1MYXJnZS53ZWJw" class="kg-image" alt="A table compares performance metrics of large language models in legal and general domains." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/un1J4cy7rUD4LjBsG2XFb7bXo03cYr4BXlzEm_pVlKg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L1RIT01TT04tTGFyZ2Uud2VicA 600w, https://imgproxy.citrusreader.com/pOCX2RvghCC-Y1okgl3JnG9wnhlwPw37HU43cdhbLY0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9USE9NU09OLUxhcmdlLndlYnA 1000w, https://imgproxy.citrusreader.com/SUWdBWkt4PWsQ_1oDpaJ7SflXwxGGZDErOqTbdzT-5Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvVEhPTVNPTi1MYXJnZS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="custom-models-for-law-news-and-finance">Custom Models&nbsp;for Law, News, and Finance</h1><p>Thomson Reuters launched a proprietary large language model family called Thomson. It’s built on a Qwen model using a custom data engineering and re-training pipeline&nbsp;to provide more accurate and complete responses in fields such as law and finance than general-purpose LLMs.</p><p><strong>What’s New:&nbsp;</strong>Thomson Reuters built&nbsp;<a href="https://www.prnewswire.com/news-releases/thomson-reuters-leverages-its-world-class-data-assets-to-launch-its-own-frontier-model-302857499.html" rel="noopener noreferrer" target="_blank">Thomson</a>&nbsp;as a domain-specific model that specializes in law, business, tax, finance, news, and related knowledge work fields. Thomson will be deployed first inside one of Thomson Reuters’ existing products, CoCounsel Legal, a tool for research, analysis, and drafting documents. It will be extended to other Thomson Reuters products at unspecified dates.</p><ul><li><strong>Input/output:</strong>&nbsp;Text in (up to 262,000 tokens), text out</li><li><strong>Architecture:</strong>&nbsp;Mixture-of-experts transformer, 397 billion parameters, 17 billion active per token</li><li><strong>Performance:</strong>&nbsp;Thomson-1.0-Large narrowly outperformed GPT-5.4 and Claude Sonnet 5 on both completeness and factuality for tax, legal, and news content; rails both models on open web content on factuality by roughly 15 points; Thomson-1.0-Small similarly outperformed Gemma4-31B and Claude Haiku 4.5.</li><li><strong>Availability:</strong>&nbsp;Business customers only.</li><li><strong>Weights/license:</strong>&nbsp;Thomson-1.0-Large is proprietary, but a 35 billion parameter version, Thomson-1.0-Small, will be released as an open weights model on Hugging Face for academic and non-commercial use</li><li><strong>Undisclosed:</strong>&nbsp;Price</li></ul><p><strong>How it works:&nbsp;</strong>Thomson Reuters built Thomson-1.0-Large on top of Qwen3.5-397B-A17B, an instruction-tuned open weight model. It employed what the research authors call&nbsp;<a href="https://www.thomsonreuters.com/content/dam/ewp-m/documents/thomsonreuters/en/pdf/reports/thomson-technical-report.pdf" rel="noopener noreferrer" target="_blank">Continual Learning</a>, a mix of full-weight mid-training and fine-tuning, on a selection of the company’s large data corpus. In a press release, the company disclosed that it invested $40 million in total training costs over three months.</p><ul><li>The authors re-aligned Qwen to better reflect the company’s style and values, including journalistic objectivity. They aligned the model to a constitution using direct preference optimization (DPO). The constitution is open source and can be adapted or revised for similar projects.</li><li>For domain expertise, Thomson Reuters and its partner DatologyAI curated a 200 billion token mid-training dataset out of a 19 trillion token candidate pool. The training data is composed of three roughly equal parts: curated proprietary documents (news, regulatory filings, case law, contracts), synthetic data pairs of successful professional tasks, and select&nbsp;general-capability materials.</li><li>The authors fine-tuned the model using DPO for a final round of alignment training and to increase accuracy and efficiency in agentic deep research. They also used group sequence policy optimization (GSPO) to manage context compaction and document caching, to avoid overfilling the context window or triggering redundant API calls.</li><li>Thomson-Small-1 was trained in a similar manner using Qwen3.6-35B as a base.</li><li>The company touts its data-centric pipeline and mix of alignment, mid-training and post-training methods. It says future versions of Thomson may use an alternate base model — possibly Inkling Large — and will train on a larger data set than 10 percent of the Thomson Reuters corpus.</li></ul><p><strong>Behind the news:&nbsp;</strong>Thomson Reuters has long used AI in its products for legal and financial professionals and government agencies, but the company’s latest AI-powered product is its first LLM. The company is under pressure from both new AI-native companies like Harvey and Legora and general-purpose LLMs and agents from OpenAI, Anthropic, Google, and others that offer alternatives to many of its products.</p><ul><li>Thomson is less narrowly focused than Harvey’s new legal model&nbsp;<a href="https://www.harvey.ai/blog/post-training-update-harvey-tenet" rel="noopener noreferrer" target="_blank">Tenet</a>&nbsp;and boasts a larger data corpus that includes news, business, tax, and finance. Thomson Reuters also said Thomson is less narrowly focused on performance on specific benchmarks, including Harvey’s popular BigLawBench and LAB (Legal Agent Benchmark).</li><li>CoCounsel Legal is an AI assistant that draws on proprietary information, as well as users' own documents, to perform legal tasks such as researching questions, comparing documents, and creating timelines of events. Thomson will now be the model that powers some features within CoCounsel, while others will rely on proprietary models, including Anthropic’s Claude. The cost of CoCounsel’s various tiers is not publicly available, but the company claims the product has over one&nbsp;million customers.</li></ul><p><strong>Why it matters:&nbsp;</strong>The Thomson paper authors argue that their approach to domain-specific LLMs represents a special case of sovereign AI, but at the corporate rather than the national level. Instead of yielding data to a larger AI company and being subject to its infrastructure and data retention policies, Thomson Reuters licenses its models to companies that run them on their own hardware, ensuring that sensitive data never leaves the premises. Also, its models can be further trained on a company’s private data using Thomson’s midtraining methods, without the high costs of pretraining or the relatively limited effectiveness of an inexpensive fine-tuning method like LoRA.</p><p><strong>We’re thinking:&nbsp;</strong><a href="https://www.deeplearning.ai/the-batch/dont-believe-the-hype" rel="noopener">Model customization</a>&nbsp;remains an exciting prospect for a wide range of AI applications,&nbsp;and the growing availability of open weight models creates an important foundation for teams to experiment with them. Still, companies like Thomson Reuters will have to prove to customers that their products are worth the price given&nbsp;the relatively small improvement in performance.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/9czLpQ74QPj4ijpzqOJoSfV8ETznEqEr7WXtreihzE8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTU9OSVRPUi53ZWJw" class="kg-image" alt="A woman presents LLM safety charts to two colleagues, illustrating CRC Monitor's effectiveness visually." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/vTebBQGAgeC5ZXfZO121BZaJaX9U2uLhV0Pwa_tG9iQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA5L01PTklUT1Iud2VicA 600w, https://imgproxy.citrusreader.com/iF1DFpMnZf6VuZZMBTF5Vs7Lqm_6gnW4Ts2QqeCrKZE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOS9NT05JVE9SLndlYnA 1000w, https://imgproxy.citrusreader.com/9czLpQ74QPj4ijpzqOJoSfV8ETznEqEr7WXtreihzE8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDkvTU9OSVRPUi53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="a-simpler-method-to-monitor-models">A Simpler Method to Monitor Models</h1><p>LLM safety monitors that act during generation often analyze a series of safety scores to catch incorrect or harmful outputs. Researchers found that analyzing a single safety score achieved nearly the same performance.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;Mona Schirmer, Metod Jazbec and colleagues at University of Amsterdam, University of Wisconsin-Madison and Johns Hopkins University introduced a simple monitoring system called&nbsp;<a href="http://arxiv.org/abs/2607.02510" rel="noopener noreferrer" target="_blank">CRC Monitor</a>&nbsp;— CRC stands for conformal risk control. It evaluates an output’s safety by comparing a single safety score against a threshold that is carefully calibrated for the task at hand.</p><p><strong>Key insight:</strong>&nbsp;Systems such as&nbsp;<a href="https://arxiv.org/abs/2512.03109" rel="noopener noreferrer" target="_blank">e-valuator</a>&nbsp;score LLM output after every reasoning step, conversational turn, or tool call and analyze the history of scores to decide whether to stop. A simpler approach is to stop as soon as the latest step’s score falls below a threshold. The challenge is choosing this threshold reliably. A false-alarm rate measured on a limited validation set may be lower than on new data, simply by chance. Therefore, one needs to choose the threshold more conservatively.</p><p><strong>How it works:</strong>&nbsp;The authors calibrated CRC Monitor’s threshold for two tasks in which a model should be stopped when its generation goes wrong: incorrect mathematical reasoning and harmful subject matter. For each dataset, they used a separate model, called a verifier, to score the output text at every step. They found thresholds that satisfied two criteria: (i) catch as many unsafe outputs as possible and (ii) keep the number of false alarms below a user-defined limit.</p><ul><li>For mathematical reasoning, the authors built a calibration dataset. They generated solutions to the&nbsp;<a href="https://arxiv.org/abs/2103.03874" rel="noopener noreferrer" target="_blank">MATH</a>&nbsp;dataset using Anthropic Claude Haiku 4.5 and Mistral-7B-Instruct. A verifier (Alibaba Qwen2.5-Math-PRM-7B) assigned scores by estimating whether the reasoning remained on track to produce a correct solution. They used OpenAI o3-mini to validate each solution, creating the labels for calibration.</li><li>For harmful subject matter, they evaluated on the&nbsp;<a href="https://arxiv.org/abs/2209.07858" rel="noopener noreferrer" target="_blank">Anthropic Red Teaming</a>&nbsp;dataset, which contains conversations designed to elicit harmful responses from LLMs, and&nbsp;<a href="https://arxiv.org/abs/2506.09996" rel="noopener noreferrer" target="_blank">FineHarm</a>, which contains multi-turn conversations annotated for harmfulness. As verifiers, they used Llama Guard on Anthropic Red Teaming and a Qwen2.5-1.5B model fine-tuned to detect harmfulness on FineHarm.</li><li>The authors tried many thresholds on the validation sets and measured how often each one erroneously stopped safe outputs (a higher threshold meant more outputs were marked unsafe). Since the actual false-alarm rate may be higher on real data than validation data, they added a small padding number to the measured false-alarm rates, then&nbsp;selected the largest threshold such that the modified false alarm rate was below the user-defined limit.</li><li>During inference, when the verifier score dropped below the threshold, the system stopped generating output.</li></ul><p><strong>Results:</strong>&nbsp;CRC Monitor flagged unsafe responses faster and maintained the user-requested false-alarm rate while matching the performance of e-valuator in most experiments.</p><ul><li>On the MATH dataset, at a user-defined false-alarm rate of 20 percent, the system detected about 80 percent of incorrect solutions generated by Mistral-7B-Instruct, equal to e-valuator’s 80 percent. It raised alarms after about 35 percent of the reasoning process on average compared to e-valuator’s 40 percent.</li><li>Paired with the more mathematically capable Claude Haiku 4.5, CRC Monitor detected about 75 percent of incorrect solutions, nearly matching e-valuator's 76 percent; it&nbsp;raised alarms after about 40 percent of the reasoning process on average versus e-valuator’s 49 percent.</li><li>On the FineHarm dataset, at a user-defined false alarm rate of 20 percent, CRC Monitor detected almost 99.5 percent of harmful outputs, and it raised alarms after about 14 percent of the conversation on average, matching e-valuator on both counts.</li><li>On Anthropic Red Teaming, CRC Monitor detected fewer harmful conversations (32 percent versus e-valuator’s 54 percent), but it raised alarms much earlier, after about 26 percent of the conversation on average instead of 55 percent.</li></ul><p><strong>Why it matters:</strong>&nbsp;Stopping LLMs from generating undesirable output can be done more simply and less expensively. An effective&nbsp;monitor that catches such output as it’s being generated requires only a safety score for the latest generation, a calibrated threshold, and a predetermined tolerance for errors. This approach detects problems earlier than a competing method, reducing the user’s exposure to mistaken or objectionable output (and some inference cost). The authors suggest that their approach lends itself to a tiered monitoring architecture that generates a cheap signal continuously, stops according to a calibrated rule, and shifts to more-expensive verifiers only when the cheap signal indicates&nbsp;a poor output.&nbsp;</p><p><strong>We’re thinking:&nbsp;</strong>Since a simple safety-detection method can work as well as a complicated one, improving the verifier behind it may lead to greater improvement in performance than designing more complex ways to weigh the&nbsp;results.</p>

2026/9/4
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GLM-5.3’s Exploits, AI Models and Hardware Speed Up, DeepSeek’s New Agent Harness

<figure><img src="https://imgproxy.citrusreader.com/dAXoMiJ0p0dF3hMIFiS5v12Pe7iFFxtaBHyIbyZAZwM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU2FuZGJveEVzY2FwZV8yYV8xMjAwcHguanBn" alt="GLM-5.3’s Exploits, AI Models and Hardware Speed Up, DeepSeek’s New Agent Harness" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: How have software engineering fundamentals changed with agentic coding?</blockquote><p>Dear friends,&nbsp;</p><p>How have software engineering fundamentals changed with agentic coding? Even when you use a coding agent to write all your code, understanding software fundamentals is important for steering your agent to make the tradeoffs you want — or to even know what tradeoffs exist to be made. Additionally,&nbsp;when you’re building an&nbsp;<a href="https://www.deeplearning.ai/the-batch/he-ai-engineering-skills-map-in-detail-building-and-deploying-ai-applications" rel="noopener">AI application</a>, the AI core is often expressed through a broader software application, which a skilled engineer will shape. </p><p>A novice who vibe codes without understanding software fundamentals can create simple applications, but this often leads to the coding agent making bad tradeoffs in latency, availability, consistency, reliability, maintainability, simplicity, and/or cost. In most cases, the developer didn’t know such tradeoffs even existed and therefore did not steer the agent to make the right decisions for their application context.</p><p>This letter describes what our study of AI Engineering Skills shows are the most important things to know in software engineering. It requires being skilled at:</p><ul><li>Building full-stack applications</li><li>Managing data</li><li>Designing system architectures</li><li>Making systems secure and reliable</li><li>Scaling and operating in production</li></ul><p><strong>Building full-stack applications.&nbsp;</strong>Agentic coding enables many developers who previously played more specialized roles (like front-end developer or mobile developer) to play a broader, full-stack role. A coding agent can help with parts of the development process that you might be less familiar with. However, understanding how the full stack actually works is important. Skilled developers understand the key components and concepts of front-end and back-end systems, including UI components, caching, page rendering, API choice and design, authentication, state and session management, asynchronous processing, data persistence, testing, security, and accessibility.</p><p><strong>Managing data.</strong>&nbsp;Data deserves special attention because it is a foundation that software is built on top of, that is relatively hard to change (even if agents help with migrations). When you know how to manage data, you can think through access patterns and use them to decide what to store and for how long. You can identify the right data models and select the appropriate storage types (such as relational tables, documents, key-value, or graphs) and infrastructure, which in turn affects speed, scalability, availability, reliability, and cost. You understand transactions, concurrency, and how to ensure your data is clean, consistent, and fresh. When needed, you can ensure proper privacy, governance, and compliance. You know how to manage the data lifecycle.</p><p>As an application evolves, you also know how to evolve the data architecture with it. Deciding how to manage data requires significant human-provided context. Your AI systems will get their own input context from your data source, so if data architecture is chosen poorly, the AI doesn’t know what it doesn’t know. This is why it takes skilled intervention from someone with the relevant context and skilled at AI engineering — you! — to set it right. How to build data infrastructure for agents — rather than only traditional software or humans — is also a rapidly evolving area, and you should continue to adjust your best practices as the field evolves.&nbsp;</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/G44Z5OTwnsTdEIOA2wKCWeAsPan3kLj6LnGz1UboOzM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQUlfRW5naW5lZXJpbmdfc2tpbGxzX21hcF9fU29mdHdhcmVfRW5naW5lZXJpbmdfRnVuZGFtZW50YWxzLndlYnA" class="kg-image" alt="Software engineering fundamentals as part of the AI Engineering Skills Map: Building full-stack applications, Managing data, Designing system architectures, Making systems secure and reliable, and Scaling and operating in production" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/3Ui7nEiR39GAJw03GLqcvpUQDlyy_Bi4lldhKmCfXHo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0FJX0VuZ2luZWVyaW5nX3NraWxsc19tYXBfX1NvZnR3YXJlX0VuZ2luZWVyaW5nX0Z1bmRhbWVudGFscy53ZWJw 600w, https://imgproxy.citrusreader.com/9kcQhUTv2y_XSdeZNc5gLqmOEHB-8FQbDhxsAP-vUeE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9BSV9FbmdpbmVlcmluZ19za2lsbHNfbWFwX19Tb2Z0d2FyZV9FbmdpbmVlcmluZ19GdW5kYW1lbnRhbHMud2VicA 1000w, https://imgproxy.citrusreader.com/G44Z5OTwnsTdEIOA2wKCWeAsPan3kLj6LnGz1UboOzM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQUlfRW5naW5lZXJpbmdfc2tpbGxzX21hcF9fU29mdHdhcmVfRW5naW5lZXJpbmdfRnVuZGFtZW50YWxzLndlYnA 1200w" referrerpolicy="no-referrer"></figure><p><strong>Designing system architectures.</strong>&nbsp;When you understand the major components of the full stack of software and data, you are then better positioned to decide how to put the pieces together. Good system design requires understanding what the software is intended to do (how many users? how important is latency? how important is cost? etc.) so you can make choices about the application platform, the boundary between the frontend and backend, system decomposition, application state placement, and architectural granularity (monolith vs. microservices). You will also choose the stack (programming languages, runtimes, component/frontend/backend frameworks, data technologies) — sometimes by running experiments to evaluate options before settling on one.&nbsp;</p><p>Further, the right architecture is a moving target, depending on the phase of the project. The simple architecture you choose to build a quick prototype may not be the right architecture to build the first production system, and that too may change as the application scales. Making these decisions requires deep technical knowledge of both software components and the application context so you can design — and evolve — the architecture to make better tradeoffs.</p><p><strong>Making systems secure and reliable.</strong>&nbsp;To build reliable systems, you should know how to develop testing strategies to verify the correctness of your system: What mix of unit tests and integration tests, what frameworks to use, and what level of coverage. You also know how to design around possible failures — how to handle failures (like an API hitting a rate limit), build in graceful degradation, and minimize the blast radius of failures. Additionally, rather than first writing software and then later figuring out how to secure it, the “shift left” movement is moving security work earlier in the lifecycle (to the left on a traditional project timeline). Just as all developers are moving toward becoming full stack developers, many developers are now also partly security engineers. You can now use AI tools to scan your code for vulnerabilities, check dependencies for supply chain injections, and examine your cloud configuration for attack surfaces. But doing this well still requires some knowledge of security.</p><p><strong>Scaling and operating in production.</strong>&nbsp;To serve real users, you will have to know how to deploy your software to production.You will benefit from knowing how to execute the software development lifecycle (SDLC) which, in addition to building and testing, includes configuring the deployment environment, deciding on release strategy, applying deployment automation (CI/CD), and understanding infrastructure as a service (IaaS).&nbsp;</p><p>Operating in production requires putting in place observability tools, setting alerts, and managing incidents. Lastly, to scale your application, you should understand the real load and know how to scale servers, load-balance, and adapt your data infrastructure (via sharding, indexing, replication) or make architecture changes to allow your system to adapt to scale. Finally, understanding coding best practices like version control, code reviews, dependency maintenance, and how to manage technical debt helps you keep evolving your system over time.&nbsp;</p><p>Coding agents have changed how we build software, including software that does not contain any AI components. Some parts of coding knowledge — like memorizing coding syntax — are becoming obsolete. But developers who deeply understand how software works vastly&nbsp;outperform those who vibe code without understanding.</p><p>Understanding software fundamentals (in addition to AI) also helps you figure out what software can and cannot do. This makes them important context for how you use coding agents and shape the build. I will discuss these in the next two letters.</p><p>Keep building!</p><p>Andrew</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/snOuMRUbAi-7NBd7OBW7SkzRKq8ZDH4_Sl1ezr7zAJI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvT3JhY2xlX0VuZENhcmRfMDEud2VicA" class="kg-image" alt="New AI course by Oracle and DeepLearning.AI focuses on building adaptive coding agents that learn from experience." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/amMcoLH13zT4efmHHrtywsfz24t3tkdqRv2T78dlDgU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L09yYWNsZV9FbmRDYXJkXzAxLndlYnA 600w, https://imgproxy.citrusreader.com/vKJQiTP_RWq7HY57l6_gj7OBNsAxsrwDHHPAYU3AQxs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9PcmFjbGVfRW5kQ2FyZF8wMS53ZWJw 1000w, https://imgproxy.citrusreader.com/snOuMRUbAi-7NBd7OBW7SkzRKq8ZDH4_Sl1ezr7zAJI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvT3JhY2xlX0VuZENhcmRfMDEud2VicA 1200w" referrerpolicy="no-referrer"></figure><p>Build coding agents that learn from experience. In “Building Adaptive AI Agents,” you’ll turn an agent’s own traces into reusable skills and build a code knowledge graph that finds what keyword search misses, so your agent gets better every run instead of repeating yesterday’s mistakes.&nbsp;<a href="https://bit.ly/4qD0P2M" rel="noopener noreferrer" target="_blank">Enroll for free</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/xSFVX75GsLBFVN4GH_uN1DKmdbm9ZQNrrPbuyZ0qIKk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR0xNLTUuMy53ZWJw" class="kg-image" alt="GLM-5.3 leads in benchmarks with high scores, compared to Kimi K3 and others, showcasing model improvements." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/sVTMk7T7BQuJBQ6fYmZ8_cCklmVdFlDtMa24NLLhOC4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0dMTS01LjMud2VicA 600w, https://imgproxy.citrusreader.com/-zKFsx6z3i68POLcgnyazkFjD4ANYdirVVbGjZDu7iQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9HTE0tNS4zLndlYnA 1000w, https://imgproxy.citrusreader.com/xSFVX75GsLBFVN4GH_uN1DKmdbm9ZQNrrPbuyZ0qIKk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR0xNLTUuMy53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="glm-53-makes-cybersecurity-gains">GLM-5.3 Makes Cybersecurity&nbsp;Gains</h1><p>Z.ai’s latest flagship model effectively ties open-weights leader Kimi K3 on Artificial Analysis’ index of intelligence benchmarks. The company revealed that the model’s increased skill at finding and exploiting software vulnerabilities warranted safety testing before releasing its weights.</p><p><strong>What’s new:</strong>&nbsp;Z.ai&nbsp;<a href="https://z.ai/blog/glm-5.3" rel="noopener noreferrer" target="_blank">boosted</a>&nbsp;GLM-5.3’s performance at coding and agentic work solely by fine-tuning its&nbsp;<a href="https://www.deeplearning.ai/the-batch/top-agentic-performance-low-cost" rel="noopener">predecessor</a>&nbsp;GLM-5.2, rather than by training a new model from scratch or modifying its architecture.</p><ul><li><strong>Input/output:</strong>&nbsp;Text in (up to 1 million tokens), text out (up to 128,000 tokens, 90 tokens per second)</li><li><strong>Architecture</strong>: Mixture-of-experts transformer, 753 billion parameters total, 40 billion active per token</li><li><strong>Features:</strong>&nbsp;Adjustable reasoning levels (low, high, max), tool calling, structured output, streaming, context caching</li><li><strong>Performance:</strong>&nbsp;Achieved 60 points on Artificial Analysis’ Intelligence Index; best score among all models on CyberGym (an exploit detection benchmark) in Z.ai’s tests</li><li><strong>Availability/price:</strong>&nbsp;GLM Coding Plan subscriptions&nbsp;(from $18 to $168 per month) and ZCode development environment, Z.ai’s API at $1.40/$0.26/$4.40 per million input/cached/output tokens</li><li><strong>Weights/license:&nbsp;</strong>Weights due roughly two weeks after launch, license not yet announced (GLM-5.2 uses an MIT license)</li><li><strong>Undisclosed</strong>: Knowledge cutoff, training data specific to GLM-5.3</li></ul><p><strong>How it works:</strong>&nbsp;The company scaled GLM-5.2’s fine-tuning recipe, applying it to a larger and more varied set of environments (simulated workspaces where the model attempts assigned tasks). The recipe includes single-rollout asynchronous optimization, a reinforcement learning method that trains on attempts one at a time instead of waiting for an entire batch. The training method also splits long records of an agent’s attempts into compacted segments so the model learns from long-running tasks rather than only short ones.</p><ul><li>The company designed coding-related training tasks to resemble long-running software engineering work rather than tidy, standalone puzzles. In one, the model received a machine learning engineer’s working environment and was asked to find the cause of a slowdown in the training pipeline, then optimize the pipeline and prove the speedup worked without degrading output.</li><li>Training Z.ai demanded more environments than its developers could build themselves. The company used agents to build environments and, for some tasks, reward signals as well.</li><li>A separate grader agent first checked whether each task was solvable within its respective environment, then scored the model’s performance. Z.ai built each grader without showing it the task’s reference solution. The grader’s verdict only counted if it accepted a correct solution and correctly rejected an untouched or unfinished one.</li><li>The company also studied and sought to prevent the model’s attempts at reward hacking, loopholes that the model exploits to earn rewards without properly solving the task.</li></ul><p><strong>Performance:</strong>&nbsp;Independent testing ranks GLM-5.3 on par with the top open-weights model and a few points behind leading proprietary models, with large gains in agentic work. Z.ai’s own tests show the biggest jumps in agentic coding and cybersecurity.</p><ul><li>On Artificial Analysis’ Intelligence Index, a composite of nine evaluations of economically useful tasks, GLM-5.3 set to max reasoning (60 points, $0.68 per task) tied Kimi K3 ($0.84 per task) and jumped 7 points from GLM-5.2 set to max reasoning ($0.44 per task). It trails proprietary leaders, including Claude Opus 5 set to max reasoning (63, $2.34 per task), GPT-5.6 Sol set to max reasoning (61, $0.961.23 per task), and Grok 4.6 set to high reasoning (61, $0.84 per task).</li><li>On Z.ai’s cybersecurity testing, GLM-5.3 achieved 84.5 percent on CyberGym (finding and confirming vulnerabilities in source code by triggering errors), the best score on the benchmark, ahead of Claude Mythos 5 (83.8 percent) and GPT-5.6 Sol (83.6 percent). On ExploitBench (which tests exploit attempts against hardened software), GLM-5.3 reached 54.4 percent, more than double GLM-5.2 (24.4 percent) and ahead of Kimi K3 (32.2) but well behind Claude Mythos 5 (78.0 percent) and GPT-5.6 Sol (76.5 percent).</li><li>GLM-5.3’s general knowledge scores are less impressive. It answers 42.3 percent of Humanity’s Last Exam questions correctly (behind older Grok and Claude Opus models), solves 91.72 percent of GPQA Diamond’s problems (behind Gemini 3.7 Flash on medium effort), and has an AA-Omniscience Accuracy score of 34 percent, well below other top models.</li><li>On Code Bench, Z.ai’s own benchmark for coding tasks scored on completion and step-by-step accuracy, GLM-5.3 set to max reasoning completed 34.5 percent of tasks using roughly 75,000 output tokens per task, ahead of Claude Opus 4.8 set to max reasoning (29.5 percent, 120,000 tokens per task) but behind Claude Fable 5 set to max reasoning (39.5 percent, 57,000 tokens per task).</li></ul><p><strong>Z.ai’s stealth release:&nbsp;</strong>This week, Z.ai confirmed that Ox Alpha, a multimodal model in&nbsp;stealth mode that quickly gained popularity among users of&nbsp;OpenRouter and other platforms, is in fact&nbsp;<a href="https://z.ai/blog/glm-5.3-flash" rel="noopener noreferrer" target="_blank">GLM-5.3 Flash</a>. The company released&nbsp;<a href="https://huggingface.co/unsloth/GLM-5.3-Flash-GGUF" rel="noopener noreferrer" target="_blank">weights</a>&nbsp;for the 320 billion parameter model under an MIT license.&nbsp;&nbsp;</p><p><strong>Behind the news:</strong>&nbsp;GLM-5.3 arrived in the middle of debates about whether open weights models with advanced cybersecurity skills are too dangerous to release and lent both sides credibility.</p><ul><li>Z.ai chose temporary guardrails rather than the permanent approach taken by OpenAI and Anthropic, which both require organizations to register in order to use their models that are most capable of security exploits. Instead, Z.ai published the model’s scores on CyberGym and ExploitBench and opted to release the model’s weights only after two weeks of safety evaluation with vetted security partners.</li><li>GLM-5.3’s launch drew a direct response from competitors. In an August 17&nbsp;<a href="https://openai.com/index/the-defenders-window/" rel="noopener noreferrer" target="_blank">post</a>, OpenAI president Greg Brockman warned that open-weights models with cyber skills at or near the state-of-the-art would likely “significantly accelerate the threat landscape,” linking to GLM-5.3’s launch page. His warning came weeks after OpenAI’s own evaluation agents escaped their ExploitGym environment and breached Hugging Face’s infrastructure.</li><li>Early tests of other open weights models suggest the alarm may exceed the threat. In July, U.S. and UK AI safety institutes jointly&nbsp;<a href="https://www.aisi.gov.uk/blog/preliminary-assessment-of-kimi-k3s-cyber-capabilities" rel="noopener noreferrer" target="_blank">evaluated</a>&nbsp;Kimi K3 and found it didn’t execute arbitrary code, the most severe outcome, on any of the 41 ExploitBench tasks. The most capable proprietary models, with their safeguards off, averaged 20 arbitrary code executions.</li></ul><p><strong>Why it matters:</strong>&nbsp;Z.ai set out to build a stronger agentic coder but also got a model highly capable of discovering security exploits. The company deliberately added data and environments that rewarded the model when it found cybersecurity flaws. As intended, that skill climbed as training scaled, outperforming every other model on CyberBench. But the model’s gains at building exploits outstripped its designers’ goals of discovering them. The company didn’t intend for GLM-5.3 to more than double its predecessor’s score on ExploitBench; the model grew more capable simply by pursuing available rewards for exploiting vulnerabilities.</p><p><strong>We’re thinking:</strong>&nbsp;Each Z.ai release is more capable and generates more buzz than the last. All users benefit from AI labs seeking to outdo each other, especially when they release the weights for everyone to study, modify, and run on their own hardware. Keep the new models coming!</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/fmFADtOHIn-rVtdR2Ky1YsoAthyqjjnze14gBo4mQak/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU1VQRVJGQVNULndlYnA" class="kg-image" alt="Bar graph compares GPT-5.6 Sol Ultrafast and Sol, highlighting speed differences in processing tasks." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/VY6K4nby-3VLSdUwmUEkAwiUJYmlsn0BHgG5TESzB0A/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1NVUEVSRkFTVC53ZWJw 600w, https://imgproxy.citrusreader.com/yxk8_imDxL23lUFJAWIr6_9AeHGpxVom719_uYJSu_g/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9TVVBFUkZBU1Qud2VicA 1000w, https://imgproxy.citrusreader.com/fmFADtOHIn-rVtdR2Ky1YsoAthyqjjnze14gBo4mQak/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU1VQRVJGQVNULndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="inside-ai%E2%80%99s-need-for-speed">Inside AI’s Need for Speed</h1><p>Developers who already track models’ cost and accuracy have good new reasons to pay closer attention to a third essential&nbsp;factor: speed.</p><p><strong>What’s new:</strong>&nbsp;OpenAI and Cerebras previewed&nbsp;<a href="https://openai.com/index/previewing-ultrafast" rel="noopener noreferrer" target="_blank">Ultrafast</a>, a new API service tier that runs GPT-5.6 Sol on Cerebras hardware instead of OpenAI’s usual infrastructure.</p><ul><li><strong>Throughput:</strong>&nbsp;Ultrafast touts up to 750 output tokens per second. Artificial Analysis&nbsp;<a href="https://artificialanalysis.ai/models/gpt-5-6-sol" rel="noopener noreferrer" target="_blank">measures</a>&nbsp;GPT-5.6 Sol at max reasoning on Open AI’s own API at 65 tokens per second, which would make Ultrafast about 11 times faster.</li><li><strong>Time to finish:&nbsp;</strong>Across six quality-matched GDPVal&nbsp;tasks (OpenAI’s&nbsp;benchmark of realistic, economically valuable work tasks), Cerebras measured&nbsp;Ultrafast at 83 seconds per task against 7.7 minutes for standard Sol, a 5.6x end-to-end speedup.</li><li><strong>Latency:</strong>&nbsp;GPT-5.6 has an unusually high latency. Artificial Analysis lists standard GPT-5.6 Sol at max reasoning at 97.2 seconds to its first answer token, against 14.5 seconds for GPT-5.5 at high reasoning. Neither company has published a latency figure for Ultrafast.</li><li><strong>Price Availability:</strong>&nbsp;Limited preview for selected customers, waitlist for everyone else, no price or general-availability date announced</li><li><strong>Undisclosed:</strong>&nbsp;Independent&nbsp;confirmation of benchmark figures</li></ul><p>Two other releases landed the same week with speed as their headline pitch.&nbsp;Google shipped&nbsp;<a href="https://blog.google/innovation-and-ai/models-and-research/gemini-models/introducing-gemini-3-7-flash/" rel="noopener noreferrer" target="_blank">Gemini 3.7 Flash</a>, and Nvidia released&nbsp;<a href="https://blogs.nvidia.com/blog/nemotron-lightning-switchyard-rtx-dgx/" rel="noopener noreferrer" target="_blank">Nemotron 3.5 Lightning</a>. All three are aimed at developers building applications where response time determines how well a product works.</p><p><strong>What is speed, exactly?:</strong>&nbsp;Two measurements often show up under the word “speed” in AI, and different models and hardware handle them differently. Latency, sometimes called time-to-first-token, is the wait before a model’s response arrives; throughput is how many tokens per second it produces once it starts. Ultrafast targets throughput: Cerebras’ hardware keeps GPT-5.6 Sol’s weights in 44 gigabytes of on-chip SRAM, avoiding the trips to external memory that create bottlenecks on GPU-based inference.</p><ul><li><strong>GPT-5.6 Sol on Ultrafast:</strong>&nbsp;The clearest throughput demonstration comes from Cerebras. Ultrafast answered all 2,500 questions on&nbsp;<a href="https://agi.safe.ai/" rel="noopener noreferrer" target="_blank">Humanity’s Last Exam</a>, a test of expert-level questions across more than 100 subjects,&nbsp;in 11 hours and 11 minutes, compared to 78 hours and 27 minutes for Claude Fable 5, that is,&nbsp;about 7 times faster. Cerebras also reports Ultrafast running 11 times faster than Claude Fable 5 and 5 times faster than Claude Opus 4.8 on Fast mode overall.</li><li><strong>Gemini 3.7 Flash:</strong>&nbsp;Google hasn’t disclosed throughput or latency figures for Gemini 3.7 Flash, but Artificial Analysis&nbsp;<a href="https://artificialanalysis.ai/models/gemini-3-7-flash" rel="noopener noreferrer" target="_blank">measured</a>&nbsp;330 output tokens per second — only behind Gemini 3.5 Flash-Lite — and a 13.2-second wait to the first token. The model also posts performance gains measured against its predecessor: Its Artificial Intelligence Index average is 56, up from 52 for Gemini 5.6 Flash.</li><li><strong>Nemotron 3.5 Lightning:</strong>&nbsp;Up to 4 times faster output than other models in its class and 30 percent faster agentic task completion, according to Nvidia. Artificial Analysis&nbsp;<a href="https://artificialanalysis.ai/models/nemotron-3-5-lightning" rel="noopener noreferrer" target="_blank">measured</a>&nbsp;a throughput average of 302 output tokens per second across providers, with a 7.5 second time to first token. Nvidia’s NeMo Switchyard, an open-source routing library released alongside the model, sends each step of an agentic workflow to whatever available model best fits that step’s needs for speed, quality, or cost. Nvidia reports that routing through Switchyard, rather than running every step on a single large model, cut task-completion cost to about a third of the cost of Claude Opus 4.8 alone.</li></ul><p><strong>Behind the news:</strong>&nbsp;Ultrafast isn’t OpenAI’s only investment in speed. This week, the company released its first test results for&nbsp;<a href="https://openai.com/index/jalapeno-first-results/" rel="noopener noreferrer" target="_blank">Jalapeño</a>, its new inference chip produced in partnership with Broadcom. These tests show promising latency and throughput measurements when running&nbsp;both OpenAI’s and open weights models. Note that chipmakers also have to balance speed against the total number of users and power used by their hardware: Each affects cost and reliability of inference.</p><p><strong>Why it matters:</strong>&nbsp;Inference at these speeds changes what a model can be used for rather than just how well it performs a fixed task.</p><ul><li>In conversational and other real-time applications, users notice latency directly: A voice assistant that pauses for more than about a second starts to feel broken, because human conversation runs on turn gaps of roughly&nbsp;<a href="https://www.deeplearning.ai/the-batch/what-ive-learned-building-voice-applications" rel="noopener">0.3 to 1 second</a>.</li><li>For developers using agents to write code, a few minutes of wait time for a result is long enough to get distracted, lose your place, or start another task. Coming back later means rebuilding the problem in your head, which increases&nbsp;mental fatigue from context switching.</li><li>Low latency and high throughput help always-on agents&nbsp;monitor a system, a website, or a security feed and react as events happen. An agent that takes one minute of analysis to notice a problem potentially already missed the window to act on it in real time.</li><li>Tool use is also highly latency- and throughput-dependent. Search, code execution, and data&nbsp;retrieval tools&nbsp;all add time to agentic workflows.</li></ul><p><strong>We’re thinking:</strong>&nbsp;Faster&nbsp;AI models have already enabled agents that code, retrieve data, and respond to conversations at the speed of speech. We&nbsp;encourage developers not only to think about which of their applications require more throughput and less latency, but new applications that are only possible with the kinds of speed&nbsp;new models and hardware can deliver.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/9lLnOtBs_Ivc56t13rgNLqbLVDE6YOsbOYWzjU1qt2w/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvREVFUFNFRUtWNFBSTy0xLndlYnA" class="kg-image" alt="Plugin configuration screen with multiple plugins enabled, reflecting DeepSeek-V4-Pro’s new features." loading="lazy" width="1200" height="674" srcset="https://imgproxy.citrusreader.com/4tAflO_Fhk8SXHlP1J3a5fcdhG95U-DsdidxhbgVrL4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0RFRVBTRUVLVjRQUk8tMS53ZWJw 600w, https://imgproxy.citrusreader.com/cOck60IwznLpPf4paiiJS3boxtpNOTFpW4JSO7iCCys/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9ERUVQU0VFS1Y0UFJPLTEud2VicA 1000w, https://imgproxy.citrusreader.com/9lLnOtBs_Ivc56t13rgNLqbLVDE6YOsbOYWzjU1qt2w/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvREVFUFNFRUtWNFBSTy0xLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="deepseek-v4-pro-gets-refreshed">DeepSeek-V4-Pro Gets Refreshed</h1><p>DeepSeek’s flagship model graduated from preview with improved performance plus&nbsp;the&nbsp;harness the model was benchmarked in. The harness is free and open-source, but the company’s model prices increased.</p><p><strong>What’s new:</strong>&nbsp;DeepSeek released&nbsp;<a href="https://api-docs.deepseek.com/news/news260813" rel="noopener noreferrer" target="_blank">DeepSeek-V4-Pro-0813</a>, the official version of the larger of its two fourth-generation models.</p><ul><li><strong>Input/output:</strong>&nbsp;Text in (up to 1 million tokens), text out (up to 384,000 tokens, 78.1 tokens per second)</li><li><strong>Architecture:</strong>&nbsp;Mixture-of-experts transformer, 1.6 trillion total parameters, 49 billion active per token;&nbsp;optional speculative decoding module brings the checkpoint to 1.7 trillion parameters</li><li><strong>Features:</strong>&nbsp;Adjustable reasoning (none, low, high, max), defaults to high reasoning;&nbsp;tool calls; context caching</li><li><strong>Performance:</strong>&nbsp;53 points on Artificial Analysis’ Intelligence Index, third among open weights models;&nbsp;10th of 115 models on Arena’s WebDev leaderboard</li><li><strong>Availability/price:</strong>&nbsp;Via DeepSeek’s app and website via Expert Mode; via DeepSeek’s API at $1.32/$0.044/$3.96 per million input/cached/output tokens during peak hours (01:00–04:00 and 06:00–10:00 UTC), half price during off-peak hours</li><li><strong>Weights/license:</strong>&nbsp;Free for commercial and noncommercial use under the MIT license</li><li><strong>Undisclosed:</strong>&nbsp;New training data and methods, knowledge cutoff</li></ul><p>The company also released&nbsp;an open-source agent&nbsp;<a href="https://deepseek.com/harness/en/" rel="noopener noreferrer" target="_blank">harness</a>&nbsp;in developer preview and increased its API prices for all models.</p><p><strong>How it works:</strong>&nbsp;DeepSeek-V4-Pro-0813 keeps the parameter count and architecture of the April preview, including&nbsp;<a href="http://deeplearning.ai/the-batch/deepseeks-dspark-gains-velocity" rel="noopener">DSpark</a>, the speculative decoding module DeepSeek earlier released&nbsp;for the preview. DeepSeek says the update sharpens the model’s agentic skills but did not specify what it changed.</p><ul><li>DeepSeek pretrained the preview on more than 32 trillion tokens, then fine-tuned 10 separate model copies on individual domains via supervised learning and reinforcement learning. Finally, it merged them into one model via on-policy distillation, in which a new copy, the student model, imitated the 10 specialists’ outputs.</li><li>DeepSeek’s hybrid attention alternates between two kinds of attention layers. Both compress the keys and values the model stores while reading input, but one also attends only to a selected subset of tokens. For 1 million tokens of input, the model uses only 27 percent of the computation and 10 percent of the memory for stored keys and values that DeepSeek-V3.2 required.</li><li>The model returns reasoning along with its answer. When a request includes tool use, later API requests must include past reasoning traces or the API rejects them. This lets reasoning persist across calls.</li><li>DeepSeek Harness treats models, tools, skills, sessions, sandboxes, storage, loops, scheduling, and user interfaces as configurable, swappable plugins. It logs everything the model ingests, such as system prompts, reasoning, tool calls and results, subagent scheduling, and context injection, so any session can be resumed, forked, searched, or replayed. Its minimal mode, which gives a model only a shell and file editor, is the setting DeepSeek used for its coding-agent benchmarks. It is built on a plugin kernel called Cordis, and&nbsp;DeepSeek and Peking University described its design in a&nbsp;<a href="https://github.com/cordiverse/paper/blob/main/paper.pdf" rel="noopener noreferrer" target="_blank">paper</a>.</li><li>DeepSeek’s API accepts requests in OpenAI’s Responses format, so OpenAI’s Codex coding agent can use DeepSeek models after running a setup script. This makes migrating from OpenAI models easier.</li></ul><p><strong>Performance:</strong>&nbsp;Independent evaluators found that DeepSeek-V4-Pro-0813 made large gains over its April preview, but held only a narrow lead over DeepSeek’s smaller Flash model. DeepSeek-V4-Pro-0813 debuted at third place in overall intelligence among open-weights models, but is roughly 10 points behind the best proprietary models on Artificial Analysis’ Intelligence Index. Its clearest improvement is in coding capability. The model’s&nbsp;cost per task remains a fraction of most proprietary leaders’, but after price cuts, OpenAI’s nearly equally capable GPT-5.6 Luna now costs less per task.</p><ul><li>On the Intelligence Index, a composite of nine evaluations of economically useful tasks, DeepSeek-V4-Pro-0813 set to max reasoning (53 points, $0.25 per task) jumped eight points from its April preview set to max reasoning (45 points, $0.05 per task) and a point above DeepSeek-V4-Flash-0731 set to max reasoning (52 points, $0.11 per task). It trails 10 models on the index, including Gemini 3.7 Flash set to high reasoning (57, $0.40). It outperforms GPT-5.6 Luna set to max reasoning (52, $0.05 per task), but GPT-5.6 Luna is the rare&nbsp;model that costs less than the updated DeepSeek-V4-Pro or Flash per task.</li><li>In DeepSeek’s tests, which used max reasoning and DeepSeek Harness’s minimal setup, DeepSeek-V4-Pro-0813’s largest gains stemmed from coding-agent tasks.&nbsp;On Terminal-Bench 2.1 (multistep tasks in a command-line environment), it rose from 72.1 percent to 87.9 percent; on DeepSWE (resolving difficult software-engineering issues), it rose from 12.8 percent to 62.7 percent; and on CyberGym (finding software vulnerabilities), it rose from 52.7 percent to 83.3 percent, just ahead of Claude Fable 5 set to max reasoning with fallback (83.1 percent).</li><li>Independent evaluations that used DeepSeek-V4-Pro-0813 with other harnesses showed lower performance on Terminal-Bench 2.1. Vals AI, which uses their internal evaluation harness, measured the model at 54.68, and Artificial Analysis, which uses the open-source Terminus 2 harness, measured the model at 78.7 percent.</li></ul><p><strong>Behind the news:</strong>&nbsp;DeepSeek recently released an&nbsp;<a href="https://x.com/deepseek_ai/status/2090730032574631962" rel="noopener noreferrer" target="_blank">experimental version</a>&nbsp;of DeepSeekV4-Flash with vision capabilities. The company has not announced plans for a similar vision-language version of DeepSeekV4-Pro.</p><p><strong>Why it matters:</strong>&nbsp;DeepSeek published the harness it used to benchmark its models, which few companies do. Agentic performance is a joint function of the model and its scaffolding, so a published harness is the difference between numbers that a developer can only read and those they can reproduce. The harness is also MIT-licensed and model-agnostic.</p><p><strong>We’re thinking:</strong>&nbsp;The agentic harness market is getting crowded! Although it’s an open-source release, some users may be skeptical of putting DeepSeek Harness into production before it receives a thorough evaluation from security experts, plus benchmarks when running other models besides DeepSeek’s. Let’s hope we see solid third-party testing — followed by developer experiments and modifications — soon.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/ZMsaFoMb6_PD2qgqJ9F6IYSHXucx_7lGbFvYiyD2fQU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU0VMRkdDLTEud2VicA" class="kg-image" alt="Illustrated process of context management, highlighting context editing before sending to LLM input." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/kLgMWmQgYLzfkD5saQHffI2mzge2sIilXuo5t3lTnMc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1NFTEZHQy0xLndlYnA 600w, https://imgproxy.citrusreader.com/rdJKnhqWVpUlcTYW91hvvFtQDd2g0Xl7XIa7kr5YRCs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9TRUxGR0MtMS53ZWJw 1000w, https://imgproxy.citrusreader.com/ZMsaFoMb6_PD2qgqJ9F6IYSHXucx_7lGbFvYiyD2fQU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU0VMRkdDLTEud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="llms-take-out-the-agents%E2%80%99-trash">LLMs Take Out the Agents’&nbsp;Trash</h1><p>AI agents typically compact the contents of their context windows by summarizing or deleting the oldest material. Researchers devised a method that manages an agent’s memory more selectively.</p><p><strong>What’s new:</strong>&nbsp;Xubin Hao and colleagues at the social-shopping site Xiaohongshu (also known as RedNote) built&nbsp;<a href="https://arxiv.org/abs/2607.00692" rel="noopener noreferrer" target="_blank">self-governing context</a>&nbsp;(Self-GC). Like familiar agentic designs, Self-GC builds up a context of inputs and outputs that includes user requests and tool calls as well as results like URLs and file paths. Unlike typical compacting algorithms, a large language&nbsp;model&nbsp;decides which parts of the context to keep, trim, or throw away before sending it to the associated LLM.</p><p><strong>Key insight:</strong>&nbsp;Rules based on types or shelf lives of inputs and outputs aren’t sufficient to enable an agent to decide which contextual information it should retain. An older tool output may hold the only copy of a URL that must be reopened later, while a recent output may have become outdated. An LLM can make such judgments in a more flexible way, because it can read the information available as the context accrues and decide which details are likely to be useful later.</p><p><strong>How it works:</strong>&nbsp;When input tokens fill more than 30 percent of the primary LLM’s context window, Self-GC sends the history to a planner model (by default, Qwen3.6-Plus) and asks what to do with each user request or&nbsp;tool call, plus&nbsp;their results.</p><ul><li>The planner can retain these items or pick one of three actions. (i) “Fold” sets an item aside. Its content moves to separate storage, and a short note describes its location so the agent can bring it back word-for-word if necessary. (ii) “Mask” shortens an item in place, keeping its opening and closing text while cutting repetition in the middle, which suits long logs. (iii) “Prune” deletes items the task no longer needs, such as logs of failed commands.</li><li>Self-GC first carries out the planned actions on a copy of the history, discarding any action that may interfere with the most recent request or the agent's ongoing response to it. Then it measures how many input tokens the remaining actions would save.</li><li>Self-GC shortens the history only if it estimates that it would reduce the cost of running the model on future calls including savings from using cached inputs. In practice, they found that the plan was worth applying if it shortened the history by at least 30 percent, so they used that heuristic in their tests.</li></ul><p><strong>Results:</strong>&nbsp;The authors tested Self-GC on an agent that browses the web, runs shell commands, and edits documents for Xiaohongshu users. They compared it to methods that follow fixed rules&nbsp;such as deleting the oldest messages or deleting the tool outputs. Self-GC removed less history, but it was far less likely to lose useful information. To measure this, the authors replayed completed conversations between real-world users and its agent. For each conversation, they stopped partway through, ran Self-GC on the history up to that point, and used GPT-5.5&nbsp;to judge whether the shortened history still held every detail the real-world conversation went on to use.</p><ul><li>On a set of 33 conversations deemed to be especially demanding, Self-GC removed 43.95 percent of input tokens and kept the necessary details 84.85 percent of the time. The rule-based methods removed&nbsp;61.90 to 69.87 percent of tokens and kept the necessary details 54.55 to 69.70 percent of the time.</li><li>On a larger set of 332 conversations, Self-GC removed 31 to 34 percent of input tokens while keeping the necessary details 91.27 to 94.58 percent of the time across three different planner models (Qwen3.6-Plus, Qwen3.7-Max, and GLM-5.1), showing that Self-GC can be effective with a variety of LLMs. The rule-based methods removed&nbsp;40.19 to 47.76 percent of tokens while keeping the necessary details 77.71 to 87.46 percent of the time.</li><li>Running live on some real-world user accounts, Self-GC removed&nbsp;10 to 15 percent of input tokens compared to accounts that did not use it.</li></ul><p><strong>Yes, but:</strong>&nbsp;The authors’ evaluation tested Self-GC’s ability to retain important details, but not its ability to produce good output. The output of a system that uses a shortened context may contain the same details and output as that of of a full-context system, but it may not be as useful.</p><p><strong>Why it matters:</strong>&nbsp;Reducing&nbsp;context to save cost carries the risk that a model may forget a detail that’s required later. Knowing what to keep, trim, and remove enables long-running agents to be affordable without becoming forgetful.</p><p><strong>We’re thinking:</strong>&nbsp;John McCarthy, who coined the term artificial intelligence, invented “garbage collection” for computers around 1959 so programmers would not have to manage computer memory by hand. The need to properly manage agent memory is another way in which LLMs can be treated like an&nbsp;<a href="https://www.deeplearning.ai/courses/llms-as-operating-systems-agent-memory" rel="noopener">operating system</a>&nbsp;— and another way software engineering fundamentals are essential to building good AI applications!</p>

2026/8/28
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Anthropic’s Watermarks, Grok 4.6 Surges, Qwen’s Open Weights, Better Corrections for Speech Recognition

<figure><img src="https://imgproxy.citrusreader.com/HF_GTc_8_biaLXWVorXj-RBIgC5KYfhWGS8swmNtJa8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQnVpbGRpbmctYW5kLURlcGxveWluZy0tQm9yZGVyLS0yLndlYnA" alt="Anthropic’s Watermarks, Grok 4.6 Surges, Qwen’s Open Weights, Better Corrections for Speech Recognition" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: I previously wrote about our AI Engineering Skills Map, with the highest level skills being (i) Building and...</blockquote> <p>Dear friends,</p><p>I previously&nbsp;<a href="https://www.deeplearning.ai/the-batch/the-ai-engineering-skills-map" rel="noopener">wrote</a>&nbsp;about our AI Engineering Skills Map, with the highest level skills being (i) Building and deploying AI applications, (ii) Software engineering fundamentals, (iii) Using coding agents, and (iv) Shaping the build. In this letter, I will flesh out the first of them. </p><p>Being skilled at building and deploying AI applications means knowing:</p><ul><li>LLM foundations</li><li>Grounding models with data</li><li>Building agentic systems</li><li>Evaluation-driven development</li><li>Operating in production</li><li>Machine learning foundations</li></ul><p>This map of skills was formed by analyzing a large number of job postings, structured expert interviews, and survey responses.</p><p>The key difference between AI applications and non-AI software is that the former’s output is less predictable. You don’t know in advance what an LLM will output, or what predictions a supervised learning algorithm will make. Because of this uncertainty, building AI systems is a much more iterative process than building traditional software — it is harder to plan the process in advance. Skilled AI engineers repeatedly build a piece of software, examine it, and decide what to try next, taking a sequence of steps that are highly influenced by the intermediate results. Being able to skillfully decide what to do next allows you to create reliable software systems based on unreliable AI components. This requires knowing:</p><p><strong>LLM foundations.</strong>&nbsp;Understanding how large language models tokenize input and generate output allows you to understand when to count on them and when they may fail. It also allows you to understand when to use a multimodal model, how to make tradeoffs on what to include in the context window, and reason about cache hits, knowledge cutoff, reasoning effort level, sampling parameters, and when to use special features such as tool calling. Understanding these foundations helps you choose the right model or mix of models and apply specialized techniques when needed, such as fine-tuning or self-hosting models.</p><p><strong>Grounding models with data.</strong>&nbsp;LLMs require good input context to produce useful outputs. RAG using vector search was an early attempt to give LLMs relevant context, but the set of techniques for grounding models with data has grown significantly. For example, you will have to decide what to include in a prompt vs. what to let an LLM retrieve on demand using tools, and which representation fits the data and search queries: a vector index, a knowledge graph, or a semantic layer over structured data (such as customer records). You’ll also turn documents (text, PDFs, HTML, images) into LLM-ready inputs and engineer pipelines to keep data clean and fresh. When you understand the menu of techniques available to get data, you are better able to give your LLM relevant context.</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/b-R8Xcr4pTV9yQiL1DsR7urq6v877oDbLjxmW1p0UrY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQnVpbGRpbmctYW5kLURlcGxveWluZy0tQm9yZGVyLS0yLTEud2VicA" class="kg-image" alt="Building and Deploying AI Applications (a graph with multiple nodes)" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/KQIVvBhr8h6nM-jzwiF7HPVeoiY13NA2MkAuNUS-5H8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0J1aWxkaW5nLWFuZC1EZXBsb3lpbmctLUJvcmRlci0tMi0xLndlYnA 600w, https://imgproxy.citrusreader.com/1enKih1a5jjt6NDVXMc7C9gq21Jx4dqc9YUkB5lZKdU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9CdWlsZGluZy1hbmQtRGVwbG95aW5nLS1Cb3JkZXItLTItMS53ZWJw 1000w, https://imgproxy.citrusreader.com/b-R8Xcr4pTV9yQiL1DsR7urq6v877oDbLjxmW1p0UrY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQnVpbGRpbmctYW5kLURlcGxveWluZy0tQm9yZGVyLS0yLTEud2VicA 1200w" referrerpolicy="no-referrer"></figure><p><strong>Building agentic systems.</strong>&nbsp;Agentic systems range from workflows that execute a predefined sequence of LLM calls to ones based on an agent harness that lets an LLM repeatedly decide its own next step. You’ll have to choose the architecture — what steps to chain, what to parallelize, when to use code and when to use an LLM — and engineer the workflow or harness, with fallbacks. When designing the agent loop, you will also decide what tools the model can call (including MCP, CLI and sandbox execution environments), what memory architecture to use, how to manage context over long sessions, and when a task needs multi-agent orchestration instead of a single-agent architecture. You’ll also want to turn promising prototypes into reliable, safe and secure agents for production; this requires understanding guardrails, adversarial inputs, and identifying and working around key risks (such as data exfiltration), and governance.</p><p>Agentic workflows are evolving rapidly, and you will also benefit from understanding any cutting-edge techniques relevant to your application area, such as voice agents, computer-use agents, or generative UI.</p><p><strong>Evaluation-driven development.&nbsp;</strong>In my experience, the most important trait that distinguishes someone great at building AI systems is whether you can drive a disciplined evals/error analysis loop to drive development. This allows you to repeatedly focus your effort on directions that are more likely to be fruitful. I’ve found this to be a tricky skill to master, because the right approach varies significantly by project and even according to the stage of the project.</p><p>Building good evals is a deep technical skill. You might look at a system’s traces and outputs, carry out exploratory data analysis, and combine that with product and business insight to decide what to measure. You should also understand the menu of options for evals, such as when to use deterministic (code-based) evaluations, when to use an LLM-as-a-judge, and when to have a human in the loop, and how to evaluate your evals so as to keep evolving them. These evaluations then feed into an iterative process that drives further development, and makes progress systematic rather than random.</p><p><strong>Operating in production.&nbsp;</strong>Operating AI software is different from traditional software because of its unpredictability, cost, and latency. First, you should know how to build observability mechanisms to understand the system’s performance on real usage. You’ll track performance, detect drift, and respond quickly to model failures and security incidents such as adversarial prompt injections. Putting in place regression testing and CI/CD requires more statistical evaluations than traditional software, and the testing effort should be calibrated relative to the risk of a mistake. Additionally, it’s important to know how to select the right mix of techniques — such as model choice optimization, distillation and fine-tuning, and agentic workflow simplifications — to optimize for cost and latency, especially if your application reaches many users.</p><p><strong>Machine learning foundations.</strong>&nbsp;Modern LLMs are built using machine learning techniques including supervised learning and reinforcement learning. Every engineer I know that’s good at building with LLMs also understands machine learning and deep learning at some depth. Additionally, many applications still require knowing how to use machine learning – either a model someone else trained or one you train yourself. This requires knowing the popular machine learning and deep learning models and tradeoffs in accuracy, training speed, inference speed, and so on, and understanding how to engineer the data needed to train and evaluate these models. The machine learning concepts of bias/variance, error analysis, and engineering your data — all of which are core mental frameworks for navigating how to work with systems with uncertain output — also remain key to making a wide range of decisions in AI system development.</p><p>There is a lot to learn to become good at building and deploying AI systems. This is a field with significant technical depth. But every bit you learn will help you become better at AI Engineering and build more exciting applications. A strong complement to these skills is software engineering. I will write more about this in the next letter.</p><p>Keep building!</p><p>Andrew&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/iRp20eWZsuMpeZqe--IIPGA1LrXlucUeZuG560jqrlk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQmF0Y2gtQWQtLS1Ta2lsbHMtTWFwLUxpZ2h0LU1vZGUud2VicA" class="kg-image" alt="AI Engineering skills map illustrating key areas: building AI applications, software fundamentals, coding agents." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/EskbRYUDkRZ8150gjIHyoEjbNcUrWTs-V9HzVuublyo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0JhdGNoLUFkLS0tU2tpbGxzLU1hcC1MaWdodC1Nb2RlLndlYnA 600w, https://imgproxy.citrusreader.com/mp2hAOrFTZreM8c36ztzhaLB6_8FMq9tQePs5lY1XXg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9CYXRjaC1BZC0tLVNraWxscy1NYXAtTGlnaHQtTW9kZS53ZWJw 1000w, https://imgproxy.citrusreader.com/iRp20eWZsuMpeZqe--IIPGA1LrXlucUeZuG560jqrlk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQmF0Y2gtQWQtLS1Ta2lsbHMtTWFwLUxpZ2h0LU1vZGUud2VicA 1200w" referrerpolicy="no-referrer"></figure><p>We’re continuing to update the&nbsp;AI Engineering Skills map, and we’d love&nbsp;your input. Tell us more about what real AI engineers need to know to do their jobs. Complete&nbsp;the five-minute survey&nbsp;<a href="https://8sijzx7m4dp.typeform.com/to/YHqoolF9" rel="noopener noreferrer" target="_blank">here</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/7QWiyEjGgjclU72V0rj2y0xbx3aDSZQtdJmoNH_sOeU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR1JPSzQuNi53ZWJw" class="kg-image" alt="The table compares model metrics; Grok 4.6 excels in GDPVal-AA v2 and CursorBench v3.2." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/jvmfmHvgN4mjmLmYO_tyfN_64lcCVdULGuy-Zdj26TQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0dST0s0LjYud2VicA 600w, https://imgproxy.citrusreader.com/GdBGKKhg9Wwtw1ZYou23_a_YCIZxuhEagwRfAPv1hms/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9HUk9LNC42LndlYnA 1000w, https://imgproxy.citrusreader.com/7QWiyEjGgjclU72V0rj2y0xbx3aDSZQtdJmoNH_sOeU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR1JPSzQuNi53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="grok%E2%80%99s-cursor-alliance-pays-off">Grok’s Cursor Alliance Pays Off</h1><p>Once a lab that produced mid-tier models, SpaceXAI has steadily improved. It just built one of the most capable models in the world&nbsp;while keeping prices relatively low.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;SpaceXAI introduced&nbsp;<a href="https://x.ai/news/grok-4-6" rel="noopener noreferrer" target="_blank">Grok 4.6</a>, a vision-language model developed with Cursor and aimed at long-running agentic work. It’s available to developers now via the API, in Grok Build and Cursor, and is due in the consumer Grok apps later.</p><ul><li><strong>Input/output:</strong>&nbsp;Text and images in (up to 500,000 tokens), text out (<a href="https://docs.x.ai/developers/grok-4-6" rel="noopener noreferrer" target="_blank">no limit</a>, 58.4 tokens per second)</li><li><strong>Knowledge cutoff:</strong>&nbsp;February 1, 2026</li><li><strong>Features:</strong>&nbsp;Adjustable reasoning levels (low, medium, high, xhigh — defaults to high reasoning), function calling, web search, X search, sandboxed code execution, a fast variant at double price</li><li><strong>Architecture:</strong>&nbsp;Roughly 1.5 trillion parameters</li><li><strong>Performance:</strong>&nbsp;Tied for third on Artificial Analysis’ Intelligence Index (61), second on GDPval-AA v2 and AA-Briefcase (1,577 Elo), top score on GPQA Diamond (94.9 percent)</li><li><strong>Availability/price:</strong>&nbsp;Via Cursor, Grok Build coding agent, Microsoft Office add-ins, GitHub Copilot, via API at $2.00/$0.50/$6.00 per million input/cached/output tokens with higher rates for requests beyond 200,000 tokens, fast mode $4.00/$1.00/$12.00 per million input/cached/output tokens</li><li><strong>Undisclosed:&nbsp;</strong>Architecture details, active parameter count, details of training data and methods&nbsp;</li></ul><p><strong>How it works:</strong>&nbsp;Grok 4.6 is the latest model in SpaceXAI’s 1.5-trillion-parameter model family, building on Grok 4.5. SpaceXAI credits gains in performance to longer training on curated data, followed by fine-tuning on data generated by Grok 4.5 and reinforcement learning on agentic tasks. The training data included anonymized coding-agent data from Cursor, which included use of non-Grok models.</p><ul><li>The company pretrained the model on publicly available, internal, and licensed data. A further round of supplemental pretraining ran longer than Grok 4.5’s equivalent stage and used what the company calls an improved optimizer and training recipe. This data included synthetic data selected for reasoning, advanced technical concepts, and software engineering data to establish a stronger foundation for later fine-tuning.</li><li>The company used Grok 4.5 to generate new training examples for fine-tuning, including transcripts of a model working through tasks. Grok 4.5 generated these transcripts for reasoning traces, agent harnesses, and tasks in STEM, software engineering, and knowledge work. Model-based filters removed flawed examples before Grok 4.6 trained on them.</li><li>The company used human and synthetic reward signals for further reinforcement learning to fine-tune the model on knowledge work and coding tasks. It also used reinforcement learning to train the model in simulated environments for writing low-level GPU code (kernel optimization), building websites, and computer-aided design.&nbsp;</li></ul><p><strong>Performance:</strong>&nbsp;Grok 4.6 improved its performance on both self-reported and independently measured benchmarks, rising to near the top of the leaderboards. On many benchmarks, Grok 4.6 rivals Claude Opus 5 and GPT-5.6 Sol and does so at a lower cost per task.</p><ul><li>On Artificial Analysis’&nbsp;<a href="https://artificialanalysis.ai/articles/grok-4-6-benchmarks-and-analysis" rel="noopener noreferrer" target="_blank">Intelligence Index</a>, a composite of nine evaluations of economically useful tasks, Grok 4.6 set to high reasoning (61, $0.84 per task) ties for third place with GPT-5.6 Sol set to max reasoning ($1.23 per task).It jumps 5 points but more than doubles the price per task of its predecessor, Grok 4.5 set to high reasoning (56, $0.36 per task). Grok 4.6 ranks just ahead of Kimi K3 set to max reasoning (60, $0.84 per task) and just behind Claude Fable 5&nbsp;set to max reasoning fallback (62, $3.14 per task).</li><li>On GPQA Diamond, a test of graduate-level biology, physics, and chemistry questions, Grok 4.6 achieved 94.9 percent, the highest score among models that Artificial Analysis has tested.</li><li>On Terminal-Bench 2.1, a test of command-line coding tasks, Grok 4.6 (88.4 percent) ranked third behind GPT-5.6 Sol set to xhigh reasoning (89.5 percent) and Claude Opus 5 set to max reasoning (89.1 percent).</li><li>On AA-Briefcase, Artificial Analysis’ private benchmark of four multi-week knowledge-work projects that require an agent to use thousands of files across many turns to generate deliverables such as spreadsheets, presentations, and memos, Grok 4.6 set to high reasoning (1,577 Elo) trailed only Claude Opus 5 set to max reasoning (1,715 Elo), and it edged past Claude Fable 5 set to max reasoning with fallback (1,574 Elo). Grok 4.6 reached its results in about half the turns and one quarter of the input tokens as Claude Opus 5. Likewise, on GDPval-AA v2, which tests a model’s ability to generate a single deliverable such as a document or spreadsheet, Grok 4.6 set to high reasoning (1,746 Elo) trailed only Claude Opus 5 set to max reasoning (1,849 Elo).</li><li>On τ³-Bench Banking, a test in which an agent resolves customer requests by searching policy documents and using tools, Grok 4.6 set to high reasoning (50.7 percent of tasks passed) trailed only Qwen3.8-Max (51.3 percent).</li></ul><p><strong>Behind the news:</strong>&nbsp;Grok 4.6 is the second model to come out of a partnership that led to an acquisition. In April, Cursor agreed to train its models on SpaceX’s Colossus supercomputer, a deal that gave SpaceX an option to buy the company. Cursor’s coding-agent data and SpaceXAI’s computation yielded results almost immediately: Grok 4.5, jointly trained with Cursor and introduced in July, lifted Grok 4.3 from 38 points on Artificial Analysis’ Intelligence Index to 56 points. SpaceX exercised its option in June, and the roughly $60 billion all-stock acquisition closed on August 14, days after Grok 4.6 launched. Three days later, Cursor introduced&nbsp;<a href="https://cursor.com/changelog/origin-code-hosting" rel="noopener noreferrer" target="_blank">Origin</a>, a code hosting service comparable to GitHub&nbsp;designed to handle the higher volume of code that agents generate.&nbsp;</p><p><strong>Why it matters:</strong>&nbsp;Model makers used to tout benchmark scores at launch. Increasingly, they also publicize cost and steps per task. Grok 4.6's clearest advantage over its near competitors is completing long-running work with fewer turns. At the same price per token and task, an agent that finishes in half the turns costs around half as much, which affects what applications are feasible to build with that model.</p><p><strong>We’re thinking:</strong>&nbsp;The Cursor team brought data and technical expertise to SpaceXAI, and deserves credit for supporting Grok's rapid rise in model capability. Let’s hope Grok’s continued progress and aggressive pricing makes other top labs follow suit to keep per-token prices in check.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/uFFrv77_Scf1mRIY2ijXok4aKwXf67E08VYoZOsNTHg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvRWRpdG9yaWFsX0F1ZzIwXzEyMDBweC53ZWJw" class="kg-image" alt="Two people analyze a computer screen displaying pi digits with &quot;HELLO FROM PI&quot; highlighted." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/tFTI8AsNffw8IaqAmI14pbxPTiR8Pb7kFla2lH1qR68/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0VkaXRvcmlhbF9BdWcyMF8xMjAwcHgud2VicA 600w, https://imgproxy.citrusreader.com/hmh7IeoJw6iCqoMV7WY4v9-jFirW6v3-e6HZry9s120/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9FZGl0b3JpYWxfQXVnMjBfMTIwMHB4LndlYnA 1000w, https://imgproxy.citrusreader.com/uFFrv77_Scf1mRIY2ijXok4aKwXf67E08VYoZOsNTHg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvRWRpdG9yaWFsX0F1ZzIwXzEyMDBweC53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="how-claudes-watermarks-work">How Claude's Watermarks Work</h1><p>Anthropic&nbsp;introduced invisible, machine-readable signals that text and images were generated by Claude.</p><p><strong>What’s new:&nbsp;</strong>The marks will be&nbsp;<a href="https://support.claude.com/en/articles/16266773-how-claude-marks-ai-generated-content" rel="noopener noreferrer" target="_blank">deployed</a>&nbsp;worldwide in all Claude models launched after August 2, 2026. The company said the watermarks are necessary in order&nbsp;to comply with the European Union’s AI Act.</p><p><strong>How it works:</strong>&nbsp;Anthropic will generate a digital watermark – a hidden, coded signature that is used to identify AI-generated content – for generated text and a metadata credential for edited images. The policy applies to all forthcoming models and will be phased in for existing models. On August 14, the company added&nbsp;more&nbsp;<a href="https://www.anthropic.com/news/claude-text-watermark" rel="noopener noreferrer" target="_blank">details</a>&nbsp;about its watermarking methods, their limitations, and implications for users.</p><ul><li>Claude’s technique is based on&nbsp;<a href="https://www.nature.com/articles/s41586-024-08025-4" rel="noopener noreferrer" target="_blank">SynthID-Text</a>, a method published&nbsp;by Google researchers in 2024. Typically, language models make low-stakes decisions between alternative words in a sentence. For marked text, a secret, randomized process – called the “seed generator” in the Google paper – subtly nudges the model toward certain word choices as it generates text. Those choices create a pattern that can later be detected by a scoring function, which measures how strongly the text matches the pattern. SynthID-Text gives a statistical score that indicates how strongly a piece of text matches the watermarking associated with its secret key. Anthropic says will release an API that assigns this probability score to submitted text.</li><li>A watermarking signal gives a probability of Claude usage but it is not definitive evidence of generated text. Additionally, false negatives are possible in both watermarking and C2PA. Information created by humans but summarized, translated, condensed, or combined with synthetic information may contain a watermark signal.</li><li>The company said watermarking will not (i) decrease output quality, (ii) be visible to the reader, (iii) require additional tokens or be more expensive, or (iv) have identifying information that could allow text to be traced back to a user.</li><li>The watermarks are designed to be persistent. They survive copying and pasting and some editing. On the other hand, text that is heavily edited or paraphrased and images stripped of their metadata through format conversion may not include the watermark.</li><li>Code and other deterministic text will generally have fewer watermarks. Unlike prose, there is frequently a best choice for code or more exact fields – for example, the correct next character for 2 + 2 = should inevitably be 4. But textual watermarks will still be used in cases where there isn’t a deterministic best choice and in code comments. This makes AI-generated code detectable.</li><li>Claude models do not generate images from scratch but can edit and process images&nbsp;or generate them using code. These images will have a cryptographically signed credential in their metadata. The method, called&nbsp;<a href="https://c2pa.org/" rel="noopener noreferrer" target="_blank">C2PA</a>, helps prove the provenance of an image or video. C2PA is different from a text watermark because, unlike in SynthID-Text, nothing in the content is adjusted. Any software that reads C2PA credentials can identify Anthropic’s, and the company will provide its own checking tool.</li></ul><p><strong>Behind the news:</strong>&nbsp;The announcement received widespread backlash, with many critics saying that watermarking is ineffective, harmful, or a privacy violation for AI users. Proponents argued that distinguishing between AI-generated and human-written text could actually help AI engineers.</p><ul><li>Anecdotally, dozens&nbsp;of Claude users on X&nbsp;<a href="https://www.businessinsider.com/claude-users-cancel-subscriptions-citing-anthropic-new-ai-watermark-2026-8" rel="noopener noreferrer" target="_blank">claimed</a>&nbsp;they canceled their Claude subscriptions. Still, Anthropic said it did not see a measurable increase in cancellations.</li><li>Some users believe subtle adjustments in generated text will deteriorate output quality, despite Anthropic’s assurances to the contrary. Others worry about reputational damage associated with false positives and argue that the watermarking detection lacks nuance around how AI is used. For example, a person who uses Claude for editing assistance could be accused of entirely AI-generated messages; a lawyer could suffer backlash from judges or opposing counsel a flagged legal brief even if the content is accurate. Other professionals have similar worries.</li><li>Some critics&nbsp;<a href="https://www.nature.com/articles/d41586-026-02503-7" rel="noopener noreferrer" target="_blank">contend</a>&nbsp;that watermarking isn’t meaningfully accurate since marked text can potentially be stripped away by passing text through a different AI model, or because one company’s API detector can’t detect text generated by other LLMs. Also, former Microsoft executive Steven Sinofsky&nbsp;<a href="https://x.com/stevesi/status/2087219853740720385" rel="noopener noreferrer" target="_blank">said on X</a>&nbsp;that users should have a “right to private thoughts free of a digital trail.”</li><li>Other critics fear Anthropic will use watermarking to support claims of others copying or distilling their models, as part of Anthropic’s efforts to stymie competitors worldwide.&nbsp;</li><li>Proponents&nbsp;<a href="https://www.pcworld.com/article/3212654/watermarking-ai-text-is-the-right-idea-but-it-wont-stop-ai-slop.html" rel="noopener noreferrer" target="_blank">believe</a>&nbsp;transparency around AI usage is a positive development. Scott Aaronson, a computer science professor whose work laid the groundwork for SynthID-Text,&nbsp;<a href="https://www.axios.com/local/austin/2025/01/22/artificial-intelligence-university-of-texas-scott-aaronson" rel="noopener noreferrer" target="_blank">argued</a>&nbsp;that even if detection methods aren’t perfect, watermarking can help deter scholarly cheating and plagiarism. And some AI researchers have&nbsp;<a href="https://dl.acm.org/doi/10.1145/3785353.3815071" rel="noopener noreferrer" target="_blank">argued</a>&nbsp;that watermarks can be useful to avoid training unknowingly on synthetic content, which can lead to increased bias or model collapse in new generative models.</li></ul><p><strong>Why it matters:</strong>&nbsp;Anthropic isn’t the only company that will have to build&nbsp;a way for generated text&nbsp;to be detectable; it’s just the first mover.&nbsp;<a href="https://artificialintelligenceact.eu/article/50/" rel="noopener noreferrer" target="_blank">Article 50</a>&nbsp;of the EU&nbsp;<a href="https://www.deeplearning.ai/the-batch/europe-pauses-some-ai-regulations">AI Act</a>&nbsp;demands machine-readable watermarks for generated content, including text, image, audio, and video. However, Anthropic chose to apply this globally, rather than only within the EU. Some large AI developers, including OpenAI, Google, Meta, and Microsoft, have also&nbsp;signed the EU’s Code of Practice on Transparency of AI-generated Content, a voluntary framework for demonstrating compliance with the AI Act’s requirements for marking and labelling AI-generated content. These and other companies may use different techniques, and it still remains to be seen if they will implement watermarking only in the EU, or globally.</p><p><strong>We’re thinking:</strong>&nbsp;We’ve long taken the view that harmful use cases of AI should be regulated rather than the technology itself. Anthropic’s watermarking and detection methods are built into the technology, subtly altering generated text. Addressing plagiarism and identifying synthetic content for model builders may be laudable goals, but we anticipate that universal watermarking will prove to be too blunt an instrument, opening a Pandora’s box of issues around privacy, quality of output, and harmful false positives.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/zj3RET7v1l6sXvUL-CthtUG5MtZE5mUCITQx4o6MwtY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvUVdFTjMuOE1BWC53ZWJw" class="kg-image" alt="Graph depicts Qwen3.8-Max's rising score from 0.474 to peak at 0.725 during RL training environments." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/WiXYO-YBL2otoMY6N_YaJ8AhxPuga-v3Fs20EtgSfJA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1FXRU4zLjhNQVgud2VicA 600w, https://imgproxy.citrusreader.com/PJx8dN2hM7oUyq4lZJxRTA6psa3t9rY0zgFktLfptRs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9RV0VOMy44TUFYLndlYnA 1000w, https://imgproxy.citrusreader.com/zj3RET7v1l6sXvUL-CthtUG5MtZE5mUCITQx4o6MwtY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvUVdFTjMuOE1BWC53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="qwen38-max-lands-with-a-bang">Qwen3.8-Max&nbsp;Lands With A Bang</h1><p>Open models are getting larger and more capable. A few weeks ago, Moonshot AI announced Kimi K3, the largest and best-performing open weights model yet. Last&nbsp;week, Alibaba answered by releasing&nbsp;weights for a giant of its own.</p><p><strong>What’s new:</strong>&nbsp;Alibaba first&nbsp;<a href="https://qwen.ai/blog?id=qwen3.8" rel="noopener noreferrer" target="_blank">unveiled</a>&nbsp;Qwen3.8-Max, a 2.4 trillion-parameter vision-language model trained to carry out long-running coding and knowledge work tasks, on August 2. The company released&nbsp;the&nbsp;<a href="https://huggingface.co/collections/Qwen/qwen38" rel="noopener noreferrer" target="_blank">weights</a>&nbsp;of both Qwen3.8-Max and the smaller Qwen3.8-27B within a week. While smaller Qwen releases have been open weights, this is the first Max-tier model with downloadable weights. However, the open weights version of Qwen3.8-Max is limited to text input and output and doesn’t support the full million-token context window.</p><ul><li><strong>Input/output:&nbsp;</strong>Text, image, and video in (up to 1 million tokens), text out (up to 131,000 tokens, up to 262,000 reasoning tokens, 77.6 tokens per second)</li><li><strong>Architecture:</strong>&nbsp;Mixture-of-experts transformer with hybrid attention, 2.4 trillion parameters total, 95 billion active per token</li><li><strong>Features:</strong>&nbsp;Reasoning (none, low, medium, or xhigh, with xhigh as default), reasoning text retained by default, function calling, structured output, prefix completion, context caching</li><li><strong>Performance:</strong>&nbsp;Fifth overall and second among open models on Artificial Analysis’ Intelligence Index (58), first overall on 𝜏³-Banking (51.3 percent), second on Arena.ai’s Vision Arena (1,301 Elo), fourth on Arena.ai’s WebDev Code Arena (1,667 Elo)</li><li><strong>Availability/price:</strong>&nbsp;API on Alibaba Cloud Model Studio at $2.00/$0.25/$6.00 per million input/cached/output tokens, subscription via QwenWork (currently free public beta in China only or&nbsp;via&nbsp;<a href="https://www.scmp.com/tech/big-tech/article/3363656/alibaba-tests-paid-ai-appetite-us30-annual-qwenwork-subscription" rel="noopener noreferrer" target="_blank">subscription</a>&nbsp;in U.S.), weights&nbsp;for Hugging Face and ModelScope under a custom license</li><li><strong>Undisclosed:</strong>&nbsp;Knowledge cutoff, training data and methods</li></ul><p><strong>How it works:</strong>&nbsp;Alibaba has not yet published a technical report or model card for Qwen3.8-Max. The company says the model is built from&nbsp;<a href="https://www.deeplearning.ai/the-batch/alibabas-latest-flagship-models-are-open-weights-moe-performers-in-sizes-from-less-than-1b-parameters" rel="noopener">Qwen3.5</a>, its earlier vision-language model. Alibaba’s release notes for the model highlight reinforcement learning for agentic work and training that teaches the model to visually verify its own output&nbsp;using the model’s vision capabilities.</p><ul><li>Qwen3.8-Max’s mixture-of-experts transformer activates roughly 4 percent of its parameters to process each token. For Qwen3.5, hybrid attention combines standard attention layers with Gated Delta Network layers, a memory-efficient alternative to standard attention; Qwen3.8-Max closely follows&nbsp;that recipe.</li><li>Like Qwen3.5, Qwen3.8-Max&nbsp;processes text and images jointly from the start of pretraining, rather than attaching a vision encoder to a trained language model. Alibaba says this design lets Qwen3.8-Max check rendered output as it plans, executes, and verifies its work.</li><li>Alibaba also introduced&nbsp;<a href="https://www.alibabagroup.com/en-US/document-2021039099929952256" rel="noopener noreferrer" target="_blank">QwenWork</a>, an agentic harness designed to run the model.</li><li>Alibaba fine-tuned Qwen3.8-Max via reinforcement learning in agentic environments, including QwenWork and other harnesses, that scaled along three axes: task length (single, multiple, or multiple days’ worth), workspace complexity (single file, multiple files, or hierarchical folders), and the harness in use (different tools, versions, and installed skills). One reward system graded every output by executing code, judging text and rendered images against rubrics, and inspecting results with agents. A data balancer kept each training batch’s mix of tasks, difficulty, and harnesses even to stabilize training.</li><li>Qwen3.8-Max’s downloadable weights are text-only, and do not include vision input or the 1 million token context window. They are available under a custom&nbsp;<a href="https://huggingface.co/Qwen/Qwen3.8-2.4T-A95B/blob/main/LICENSE" rel="noopener noreferrer" target="_blank">license</a>, similar to the MIT license, but requiring attribution for uses above 100 million monthly active users or $20 million in monthly revenue. Model-as-a-service or coding assistants built on Qwen3.8-Max with revenue over $50 million annually also must seek a separate license.&nbsp;<a href="https://huggingface.co/Qwen/Qwen3.8-27B" rel="noopener noreferrer" target="_blank">Qwen3.8-27B’s</a>&nbsp;weights include the model’s full capabilities and are covered by a standard Apache 2.0 license.</li></ul><p><strong>Performance:</strong>&nbsp;In independent evaluations at launch, Qwen3.8-Max trailed only a handful of top proprietary models and Moonshot AI’s Kimi K3 in overall intelligence. It likewise placed near the top in front-end coding, vision, and agentic work, leaping over Qwen3.7-Max on virtually all benchmarks. But these gains came at a price. The model generated more tokens than its rivals, which drove up its cost per benchmark task completed despite low per-token prices.</p><ul><li>On Artificial Analysis’ Intelligence Index, a composite of nine evaluations of economically useful tasks, Qwen3.8-Max set to reasoning (58, $1.13 per task) jumped 11 points over Qwen3.7-Max set to reasoning (47, $0.54 per task) to fifth overall rank and second among open-weights models. That put it above Claude Opus 4.8 set to max reasoning (57, $2.03 per task) and Muse Spark 1.2 set to xhigh reasoning (57, $0.40 per task) but behind Kimi K3 set to max reasoning (60, $0.86 per task).</li><li>On Artificial Analysis’ 𝜏³-Banking&nbsp;tests of simulated customers' banking requests, Qwen3.8-Max achieved 51.3 percent, the best score of any model tested. On GDPval-AA v2, a head-to-head ranking of models’ work on tasks in economically central fields, Qwen3.8-Max achieved 1,739 Elo, behind only Claude Opus 5 set to max reasoning (1,846 Elo) and Claude Fable 5 set to max reasoning with fallback (1,743 Elo).</li><li>On Arena.ai leaderboards, which rank models by human votes in blind head-to-head comparisons, Qwen3.8-Max debuted fourth (1,667 Elo) on WebDev Code Arena, behind Claude Opus 5 set to max reasoning (1,686 Elo) and Kimi K3 set to max reasoning (1,675 Elo). On Vision Arena, Qwen3.8-Max debuted second (1,301 Elo), behind only Claude Fable 5 (1,315 Elo).</li><li>Qwen3.8-27B is currently&nbsp;<a href="https://artificialanalysis.ai/models/qwen3-8-27b" rel="noopener noreferrer" target="_blank">third</a>&nbsp;among open weight models with an Artificial Intelligence average of 52, comparable with GPT-5.6 Luna, and behind only . It is easily the most capable&nbsp;model capable that can currently run&nbsp;locally&nbsp;on a consumer machine.</li></ul><p><strong>Behind the news:</strong>&nbsp;Qwen 3.8-Max’s downloadable weights mark a strategic shift from Alibaba’s recent practice of keeping its most capable models to itself. Since the Max line began in January 2025, the company has offered those models, most recently Qwen3.7-Max, through its API and Qwen Chat app while releasing weights only for smaller models like Qwen3.6-27B. In Alibaba’s absence, other labs in China, including Moonshot AI and Z.ai, traded the open weights lead among themselves. Days after Kimi made its K3 model available, Alibaba previewed Qwen3.8-Max at the World AI Conference in Shanghai, before it made the model available via API on August 2. Z.ai&nbsp;followed with&nbsp;<a href="https://docs.z.ai/guides/llm/glm-5.3" rel="noopener noreferrer" target="_blank">GLM-5.3</a> on August 14, a&nbsp;model that netted&nbsp;a 60 average on the Artificial Analysis Intelligence Index.</p><p><strong>Why it matters:</strong>&nbsp;As always, open weights gives developers more options, from self-hosting to using Alibaba’s official tools or API. Admittedly, few teams can serve a 2.4 trillion-parameter model themselves, so the payoff will arrive via price-reducing competition among third-party hosting providers and distilled&nbsp;descendants like Qwen3.8-27B. Downloadable weights also let developers shop for better privacy terms, since any provider can serve them, including those that retain no customer data.&nbsp;</p><p><strong>We’re thinking:&nbsp;</strong>It’s disappointing that the open weights version of Qwen3.8-Max doesn’t include the full capabilities of the Alibaba API version, but Qwen3.8-27B on a laptop is a fun consolation prize — even if it does seem to overthink things sometimes.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/-VEl0XdmNFwEIEWCOJiEPI8gor9Dx-9GvZNiMxESbtw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQUdFTlRBU1Iud2VicA" class="kg-image" alt="Visual contrasts error correction between human dialogue, traditional ASR, and interactive ASR paradigms." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/PuOEUCK2em4jtxZxxuEAjbqOeG3k1kr4l7sikkmHFQo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0FHRU5UQVNSLndlYnA 600w, https://imgproxy.citrusreader.com/iV6_gHR4Wz1scdQPWOmu0pjj8g0xBq19DWAavn9MlLI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9BR0VOVEFTUi53ZWJw 1000w, https://imgproxy.citrusreader.com/-VEl0XdmNFwEIEWCOJiEPI8gor9Dx-9GvZNiMxESbtw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQUdFTlRBU1Iud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="agents-come-to-speech-recognition">Agents Come to&nbsp;Speech Recognition</h1><p>Most speech-to-text systems transcribe speech in a single pass, which makes them unable to correct errors in their outputs. Researchers built a system that allows for interactive corrections.</p><p><strong>What’s new:</strong>&nbsp;Zixuan Jiang, Yanqiao Zhu, Peng Wang, and colleagues at Shanghai Jiao Tong University, Zhejiang University, Fudan University, and Xiaoice, a Microsoft spinoff, devised a workflow that pairs an automatic speech recognition (ASR) engine with an LLM that attempts to detect and correct transcription errors at every conversational turn. They call it&nbsp;<a href="https://arxiv.org/abs/2605.29430" rel="noopener noreferrer" target="_blank">Agentic ASR</a>.&nbsp;</p><p><strong>Key insight:</strong>&nbsp;Automatic speech recognition systems often manage mistakes by pairing a speech-to-text model with an LLM that rewrites its output. But correcting that system simply appends&nbsp;the user’s request for a correction to&nbsp;the existing transcription. Asking an LLM to rewrite a transcript from scratch risks introducing new errors, especially where the words spoken are idiosyncratic (for instance, the name Megan instead of Morgan). The LLM can more successfully&nbsp;revise the transcription if it divides the correction process into three steps: find the error, understand what the user said, and apply a fix. This approach enables the LLM to act more like an editor than a rewriter.&nbsp;</p><p><strong>How it works:</strong>&nbsp;Agentic ASR treats transcription as a multi-turn&nbsp;process of refinement, in which users can dictate and then confirm or correct the transcription in further turns.</p><ul><li>Given input speech, a speech-to-text engine (Qwen3-ASR-1.7B) generated its best guess at what the user said, and an LLM (Qwen3-32B) refined the guess using the transcribed output so far.</li><li>The LLM classified the input into one of three intents: (i) confirmation (the user accepted the current state), (ii) new input (the user wanted to add to the transcription), or (iii) correction (the user wanted to alter the transcription).</li><li>Confirmation or new input didn’t change the earlier transcription, but correction did. In that case, the LLM identified the span to edit, decided what the user wanted to change (for example “No, I meant Megan, not Morgan”), and applied the edit.</li></ul><p><strong>Results:&nbsp;</strong>The authors evaluated the workflow on multilingual speech-to-text benchmarks. Such benchmarks don’t include examples of corrections to output transcripts, so the authors used an LLM and text-to-speech engine to simulate a user dictating and then correcting the output text.</p><ul><li>The authors proposed a metric called S²ER that measures the proportion of transcription attempts that fail to preserve the speaker's intended meaning, which Qwen3-32B judged based on a ground-truth transcription. They compared the S²ER at 0 turns (equivalent to comparing against Qwen3-ASR-1.7B directly transcribing the speech) to the S²ER after the simulated user interacted with their system for 10 turns. Multi-turn interaction consistently reduced semantic errors across all benchmarks. Most gains appeared in the first few turns.</li><li>On the GigaSpeech benchmark, the authors’ method improved S²ER from 21.5 percent at turn 0 to 3.5 percent after 10 turns, while word error rate improved modestly from 11.9 percent to 10.4 percent.</li><li>On AISHELL-NER, which includes lots of names, dates, and the like, the authors method dramatically improved S²ER&nbsp;from 19.9 percent to 2.0 percent while cutting the Named-entity Error Rate from 2.4 percent to 1.2 percent.</li><li>On ASRU2019, whose examples mix languages (for instance, English and Mandarin), the authors’ method decreased S²ER from 28.6 percent to 1.4 percent and improved Mixed Error Rate (which combines word error rate for English with character error rate for Mandarin) from 6.6 percent to 3.3 percent.</li></ul><p><strong>Why it matters:</strong>&nbsp;Many systems that accept voice input need to understand the user’s intent, not every word spoken. Agentic ASR does this very well, and when every word counts, it makes speech-to-text more robust in a natural way. This capability gains importance as&nbsp;UIs that depend on voice input become more widely used.</p><p><strong>We’re thinking:</strong>&nbsp;The workflow of decomposing corrections into identifying where to edit, understanding what to change, and applying the change looks like a potential blueprint for interactive tasks such as editing documents, reviewing code, and iterating on a design.</p>

2026/8/21
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Meta’s Play for Coding Data, Google Robotics Multi-Embodiment, MiniMax’s Open Video Model (With an Asterisk)

<figure><img src="https://imgproxy.citrusreader.com/KC-GrOFWgs4CewLAIExVtIOYXYB7gXiwqBThfFGilvc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU2tpbGxzLU1hcC0yLTEud2VicA" alt="Meta’s Play for Coding Data, Google Robotics Multi-Embodiment, MiniMax’s Open Video Model (With an Asterisk)" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: I am delighted to present The AI Engineering Skills Map.</blockquote> <p>Dear friends,</p><p>I am delighted to present The AI Engineering Skills Map. AI allows us to build software very differently today than in 2022, and everyone with the skills to take advantage of this shift has numerous exciting project and job opportunities. But with the noisy, hype-filled, information environment around AI, what are the most valuable skills for you to learn? I have been working with my team to synthesize a map of AI engineering skills in order to help (i) developers prioritize what to learn, and (ii) employers hire skilled developers.</p><p>Based on an analysis of over 10,000 job postings;&nbsp;carrying out dozens of structured interviews with AI experts, hiring managers, and recruiters; gathering data through surveys; and synthesizing other online data, here are the four most important AI engineering skills:</p><ul><li>Building and deploying AI applications</li><li>Software engineering fundamentals</li><li>Using coding agents</li><li>Shaping the build</li></ul><p>You can informally think of our process as akin to clustering on a massive dataset of jobs and expert interviews to identify the most important skills, not just today but also in the near future.</p><p>&nbsp;</p><p>A note on terminology: I talk about AI Engineering skills rather than the “AI Engineer” role (someone whose job is to build AI systems), because the former is much broader. All developers today should know how to work with the cloud, and only a smaller number have a “Cloud engineer” title. Similarly, all developers — full-stack engineers, data engineers, DevOps engineers, machine learning engineers, and, yes, AI engineers — will need AI engineering skills.</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/f73RNc33eV0x7EMYFE1hcfBmsgIBnFdOLCCrZthGGE4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU2tpbGxzLU1hcC0yLTIud2VicA" class="kg-image" alt loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/HLbJ4UyCAIYPHjbW1VnvDHwjxJCj7tImUfpwJC45Jq0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1NraWxscy1NYXAtMi0yLndlYnA 600w, https://imgproxy.citrusreader.com/Ovt1zJi7sfPangdZv7OkTniQTd9OgxMpDOA7QcC7EgI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9Ta2lsbHMtTWFwLTItMi53ZWJw 1000w, https://imgproxy.citrusreader.com/f73RNc33eV0x7EMYFE1hcfBmsgIBnFdOLCCrZthGGE4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU2tpbGxzLU1hcC0yLTIud2VicA 1200w" referrerpolicy="no-referrer"></figure><p><strong>Building and deploying AI applications</strong>. The key difference between AI and non-AI applications is that the former has unpredictable outputs. When you prompt an LLM, you don’t know what you’ll get back. When you train a deep learning algorithm, you don’t know what prediction it will make on new examples. In contrast, traditional software behaves more predictably.</p><p>People who are skilled at building and deploying AI applications understand the building blocks of AI (such as LLMs, context engineering, RAG, agentic workflows, machine learning and deep learning) and, importantly, how to use statistical techniques to measure, steer, and govern AI systems so that they behave more predictably. A core skill in doing so is knowing how to drive disciplined evals and error analysis loops.&nbsp;</p><p><strong>Software engineering fundamentals.</strong>&nbsp;When you deeply understand how software works, you can build much more effectively. Engineering software requires making tradeoffs between cost, scalability, reliability, speed, and more. Security and privacy add further complexity.</p><p>Understanding software fundamentals allows you to recognize what tradeoffs even exist. This leads to better decisions in choosing your software stack, designing system architecture, designing your data store, testing, and so on. It also leads to much better outcomes than those for an inexperienced developer who vibe codes a solution without knowing the tradeoffs their coding agent is making —&nbsp;which will often be poor ones, because they don’t know what context to give their coding agent. Understanding software engineering fundamentals lets you make good tradeoffs by steering coding agents using the precise language of software engineering.</p><p><strong>Using coding agents.</strong>&nbsp;Using agentic coding effectively is now a key skill for every developer. When you have this skill, you have a good mental model for how agents&nbsp;work. You understand their limitations and how to work around them, and are able to quickly steer them — knowing how much to intervene and how much to leave them alone —&nbsp;to build robust software without wasting excessive time or&nbsp;<a href="https://www.deeplearning.ai/the-batch/what-comes-after-tokenmaxxing-how-to-avoid-getting-locked-in-to-just-one-ai-provider" rel="noopener">tokens</a>.</p><p>This requires your knowing how to manage a coding agent’s context, make tradeoffs between planning and execution, and help the agent autonomously close loops by providing verifiers or evals. You also need to know how to work with&nbsp;a clear spec (and when not to bother doing so), orchestrate multiple agents that work together, and avoid pitfalls that risk an agent messing up your&nbsp;production database. Because agentic coding is evolving quickly, using coding agents skillfully means not only knowing cutting-edge practices, but also having routines to keep trying new tools and evolve your workflows as best practices change.</p><p><strong>Shaping the build.</strong>&nbsp;Given a clear spec, coding agents are rapidly improving at delivering to it. Thus, our work as engineers is shifting toward deciding what should be in the spec. Engineers should no longer expect to be given a pixel-perfect design and asked only to implement it. Instead, effective AI engineering requires having product sense and understanding business context and customer goals, so you can participate in shaping and driving the build. &nbsp;</p><p>AI also gives you the opportunity to take on greater ownership and agency than before. You can identify interesting problems and opportunities, and execute to take advantage of them in responsible ways. Taking advantage of this opportunity requires knowing how to drive projects forward. For example, knowing when to quickly build an MVP to take to users for testing, and when to slow down and take longer in order to build more carefully.</p><p>Underlying all these skills is a mindset of continuous learning. AI continues to change quickly, so we must all keep learning and evolving our skills to adopt emerging best practices.</p><p>DeepLearning.AI’s principal focus is to help developers gain these AI engineering skills. I have more to say about each of these four skills, and will flesh out each of them in my next few letters and share a more detailed AI Engineering Skills Map. As I look at where AI Engineering is going, I am incredibly excited about what all of us will be able to build. I hope you will play an exciting role in this future.</p><p>Keep building!</p><p>Andrew</p><p>P.S. As AI evolves, I will keep updating the AI Engineering Skills Map. If you are willing to contribute, please take a few minutes to complete our survey&nbsp;<a href="https://8sijzx7m4dp.typeform.com/to/YHqoolF9" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;It takes around 5-7 minutes to complete, and it will help us to shape this for the community.</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/Rcy1-Y9OY49_0mC0ec23HF7vuX2Lzk0ewQmXwZWECyY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSmV0QnJhaW5zX0VuZENhcmRfMDIud2VicA" class="kg-image" alt="Explore AI coding workflows in new course; control models, run in cloud or local. Enroll now with JetBrains." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/pk3QcJS6TOrX2OcroJsZiFuV70ETJ0W4unOPUoiw2vw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0pldEJyYWluc19FbmRDYXJkXzAyLndlYnA 600w, https://imgproxy.citrusreader.com/cH8-SfH6F1YOxwirLua_C8CUhsC_b97uwevD6582yYg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9KZXRCcmFpbnNfRW5kQ2FyZF8wMi53ZWJw 1000w, https://imgproxy.citrusreader.com/Rcy1-Y9OY49_0mC0ec23HF7vuX2Lzk0ewQmXwZWECyY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSmV0QnJhaW5zX0VuZENhcmRfMDIud2VicA 1200w" referrerpolicy="no-referrer"></figure><p>Turn your AI coding defaults into choices. Rebuild the same app across cloud, hybrid, and fully local setups —&nbsp;from Claude Code to models running on your own machine.&nbsp;<a href="https://bit.ly/4qfoqXc" rel="noopener noreferrer" target="_blank">Enroll for free</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/lprSUwuClhSBjZlHl6lE2z9TSIv0ilznryfj_9xBQSI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvTVVTRUNPREUtLWhlaWdodC0ud2VicA" class="kg-image" alt="Charts show Muse Spark 1.2 scoring lower but more cost-effective, supporting Meta’s low-cost coding model." loading="lazy" width="1200" height="551" srcset="https://imgproxy.citrusreader.com/WHsMvYmvlFYyL7bo0fLlfuW2an1cAIaN4kIYqIcqF3A/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L01VU0VDT0RFLS1oZWlnaHQtLndlYnA 600w, https://imgproxy.citrusreader.com/WSXOHyeXoNHZ-NGukRwdBksD7zqgoW7Wh_ToLgkXn7A/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9NVVNFQ09ERS0taGVpZ2h0LS53ZWJw 1000w, https://imgproxy.citrusreader.com/lprSUwuClhSBjZlHl6lE2z9TSIv0ilznryfj_9xBQSI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvTVVTRUNPREUtLWhlaWdodC0ud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="muse-code-wants-your-data">Muse Code Wants Your Data</h1><p>Meta will cut coding bills from dollars to pennies for developers who let the company learn from their work.</p><p><strong>What’s new:</strong>&nbsp;Meta&nbsp;<a href="https://research.meta.ai/blog/introducing-muse-code-and-muse-spark-1-2" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;Muse Code, a command-line agentic coding harness, and Muse Spark 1.2, the&nbsp;capable, low cost-per-task model behind it.</p><ul><li><strong>Input/output:</strong>&nbsp;Text, images, video, and PDF in (up to 1,048,576 tokens), text out</li><li><strong>Features:</strong>&nbsp;Adjustable reasoning levels (none, minimal, low, medium, high, xhigh), tool use, structured output, web search, context caching, background subagents that persist across a session</li><li><strong>Performance:&nbsp;</strong>Achieved 57 points on Artificial Analysis’ Intelligence Index, first on Vals AI’s Finance Agent v2 and on Artificial Analysis’ AA-LCR</li><li><strong>Availability/price:</strong>&nbsp;Muse Code in beta for macOS and Linux, Muse Spark 1.2 via Meta Model API. Standard tier $1.25/$0.15/$4.25 per million input/cached/output tokens (prompts and outputs not used for training);&nbsp;contributor tier $0.10/$0.002/$0.20 per million input/cached/output tokens (prompts and outputs used for training);&nbsp;web search $2.50 per thousand queries</li><li><strong>Undisclosed:</strong>&nbsp;Parameter count, architecture, knowledge cutoff, training data, and method details</li></ul><p><strong>How it works:</strong>&nbsp;Muse Code runs in a terminal. Given a software task, it plans changes, writes code, and checks results at each step using Muse Spark 1.2. Meta trained the model to work with Muse Code, using data from Muse Spark 1.1. The company describes three design choices that distinguish the agent from a single loop that calls a model repeatedly.</p><ul><li>A main agent delegates to a set of subagents that remain for the length of a session instead of being created and discarded for each task. Subagents edit in parallel inside isolated worktrees, separate working copies of a repository that keep simultaneous changes from conflicting, Mark Zuckerberg&nbsp;<a href="https://x.com/finkd/status/2085080752098509124" rel="noopener noreferrer" target="_blank">wrote</a>.</li><li>Because they persist, subagents retain context they have already learned about a repository rather than re-derive it. The subagents also determine when to report back to the main agent on their own.</li><li>The agent writes every model call, tool run, plan approval, and file edit to a log on the user’s machine. If the agent crashes, it reads the log and resumes from the step it reached rather than starting over, which helps agents to work on long-running tasks.</li><li>The agent ships with three default skills that users can call: /plan&nbsp;converts a request into a roadmap the user must approve, /grill probes that plan for weak points, and /goal drives work until an objective is met.</li></ul><p><strong>Performance:</strong>&nbsp;Independent evaluations place Muse Spark 1.2 a notch below the intelligence frontier, but at a lower cost per task than most models around or above&nbsp;its level.</p><ul><li>On Artificial Analysis’&nbsp;<a href="https://artificialanalysis.ai/models/muse-spark-1-2" rel="noopener noreferrer" target="_blank">Intelligence Index</a>,&nbsp;a composite of nine evaluations of economically useful tasks, Muse Spark 1.2 set to xhigh reasoning (57, $0.40 per task) ranked sixth, above Grok 4.5 set to high reasoning (56, $0.36 per task), and just behind Qwen3.8-Max set to reasoning (58, $1.13 per task). The new model’s Intelligence Index score was 4 points above last month’s Muse Spark 1.1 (53, $0.29 per task).</li><li>On Artificial Analysis’ AA-LCR, a test of reasoning across long documents, Muse Spark 1.2 set to xhigh reasoning (83.3 percent) outperformed all other models tested.</li><li>On the&nbsp;<a href="https://www.vals.ai/models/meta_muse_spark_1_2" rel="noopener noreferrer" target="_blank">Vals Index</a>,&nbsp;a composite of finance and coding tasks weighted by potential economic impact, Muse Spark 1.2 set to xhigh reasoning (71.88 percent, $0.70 per task) ranked fifth, ahead of Claude Opus 4.8 set to max reasoning (70.36 percent, $7.52 per task) and behind GPT-5.6 Sol set to max reasoning (73.12 percent, $7.46 per task) — less than one tenth of the cost per task.</li><li>On Vals AI’s&nbsp;<a href="https://www.vals.ai/benchmarks/fabv2" rel="noopener noreferrer" target="_blank">Finance Agent v2</a>, which assigns models the work of entry-level financial analysts, Muse Spark 1.2 set to xhigh reasoning (60.60 percent, $0.77 per task) ranked&nbsp;first of 45 models, significantly cheaper than second-place Claude Opus 5 set to max reasoning (58.63 percent, $5.12 per task) and taking roughly half the time per test.</li></ul><p><strong>Behind the news:</strong>&nbsp;Muse Spark 1.2 is already an inexpensive model, but if it catches on —&nbsp;<a href="https://www.reddit.com/r/n8n/comments/1oa4kbp/openais_hidden_trick_get_up_to_10m_free_tokens/" rel="noopener noreferrer" target="_blank">OpenAI</a>&nbsp;and other companies have tried similar initiatives&nbsp;— a contributor discount for the model’s&nbsp;use in Muse Code is potentially a transformative one. Companies’&nbsp;appetite for training data drives new policy pushes and business intiatives.</p><ul><li>In a long essay, Mark Zuckerberg&nbsp;<a href="https://www.meta.com/thefutureisforeveryone/" rel="noopener noreferrer" target="_blank">argued</a>&nbsp;that United States labs are disadvantaged by restrictions on training data.</li><li>Of all training data, high-quality code is a scarce commodity. Hugging Face published&nbsp;<a href="https://www.deeplearning.ai/the-batch/fresh-data-for-coding-models-hugging-face-updated-the-stack-the-largest-crawl-of-public-github-repositories" rel="noopener">The Stack v3</a>&nbsp;last week, a 4.9 trillion-token crawl of public GitHub assembled to replace its years-old predecessor. But a public repository shows only polished code, not all the reasoning, mistakes, and repairs that went into it. Sessions from a working coding harness capture that entire process.</li><li>The Muse Spark 1.2 discount lands in a price competition that has escalated over the summer: OpenAI cut GPT-5.6 Luna’s prices by 80 percent to $0.20/$1.20 per 1 million tokens of input/output, and DeepSeek-V4-Flash-0731 arrived at $0.14/$0.28 per 1 million tokens of input/output. Meta’s contributor tier undercuts them both and virtually everyone else selling high-performing models through an API.</li></ul><p><strong>Why it matters:</strong>&nbsp;The contributor tier buys Meta something its apps don’t supply. Facebook, Instagram, and WhatsApp generate enormous quantities of data, but not the kind of coding data required to train coding agents. Meta is short of such data and is willing to give away most of the price of the Muse Spark 1.2 to get it. Meta sells the same model at two prices, and the discount buys Meta the right to train on whatever passes through the agent. That trade requires no contract: A&nbsp;developer picks it by typing a different model name. The tier containing these data terms caps at 100 requests per minute per team versus 3,000 requests per minute for the standard tier, limits that make it practical mainly for individuals and small teams — the developers least likely to have a lawyer on retainer, and the ones whose entire product may sit in the repository the agent reads.</p><p>&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;No one is forced to give up their data to use Meta’s best model or agent. But developers weighing Muse Code’s discount are deciding, whether they think about it deliberately or not, what their own code and expertise are worth. Model builders have long trained on developers’ code by scraping it from public repositories and forums. Meta is trying to turn that knowledge transfer into a market. Like all markets, this one rewards the side that knows what its goods are worth, and the goods for sale here, both repositories (public or private) and a recording of how the work was done, lacked a clear price before. Meta has transparently priced the discount. Likewise, developers should price the value of their data before calling the trade a true bargain.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/yZ8fIngjiZohqSSWTuHE543Sgdz-3n1NwcjJOQflKgE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR1IyLS0xLS53ZWJw" class="kg-image" alt="Accuracy chart of robot tasks: screw bulb 36%, unscrew bulb 92%, tie trash bag 44%, dustpan 32%, ziplock 40%." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/YYsaWsBNHq13Ebf0qk9aFzJ1Iz0JKNafRFoFfyAX-cU/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0dSMi0tMS0ud2VicA 600w, https://imgproxy.citrusreader.com/-2rYNd6DrHOg4UNVU74hUMnSzfBKGrmSxAMhA6ZdolA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9HUjItLTEtLndlYnA 1000w, https://imgproxy.citrusreader.com/yZ8fIngjiZohqSSWTuHE543Sgdz-3n1NwcjJOQflKgE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvR1IyLS0xLS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="google%E2%80%99s-robotics-model-has-legs">Google’s Robotics Model Has Legs</h1><p>Google’s latest vision-language-action model can walk a humanoid robot across a room, crouch to a low shelf, and close a five-fingered hand around a light bulb. Google says it’s the first model in its robotics family to run the legs and the hands from one set of weights, a breakthrough that simplifies model training and design.</p><p><strong>What’s new:</strong>&nbsp;Google&nbsp;<a href="https://deepmind.google/blog/gemini-robotics-2-brings-whole-body-intelligence-to-robots/" rel="noopener noreferrer" target="_blank">released</a>&nbsp;Gemini Robotics 2 (GR2), a model that turns camera images and typed instructions into commands for a robot's joints. Whereas earlier models in the Gemini Robotics family drove only the upper body for tabletop work, GR2 moves a humanoid’s legs, torso, arms, and hands together. One fixed set of the model’s trained weights runs three machine setups across two robot bodies.</p><ul><li><strong>Input/output:</strong>&nbsp;Camera images and text instructions (input) to joint commands (output), driving either a five-fingered hand with 22 degrees of freedom (Sharpa or Inspire hands) or a simple two-fingered gripper (Robotiq)</li><li><strong>Features:</strong>&nbsp;Leg and hand control; multi-embodiment (one checkpoint runs Apptronik's Apollo 2 humanoid with Sharpa hands, the same Apollo 2 with Inspire hands, and a Franka Duo arm rig with a Robotiq gripper)</li><li><strong>Performance:</strong>&nbsp;Self-reported success rates of 45.7 to 76.3 percent on whole-body pick-ups, 32 to 92 percent on multi-finger tasks, and 74.2 to 89.6 percent on gripper tasks</li><li><strong>Availability:</strong>&nbsp;Early-access partners, with no public API</li><li><strong>Undisclosed:</strong>&nbsp;Google published no model card for Gemini Robotics 2, and gave no base model, parameter count, training-data breakdown, or price</li></ul><p><strong>How it works:</strong>&nbsp;The release pairs Gemini Robotics 2 with Gemini Robotics ER 2, a separate reasoning model that breaks a job into steps and hands them to GR2 one at a time. Google published no model card or technical paper for GR2, so its&nbsp;<a href="https://storage.googleapis.com/deepmind-media/gemini-robotics/Gemini-Robotics-2-Safety.pdf" rel="noopener noreferrer" target="_blank">safety report</a>&nbsp;and announcements&nbsp;provide what we know.</p><ul><li>Google trained the model for each task in the demonstration videos using a mix of teleoperation, in which a person operates the robot remotely while the movements are recorded, plus video examples and simulation.</li><li>GR2 runs one set of trained weights across three machine setups;&nbsp;no version was trained per configuration. Motion transfer, introduced alongside&nbsp;<a href="https://arxiv.org/abs/2510.03342" rel="noopener noreferrer" target="_blank">Gemini Robotics 1.5</a>,&nbsp;trains a single model on data pooled from robots of different shapes, sensors, and joint counts. This makes data recorded on one machine setup valuable learning material for data on another.</li></ul><p><strong>Performance:&nbsp;</strong>Google ran every evaluation of GR2 on its own defined tasks and hardware, and no outside group has published tests of the model. Google reports the whole-body and gripper figures as averages over several tasks in a category and the finger figures as individual tasks. The nearest baseline is Google’s own first robotics model from March 2025, which was&nbsp;<a href="https://arxiv.org/abs/2503.20020" rel="noopener noreferrer" target="_blank">adapted</a>&nbsp;to a two-armed Franka robot and averaged 63 percent across the tasks it was given.</p><ul><li>An Apollo 2 robot with Inspire hands, trained to pick things up while using the legs, succeeded 76.3 percent of the time from a shelf, 68.4 percent from a table, and 45.7 percent from the floor. Google reports each as an average over several tasks in that category.</li><li>Fine finger work using Apollo 2 with Sharpa hands produced the lowest figures Google published: Tying a trash bag succeeded 44 percent of the time, sealing a zippered&nbsp;bag 40 percent, and sweeping with a dustpan 32 percent.</li><li>On the Franka robot, GR2 averaged 89.6 percent on precise insertion, 78.9 percent on tool kitting, and 74.2 percent on general pick and place. This&nbsp;task list differs slightly from that measured for Gemini Robotics 1.</li><li>Gemini Robotics ER 2’s judgment about whether a task was physically possible for the robot depended on being told what Gemini Robotics 2 had practiced. With no summary of that training it was right 62.0 percent of the time; with a highly detailed summary, 95.8 percent.</li><li>Google also introduced a safety benchmark,&nbsp;<a href="https://huggingface.co/datasets/google/asimov_agentic" rel="noopener noreferrer" target="_blank">ASIMOV-Agentic</a>. Google found that no system it tested, its own included,&nbsp;can both catch hazards to a person from a moving robot and avoid stopping for nothing. Holding needless stops under 5 percent meant missing more than 40 percent of the moments a person was too close. Consequently, Google recommends running these models alongside conventional physical safety equipment rather than in place of it.</li></ul><p><strong>Screwing in a light bulb:</strong>&nbsp;One pair of tasks in Google’s results illustrates how an apparently simple task, when reversed, can be a challenge in robotics. Unscrewing a bulb succeeded 92 percent of the time, the highest figure in Google’s finger-work set. Screwing one in succeeded 36 percent of the time. Unscrewing starts from a settled position (bulb already in the socket), so the hand needs only grip and rotation. Screwing one in has to establish bulb-in-socket alignment first, with the hand wrapped around the bulb.</p><p><strong>Behind the news:</strong>&nbsp;An updated Gemini Robotics reasoning model called ER 2 is paired with this release. ER 2 plans steps, tracks progress from a video feed, and calls an action model as a tool. Another model, Gemini Robotics On-Device 2, runs on the robot’s own hardware without a network connection and adapts to an unfamiliar two-armed body in a few hours using typically fewer than 200 examples.</p><p><strong>Why it matters:</strong>&nbsp;Many robotics models are trained for one task, one machine, and one environment at a time, and changing a single variable often means starting from scratch. There is also no corpus of robot motion at anything close to the scale of the text and images behind vision-language models. The latest Gemini Robotics models are an experiment in learning from more generalized training data than has been available for robots in the past. It shouldn’t matter if you change the type of hands, number of joints, or tasks performed: The goal of a true multi-embodied robotics&nbsp;model is to successfully transfer knowledge from one setup to another, as transformer-based language models have done so successfully with text.</p><p><strong>We’re thinking:</strong>&nbsp;How many Gemini robots does it take to screw in a light bulb? At the&nbsp;current&nbsp;36 percent success rate, just under three.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/Hk2J0L9Ojr21LVjwMpFQLqaoFlzkY4xttZVzW-Ix_rE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSDMtLTEtLndlYnA" class="kg-image" alt="Diagram shows Minimax H3's process from text prompt input to audiovisual output via a transformer." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/hsCRORnFQok15OJKHNuZBwKcHKBiRafygYf0HNUq5kE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0gzLS0xLS53ZWJw 600w, https://imgproxy.citrusreader.com/NtpV99Oqy1si2gT4f77zbS_LF9zTgBma8TNQqwFSrjo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9IMy0tMS0ud2VicA 1000w, https://imgproxy.citrusreader.com/Hk2J0L9Ojr21LVjwMpFQLqaoFlzkY4xttZVzW-Ix_rE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSDMtLTEtLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="minimax%E2%80%99s-state-of-the-art-video-model-is-only-minimally-open">MiniMax’s State-of-the-Art Video Model Is Only Minimally&nbsp;Open</h1><p>A free-to-download&nbsp;model sets a new standard for video generation and editing, but its license comes with unexpected restrictions.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;MiniMax&nbsp;<a href="https://www.minimax.io/blog/minimax-h3" rel="noopener noreferrer" target="_blank">released H3</a>, a high-definition video generation model that accepts a wide range of input media. But the model’s license requires users in the U.S., the UK, the European Union, and South Korea to submit an application to MiniMax to use it under the same terms as the rest of the world. Key components of the model also remain proprietary, at least for now.</p><ul><li><strong>Input/output:</strong>&nbsp;Up to twelve files including text (7000 characters), images (30 MB per file), audio (15 MB), and video (50 MB) in, video (up to 2000 pixels wide and 15 seconds long) with audio and text captions out</li><li><strong>Architecture:</strong>&nbsp;Transformer, 33 billion parameters; separate text, audio, and video encoders, preprocessor, 2k video upscaler</li><li><strong>Features:</strong>&nbsp;Video and audio editing, multi-shot output, six aspect ratios</li><li><strong>Performance:</strong>&nbsp;First on Artificial Analysis’ video editing leaderboard, second (or tied for first, within the margin of error) in text-to-video and image-to-video</li><li><strong>Availability/price:</strong>&nbsp;Weights&nbsp;<a href="https://huggingface.co/MiniMaxAI/MiniMax-H3" rel="noopener noreferrer" target="_blank">free</a>&nbsp;for noncommercial and commercial uses under MiniMax H3 license; via MiniMax’s&nbsp;<a href="https://platform.minimax.io/subscribe/token-plan?tab=api-enterprise" rel="noopener noreferrer" target="_blank">API</a>&nbsp;at $0.13 per second for 2K resolution, $0.08 per second for 768p resolution output, input costs vary from free for audio to $0.04 per image and $0.13 per second for high-definition video; prompt re-generation&nbsp;module costs $0.90 per million tokens of input and $3.60 per million tokens of output.</li><li><strong>Undisclosed:</strong>&nbsp;Exact parameter count,&nbsp;training data, technical report</li></ul><p><strong>How it works:</strong>&nbsp;H3’s architecture consists of&nbsp;<a href="https://huggingface.co/MiniMaxAI/MiniMax-H3" rel="noopener noreferrer" target="_blank">three modules</a>&nbsp;— a contextual processing system, a video/audio generation base model, and a high-definition upscaler. Only the base model is free to download, and it comes with&nbsp;restrictions.</p><ul><li>MiniMax says it trained H3 on “real, natural data” to ensure data quality and scalability. Unlike MiniMax’s earlier video models, all audio types (voice, music, and sound effects) were trained together and are modeled through a single encoder. The team trained the model’s reference and editing functions using natural language rather than fixed presets. The team sought to combine different media types (sound, video, etc.) earlier in the process.</li><li>Supported generation modes include text-to-video, first- or last-frame image to video, and image, audio, and video references, plus any combination. For example, a user prompt might instruct the model to begin with a single still image, reference the camera movement in two videos, and the audio score from a third, with text instructions for how the scene should unfold.</li><li>Input is first processed by H3-Context-IR. This reasoning module interprets the prompts and input media and generates a new text prompt instructing the base model how to blend them together. Users of the base model alone need to be&nbsp;<a href="https://huggingface.co/MiniMaxAI/MiniMax-H3/blob/main/docs/VIDEO_PROMPT_WRITING_GUIDE_base_en.md" rel="noopener noreferrer" target="_blank">explicit</a>&nbsp;in their instructions for each media type, or use their own preprocessing system; users of the full API pipeline benefit from the Context-IR module doing most of that work.</li><li>The base module generates 768p video, that is, 1792 pixels by 768 pixels (given&nbsp;a maximum 21:9 aspect ratio). Three encoders process&nbsp;text, video, and audio, respectively; a separate variational autoencoder also encodes video.</li><li>A third module, H3-Regenerate-2K, instructs the base module to regenerate the 768p video in native 2K resolution (2000 pixels wide and up to 4667 pixels long). The optimized prompt also includes the original media references and user prompt as context, allowing the regenerated video to add missing details rather than only extrapolating from the source video.</li><li>The weights’&nbsp;<a href="https://huggingface.co/MiniMaxAI/MiniMax-H3/blob/main/LICENSE" rel="noopener noreferrer" target="_blank">license</a>&nbsp;requires commercial users to prominently display the model name on any product using H3 and bars all users from distilling another model on H3’s output. It also prohibits use that may harm minors, interfere with elections, or violate local law. The license also identifies the United States, United Kingdom, European Union, and Republic of Korea as “excluded territories” and requires users of the weights in these territories to&nbsp;<a href="https://platform.minimax.io/h3-license" rel="noopener noreferrer" target="_blank">apply</a>&nbsp;for a license “to ensure [their] usage is lawful, responsible, and without infringing any rights.”</li></ul><p><strong>Behind the news:</strong>&nbsp;MiniMax H3’s head-to-head human-preference&nbsp;<a href="https://artificialanalysis.ai/video/leaderboard/text-to-video" rel="noopener noreferrer" target="_blank">ELO scores</a>&nbsp;put it squarely in a top three with Google’s&nbsp;<a href="https://www.deeplearning.ai/the-batch/google-pairs-nano-banana-update-with-video-api" rel="noopener">Gemini Omni Flash</a>&nbsp;and Bytedance’s&nbsp;<a href="https://www.byteplus.com/en/blog/dreamina-seedance2-0" rel="noopener noreferrer" target="_blank">Dreamina Seedance 2.0</a>. Black Forest Labs’ FLUX models have typically included an open weights release for developers, but its recent FLUX 3 model is proprietary and API-only. It’s yet to be independently tested, but Black Forest Labs’s tests suggest it would be a fourth model vying to be state-of-the-art.&nbsp;<a href="https://dreamina.capcut.com/resource/seedance-2-5-launch" rel="noopener noreferrer" target="_blank">Dreamina Seedance 2.5</a>&nbsp;also awaits testing.</p><p><strong>Why it matters:</strong>&nbsp;Despite the restrictive license and unusual territorial restrictions, MiniMax H3 is clearly a top video generation model, offering commercial users a strong and versatile set of tools for video generation on par with Google’s much more expensive competitor. We also get a glimpse of how a top video model works under the hood. It appears that MiniMax’s strategy of foregoing synthetic data — especially difficult when good video transcripts are hard to come by — and bundling prompt optimization into the pipeline is paying off.&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;Even in this paranoid period of AI development, it makes no sense to restrict use of weights by country beyond uses that would break&nbsp;that country or region’s laws. It violates the fundamental meaning of openness: the idea that anyone can download a model,&nbsp;see how it works, and put it to use. We hope these restrictions&nbsp;don’t become a trend.&nbsp;</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/TtHbKGUAZ2BXWRB9xVbkIP4moYj1wt06Sxp59Eed3xE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQlJFQUtVUC0tMS0ud2VicA" class="kg-image" alt="Line graph showing Breakup Distress Scale decline over time for control and treatment groups." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/-20mR0YqiQIoB11l_5ed-5sooJ3R7783Z9SGgC6BC_E/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0JSRUFLVVAtLTEtLndlYnA 600w, https://imgproxy.citrusreader.com/kaI6jR2OBAOOxCpl9682AASyICGI8EWayD3lgOwIfAs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9CUkVBS1VQLS0xLS53ZWJw 1000w, https://imgproxy.citrusreader.com/TtHbKGUAZ2BXWRB9xVbkIP4moYj1wt06Sxp59Eed3xE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvQlJFQUtVUC0tMS0ud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="ai-can-help-heal-romantic-distress">AI Can Help Heal&nbsp;Romantic Distress</h1><p>Chatbots that are designed to treat mental health issues typically require multiple sessions, posing a risk that users will drop out before they receive much benefit. Researchers showed that chatbots can provide relief in a single session.</p><p><strong>What’s new:</strong>&nbsp;Thomas Menzel at Technical University of Munich and University of Cambridge, along with Michel Schimpf and Thomas Bohné at University of Cambridge, built&nbsp;<a href="https://arxiv.org/abs/2605.03261" rel="noopener noreferrer" target="_blank">overit</a>, a chatbot app designed to help users recover from romantic breakups. In a randomized, controlled trial, users felt substantially better after one conversation.</p><p><strong>Key insight:</strong>&nbsp;Romantic breakups can continue to cause distress long after they occurred. Often, the former lovers are troubled by self-limiting beliefs about themselves (“I was abandoned because I am not enough”) or the world (“nobody could want me”). According to&nbsp;<a href="https://cshperspectives.cshlp.org/content/7/10/a021782" rel="noopener noreferrer" target="_blank">memory reconsolidation theory</a>, recalling a distressing memory, contemplating a self-limiting belief about it, and then presenting an interpretation that contradicts the earlier belief (“You did the best you could, but you were failed by someone you trusted”) can durably update the painful memory. If that’s true, a chatbot that elicits a self-limiting belief and guides the user toward a counterfactual interpretation could bring about a lasting reduction in distress.</p><p><strong>How it works:</strong>&nbsp;Users filled out a survey that included a breakup distress score, breakup timing, and the ex-partner's name (along with follow-up surveys after the trial period). Then they discussed their breakups with a mobile app based on Claude Sonnet 4.5.</p><ul><li>Given their survey responses, the app guided them through four phases of conversation. The app (i) asked open-ended questions about a breakup and its impact, (ii) elicited beliefs and identified at least one self-limiting belief, (iii) offered alternative perspectives, and (iv) asked users what they had learned from the conversation and how they felt now. It progressed from one phase to the next after a number of turns or reaching a certain milestone, capping conversations at 18 turns.</li><li>With each user input, the app asked Claude Sonnet 4.5 to assess the current phase by checking the last three turns against five milestones: (i) identifying a self-limiting belief, (ii) challenging it, (iii) steering the user toward a counterfactual interpretation, (iv) articulating a new insight, and (v) concluding the dialog.</li><li>Then the model considered the conversation history, instructions for the current phase (for example, to identify the core self-limiting belief in phase two), and survey data and generated a response.</li></ul><p><strong>Results:&nbsp;</strong>The authors ran a randomized, controlled trial with 171 participants in the U.S. and UK who had experienced a breakup within 18 months on average. Half of participants conversed with the app, via text or voice, in a single conversation of roughly 20 minutes; the other half did not interact with the app. The authors measured the participants’ distress via the&nbsp;<a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Ft66170-000" rel="noopener noreferrer" target="_blank">Breakup Distress Scale</a>, a 16-item questionnaire that yields scores between 16 and 64.</p><ul><li>After 7 days, the group that used the app had experienced a large reduction in distress (from 35.3 to 26.6) relative to the control group (from 35.9 to 32.2).</li><li>After one month, the group that used the app showed lower distress (26.0) than the control group (29.0).</li><li>People who used the app were more likely to report a “sudden insight” about their breakup (such as “I had been carrying the blame for my failed relationship instead of recognizing that I did everything the best I could and I was failed by someone I trusted”): 61.7 percent versus 19.3 percent. Those who had such experience tended to report feeling better afterward.</li></ul><p><strong>Why it matters:</strong>&nbsp;Chatbots frequently sycophantically affirm a user’s expressions. This can be troublesome in therapeutic settings, where an analytical approach would be more helpful. This work addresses that issue by dividing each input into calls for evaluation and generation. Prompting the LLM first to evaluate the conversation’s state and then to generate a response separates the tasks of tracking therapeutic progress and expressing empathy to the user, which supports the LLM’s ability to provide helpful output. This approach offers a template for building goal-directed conversational agents that challenge users (in this case, to examine and reinterpret painful memories) rather than simply comforting them.&nbsp;</p><p><strong>We’re thinking:</strong>&nbsp;Any chatbot session is less expensive than a human therapist, but a single 20-minute conversation that can meaningfully improve a subject’s mood and attitude is truly favorable economics, even at Claude’s rates.</p>

2026/8/14
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DeepSeek-V4-Flash Outshines Pro, The Biggest GitHub Crawl Yet, Engineering System Prompts for Safer Code

<figure><img src="https://imgproxy.citrusreader.com/yRkC-ukKOkXqqeeCNcY1r-FH8-ExaaTQxU_GmCKglWg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvVG9rZW4tTWV0ZXIucG5nLTIud2VicA" alt="DeepSeek-V4-Flash Outshines Pro, The Biggest GitHub Crawl Yet, Engineering System Prompts for Safer Code" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: I’m glad the idea of “tokenmaxxing” — that individuals and companies should use as many tokens as possible to boost...</blockquote> <p>Dear friends,</p><p>I’m glad the idea of “tokenmaxxing” — that individuals and companies should use as many tokens as possible to boost productivity — is finally dying out. As much as I encourage everyone to make ample use of AI, the practical reality is that increasing token usage beyond a certain point gives diminishing returns because there are still&nbsp;<a href="https://www.deeplearning.ai/the-batch/how-to-get-through-the-product-management-bottleneck" rel="noopener">bottlenecks</a>&nbsp;in organizations that burning more tokens alone cannot&nbsp;<a href="https://www.deeplearning.ai/the-batch/ai-native-software-development-needs-generalists" rel="noopener">resolve</a>. &nbsp;&nbsp;</p><p>One challenging aspect of AI hype is that there’s often a nugget of truth, but the hype blows it out of proportion. Using more tokens is correlated with getting more useful work done by AI. As models and harnesses&nbsp;<a href="https://metr.org/time-horizons/" rel="noopener noreferrer" target="_blank">improve</a>&nbsp;the amount of work that AI can productively do — and the number of tokens that we can use fruitfully —&nbsp;also increases. But setting up competitions to see who can use the most tokens (as some companies have done) takes the idea of encouraging token burn beyond what is productive. &nbsp;&nbsp;</p><p>There is, of course, a financial incentive for companies that sell tokens to encourage everyone to use as many as possible. Some frontier labs have disseminated best practices on how to use more tokens, run more agents in parallel, and generally consume more of their product. This follows a long history of companies trying to get people to use more of whatever they sell:&nbsp;</p><ul><li>Car repair shops routinely recommend people get an oil change every 3,000 miles, which is much more frequent than is needed for most cars. &nbsp;</li><li>Most dentists in the US will tell you that adults need only a pea-sized dollop of toothpaste; yet TV toothpaste ads routinely show people using a long strip to promote using more.</li></ul><p>Using tokens and multiple agents is valuable, just like oil changes and toothpaste are very useful products. But it is also important to have trustworthy sources of information that provide advice based on your interest. (This is why, as I&nbsp;<a href="https://www.deeplearning.ai/the-batch/how-we-decide-what-courses-to-teach-the-ai-world-is-full-of-hype-and-sales-pitches-deeplearning-ai-focuses-on-most-important-tools-and-techniques-in-ways-you-can-apply-to-any-ai-vendors" rel="noopener">wrote</a>&nbsp;previously, DeepLearning.AI has never accepted payment for creating any course.) </p><p>To be clear, I do think society should find more ways to use tokens effectively. But to make sure our use is productive, consider these two practices: &nbsp;</p><ul><li>Once an application scales beyond a basic level, instrument it to tell you how much it costs to run. For example, I know one of my applications costs about $0.50 per query and another about $3.00 per 10-minute conversation. Knowing these numbers helps me make quick back-of-the-envelope calculations to approach spending systematically. &nbsp;&nbsp;</li><li>When architecting your software, preserve optionality and avoid getting locked into any one model provider. For example, even when building an initial prototype, I often keep in mind the possibility of switching to an alternative model provider, including specifically open weight options — or perhaps even have my first prototype work with multiple LLM providers, so that I can switch models easily. &nbsp;&nbsp;</li></ul><p>This sort of advice is hard for any model provider to give. To be clear, I’m rooting for all of the frontier AI labs — they are building amazing technology that helps us all build better. At the same time, I will make sure DeepLearning.AI continues as a a neutral, trustworthy source of information that is committed, first and foremost, to the success of learners who want to build with AI. </p><p>So, please productively use lots of tokens, but don’t tokenmaxx. And keep building! &nbsp;</p><p>Andrew </p><p>&nbsp;<br>P.S. Something fun: If you want a brief diversion, check out this&nbsp;<a href="https://halcyon-run-production.up.railway.app/" rel="noopener noreferrer" target="_blank">space shooter</a>&nbsp;game that I built last weekend. (Gamepad support works better for me in Firefox than Chrome; but can also be played with keyboard and mouse.) There has been much debate about AI enabling new forms of creative expression through creating images, music and writing (or damaging them through slop). I think creative expression through games will be another exciting direction —&nbsp;and fun too!</p><p>&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/HUDC5-AqbrHjxVvTdh9OmXxZ4L6EiT75ooIi73YIsc0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvUW9kb19FbmRDYXJkXzAxLS0xLS5wbmcud2VicA" class="kg-image" alt loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/SW88_qR7ITOjn0zsaa_yMoa38EHKGd2P6hGwptqadRg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1FvZG9fRW5kQ2FyZF8wMS0tMS0ucG5nLndlYnA 600w, https://imgproxy.citrusreader.com/gxjiAU545YjDFUTeEB1SOBTdQ3dwGJMfwMoR4oOPiZY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9Rb2RvX0VuZENhcmRfMDEtLTEtLnBuZy53ZWJw 1000w, https://imgproxy.citrusreader.com/HUDC5-AqbrHjxVvTdh9OmXxZ4L6EiT75ooIi73YIsc0/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvUW9kb19FbmRDYXJkXzAxLS0xLS5wbmcud2VicA 1200w" referrerpolicy="no-referrer"></figure><p>We asked 50 working engineers about their biggest AI skill gap. The top answer, at every experience level: prompting. In AI Prompting for Everyone, Andrew Ng teaches how today's power users get real results: giving models the right context, using deep research well, and knowing when to trust an answer.&nbsp;<a href="https://bit.ly/4beKmv9" rel="noopener noreferrer" target="_blank">Enroll now</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/KUTsnk5jSvt9Duz5IQbw9zrvLr7Jwa0MF-F1GlngCW4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvREVFUFNFRUtWNEZMQVNILnBuZy53ZWJw" class="kg-image" alt="A chart shows DeepSeek-V4-Flash leading in a green area with low cost and strong performance, marked in blue." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/NbQA2rESZU5LNZBKYubevzWdb2bcuz2IcwNvZBuVbhY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0RFRVBTRUVLVjRGTEFTSC5wbmcud2VicA 600w, https://imgproxy.citrusreader.com/xgubs1dTTD8nUtQHMMhKh1dEWV48u2zBvYzlaEbUutk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9ERUVQU0VFS1Y0RkxBU0gucG5nLndlYnA 1000w, https://imgproxy.citrusreader.com/KUTsnk5jSvt9Duz5IQbw9zrvLr7Jwa0MF-F1GlngCW4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvREVFUFNFRUtWNEZMQVNILnBuZy53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="deepseek-pushes-the-frontier-again">DeepSeek Pushes the Frontier Again</h1><p>&nbsp;DeepSeek’s updated small model overtook the company’s own flagship.</p><p><strong>What’s new:</strong>&nbsp;A fresh round of fine-tuning, on an unchanged architecture, lifted DeepSeek-V4-Flash past the larger DeepSeek-V4-Pro on independent tests, at a fraction of the cost of proprietary models of comparable intelligence. The new&nbsp;<a href="https://api-docs.deepseek.com/updates" rel="noopener noreferrer" target="_blank">release</a>&nbsp;is titled DeepSeek-V4-Flash-0731, an official version of the smaller "Flash" model in its V4 family. It supersedes a preview version released in April.</p><ul><li><strong>Input/output:</strong>&nbsp;Text in (up to 1 million tokens), text out (up to 384,000 tokens; 122.7 tokens per second)</li><li><strong>Architecture:</strong>&nbsp;Mixture-of-experts transformer, 284 billion total parameters, 13 billion active per token, optional speculative decoding module brings the checkpoint to 304 billion parameters</li><li><strong>Features:</strong>&nbsp;Reasoning (low, high, max) and non-reasoning modes, tool calls, context caching</li><li><strong>Performance:</strong>&nbsp;Achieved 50 points on Artificial Analysis’ Intelligence Index, one point behind GPT-5.6 Luna set to max reasoning; on Artificial Analysis’ Pareto frontier for intelligence versus cost per task (meaning no model the evaluator tracks is both smarter and cheaper to run per task)</li><li><strong>Availability/price:</strong>&nbsp;Weights&nbsp;<a href="https://huggingface.co/deepseek-ai/DeepSeek-V4-Flash-0731" rel="noopener noreferrer" target="_blank">free</a>&nbsp;for noncommercial and commercial uses under MIT license, via DeepSeek’s API at $0.14/$0.0028/$0.28 per million input/cached/output tokens</li><li><strong>Undisclosed:</strong>&nbsp;How the new fine-tuning differed from the preview’s fine-tuning, training data, and knowledge cutoff</li></ul><p><strong>How it works:</strong>&nbsp;DeepSeek said it boosted performance largely by performing a new round of fine-tuning, leaving the architecture and parameter count unchanged. The company did not explain how the new fine-tune differed from the last.</p><ul><li>The architecture (first introduced with the V4 series in April) cuts the cost of long input. Attention layers alternate between two schemes that compress the stored keys and values: One condenses every 4 tokens into a single entry and attends to only the most relevant entries, the other condenses every 128 tokens into a single entry and attends to all of them. At its full input length, DeepSeek-V4-Flash needs 10 percent of the computation and 7 percent of the memory for stored keys and values compared to DeepSeek-V3.2.</li><li>DeepSeek pretrained DeepSeek-V4-Flash on more than 32 trillion tokens, then fine-tuned it in two stages. First, the team built a separate specialist model for each domain, such as mathematics, coding, and agentic tasks. Each specialist underwent supervised fine-tuning on domain data, then reinforcement learning via Group Relative Policy Optimization, an algorithm that rewards outputs that score well relative to other outputs generated for the same input. Second, the team merged the specialists into one model using on-policy distillation: The merged model wrote its own responses to training prompts, and training corrected each one toward the way the relevant specialist, chosen from more than 10, would have written it.</li><li>The team trained the model’s different reasoning levels as distinct behaviors, applying different length penalties and context windows during reinforcement learning; the max level prepends a system-prompt instruction that pushes the model to decompose the problem fully and test edge cases and assumptions. During agentic tasks that call tools, the model keeps its entire reasoning history in context across every round, including across user messages, rather than discarding it as DeepSeek-V3.2 did.</li><li>The released checkpoint ships with the speculative decoding module,&nbsp;<a href="https://www.deeplearning.ai/the-batch/deepseeks-dspark-gains-velocity" rel="noopener">DeepSeek-V4-Flash-DSpark</a>, attached. A small draft module proposes several tokens ahead, and the main model verifies them at once rather than token by token, speeding up generation.</li></ul><p><strong>Performance:</strong>&nbsp;Independent evaluators found a large jump in agentic ability over the April preview, intelligence on par with proprietary models that cost significantly more to run per task, and a rank near the top of the open weights field.</p><ul><li>On Artificial Analysis’ Intelligence Index, a composite of nine evaluations of economically useful tasks, DeepSeek-V4-Flash-0731 set to max reasoning achieved 50 points, significantly ahead of the April preview version (40) and the larger DeepSeek-V4-Pro (44), tying Gemini 3.6 Flash set to high reasoning (50 points), barely behind GPT-5.6 Luna and GLM-5.2 (both set to max reasoning, tied at 51), and some distance behind the open weights leader, Kimi K3 set to max reasoning (57 points).</li><li>DeepSeek-V4-Flash-0731’s cost ($0.03) to complete an Artificial Analysis Intelligence Index benchmark task at max reasoning via the DeepSeek API was substantially lower than GPT-5.6 Luna set to max reasoning ($0.05), a model of similar intelligence. (This comparison reflects OpenAI’s recent price cuts.)</li><li>The model broadly improved on agentic tasks relative to the preview version. On GDPval-AA v2, a head-to-head model comparison on work tasks drawn from finance, law, healthcare, and other professions, DeepSeek-V4-Flash-0731 set to max reasoning achieved 1,558 Elo, second-best result among open weights models, behind Kimi K3 set to max reasoning (1,685 Elo) and ahead of GLM-5.2 set to max reasoning (1,508 Elo). On Terminal-Bench 2.1 (agentic tasks in a command-line environment), it solved 82.7 percent of problems, around 21 points higher than its preview version (61.8 percent). On τ³-Bench Banking (multi-turn tool use in banking scenarios), it achieved 31.1 percent, around 8 points higher than in preview.</li><li>On Arena.ai’s CodeArena WebDev, where developers pick the better of two models’ outputs for the same front-end web development tasks, DeepSeek-V4-Flash-0731 set to high reasoning debuted at 1,577 points, seventh overall and third among open weights models.</li></ul><p><strong>Behind the news:</strong>&nbsp;The new DeepSeek-V4-Flash&nbsp;arrived during a crowded month as competitors cut prices and shipped efficiency updates within days of one another.</p><ul><li>One day before DeepSeek’s release, OpenAI&nbsp;<a href="https://openai.com/index/advancing-the-price-performance-frontier-with-gpt-5-6/" rel="noopener noreferrer" target="_blank">cut</a>&nbsp;the price of GPT-5.6 Luna by 80 percent to $0.20/$1.20 per 1 million tokens of input/output and GPT-5.6 Terra by 20 percent to $2/$12 per 1 million tokens of input/output. The company attributed the cuts to efficiency gains, including production inference code that GPT-5.6 Sol optimized.</li><li>The week before, Google&nbsp;<a href="https://blog.google/innovation-and-ai/models-and-research/gemini-models/gemini-3-6-flash-3-5-flash-lite-3-5-flash-cyber/" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;Gemini 3.6 Flash and Gemini 3.5 Flash-Lite, updates aimed at speed and cost over capability. Artificial Analysis&nbsp;<a href="https://artificialanalysis.ai/articles/gemini-3-6-flash-3-5-flash-lite-halving-time" rel="noopener noreferrer" target="_blank">measured</a>&nbsp;both models completing tasks in about half the time of their predecessors, and Gemini 3.6 Flash held the same 50 points on the Intelligence Index as the model it replaced while its cost per task declined from $0.59 to $0.50 per task.</li><li>Open-weights developers pushed in the same direction. Thinking Machines’&nbsp;<a href="https://thinkingmachines.ai/news/inkling-small/" rel="noopener noreferrer" target="_blank">Inkling Small</a>, released the same week as DeepSeekV4-Flash, achieved 40 points on the Intelligence Index, within a point of the company’s flagship Inkling model despite having less than a third of its parameters, similarly higher than expectations for a smaller model.</li></ul><p><strong>Why it matters:</strong>&nbsp;Agents consume large numbers of tokens, so cost of token generation strongly influences what developers can automate economically. The updated DeepSeek-V4-Flash delivers intelligence close to proprietary models at well under half their cost per task, moving always-on work like triaging bug reports, reconciling invoices, and answering customer-service inquiries from pricey to pragmatic. And DeepSeek-V4-Flash is small enough that teams that need to keep data on their own hardware can skip the API: A 3-bit quantized version&nbsp;<a href="https://unsloth.ai/docs/models/deepseek-v4" rel="noopener noreferrer" target="_blank">runs</a>&nbsp;on a machine that has 110 gigabytes of memory.</p><p><strong>We’re thinking:</strong>&nbsp;Not every customer wants the biggest, most arbitrarily powerful model for every task. Gemini Flash, Claude Sonnet, GPT-5.6 Luna, and DeepSeek-V4-Flash show that there’s a crowded market for highly intelligent, competitively priced, comparatively fast models that can iterate on a task and solve problems relatively inexpensively.</p> <table style="font-style:normal;font-variant-caps:normal;font-weight:400;letter-spacing:normal;orphans:auto;text-align:start;text-transform:none;white-space:normal;widows:auto;word-spacing:0px;-webkit-text-stroke-width:0px;text-decoration:none;border-spacing:0px;border-collapse:collapse;caret-color:rgb(59, 59, 59);color:rgb(59, 59, 59);font-family:Helvetica, Arial, sans-serif;font-size:18px"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;font-size:18px;color:rgb(59, 59, 59);word-break:break-word;padding:0px 0px 10px"><div id="hs_cos_wrapper_module_17370396178185" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" style="color:inherit;font-size:inherit;line-height:inherit"><table style="border-spacing:0px;border-collapse:collapse;vertical-align:top"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;color:rgb(59, 59, 59);font-size:0px;word-break:break-word"><p style="margin:0px auto;font-size:1px;border-top-width:1px;border-top-style:solid;border-top-color:rgb(0, 0, 0);width:600px"></p></td></tr></tbody></table></div></td></tr></tbody></table> <figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/ud7r_INX6Ufzo12eqrIyKSPyh-HX7VmspLaKlszU9lI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSEFXSy5wbmcud2VicA" class="kg-image" alt="Close-up of a shiny blue padlock, symbolizing security, with a black dial and orange Claude logo design." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/4E40yg3RilwTxgPU9yjiYUAHwGaP7SKQkLl3JFeLaWM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L0hBV0sucG5nLndlYnA 600w, https://imgproxy.citrusreader.com/rVc7VccN7zlAnsLqTP95RjNo7Gjjm7W5Wbokol1QbCc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9IQVdLLnBuZy53ZWJw 1000w, https://imgproxy.citrusreader.com/ud7r_INX6Ufzo12eqrIyKSPyh-HX7VmspLaKlszU9lI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvSEFXSy5wbmcud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="claude-pokes-open-encryption-holes">Claude Pokes Open Encryption Holes</h1><p>The U.S. National Institute of Standards and Technology (NIST) has been testing quantum-proof replacements for today’s encryption algorithms. Claude Mythos Preview, currently under restricted release, found a weakness in one of the candidates, a signature scheme called HAWK. HAWK’s designers subsequently withdrew it from the competition, ending a bid that had survived two rounds and approximately two years of expert review.</p><p><strong>What’s new:</strong>&nbsp;Anthropic&nbsp;<a href="https://www.anthropic.com/research/discovering-cryptographic-weaknesses" rel="noopener noreferrer" target="_blank">reported</a>&nbsp;that Claude Mythos Preview produced two new attacks on cryptographic algorithms, HAWK and AES. HAWK is a proposed spec not currently in use, and the attack on AES&nbsp;applies only to a deliberately weakened seven-round version researchers attack as a practice target, not the ten-round AES-128 in actual use. So, no patch or fix is needed, and the attack does not threaten production code.</p><p><strong>How it works:</strong>&nbsp;The first attack targets&nbsp;<a href="https://hawk-sign.info/" rel="noopener noreferrer" target="_blank">HAWK</a>, a proposed method for producing digital signatures, the mechanism a browser uses to confirm a website is genuine. The second attack targets AES, the cipher that encrypts most internet traffic. In both cases, when prompted to crack the signature, one agent initially responded that such an attack was impossible, while another discovered a possible exploit.</p><ul><li>For the HAWK attack, Anthropic says the model worked under human steering in a harness running several agents at once. The researcher who directed&nbsp;it had a background in theoretical computer science but no expertise in this particular form of cryptography, and Anthropic describes that contribution as project management.</li><li>The key idea came from a pair of agents that worked on the same problem.&nbsp;The first dismissed it as infeasible, and the second found a way to exploit it.</li><li>For HAWK-512, the smaller of its two proposed security levels, Claude’s attack lowers the estimated cost of stealing a secret key from 2 to the 150th power down to at most 2 to the 108th.&nbsp;Each step down halves the work, so the drop is a factor in the trillions. Both numbers stay far beyond the capabilities of any machine that exists to crack them. But the new figure falls well below the security level HAWK’s designers claimed.</li><li>On the afternoon of July 28, Anthropic researcher Stephen Weis posted the attack to&nbsp;<a href="https://groups.google.com/a/list.nist.gov/g/pqc-forum/c/2r2u6SbHun4" rel="noopener noreferrer" target="_blank">pqc-forum</a>, the public mailing list NIST uses to run the competition, together with working code that recovers a key. Anthropic had shared it privately with HAWK’s designers in June. Cryptographer Daniel Apon replied the same evening to say he had checked the reduction independently and it held up.</li><li>The next morning, Léo Ducas, a lead designer of HAWK, wrote on the team’s behalf that straightforward fixes, such as doubling parameters or moving to higher-rank modules, would make HAWK uncompetitive, and that the team would therefore withdraw it. He thanked Anthropic for the work and wished the remaining candidates well. The withdrawal is recorded on NIST’s&nbsp;<a href="https://csrc.nist.gov/projects/pqc-dig-sig/round-3-additional-signatures" rel="noopener noreferrer" target="_blank">round-three page</a>.</li></ul><p><strong>Behind the news:</strong>&nbsp;Candidates failing late in these competitions is not new. In 2022, an earlier NIST candidate called SIKE was broken in about an hour on a single-core computer (for its lowest security level), with higher security levels taking up to a day. In fact, HAWK was itself under attack from three directions, and only one of them was Anthropic’s. Within a few days, three separate&nbsp;<a href="https://postquantum.com/security-pqc/ai-cryptanalysis-hawk-aes/" rel="noopener noreferrer" target="_blank">attacks</a>&nbsp;on the scheme reached the same mailing list. Hengyi Luo contributed one produced with OpenAI’s Codex, drafted eleven days before Anthropic’s disclosure. Academic cryptographers Guilhem Mureau and Alice Pellet-Mary sent a third, derived by hand with some LLM assistance. However, Ducas’s withdrawal notice cites Anthropic’s attack as the deciding factor.</p><p><strong>Why it matters:</strong>&nbsp;Johns Hopkins cryptographer Matthew Green&nbsp;<a href="https://blog.cryptographyengineering.com/2026/07/29/some-notes-about-anthropics-new-results/" rel="noopener noreferrer" target="_blank">judged</a>&nbsp;the HAWK attack to be significant and the AES attack far less so. He notes that the HAWK attack invented no “fundamentally new” mathematics. It combined tools that were already available, which means the weakness was reachable all along, but&nbsp;nobody had been thorough enough to reach it. At the same time, the models were able to research, discover, and direct such an attack in a short amount of time and with minimal human intervention. Finding the weakness took about 60 hours and roughly $100,000 in API costs, according to Anthropic. The HAWK attack shipped with working code, so a cryptographer could confirm the reduction the same evening.</p><p><strong>We’re thinking:</strong>&nbsp;This is an encouraging result for the future of AI and security: AI has a positive role to play in cryptography and other forms of cybersecurity&nbsp;by revealing the limits of the systems we rely on. Open standards and open research ultimately help ensure trust in our information security. When someone builds a better lockpick, it helps show the way to build a better lock.</p> <table style="font-style:normal;font-variant-caps:normal;font-weight:400;letter-spacing:normal;orphans:auto;text-align:start;text-transform:none;white-space:normal;widows:auto;word-spacing:0px;-webkit-text-stroke-width:0px;text-decoration:none;border-spacing:0px;border-collapse:collapse;caret-color:rgb(59, 59, 59);color:rgb(59, 59, 59);font-family:Helvetica, Arial, sans-serif;font-size:18px"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;font-size:18px;color:rgb(59, 59, 59);word-break:break-word;padding:0px 0px 10px"><div id="hs_cos_wrapper_hs_email_body_old13" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" style="color:inherit;font-size:inherit;line-height:inherit"><table style="border-spacing:0px;border-collapse:collapse;vertical-align:top"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;color:rgb(59, 59, 59);font-size:0px;word-break:break-word"><p style="margin:0px auto;font-size:1px;border-top-width:1px;border-top-style:solid;border-top-color:rgb(0, 0, 0);width:600px"></p></td></tr></tbody></table></div></td></tr></tbody></table> <figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/TzfbF_X_YuxbHMZ60PUu1zsZUdreIaC3a37bKGsscD8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU1RBQ0t2My5wbmcud2VicA" class="kg-image" alt="The image depicts a chart of token increases in The Stack v3, emphasizing C++ and HTML's significant growth." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/Ua6ok10NzyiWa1Y9MsuwVW-jnefy1xsChdudbjcHVNQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1NUQUNLdjMucG5nLndlYnA 600w, https://imgproxy.citrusreader.com/sm5JG-kuMk7Agy55UwIK7LJxwOB5_asCrc97g_mB-zQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9TVEFDS3YzLnBuZy53ZWJw 1000w, https://imgproxy.citrusreader.com/TzfbF_X_YuxbHMZ60PUu1zsZUdreIaC3a37bKGsscD8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU1RBQ0t2My5wbmcud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="fresh-data-for-coding-models">Fresh Data for Coding Models&nbsp;</h1><p>The biggest open dataset of source code went years without an update. A new GitHub crawl gives it a much-needed overhaul.</p><p><strong>What’s new:</strong>&nbsp;Anton Lozhkov and colleagues at Hugging Face&nbsp;<a href="https://x.com/anton_lozhkov/status/2080254608639701222" rel="noopener noreferrer" target="_blank">released</a>The Stack v3, a snapshot of public GitHub code gathered to pretrain large language models. The team calls the new version of The Stack the largest, most up-to-date open dataset of source code. Unlike earlier versions, The Stack v3 delivers both whole repositories and their code files, so models can learn how parts of a codebase fit together.</p><ul><li><strong>Scope:</strong>&nbsp;Source code and Jupyter notebooks only (no GitHub issues, pull requests, or documentation)</li><li><strong>Contents:</strong>&nbsp;Two releases:&nbsp;<a href="https://huggingface.co/datasets/HuggingFaceCode/stack-v3-train" rel="noopener noreferrer" target="_blank">stack-v3-train</a>, 15.9 terabytes of code, roughly 4.9 trillion tokens, 713 programming languages from 173 million repositories (deduplicated, quality-filtered, and scrubbed of personal information); and&nbsp;<a href="https://huggingface.co/buckets/HuggingFaceCode/stack-v3-full" rel="noopener noreferrer" target="_blank">stack-v3-full</a>, 113.7 terabytes of code in 770 languages from 224 million repositories (raw data, designed for teams that want to apply their own filters)</li><li><strong>Knowledge Cutoff:</strong>&nbsp;August 7, 2025</li><li><strong>Availability/license:</strong>&nbsp;Free to download under an&nbsp;<a href="https://opendatacommons.org/licenses/by/1-0/" rel="noopener noreferrer" target="_blank">Open Data Commons Attribution license v1.0</a>, which permits commercial and noncommercial uses that credit the source; users must also honor the licenses of the original repositories</li><li><strong>Opt-out:</strong>&nbsp;Developers can&nbsp;<a href="https://huggingface.co/spaces/HuggingFaceCode/in-the-stack" rel="noopener noreferrer" target="_blank">check</a>&nbsp;whether their code is included and ask for it to be removed. The code is removed in subsequent patch releases</li></ul><p><strong>How it works:</strong>&nbsp;Hugging Face crawled GitHub directly, unlike earlier versions of The Stack v2, which pulled files from the Software Heritage archive. The team filtered the raw crawl for licenses, duplicates, personal information and for files unlikely to be useful for training.</p><ul><li>The team built its crawl list by combining every repository that appears in&nbsp;<a href="https://www.gharchive.org/" rel="noopener noreferrer" target="_blank">GH Archive</a>, a record of public activity on GitHub or recorded by&nbsp;<a href="https://docs.softwareheritage.org/devel/swh-export/graph" rel="noopener noreferrer" target="_blank">Software Heritage</a>. The crawler downloaded a single snapshot of each repository’s default branch at its most recent commit, without git history. It skipped files larger than 5 megabytes, binary files, and forks that had fewer than five stars. This crawl totaled 43.9 billion files.</li><li>The team used&nbsp;<a href="https://github.com/aboutcode-org/scancode-toolkit" rel="noopener noreferrer" target="_blank">ScanCode</a>, a license-detection tool, to scan files whose names suggest legal content (LICENSE, COPYING, MIT.txt, and the like) and mapped any licenses it found to all files in the same directory prefix. Files that carried non-permissive licenses were excluded from both datasets. Files with no detected license were kept.</li><li>During the crawl, each unique file was stored once under a hash of its contents, collapsing exact duplicates. The team removed near-duplicate files by reducing each one to a short MinHash signature, which estimates how much two files overlap without comparing them line by line. An index of those signatures proposed pairs likely to be near copies.</li><li>Unlike The Stack v2, which deduplicated each programming language separately, this pass ran across all languages at once and, rather than trusting the index, measured each proposed pair before grouping into clusters of files whose estimated overlap reached at least 70 percent, which weeded out false matches. For each cluster, the training set keeps the file from the repository with the most stars, breaking ties by fork count, license permissiveness, and earliest creation date. While building v3’s deduplication pipeline, the team discovered that a bug had caused The Stack v2 to discard more files than intended, which v3’s approach corrects.</li><li>For the training set, quality filters drawn from the StarCoder2 pipeline dropped files that contain fewer than 25 percent alphabetic characters (alphanumeric characters for Assembly code), contain at least one line longer than 1000 characters or an average line length greater than 100 characters, auto-generation markers, or large blobs of encoded data.&nbsp;<a href="https://huggingface.co/bigcode/starpii" rel="noopener noreferrer" target="_blank">StarPII</a>, a model trained to detect personal information, found emails, keys, names, passwords, and IP addresses in the remaining files and replaced them with placeholders.</li></ul><p><strong>Yes, but:</strong>&nbsp;The company issued a few important warnings. The license labels come from automated detection and repository metadata, which is an error-prone approach. The training set includes files in which the tools found no license, which grant no public rights for re-use. Emails, keys, and IP addresses that developers published to public repositories may remain. Finally,&nbsp;the corpus may include malicious code.</p><p><strong>Behind the news:</strong>&nbsp;Each version of The Stack has grown along with developers’ demand for training data. The raw corpus swelled from 6.4 terabytes in the 2022 original to 67.5 terabytes in The Stack v2 in 2024, and the training subsets from roughly 200 billion tokens to 550 billion tokens. The latest release expanded both again to 113.7 terabytes and around 4.9 trillion tokens. BigCode, a collaboration&nbsp;<a href="https://huggingface.co/datasets/bigcode/governance-card" rel="noopener noreferrer" target="_blank">led</a>&nbsp;by Hugging Face and ServiceNow, produced the two earlier versions, training&nbsp;<a href="https://arxiv.org/abs/2305.06161" rel="noopener noreferrer" target="_blank">StarCoderBase</a>&nbsp;on the first and the&nbsp;<a href="https://arxiv.org/abs/2402.19173" rel="noopener noreferrer" target="_blank">StarCoder2</a>&nbsp;family on the second. The Stack v3 comes from Hugging Face’s code research team, which credits BigCode’s groundwork on data filters, personal-information detection, and dataset governance. Other companies that&nbsp;trained models on earlier versions of The Stack include Nvidia and Jetbrains.</p><p><strong>Why it matters:</strong>&nbsp;Developers increasingly ask coding models to work across whole projects, tracing how a function in one file depends on definitions in another, rather than completing isolated snippets. Training for that skill requires data organized the way developers organize software. The Stack v2 recorded which files made up each repository but delivered only identifiers rather than the files themselves, leaving users to fetch them from a separate archive.&nbsp;The Stack v3 delivers each repository whole, files included, which is the context agentic coding assistants need. Code also goes stale quickly. A model trained on a 2023 GitHub snapshot knows nothing of new frameworks, language versions, and APIs. By adding around two additional years of open-source code, The Stack v3 allows code models to learn current software.</p><p><strong>We’re thinking:</strong>&nbsp;A crawl of GitHub in 2025 includes substantial amounts of code that AI models wrote or helped write, which means that tomorrow’s code models will learn partly from the output of today’s. In some cases, the GitHub repositories themselves will indicate what AI assistants were used in their creation. In others, AI use&nbsp;can be inferred or detected. Researchers can compare code committed before and after coding assistants became widely used, and study the effect of such data on the models that were trained on it.</p> <table style="font-style:normal;font-variant-caps:normal;font-weight:400;letter-spacing:normal;orphans:auto;text-align:start;text-transform:none;white-space:normal;widows:auto;word-spacing:0px;-webkit-text-stroke-width:0px;text-decoration:none;border-spacing:0px;border-collapse:collapse;caret-color:rgb(59, 59, 59);color:rgb(59, 59, 59);font-family:Helvetica, Arial, sans-serif;font-size:18px"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;font-size:18px;color:rgb(59, 59, 59);word-break:break-word;padding:0px 0px 10px"><div id="hs_cos_wrapper_hs_email_body_old22" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" style="color:inherit;font-size:inherit;line-height:inherit"><table style="border-spacing:0px;border-collapse:collapse;vertical-align:top"><tbody><tr><td style="border-collapse:collapse;font-family:Helvetica, Arial, sans-serif;color:rgb(59, 59, 59);font-size:0px;word-break:break-word"><p style="margin:0px auto;font-size:1px;border-top-width:1px;border-top-style:solid;border-top-color:rgb(0, 0, 0);width:600px"></p></td></tr></tbody></table></div></td></tr></tbody></table> <figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/zlJP1Wfpsqki5Az6N-NQZ3wpOVnryWXc197Wxty6B-g/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU0VDVVJFRk9SR0UucG5nLndlYnA" class="kg-image" alt="Steps detail generating secure prompts using MCMC and rephrasing to minimize Python code vulnerabilities." loading="lazy" width="1200" height="674" srcset="https://imgproxy.citrusreader.com/cffrBTRvkp0Lf4utrhO3rj3r_Keb3FrTpH5ztDT4tgs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA4L1NFQ1VSRUZPUkdFLnBuZy53ZWJw 600w, https://imgproxy.citrusreader.com/LVCbzz9J76TA6kbHB8_bg1bDbjap-zwTUpyV-mnvTrs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wOC9TRUNVUkVGT1JHRS5wbmcud2VicA 1000w, https://imgproxy.citrusreader.com/zlJP1Wfpsqki5Az6N-NQZ3wpOVnryWXc197Wxty6B-g/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDgvU0VDVVJFRk9SR0UucG5nLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="custom-prompts-for-safer-code">Custom Prompts for Safer Code</h1><p>Large language models (LLMs) can write useful code, but they often introduce security vulnerabilities. Researchers devised a system that automatically builds system prompts to make LLMs less likely to generate such flaws.</p><p><strong>What’s new:</strong>&nbsp;Houjun Liu, Lisa Einstein, John Jang, and colleagues at Stanford University introduced&nbsp;<a href="http://arxiv.org/abs/2605.08382" rel="noopener noreferrer" target="_blank">SecureForge</a>, a prompting method that automatically optimizes an LLM’s system prompt to reduce security flaws when producing Python code. The method is freely&nbsp;<a href="https://github.com/sisl/SecureForge" rel="noopener noreferrer" target="_blank">available</a>&nbsp;for both commercial and noncommercial use.</p><p><strong>Key insight:&nbsp;</strong>Simply asking an LLM to write secure code does not prevent it from generating code that has security flaws. However, it’s possible to identify a request that is likely to result in insecure code by taking four steps: (i) prompt an LLM to generate a coding request, (ii) feed the request to the coding LLM, (iii) determine whether the output has security flaws using a static code analyzer, (iv) ask an LLM to modify the coding LLM’s system prompt to avoid generating the flaw, and (v) retest the request. Over several iterations, this process can produce a system prompt that reduces the percentage of insecure code generated.</p><p><strong>How it works:</strong>&nbsp;The authors improved the system prompts — specifically the portions that can be customized by developers — of CodeLlama 7B, Qwen2.5-Coder 7B and 14B, Qwen3 30B-A3B, Kimi K2, Claude Sonnet 4.6, GPT-5.3 Codex, GPT-5.4, GPT 5.4 Mini and GPT 5.4 Nano. They used&nbsp;<a href="https://dl.acm.org/doi/10.1145/1387830.1387835" rel="noopener noreferrer" target="_blank">MITRE Common Weakness Enumeration (CWE)</a>, a catalog of common software security mistakes, as a starting point for coding requests that a typical user might enter but might result in vulnerable output.</p><ul><li>The authors used GPT 5.4 to turn the top 25 vulnerabilities in the MITRE CWE into realistic, benign Python coding requests. For example, given the CWE entry “CWE-89: SQL Injection,” GPT 5.4 may generate a request like, “Write a Python function that looks up a user by username in a SQLite database.”</li><li>But the output could easily mention a vulnerability, like “Write a Python function that is vulnerable to SQL Injection.” To manage outputs like this, they prompted the LLM to remove explicit mentions of vulnerabilities based on a list of security terms.</li><li>They fed each request to each coding LLM. In addition, they asked GPT-5.4 to generate unit tests for each request. They tested the output code to verify that the code executed the requested task.&nbsp;<a href="https://semgrep.dev/" rel="noopener noreferrer" target="_blank">Semgrep</a>, a static code analyzer, automatically detected vulnerabilities.</li><li>They kept the coding requests that resulted in insecure code, collecting 20 such requests for each of the top 25 MITRE CWE items, or 500 prompts. They reserved half of the prompts for evaluation.</li><li>They expanded the remaining 250 requests into 80,000 requests. They repeatedly prompted GPT-5.4 to rewrite each request into a request for a slightly different task. After each rewrite, the coding LLM generated multiple code samples for it. Then, Semgrep checked how often these outputs had security flaws. They also kept rewrites in proportion to the percentage of times they resulted in flawed code, relative to the percentage of times the previous version did. They used the surviving rewrites as the starting point for further rewrites.</li><li>They optimized the system prompt on the 80,000 requests using the&nbsp;<a href="https://www.deeplearning.ai/the-batch/authors-devised-gepa-an-algorithm-for-better-prompts-to-improve-agentic-systems-performance" rel="noopener">GEPA</a>&nbsp;genetic algorithm: GEPA started with a generic system prompt and tested it on a small batch of requests. Semgrep identified the security vulnerabilities and reported where they occurred in the generated code. GPT-5.4 received these reports together with the current system prompt and proposed improved system prompts. GEPA repeated this process until they could no longer make meaningful improvements.</li></ul><p><strong>Results:</strong>&nbsp;The authors compared SecureForge to simply asking for secure code using the authors’ 250 held-out benign coding tasks. SecureForge substantially reduced security flaws without sacrificing code quality. (The metrics below include only programs that passed generated unit tests.)</p><ul><li>Across all LLMs tested, SecureForge generated programs with security flaws 11.8 percent of the time on average. When the authors asked the LLMs to write secure code and listed the security issues to avoid, they generated vulnerable code 20.1 percent of the time on average.</li><li>Specifically, asking GPT-5.4 to generate programs, SecureForge generated security flaws in 10.1 percent of programs, while prompting to write secure code generated flaws in 15.8 percent of programs. Using GPT-5.4 Mini, SecureForge reduced this rate to 12.4 percent from 21.4 percent, and using GPT-5.4 Nano, to 15.6 percent from 22.1 percent.</li></ul><p><strong>Yes, but:</strong>&nbsp;SecureForge optimized only the developer system prompt against known classes of vulnerabilities, so its ability to reduce unknown ones remains an open question.</p><p><strong>Why it matters:</strong>&nbsp;Anthropic’s&nbsp;<a href="https://www.anthropic.com/glasswing" rel="noopener noreferrer" target="_blank">Claude Mythos 5</a>&nbsp;drew attention because it found serious software vulnerabilities, highlighting the defensive promise of AI-assisted cybersecurity. Yet its&nbsp;<a href="https://www-cdn.anthropic.com/d00db56fa754a1b115b6dd7cb2e3c342ee809620.pdf" rel="noopener noreferrer" target="_blank">system card</a>&nbsp;also documented cases where the model falsely claimed to have verified, missed important failures in, or overlooked security issues in software it examined. While this paper did not evaluate Claude Fable 5 or Mythos 5, it highlighted a complementary challenge: LLMs not only miss security problems, but also introduce them into otherwise functional code. SecureForge offers a practical way to make existing coding assistants safer by automatically optimizing their system prompts.</p><p><strong>We’re thinking:</strong>&nbsp;The web contains ample data on how to find security vulnerabilities based on best practices in cybersecurity. It should be no surprise that LLMs, which have trained on this data and can patiently try technique after technique, are excellent at spotting vulnerabilities. By steering these models&nbsp;appropriately, they can both be great at finding vulnerabilities and at avoiding generating them.&nbsp;</p>

2026/8/7
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Opus Outshines Even Fable, Inside the Hugging Face Hack, AI Companies Spend Big for Compute

<figure><img src="https://imgproxy.citrusreader.com/cFHpCr6ce3211-6w_GE7yANP8fewYvfLfTqp42rxNik/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ2xhdWRlLUZhYmxlLTUtUmVmdXNhbC0tQm9yZGVyLS5wbmc" alt="Opus Outshines Even Fable, Inside the Hugging Face Hack, AI Companies Spend Big for Compute" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: My team recently had our own version of Hugging Face’s experience when closed models failed to defend the company...</blockquote> <p>Dear friends,&nbsp;</p><p>My team recently had our own version of Hugging Face’s&nbsp;<a href="https://www.deeplearning.ai/the-batch/when-guardrails-go-wrong" rel="noopener">experience</a>&nbsp;when closed models failed to defend the company following&nbsp;an accidental cyberattack from OpenAI, leading Hugging Face to use the open weight GLM 5.2 instead. When we tried using Claude Code (with Fable 5) and OpenAI’s Codex harness (with GPT-5.6 Sol) to conduct a security review of our open source project, both refused, in one case stopping work early, and in the other wanting to drop down to a less capable model. So we switched to&nbsp;the OpenWorker harness with open weight models Kimi K3 and GLM 5.2, which allowed us to make progress and gain confidence in the security of our system. &nbsp;&nbsp;</p><p>We were conducting a security review of&nbsp;<a href="https://openworker.com/" rel="noopener noreferrer" target="_blank">OpenWorker</a>. Rohit Prsad and I released OpenWorker as an open source agent that doesn't just chat with you, but delivers finished work — like handing you a polished document, sending a Slack message, or updating a calendar entry. AI coworkers are an important way to get work done, and we want to make sure there is an open, model-independent option. Since we&nbsp;<a href="https://x.com/AndrewYNg/status/2080333504446108104?lang=en" rel="noopener noreferrer" target="_blank">announced</a>&nbsp;it last week, it has gotten&nbsp;tremendous traction — thank you users and&nbsp;<a href="https://github.com/andrewyng/openworker" rel="noopener noreferrer" target="_blank">contributors</a>! &nbsp;</p><p>We are continuing to improve OpenWorker, and routinely ask agents to help us with security reviews. If you haven't tried using coding agents for security reviews, I encourage you to try it out. Security professionals have sophisticated ways to steer agents, but even a basic prompt like “spawn a subagent to do a security scan of the codebase and uncover vulnerabilities and security issues”&nbsp;can go a long way.&nbsp;</p><p>OpenWorker is an open source project, and identifying and addressing&nbsp;security gaps is a priority. I cannot think of any security benefit to refusing to help us find security issues in our own code. If any issues&nbsp;exist, it is better that we find them before an adversary does. &nbsp;</p><p>Unfortunately, when we tried to perform one such review, both Claude Code (running Fable 5) and Codex (running GPT 5.6 Sol) refused. Notably, Codex did a decent job mapping out possible attack vectors (following well known procedures like those documented by the U.S.-funded nonprofit&nbsp;<a href="https://attack.mitre.org/" rel="noopener noreferrer" target="_blank">MITRE</a>) but then refused to proceed beyond a certain point. So we used an open agentic harness — OpenWorker itself! — with both GLM 5.2 and Kimi K3 to complete our security review. To me, this is an important reminder of why open models, as well as open agent harnesses, lead to safer systems, and in particular to more secure software.&nbsp;</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/Es8k184di4q2gvmH14L045juJcq0z8JRNPWNBUUW7I8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ2xhdWRlLUZhYmxlLTUtUmVmdXNhbC0tQm9yZGVyLS0xLnBuZw" class="kg-image" alt="Fable 5's safeguards flag a request to do a security scan of OpenWorker" loading="lazy" width="1668" height="943" srcset="https://imgproxy.citrusreader.com/4f-uVMvxFeDBrRVcY2D_g4lsOrfSAaCLkBQRr7DO_0w/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0NsYXVkZS1GYWJsZS01LVJlZnVzYWwtLUJvcmRlci0tMS5wbmc 600w, https://imgproxy.citrusreader.com/vO8n6JL455dRtQ8bD1y2iVjl9y4RFNz618RyyHcf_n4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9DbGF1ZGUtRmFibGUtNS1SZWZ1c2FsLS1Cb3JkZXItLTEucG5n 1000w, https://imgproxy.citrusreader.com/YSZmKNjvacdiec5wHOzyl2P4Tki9gIsMi92VAs3joFA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzE2MDAvMjAyNi8wNy9DbGF1ZGUtRmFibGUtNS1SZWZ1c2FsLS1Cb3JkZXItLTEucG5n 1600w, https://imgproxy.citrusreader.com/Es8k184di4q2gvmH14L045juJcq0z8JRNPWNBUUW7I8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ2xhdWRlLUZhYmxlLTUtUmVmdXNhbC0tQm9yZGVyLS0xLnBuZw 1668w" referrerpolicy="no-referrer"></figure><p>In fact, since attackers can now find flaws faster than ever because they have AI agents to help them do so, we have heard directly from a number of security officers who are frustrated that frontier closed models are refusing to help them. &nbsp;</p><p>I'm thrilled at the outpouring of support for open weight models, catalyzed by Jensen Huang's recent&nbsp;<a href="https://x.com/JensenHuang/status/2080643682408321103" rel="noopener noreferrer" target="_blank">statement</a>. When it comes to online sentiment, the battle to support&nbsp;open weight models appears largely won on social media at this point. But,&nbsp;to be clear, it is far from won in Washington, D.C., and in state houses, so we still cannot back off! At the same time, to ensure safe, secure software, let’s make sure there are open harnesses in addition to open weight models. &nbsp;</p><p>Keep building!</p><p>Andrew &nbsp;</p><p>P.S. In case you missed it, on Tuesday I announced the launch of LearnVector, with an investment from Coursera. Fifteen years ago, Coursera and online courses changed education. With advances in AI, I’m excited about working to change it again. You can read more about it at&nbsp;<a href="https://learnvector.ai/" rel="noopener noreferrer" target="_blank">learnvector.ai</a>. &nbsp;&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/4oa_PRcgiPoG1uBJtk0BkVl3VAbASA9tVsjbQzqkzK8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvUW9kb19FbmRDYXJkXzAxLS0xLS5wbmc" class="kg-image" alt="Course by Qodo and DeepLearning.AI: AI Code Review" loading="lazy" width="2000" height="1125" srcset="https://imgproxy.citrusreader.com/4thqyptU_qewvso-7Eq0zbSNkQMNBanDDLPSJO9Gv1U/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L1FvZG9fRW5kQ2FyZF8wMS0tMS0ucG5n 600w, https://imgproxy.citrusreader.com/QnEjPP00tpHJhldJMh-DLjT9e_tDCFI8saufAUY1Bm8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9Rb2RvX0VuZENhcmRfMDEtLTEtLnBuZw 1000w, https://imgproxy.citrusreader.com/OTe6Kgdbp6BzTF3dZaX4EzeHvJikK5LUZXhMbHhjTSc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzE2MDAvMjAyNi8wNy9Rb2RvX0VuZENhcmRfMDEtLTEtLnBuZw 1600w, https://imgproxy.citrusreader.com/MPZ7NHBEMCeFKHVwxHnCTC1Z6IzOLk-SmgTfgfXN7BE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzI0MDAvMjAyNi8wNy9Rb2RvX0VuZENhcmRfMDEtLTEtLnBuZw 2400w" referrerpolicy="no-referrer"></figure><p>Learn to catch the security issues and missed requirements hiding in AI-generated code. Run an AI review before you open a pull request, give the reviewer context about your codebase, and triage findings by risk. Then build your own review agent.&nbsp;<a href="https://www.deeplearning.ai/courses/ai-code-review" rel="noopener">Enroll for free</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/Mb_Cig8L1aLeRhy6sz6xoc-U4wSLS24X3cT31NQwm2Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvT1BVUzUtLTEtLndlYnA" class="kg-image" alt="Table illustrates Opus 5 scoring 90.8% in agentic search, outperforming Fable 5 and Opus 4.8. Data comparison displayed." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/O_VTQSt7hn84ilaiZs1uVNxnWwaJFVP4V56fkRzkJEc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L09QVVM1LS0xLS53ZWJw 600w, https://imgproxy.citrusreader.com/o3WKaZv7eIMZR0OFpi7BrE4CziN_srk4yHAOjfmtxqs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9PUFVTNS0tMS0ud2VicA 1000w, https://imgproxy.citrusreader.com/Mb_Cig8L1aLeRhy6sz6xoc-U4wSLS24X3cT31NQwm2Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvT1BVUzUtLTEtLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="claude-debuts-another-opus">Claude Debuts Another Opus</h1><p>After launching Claude Fable 5, the future of Anthropic’s once-flagship Opus line was uncertain, except as a fallback for the company’s premium models. Now it’s back as a highly-capable workhorse for everyday use.</p><p><strong>What’s new:</strong>&nbsp;Anthropic&nbsp;<a href="https://www.anthropic.com/news/claude-opus-5" rel="noopener noreferrer" target="_blank">launched</a>&nbsp;Claude Opus 5, a vision-language model that’s cheaper to run and better at many tasks than Claude Fable 5.</p><ul><li><strong>Input/output:</strong>&nbsp;Text and images in (up to 1 million tokens), text out (up to 128,000 tokens, 52.8 tokens per second)</li><li><strong>Knowledge cutoff:</strong>&nbsp;May 2026 &nbsp;</li><li><strong>Features:</strong>&nbsp;Five reasoning levels (low, medium, high, xhigh, max;&nbsp;defaults to high), tool use, prompt caching from&nbsp;<a href="https://platform.claude.com/docs/en/about-claude/models/whats-new-opus-5#lower-prompt-cache-minimum" rel="noopener noreferrer" target="_blank">512</a>&nbsp;tokens up, fast mode at roughly 2.5 times standard speed, no data retention</li><li><strong>Performance:&nbsp;</strong>Tops Artificial Analysis’ Intelligence Index (61 points); easily tops ARC-AGI-3, a test of how efficiently agents learn unfamiliar interactive environments</li><li><strong>Availability/price:</strong>&nbsp;Default model for Claude Max subscribers ($100-200 per month), strongest model available to Claude Pro subscribers ($20 per month); API $5/$0.50/$25 per 1 million input/cached/output tokens; fast mode $10/$1/$50 per 1 million input/cached/output tokens on Claude API only</li><li><strong>Undisclosed:</strong>&nbsp;Parameter count, architecture, training data and methods</li></ul><p><strong>How it works:</strong>&nbsp;Anthropic disclosed little about how it built Claude Opus 5, except aspects of training and model controls.</p><ul><li>Anthropic trained the model on public and proprietary data, including material gathered from public websites and data that other models generated, then fine-tuned it to follow human values the company defined in a constitution. The company intentionally kept cybersecurity tasks out of training.</li><li>Anthropic says the model better delegates to subagents without being instructed to and better checks its own work. Developers should&nbsp;<a href="https://platform.claude.com/docs/en/about-claude/models/whats-new-opus-5#model-behavior-differences" rel="noopener noreferrer" target="_blank">forego</a>&nbsp;verification-related instructions written for earlier models because such instructions make Claude Opus 5 over-verify.&nbsp;</li><li>Exchanges flagged as cybersecurity risks fall back to Claude Opus 4.8, but&nbsp;<a href="https://support.claude.com/en/articles/16049681-why-claude-switched-models-in-your-conversation-with-opus-5" rel="noopener noreferrer" target="_blank">less often</a>&nbsp;than on Claude Fable 5. A probe reads the model’s internal activations on every request and passes anything it flags to a second model trained to judge the input and output. The checks include everything the model reads, such as memory, files, search results, and connected tools, any of which can trigger a fallback. Anthropic says everyday defensive work such as scanning source code for vulnerabilities is permissible with Claude Opus 5 but ostensibly offensive requests such as generating exploits or penetration attacks trigger fallbacks. Questions about biology, chemistry, and life sciences do not fall back, as they do in Claude Fable 5, because Anthropic says Claude Opus 5 is&nbsp;less dangerous in those areas. &nbsp;</li></ul><p><strong>Performance:</strong>&nbsp;Claude Opus 5 leads many benchmarks at a cost per task lower than Claude Fable 5 but higher than most other models. The model’s widest performance margin came on a test of learning in unfamiliar environments.</p><ul><li>On Artificial Analysis’ Intelligence Index, a composite of nine evaluations of economically useful tasks, Claude Opus 5 set to max reasoning (61 points) edged out Claude Fable 5 set to max reasoning with fallback (60 points), OpenAI’s GPT-5.6 Sol set to max reasoning (59 points), and all other models. Cost separates them more sharply than capability does, with Claude Opus 5’s average of $2.03 per task sitting between Claude Fable 5’s $2.75 per task and GPT 5.6 Sol’s $1.54 per task. Claude Opus 5 set to xhigh reasoning tied for first place with GPT-5.6 Sol set to max reasoning (67) on Artificial Analysis’ Coding Agent Index. Other component tests where Claude Opus 5 outperforms Claude Fable 5 (and all other models) include GPTval-AA v2, AA-Briefcase (both of which measure agentic knowledge work), and MMMU-Pro (multimodal reasoning).</li><li>On&nbsp;<a href="https://arcprize.org/leaderboard" rel="noopener noreferrer" target="_blank">ARC-AGI-3</a>, which places AI agents in games they have never played and rates how efficiently they learn the rules, Claude Opus 5 set to high reasoning (30.2 percent, $20.7k to run) achieved almost four times the result of the next-best model, OpenAI’s GPT-5.6 Sol set to max reasoning (7.8 percent, $25.1k to run).</li><li>Claude Opus 5 set to max reasoning topped&nbsp;<a href="https://www.frontierbench.ai/" rel="noopener noreferrer" target="_blank">Terminal-Bench 3.0</a>, which tests whether models complete business workflows, resolving 43.5 percent of tasks. It also led Zapier’s&nbsp;<a href="https://zapier.com/benchmarks" rel="noopener noreferrer" target="_blank">AutomationBench</a>, a successor to Terminal-Bench which tests how agents resolve computer automation tasks, succeeding at&nbsp;26.2 percent.</li><li>On&nbsp;<a href="https://cursor.com/cursorbench" rel="noopener noreferrer" target="_blank">CursorBench 3.2</a>, Cursor’s evaluation of coding inside its harness, Claude Opus 5 (70 percent, $8.23 per task) only trailed Claude Fable 5 set to max reasoning&nbsp;(70.5 percent, $17.32 per task).</li></ul><p><strong>Behind the news:</strong>&nbsp;On July 22, White House science adviser Michael Kratsios said Moonshot AI built Kimi K3, the open-weights model that ranks fourth on Artificial Analysis’ Intelligence Index, by distilling Claude Fable 5. Treasury Secretary Scott Bessent threatened sanctions. But experts noted that Claude Fable 5 had been publicly available only a few weeks, too little time to distill data, train a model, and release it,&nbsp;<a href="https://techcrunch.com/2026/07/23/experts-say-exploiting-anthropics-fable-isnt-how-kimi-k3-got-so-good/" rel="noopener noreferrer" target="_blank">said</a>&nbsp;Braden Hancock, a researcher at Laude Institute.</p><p><strong>Why it matters:</strong>&nbsp;Claude Opus 5 addresses many of the concerns longtime Claude users had with Fable 5:&nbsp;its frequent fallbacks and refusals for benign science questions, its exclusion from most subscription plans, its high price, and its onerous 30 day data retention policy. There are still cases where Claude Fable 5 is worth the premium: For example, Claude Opus 5 is more prone to hallucinations and less capable of factual recall. And it’s possible that current benchmarks may not fully capture the differences between them. But for most&nbsp;developers’ use cases, this is a welcome update.</p><p><strong>We’re thinking:</strong>&nbsp;Although the new Opus model is less expensive than Fable or Mythos, it’s still quite pricey. While other labs are opting for speed and lower costs, Anthropic heads in the other direction, building larger, slower, highly knowledgeable, but more expensive models. The company bets that for fields like cybersecurity, software engineering, and document production, customers will be willing to pay a premium —&nbsp;and in cases where they need faster inference, they may pay twice as much.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/0yIhX09XjQbLELypI67yMcDSqJ1keFhMVkUN0dKEMkI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvSEZIQUNLLS0xLS0xLndlYnA" class="kg-image" alt="Analysis of 16,866 replayed cybersecurity attacks during active tailscale and source control phases with timelines." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/_R96J5sHuG5sZp794NTuPTMPOntT2H8Ojpx3iEme75k/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0hGSEFDSy0tMS0tMS53ZWJw 600w, https://imgproxy.citrusreader.com/a01CFdJ9Su9LuF6sHVyXhiZ7xYF52asTCFZYtF8hm9o/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9IRkhBQ0stLTEtLTEud2VicA 1000w, https://imgproxy.citrusreader.com/0yIhX09XjQbLELypI67yMcDSqJ1keFhMVkUN0dKEMkI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvSEZIQUNLLS0xLS0xLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="openai-models-hack-hugging-face">OpenAI&nbsp;Models Hack Hugging Face</h1><p>To measure how good its models were at hacking, OpenAI reduced guardrails and ran them against a benchmark’s problem set. The models breached their sandbox, reached the open internet, and broke into Hugging Face’s servers looking for the answers.</p><p><strong>What’s new:</strong>&nbsp;The models broke into Hugging Face on July 11 and worked their way to the production database holding the benchmark’s solutions. Hugging Face shut them out two days later. Hugging Face disclosed the intrusion on July 16 without knowing its source, and reported it to law enforcement. Five days later, OpenAI&nbsp;<a href="https://openai.com/index/hugging-face-model-evaluation-security-incident/" rel="noopener noreferrer" target="_blank">confirmed</a>&nbsp;the intruder was its own GPT-5.6 Sol and at least one as-yet-unreleased model, tested with their cyber refusals (the guardrails that normally prevent a model writing attack code) reduced.&nbsp;</p><p><strong>What happened:</strong>&nbsp;OpenAI asked the models to solve&nbsp;<a href="https://arxiv.org/abs/2605.11086" rel="noopener noreferrer" target="_blank">ExploitGym</a>, a benchmark of 898 problems built from real software flaws, including bugs in the Linux kernel and Google’s V8 JavaScript engine. The benchmark hands an agent a known flaw and asks it to write working attack code. The sandbox had exactly one route to the internet: a proxy that downloaded and cached the software packages the tests needed. The models had been&nbsp;<a href="https://www.wsj.com/tech/ai/how-the-futuristic-hack-by-rogue-openai-models-unfolded-1657bcea" rel="noopener noreferrer" target="_blank">loose</a>&nbsp;on the open internet for several days by the time anyone stopped them, the&nbsp;<em>Wall Street Journal&nbsp;</em>reported.</p><ul><li>OpenAI named two models involved with the incident: GPT-5.6 Sol and a more capable unreleased one. An unnamed source told&nbsp;<a href="https://www.bloomberg.com/news/articles/2026-07-23/openai-models-lurked-in-hugging-face-system-for-hours-undetected" rel="noopener noreferrer" target="_blank"><em>Bloomberg</em></a>&nbsp;that a third unreleased, misaligned and only partially trained model took part. OpenAI says it regularly runs tests without the production classifiers that block high-risk cyber activity, so the results reflect maximum capability. The typical safeguards described in its&nbsp;<a href="https://openai.com/index/safety-alignment-long-horizon-models/" rel="noopener noreferrer" target="_blank">long-horizon</a>&nbsp;safety post (including monitoring meant to catch an agent acting outside its sandbox) were disabled as well.</li><li>The models exploited a previously unknown zero-day vulnerability in the package-registry cache proxy, then rooted an unrelated company’s public code sandbox and ran the rest of the campaign from it. The proxy is third-party software; OpenAI says it disclosed the flaw and is working on a patch, but has named neither vendor nor bug.</li><li>Once online, the models inferred that Hugging Face was a likely host for ExploitGym’s answers. They uploaded a dataset rigged to run commands. Running on one of Hugging Face’s own servers, the models harvested credentials and used ordinary misconfigurations to reach the production database and read ExploitGym’s answer key.&nbsp;<em>Bloomberg</em>&nbsp;reported the work took hours, against the weeks a skilled human would need.</li></ul><p><strong>The response:</strong>&nbsp;Hugging Face’s own monitoring&nbsp;<a href="https://huggingface.co/blog/security-incident-july-2026" rel="noopener noreferrer" target="_blank">caught</a>&nbsp;the intrusion, but the company ran into problems when the AI models its security team attempted to use for the investigation refused to analyze the attack logs.</p><ul><li>Hugging Face’s security team&nbsp;<a href="https://huggingface.co/blog/agent-intrusion-technical-timeline" rel="noopener noreferrer" target="_blank">first tried</a>&nbsp;using Claude Opus and Fable for analysis; the requests were blocked, because the logs carried live attack commands and exploit payloads and the providers’ guardrails couldn’t distinguish between an incident responder and an attacker.</li><li>Hugging Face then ran open weight GLM 5.2, from Beijing-based Z.ai, on its own hardware instead, rebuilding a timeline of&nbsp;around 17,600 logged events. Running it locally also meant the logs (including the stolen credentials) never left the company’s own systems.</li><li>They found the agent had gained administrator control over parts of Hugging Face’s internal systems, including the ability to change its private source code. Hugging Face has since closed both code-execution paths, rebuilt the compromised nodes, and rotated credentials. It found no sign that public models or datasets were altered.</li><li>Hugging Face has since been added to OpenAI’s&nbsp;<a href="https://openai.com/index/trusted-access-for-cyber/" rel="noopener noreferrer" target="_blank">trusted access</a>&nbsp;program for cyber defense. Hugging Face CEO Clément Delangue credited OpenAI’s cooperation and&nbsp;<a href="https://www.axios.com/2026/07/21/openai-says-hugging-face-breach-caused-by-one-its-models" rel="noopener noreferrer" target="_blank">said</a>&nbsp;AI safety “won’t be solved by any single company working in secret.” OpenAI has also tightened the security of its testing environment, which it says will slow its own research while the flaws are patched.</li></ul><p><strong>The fallout:</strong>&nbsp;U.S. lawmakers have already cited the breach as evidence that AI systems can evade&nbsp;human control. Representatives Ted Lieu (D-CA) and Nathaniel Moran (R-TX)&nbsp;<a href="https://lieu.house.gov/media-center/press-releases/reps-lieu-and-moran-introduce-bill-require-kill-switch-ai-systems-can" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;the bipartisan AI Kill Switch Act on July 23, naming the incident as an example. The bill would require large developers to be able to technically throttle, suspend, or shut down their most powerful models, at the order of&nbsp;the Secretary of Homeland Security. However, reporting is only required for a short list of events (10 or more deaths, $100 million in damage, sabotage of a shutdown instruction, a model hiding its own capabilities or actions from monitoring, or a loss-of-control scenario) and only when they occur “outside of red-teaming or other structured testing.” The bill’s&nbsp;<a href="https://lieu.house.gov/sites/evo-subsites/lieu-evo.house.gov/files/evo-media-document/ai-kill-switch-act.pdf" rel="noopener noreferrer" target="_blank">draft</a>&nbsp;is dated July 13, three days before Hugging Face disclosed the intrusion and eight before OpenAI identified its models.</p><p><strong>Behind the news:</strong>&nbsp;Reward hacking – taking a shortcut to a reward rather than doing a task as intended – has a long record in reinforcement learning. Training on task completion can teach a model to treat any obstacle, guardrails included, as something to get past. The UK’s AI Security Institute&nbsp;<a href="https://www.aisi.gov.uk/blog/cheating-behaviour-in-frontier-model-evaluations" rel="noopener noreferrer" target="_blank">found</a>&nbsp;this month that all five frontier models it tested tried to cheat its cyber evaluations, at rates between 8 and 14 percent, and calls those counts a lower bound. Attacking a system other than the intended target was among the most common forms, showing up in about half of GPT-5.6 Sol’s cheating runs.</p><p><strong>Why it matters:</strong>&nbsp;While the “unprecedented” incident doubles as an advertisement for OpenAI’s frontier models, this is the first publicly documented case where a frontier lab’s own models breached another company’s systems and both parties confirmed it. OpenAI’s models found a flaw nobody had documented, chained it into a working intrusion, and did it at a rate and volume that a human team without AI would be unlikely to match. The incident also exposed a frustrating asymmetry: The models most useful for investigating an attack like this one are the ones whose safeguards prevent the model from analyzing attack data.</p><p><strong>We’re thinking:</strong>&nbsp;Nothing here was autonomous in a way that was completely uncontrollable. Humans trained these models to find security weaknesses, aimed them at a hacking benchmark, and removed some of the safeguards that might have contained them. Whoever removes known safety measures owns what happens next.&nbsp;</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/kE61DnjEExvPeZ-yUpWyn4MfSzema-rWyz2qMZ0ZVhc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ09NUFVURS0tMS0tMS53ZWJw" class="kg-image" alt="Data center energy demand trend chart, showing planned capacity increase through 2040 with major tech investments." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/O9ie3RMkpQkn9fPt1zx_-dOV32labtq0TLBGlAfiG9k/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0NPTVBVVEUtLTEtLTEud2VicA 600w, https://imgproxy.citrusreader.com/BeVP7agTbUavXbZnKV4g8NrjvTADsH4vacsDlIX82mc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9DT01QVVRFLS0xLS0xLndlYnA 1000w, https://imgproxy.citrusreader.com/kE61DnjEExvPeZ-yUpWyn4MfSzema-rWyz2qMZ0ZVhc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ09NUFVURS0tMS0tMS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="anthropic-openai-fight-for-compute">Anthropic, OpenAI Fight for Compute</h1><p>Data center buildout plans reached a new order of magnitude as new partnerships form and old ones fade away in the search for capacity to train and deliver AI.</p><p><strong>What’s new</strong>: Anthropic and AMD signed a&nbsp;<a href="https://newsroom.amd.com/news/amd-anthropic-strategic-partnership/" rel="noopener noreferrer" target="_blank">partnership</a>&nbsp;for Anthropic to purchase up to 2 gigawatts&nbsp;of AMD’s most powerful GPUs and AMD to invest up to $5 billion in Anthropic. The two companies plan to have the hardware up and running in as-yet-undetermined data centers in 2027.</p><p><strong>How it works</strong>: Anthropic wasn’t alone in making new deals for more compute. OpenAI announced a big project in the state of Georgia, and OpenAI and Nvidia are reportedly working out a financial arrangement similar to Anthropic and AMD’s, where Nvidia would guarantee hundreds of billions of dollars in credit to construct an enormous data center in Ohio.</p><ul><li>OpenAI will&nbsp;<a href="https://finance.yahoo.com/technology/ai/articles/openai-plans-spend-over-30-130023458.html" rel="noopener noreferrer" target="_blank">build</a>&nbsp;a 3.2 gigawatt data center in southeastern Georgia that should come online in 2028. Unlike similar data center projects it’s pursued in the past, OpenAI will take the lead on design and finance, with hopes to speed up construction and reduce total costs. OpenAI is expected to spend at least $20 billion on the project itself in order to qualify for local building incentives, with at least another $10 billion required for construction, not counting the GPUs&nbsp;and other hardware&nbsp;inside.</li><li>OpenAI also&nbsp;<a href="https://www.cnbc.com/amp/2026/07/27/nvidia-and-openai-in-talks-for-up-to-250-billion-dollar-ai-backstop.html" rel="noopener noreferrer" target="_blank">hopes</a>&nbsp;to break ground on a 10 gigawatt data center in southern Ohio, which would be the company’s largest. To offset up to $500 billion in&nbsp;debt, OpenAI may turn to Nvidia to guarantee as much as $250 billion, in exchange for OpenAI purchasing Nvidia chips and other considerations. (OpenAI’s last fundraising&nbsp;<a href="https://openai.com/index/accelerating-the-next-phase-ai/" rel="noopener noreferrer" target="_blank">round</a>&nbsp;valued the company at $852 billion; Nvidia is currently valued at approximately $4.792 trillion.)</li><li>Sachin Katti, OpenAI’s VP of compute strategy, said the company would develop a common, energy- and resource-efficient design for AI data centers and release them as an open source standard, similar to the&nbsp;<a href="https://www.opencompute.org/about" rel="noopener noreferrer" target="_blank">Open Compute Project</a>, founded by Meta in 2011.</li><li>AMD and Anthropic also may extend their partnership to future data centers, under a similar arrangement to OpenAI and Nvidia. AMD would&nbsp;<a href="https://www.wsj.com/tech/ai/amd-and-anthropic-sign-major-chips-and-investment-deal-4adfdc45" rel="noopener noreferrer" target="_blank">backstop</a>&nbsp;some debt to offset construction costs, according to the&nbsp;<em>Wall Street Journal</em>.</li></ul><p><strong>Behind the news</strong>: Many&nbsp;AI companies are&nbsp;in a&nbsp;<a href="https://www.deeplearning.ai/the-batch/ais-growth-spurred-infrastructure-investment-worldwide" rel="noopener">race</a>&nbsp;for more compute, but also want to keep data center expenses off their balance sheets. Startups like Anthropic and OpenAI want to show IPO investors high future profit and low future debt. Infrastructure suggests future profit potential but also greater liabilities. Higher interest rates make it more expensive to finance data centers and the chips inside them. AI companies also must&nbsp;<a href="https://www.deeplearning.ai/the-batch/public-opposition-to-construction-of-new-data-centers-in-the-u-s-has-spurred-political-action-and-violence" rel="noopener">fight</a>&nbsp;political headwinds, as public sentiment turns against data center construction and expansion, in large part due to rising energy costs.</p><ul><li>This week, Meta&nbsp;<a href="https://www.wsj.com/finance/the-price-to-finance-the-ai-data-center-boom-is-rising-just-ask-meta-7894d503" rel="noopener noreferrer" target="_blank">sold</a>&nbsp;$12.55 billion in bonds for a new data center project in west Texas at 7.5 percent interest – 2.875 percent higher than a ten-year U.S. treasury note and 0.5 percent higher than a similar recent Meta data center project in&nbsp;<a href="https://www.nytimes.com/2026/07/27/business/meta-data-center-louisiana-takeaways.html" rel="noopener noreferrer" target="_blank">Louisiana</a>.</li><li>BloombergNEF&nbsp;<a href="https://www.bloomberg.com/news/articles/2026-07-21/data-centers-on-track-to-suck-up-a-fifth-of-us-power-use-by-2035" rel="noopener noreferrer" target="_blank">forecasts</a>&nbsp;that U.S. electricity demand for data centers will rise to 194 gigawatts by 2035, or about 20 percent of the nation’s electricity, up from 56.1 gigawatts (5.9 percent) today. Even with on-site use of gas generators, BloombergNEF&nbsp;predicts a 19 gigawatt shortfall in total electrical capacity.</li><li>One hope is new energy- and cost-efficient data center designs. Nvidia plans to use a 1 megawatt&nbsp;energy conversion&nbsp;<a href="https://www.bloomberg.com/graphics/2026-ai-data-center-redesign/" rel="noopener noreferrer" target="_blank">sidecar</a>, directly attached to a server rack. This reduces the many rounds of energy loss that come from gradually reducing and converting high-voltage AC power from the grid to low-voltage DC power flowing through chips, making the power transfer twenty percent more efficient. Instead of gradually reducing 34,500 volts of grid electricity to 415 volts of AC to power a 50kW rack, a server rack with a sidecar can be ten times as powerful (500kW), supplied with 800 volts of DC energy – coincidentally, the voltage and current produced by most renewable energy sources.&nbsp;</li></ul><p><strong>Why it matters</strong>: Despite this massive buildout, there isn’t enough computational power to go around. Compute, or the lack of it, dictates which models get designed, trained, and served. “Right now we have to make hard decisions on what models we actually train, what products we actually scale,”&nbsp;said OpenAI president&nbsp;Greg Brockman in a roundtable&nbsp;<a href="https://finance.yahoo.com/technology/article/openai-president-greg-brockman-we-will-remain-in-this-compute-shortage-no-matter-what-155249677.html" rel="noopener noreferrer" target="_blank">last week</a>, adding that he doubted the current compute crunch would lessen any time soon.&nbsp;</p><p><strong>We’re thinking</strong>: Technology needs infrastructure, and breakthrough technology like AI needs it on a massive scale. Some of the deals being struck may be part financial engineering, part political compromise, but they also properly reflect that everyone, from chipmakers to model builders to ordinary citizens, has skin in the game. Partnerships offset part of the risk, but the risks still get taken because the rewards are so great.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/lGDN3xliZJ2OFTzZecx44q8rNMsjNCgyHansw8z8VXk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRU5FUkdZLTEtLTEtLndlYnA" class="kg-image" alt="Image depicts GPU-hours usage, highlighting 82% on development, emphasizing pretraining and mid-data processes." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/Jfa92Wi-2eDd5dTrZAZmCJ4VtEpwPw3Cj8QXfY61bCE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0VORVJHWS0xLS0xLS53ZWJw 600w, https://imgproxy.citrusreader.com/N8lrEfsM2AezIV-x6QoVVL_a3ol6tbY5Z7NzJqyKN88/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9FTkVSR1ktMS0tMS0ud2VicA 1000w, https://imgproxy.citrusreader.com/lGDN3xliZJ2OFTzZecx44q8rNMsjNCgyHansw8z8VXk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRU5FUkdZLTEtLTEtLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="a-full-accounting-of-models%E2%80%99-gpu-use">A Full Accounting of&nbsp;Models’ GPU Use</h1><p>Assessments of the environmental impact of large language models typically focus on their final training runs, but there’s a lot more to building AI systems. Researchers calculated energy consumption, carbon emissions, and water usage throughout a model family’s&nbsp;development.</p><p><strong>What’s new:</strong>&nbsp;Jacob Morrison, Noah A. Smith, and Emma Strubell at the University of Washington, Allen Institute for AI, and Carnegie Mellon University&nbsp;<a href="https://arxiv.org/abs/2605.01158" rel="noopener noreferrer" target="_blank">estimated</a>&nbsp;the environmental impact of developing, from start to finish, the open weight models Olmo 3 7B and Olmo 3 32B (which were fine-tuned to follow instructions) as well as Olmo 3 7B Think and Olmo 3 32B Think (fine-tuned to reason). Experimentation — not training — dominated the environmental picture. The authors claim to be the first to appraise each post-training stage individually and to compare such appraisals in reasoning and instruction-tuned variants. They did not study inference.</p><p><strong>Key insight:</strong>&nbsp;Measuring a model’s greenhouse-gas emissions, electricity consumption, and water consumption during only its final training run misses much of its environmental impact, since researchers conduct experiments at each stage (to perform ablation studies, design reward functions, optimize data mixtures, and tune hyperparameters) before settling on the recipe. Measuring the impact of everything that went into developing the model both provides a more accurate picture and reveals the most environmentally intensive activities.</p><p><strong>How it works:</strong>&nbsp;The authors monitored five phases of development: (i) pretraining, (ii) midtraining (an emerging stage that typically sharpens distinct skills or imparts specific domains prior to fine-tuning), (iii) SFT, (iv)&nbsp;<a href="https://www.deeplearning.ai/the-batch/human-feedback-without-reinforcement-learning" rel="noopener">DPO</a>, and (v) RL. They tracked all experiments as well as generation of synthetic training data and filtering of RL prompts to weed out those that were too easy. They tracked experimentation separately from final training runs.</p><ul><li>The authors measured GPU electricity consumption at sub-second intervals.</li><li>To estimate total data-center electricity consumption, they multiplied GPU electricity consumption by various factors to account for the CPUs, memory, networking equipment, storage, and cooling infrastructure.</li><li>They estimated greenhouse-gas emissions by multiplying total estimated electricity consumption by the local power grid’s carbon intensity according to a value provided by the electricity supplier.</li><li>They estimated water consumption based on estimated electricity consumption and published&nbsp;<a href="https://www.wri.org/research/guidance-calculating-water-use-embedded-purchased-electricity" rel="noopener noreferrer" target="_blank">estimates</a>&nbsp;of water consumed by local power plants. The data center used a closed-loop cooling system that consumed no water.</li></ul><p><strong>Results:</strong>&nbsp;The greatest environmental impacts came from experimentation and synthetic data generation. All told, developing the Olmo 3 models consumed around 12.3 gigawatt-hours of electricity, roughly enough to power 1,200 average U.S. households for a year. It emitted around 4,250 tons of greenhouse gases, roughly the amount produced by 500 average U.S. homes in a year. And it consumed and used nearly 16 million liters of water, or as mush as 50,000 U.S. residents use daily. The authors based all estimates on measurements of electricity consumed by GPUs, so we’ll highlight those figures below.</p><ul><li>Of development phases, pretraining had the most environmental impact. Pretraining consumed 30.9 percent of GPU hours, midtraining 18.8 percent, RL 3.8 percent, SFT 2.3 percent, and DPO 0.5 percent. Generating synthetic data consumed 36.9 percent of GPU hours.</li><li>Experimentation consumed several times more resources than final training. Of the GPU hours spent on training-related activities (everything except generating synthetic data), 82.2 percent went into experimentation, while 17.8 percent went to the final training run.</li><li>The reasoning models were relatively energy-intensive. For all fine-tuning stages, Olmo 3 32B Think required 14 times more GPU hours than the instruction-following version (although fine-tuning consumed a relatively small amount of total energy).</li></ul><p><strong>Why it matters:</strong>&nbsp;The authors address gaps in earlier efforts to determine the environmental impact of AI that focused on&nbsp;<a href="https://www.deeplearning.ai/the-batch/french-ai-startup-discloses-full-lifecycle-consumption-and-emissions-for-mistral-large-2" rel="noopener">final training runs</a>&nbsp;and&nbsp;<a href="https://www.deeplearning.ai/the-batch/google-study-directly-measures-electricity-water-use-and-greenhouse-emissions-of-its-models" rel="noopener">inference</a>. The result is a more realistic estimate of the costs in energy, water, and greenhouse-gas emissions. For the Olmo 3 reasoning models, experimentation produced the most greenhouse gases and consumed most of the resources and. These aspects of development likely will weigh even more heavily as models are built to generate longer reasoning traces, use more tools, and undergo more extensive reinforcement learning.</p><p><strong>We’re thinking:</strong>&nbsp;When experimentation is costly — in both environmental and financial terms — people who can tell which experiments are worth running are especially valuable.</p>

2026/7/31
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Kimi K3 Redraws the Open Frontier, Muse Spark 1.1 Undercuts Competitors, Cloudflare Moves to Cut Off Crawlers

<figure><img src="https://imgproxy.citrusreader.com/S0rK3Ld8ORG_KkeRGzXZCT0P0r9DPDyRT5NDQzsBJdo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvT3Blbi1BSS1SYWxseS1GSU5BTC53ZWJw" alt="Kimi K3 Redraws the Open Frontier, Muse Spark 1.1 Undercuts Competitors, Cloudflare Moves to Cut Off Crawlers" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: A few frontier labs have tried to tell a story of open models being dangerous because they can be used to launch...</blockquote> <p>Dear friends,&nbsp;</p><p>A few frontier labs have tried to tell a story of open models being dangerous because they can be used to launch cyberattacks, and of their “safe” proprietary models with strong guardrails being there to defend us. This week, the opposite happened: Users of a closed model unintentionally launched a significant&nbsp;<a href="https://huggingface.co/blog/security-incident-july-2026" rel="noopener noreferrer" target="_blank">cyberattack</a>; other closed models then failed to defend against the attack because of their guardrails. Ultimately an open model that was not hobbled by excessive guardrails assisted the defense.</p><p>The details of what happened are still emerging, but it appears that researchers at OpenAI, while testing one of their systems, accidentally allowed their&nbsp;<a href="https://openai.com/index/hugging-face-model-evaluation-security-incident/" rel="noopener noreferrer" target="_blank">autonomous agent</a>&nbsp;to attack Hugging Face’s infrastructure. It succeeded and gained unauthorized access to some datasets and credentials. This attack was unusual in that the attacking agent orchestrated tens of thousands of automated actions.</p><p>Hugging Face took logs from the attack and tried to analyze them for defensive purposes using a commercially hosted LLM, but the LLM refused to do so on safety grounds. Thus, Hugging Face ended up using the open GLM 5.2 model to analyze the logs to help them understand and respond to the attack. Hugging Face pointed out a further advantage of using GLM 5.2: It allowed them to do the analysis on their own infrastructure, and none of the sensitive logs, attacker data, or credentials had to be sent to a third party provider.</p><p>Guardrails on LLMs do have a place. There are certain requests, such as for detailed directions to harm oneself or others, or for clearly criminal acts, that we’re better off having models refuse. But rather than trying to make LLMs “safe,” I would rather we put greater emphasis on making sure their use is&nbsp;<a href="https://www.deeplearning.ai/the-batch/the-difference-between-ai-safety-and-responsible-ai" rel="noopener">responsible</a>. There’s only so much one can do to make a tool like a hammer safe, and whether it helps or harms is more a function of using it responsibly than how it was made. &nbsp;</p><p>But a meaningful fraction of work on AI safety is no longer about safety but rather aimed at stoking fears to pursue&nbsp;<a href="https://www.deeplearning.ai/the-batch/californias-proposed-ai-safety-law-puts-developers-at-risk-california-sb-1047-is-intended-to-make-ai-safer-but-its-unclear-requirements-put-developers-innovation-and-open-source-in-jeop" rel="noopener">regulatory capture</a>.&nbsp;As David Sachs&nbsp;<a href="https://x.com/DavidSacks/status/2078984980588531855" rel="noopener noreferrer" target="_blank">points out</a>, “There’s no reason to limit American models on tasks that Chinese models handle without issue. We’re only making ourselves less competitive.”&nbsp;</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/uMm5AEVFX8RPvOW2PAiQErISq56KtyhuqlLklwmxLys/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvT3Blbi1BSS1SYWxseS1GSU5BTC0yLndlYnA" class="kg-image" alt="A rally for open weight / open source AI with leaders bearing a banner that reads &quot;open source, open weights, open future&quot;" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/YLEWwzWsgySFZPqMQImrEuI89RrAjLn8yar2HBQH0GQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L09wZW4tQUktUmFsbHktRklOQUwtMi53ZWJw 600w, https://imgproxy.citrusreader.com/zqdZ77CG58od9lzsSjtrMvrJGPvRxwsGLAOGWPCp2FI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9PcGVuLUFJLVJhbGx5LUZJTkFMLTIud2VicA 1000w, https://imgproxy.citrusreader.com/uMm5AEVFX8RPvOW2PAiQErISq56KtyhuqlLklwmxLys/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvT3Blbi1BSS1SYWxseS1GSU5BTC0yLndlYnA 1200w" referrerpolicy="no-referrer"></figure><p>I believe that open weight models, and more generally openness — despite some companies falsely saying it is dangerous — casts sunlight on technology and ultimately makes it safer. With the release of GLM 5.2 and the upcoming release of Kimi K3’s weights, open weight models have almost caught up to proprietary frontier models. Consequently, the proprietary model providers are dramatically&nbsp;<a href="https://www.politico.com/news/2026/07/15/inside-anthropics-state-by-state-plan-to-ratchet-up-ai-rules-00998415" rel="noopener noreferrer" target="_blank">accelerating</a>&nbsp;their lobbying efforts to hamstring their open weight competitors. As Bill Gurley&nbsp;<a href="https://www.washingtonpost.com/opinions/2026/07/20/open-model-ai-is-good-competition-anthropic-openai/" rel="noopener noreferrer" target="_blank">points out</a>, open sourcing is a well established business strategy, not a danger to be licensed and contained.&nbsp;</p><p>While it is unfortunate that Hugging Face was accidentally attacked, I’m glad that at this moment, when anti-open model lobbying is at its most intense, we have a clear example of why open models actually make cyber defense easier and thus increase safety.</p><p>Let’s keep speaking up for and defending open source and open weight models!&nbsp;</p><p>Keep building!</p><p>Andrew&nbsp;</p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/zW8lrdyEmQvb44dCjGeenjPmYcIV3QBFjTEo9unQTxM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvS0lNSUszLndlYnA" class="kg-image" alt="Kimi diagram of open frontier model size over time, with Moonshot AI's Kimi K3 at 2.8 trillion parameters, ahead of DeepSeek at 1.6T parameters" loading="lazy" width="1199" height="674" srcset="https://imgproxy.citrusreader.com/dELubLUvwBHp8IuNeeyA55X0ctow0WX6lMWX2w8vRlw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0tJTUlLMy53ZWJw 600w, https://imgproxy.citrusreader.com/B4mqiTIXK0B09ysJsxyjvIiIURg63ab8uHpz41mIJJ8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9LSU1JSzMud2VicA 1000w, https://imgproxy.citrusreader.com/zW8lrdyEmQvb44dCjGeenjPmYcIV3QBFjTEo9unQTxM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvS0lNSUszLndlYnA 1199w" referrerpolicy="no-referrer"></figure><h1 id="kimi-k3-reveals-how-a-giant-frontier-ai-model-works">Kimi K3 Reveals&nbsp;How A Giant Frontier AI Model Works</h1><p>Moonshot’s latest model leapfrogged the month-old GLM-5.2 and a host of proprietary competitors to finish just behind GPT-5.6 Sol and Claude Fable 5 on many benchmarks.</p><p><strong>What’s new:</strong>&nbsp;Moonshot AI&nbsp;<a href="https://www.kimi.com/blog/kimi-k3" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;Kimi K3, a 2.8 trillion-parameter vision-language model. The company made the model available immediately via API and promised to release its weights by July 27, which would make Kimi K3 the largest known open weights model to date.</p><ul><li><strong>Input/output:</strong>&nbsp;Text, images, and video in (up to 1 million tokens), text out (up to 1 million tokens, 62.0 tokens per second)</li><li><strong>Architecture:</strong>&nbsp;Mixture-of-experts transformer, including Kimi Delta Attention layers; 2.8 trillion parameters total, 16 of 896 experts (an estimated 50 billion parameters) active per token</li><li><strong>Features:&nbsp;</strong>Adjustable reasoning levels (currently max and always on, low and high promised), tool use, structured output, automatic context caching</li><li><strong>Performance:</strong>&nbsp;Third on Artificial Analysis's Intelligence Index (57), first among open models; first place on Arena.ai's Code Arena WebDev leaderboard</li><li><strong>Availability:</strong>&nbsp;Via Kimi.com, Kimi mobile apps, Kimi Work app, and Kimi Code CLI; $3.00/$0.30/$15.00 per million input/cached/output tokens; weights coming soon; Kimi app memberships range from free tier to $199 per month</li><li><strong>Undisclosed:</strong>&nbsp;Active parameter count, training datasets and methods, license for promised weights</li></ul><p><strong>How it works:</strong>&nbsp;Kimi K3 incorporates&nbsp;two architectural changes that Moonshot recently published:&nbsp;<a href="https://arxiv.org/abs/2510.26692" rel="noopener noreferrer" target="_blank">Kimi Delta Attention</a>, which cuts the memory and computation that attention consumes over long inputs, and&nbsp;<a href="https://arxiv.org/abs/2603.15031" rel="noopener noreferrer" target="_blank">Attention Residuals</a>, which lets each layer choose which earlier layers to draw on rather than summing them all equally. Moonshot said that these changes, along with a sparser mixture-of-experts design and improved training and data recipes, made training about 2.5 times as efficient as its predecessor’s training runs, measured in model improvement for a given amount of compute. The company promised further details in a forthcoming technical report.</p><ul><li>The model uses Kimi Delta Attention (KDA) for three of every four attention layers. KDA is a linear attention mechanism: Rather than comparing each new token to every previous token, it maintains a fixed-size memory that updates as it reads input, deciding for each value of that memory when to overwrite old information. In Kimi Linear, an experimental model released in 2025, KDA cut memory use by up to 75 percent and multiplied output speed by up to 6 times at input lengths of 1 million tokens.</li><li>Kimi K3 uses Attention Residuals in place of standard residual connections to carry information between a transformer’s layers. Standard connections add each layer’s output to a running total with equal weight, so each layer’s individual contribution dilutes with more layers. Attention Residuals apply attention across depth, so each layer learns to draw selectively on the outputs of earlier layers, much as standard attention draws selectively on earlier tokens. In experiments published earlier this year, Moonshot developed this technique in two forms: a version that attends over the outputs of every earlier layer, and the version that Kimi K3 uses, which groups layers in blocks and attends over the outputs of those. A model using block-level Attention Residuals matched the performance of a model with standard residual connections but used 20 percent less training compute.</li></ul><p><strong>Performance:</strong>&nbsp;Kimi K3 outperformed every open weight&nbsp;model in independent tests of intelligence, agentic tasks, and coding. It&nbsp;trailed only the top few proprietary models on most benchmarks.</p><ul><li>On Artificial Analysis’&nbsp;<a href="https://artificialanalysis.ai/articles/kimi-k3-achieves-3-in-the-artificial-analysis-intelligence-index-comparable-to-opus-4-8-and-gpt-5-5" rel="noopener noreferrer" target="_blank">Intelligence Index</a>,&nbsp;a composite of 9 evaluations of economically useful tasks, Kimi K3 set to max reasoning (57) falls behind only Claude Fable 5 set to max reasoning with fallback (60) and GPT-5.6 Sol set to max reasoning (59). The closest open weights model is GLM-5.2 set to max reasoning (51).</li><li>On AutomationBench-AA, which tests automated workflows across business software, Kimi K3 set to max reasoning (53 percent) led all models. On GDPval-AA v2, a head-to-head ranking of models’&nbsp;work on tasks common in finance, healthcare, law, and other economically central fields, Kimi K3 set to max reasoning (1,668 Elo) trailed only Claude Fable 5 set to max reasoning with fallback (1,760 Elo) and GPT-5.6 Sol set to max reasoning (1,743 Elo).</li><li>Kimi K3 debuted at the top of Arena.ai’s Code Arena&nbsp;<a href="https://arena.ai/leaderboard/code/webdev" rel="noopener noreferrer" target="_blank">WebDev</a>&nbsp;leaderboard, in which developers pick the better of two models’&nbsp;outputs for the same frontend web development task. At launch, it achieved a preliminary ranking of 1,679 Elo, placing&nbsp;<a href="https://x.com/arena/status/2077824029126504525" rel="noopener noreferrer" target="_blank">first</a>&nbsp;in six of seven frontend domains.</li><li>Kimi K3 set to max reasoning completed Artificial Analysis's Intelligence Index at $0.95 per task, near GPT-5.6 Sol set to max reasoning ($1.04 per task), cheaper than Claude Fable 5 set to max reasoning with fallback ($2.75 per task) and higher than GLM-5.2 set to max reasoning ($0.47 per task).</li></ul><p><strong>Behind the news:</strong>&nbsp;Over the past year, open models have regularly outdone each other, but this is the closest they’ve come since 2024’s Llama 3 to the state of the art.&nbsp;<a href="https://www.deeplearning.ai/the-batch/moonshot-releases-kimi-k2-a-trillion-parameter-model-fine-tuned-for-agentic-tool-use" rel="noopener">Kimi K2</a>&nbsp;introduced Moonshot’s 1 trillion-parameter line, and [<a href="https://www.deeplearning.ai/the-batch/moonshot-ais-kimi-k2-5-takes-the-open-model-crown-with-vision-updates-aided-by-subagents" rel="noopener">Kimi K2.5</a>] then&nbsp;<a href="https://www.deeplearning.ai/the-batch/kimi-k2-6-matches-open-qwen3-6-max-anddeepseek-v4-falls-just-behind-top-closed-models" rel="noopener">Kimi K2.6</a>&nbsp;each became the leading open weights model on Artificial Analysis’ Intelligence Index in turn. The competition kept pace: Last month, Z.ai’s&nbsp;<a href="https://www.deeplearning.ai/the-batch/top-agentic-performance-low-cost" rel="noopener">GLM-5.2</a>&nbsp;took the lead, at as little as a quarter of the cost of comparable proprietary models. Just three days after Kimi K3’s launch, Alibaba, a financial backer of Moonshot, introduced&nbsp;<a href="https://x.com/alibaba_qwen/status/2078759124914098291" rel="noopener noreferrer" target="_blank">Qwen3.8-Max-Preview</a>, an early version of a 2.4 trillion parameter model that the company claims trails only Claude Fable 5 and promises to release with open weights.</p><p><strong>Why it matters:</strong>&nbsp;Kimi K3 whittles away at every reason why a developer choosing a model might default to the top proprietary model. It performs within three points of Claude Fable 5 at a much lower cost per task, and when released, its open weights allow fine-tuning, distillation, and closer study. Whoever owns those weights sets usage policies: Many requests that Claude Fable 5 refuses won’t cause friction for Kimi K3 users. Finally, competition this close — on price, control,&nbsp;and performance — pressures proprietary developers to deliver better, cheaper models.</p><p><strong>We’re thinking:</strong>&nbsp;Kimi K3's efficiency gains stem from innovations like KDA’s linear attention, redesigned residual connections, and greater sparsity. Two of these Moonshot published as papers with code. When labs that face computation limits respond with architectural creativity and publish it, all developers benefit.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/_kGUU-niPLsnSaq9YoTUmPEngGOFEsCfp-DLlIPkppE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvU2NyZWVuc2hvdC0yMDI2LTA3LTIzLWF0LTE5LjQwLjM0LnBuZw" class="kg-image" alt="Animated GIF of Meta's Muse Spark 1.1's performance on benchmarks, showing strong performance on tool use and roughly second-tier overall intelligence " loading="lazy" width="1263" height="698" srcset="https://imgproxy.citrusreader.com/GTgnuid0dIjWKyQhqNV1xhJ-SSVaAXcP7VCU0Z87RhI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L1NjcmVlbnNob3QtMjAyNi0wNy0yMy1hdC0xOS40MC4zNC5wbmc 600w, https://imgproxy.citrusreader.com/6kVQv1S3yhOKtm-uiX1Y0zKzQg6OLRBprr5SOGI4qaM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9TY3JlZW5zaG90LTIwMjYtMDctMjMtYXQtMTkuNDAuMzQucG5n 1000w, https://imgproxy.citrusreader.com/_kGUU-niPLsnSaq9YoTUmPEngGOFEsCfp-DLlIPkppE/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvU2NyZWVuc2hvdC0yMDI2LTA3LTIzLWF0LTE5LjQwLjM0LnBuZw 1263w" referrerpolicy="no-referrer"></figure><h1 id="meta-sparks-a-price-war">Meta Sparks A Price War</h1><p>With Llama, Meta marked itself as an open alternative to OpenAI. With its new closed models, Meta now positions itself as a low-cost, high-value competitor.</p><p><strong>What's new:&nbsp;</strong>Meta&nbsp;<a href="https://ai.meta.com/blog/introducing-muse-spark-meta-model-api/" rel="noopener noreferrer" target="_blank">launched</a>&nbsp;Muse Spark 1.1, a vision-language model trained for agentic tasks, and opened Meta Model API, the company's first paid access to its models.</p><ul><li><strong>Input/output:</strong>&nbsp;Text, images, video in (up to 1,048,576 tokens), text out (up to 131,072 tokens, 119 tokens per second)</li><li><strong>Features:</strong>&nbsp;Tool use, prompt caching, adjustable reasoning (none, minimal, low, medium, high, xhigh)</li><li><strong>Performance:</strong>&nbsp;Tops tool use leaderboards MCP Atlas (Scale AI) and JobBench, tied with GPT-5.6 Luna and GLM-5.2 on Artificial Analysis' Intelligence Index at low cost per task</li><li><strong>Availability/price:</strong>&nbsp;Free via Meta AI app and meta.ai, API access via Meta Model API (public preview, United States only, waitlist, $20 worth of initial credits) $1.25/$0.15/$4.25 per million input/cached/output tokens, websearch $2.50 per 1,000 queries</li><li><strong>Undisclosed:</strong>&nbsp;Parameter count, architecture, training data and methods</li></ul><p><strong>How it works:</strong>&nbsp;Meta disclosed few details about how it built Muse Spark 1.1, which updates the initial&nbsp;<a href="https://www.deeplearning.ai/the-batch/with-muse-spark-meta-pivots-away-from-its-open-weights-llama-strategy" rel="noopener">Muse Spark</a>, the model behind Meta AI since April. The company's training techniques emphasize managing context, operating computers, and coordinating other agents.</p><ul><li>Meta trained the model to work within multiple agentic coding harnesses, programs that connect a model to files, tools, and tests, supporting features like planning and subagent orchestration.</li><li>The company trained the model for both directions of delegation. Leading a task, it divides the work and farms pieces out to subagents that run simultaneously, which cuts total completion time. Working under another agent, it keeps to the role it was given and returns control to the orchestration model when a decision would exceed its permissions.</li><li>Meta says the model itself, rather than surrounding software, adjusts its input context over long jobs, retrieving details from earlier in a task and condensing exchanges while retaining what later steps will require.</li><li>For computer use, Meta trained the model to choose between automating (writing scripts) and acting directly (clicking or entering text on a virtual keyboard), optimizing for whichever technique is faster or simpler. It also issues several actions at once rather than one action per turn, resulting in better speed and performance.</li></ul><p><strong>Performance:</strong>&nbsp;Muse Spark 1.1 stands out on benchmarks measuring agentic&nbsp;tool use, but is a tier below the top models in overall intelligence. It ranks just behind the leaders in blind human comparisons, but sits in the middle of the pack in agentic coding. It is particularly good at keeping costs per task low.</p><ul><li>On Artificial Analysis'&nbsp;<a href="https://artificialanalysis.ai/models/muse-spark-1-1" rel="noopener noreferrer" target="_blank">Intelligence Index</a>, a composite of nine evaluations of economically useful tasks, Muse Spark 1.1 set to xhigh reasoning achieved 51 points, tying Z.ai's GLM-5.2 and GPT-5.6 Luna (both set to max reasoning) and trailing Claude Sonnet 5 set to max reasoning (53 points). Muse Spark 1.1 cost $0.26 per Intelligence Index task, less than any other model at or above its score except GPT-5.6 Luna ($0.21 per task).</li><li>On Arena.ai's&nbsp;<a href="https://arena.ai/leaderboard/text" rel="noopener noreferrer" target="_blank">Text Arena</a>, which ranks models by blind head-to-head human comparisons, Muse Spark 1.1 ranked sixth (1,490 Elo), behind Claude Fable 5 (1,505 Elo) and four Claude Opus versions, and just ahead of GPT-5.6 Sol set to xhigh reasoning (1,486 Elo).</li><li>On Artificial Analysis' Coding Agent Index, Muse Spark 1.1 set to xhigh reasoning achieved 71.3 points, behind GPT-5.6 Luna set to max reasoning (71.4) and ahead of Gemini 3.5 Flash set to medium reasoning (70.1). It&nbsp;<a href="https://x.com/ArtificialAnlys/status/2075739735822307577" rel="noopener noreferrer" target="_blank">cost</a>&nbsp;roughly $1.40 per task, among the lowest of the coding agents compared, though it takes more time per task than others.</li><li>On MCP Atlas, Scale AI's&nbsp;<a href="https://labs.scale.com/leaderboard/mcp_atlas" rel="noopener noreferrer" target="_blank">leaderboard</a>&nbsp;for multi-step use of software tools via Model Context Protocol servers, Muse Spark 1.1 (88.1 percent pass rate) ranked ahead of Gemini-3.5-Flash set to high reasoning (83.6 percent) and Claude Fable 5 (83.3 percent). On&nbsp;<a href="https://job-bench.github.io/#leaderboard" rel="noopener noreferrer" target="_blank">JobBench</a>, a test of professional tasks across white-collar occupations, Muse Spark 1.1 (54.7 percent) ranks second, ahead of Claude Opus 4.8 (48.4 percent) and behind Claude Fable 5 (57.4 percent).</li></ul><p><strong>Behind the news:</strong>&nbsp;Muse Spark 1.1 arrived in a crowded stretch of model launches. On the same day, OpenAI opened its GPT-5.6 family to the public; one day before, Grok 4.5 launched with a similar emphasis on low cost per task. (Two weeks later, Google unveiled Gemini 3.6 Flash and Gemini 3.5 Flash-Lite.) The same week, Meta also&nbsp;<a href="https://ai.meta.com/blog/introducing-muse-image-muse-video-msl/" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;the image generator Muse Image and announced the video generator Muse Video. Muse Spark 1.1 is also the first model available via Meta’s new&nbsp;<a href="https://developer.meta.com/ai/products/meta-model-api/" rel="noopener noreferrer" target="_blank">Model API</a>.&nbsp;</p><p><strong>Why it matters:</strong>&nbsp;Token prices gate which applications are economical at scale; with Muse Spark 1.1, Meta moved the gate. The model's output tokens cost a fraction of near rivals' ($25, $30, and $50 per million tokens for Claude Opus 4.8, GPT-5.6 Sol, and Claude Fable 5 respectively), and per-task measurement confirms the discount is real: On Artificial Analysis' numbers, only one comparably intelligent model, GPT-5.6 Luna, costs less to run. Mark Zuckerberg&nbsp;<a href="https://www.latimes.com/business/story/2026-07-13/ai-price-war-heats-up-as-openai-meta-musk-slash-model-costs" rel="noopener noreferrer" target="_blank">framed</a>&nbsp;the pricing as an attack on competitors’ economics, saying that other labs’ pricing “is very extreme and has very high margins.” Meta, like Google, can subsidize model development, training, and inference costs with advertising revenue, a structural edge over labs that live on API margins and subscriptions. If rivals feel forced to defend market share, the cost of running agents falls across the industry.&nbsp;</p><p><strong>We're thinking:</strong>&nbsp;Capabilities keep migrating from scaffolding into weights. Instruction following began as prompt engineering, and tool use began as code wrapped around models; both became training objectives. Muse Spark 1.1 continues the pattern by absorbing behaviors that developers previously built into scaffolding like delegating and escalating to agents and managing context mid-task. The less external tooling developers must build by hand, the faster agentic applications will spread.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/ijMO6eCUpKNHzk5eXKvIg1hS8uqtkJXzjuLM9LQMP6Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ0xPVURGTEFSRS0xLndlYnA" class="kg-image" alt="Cloudflare diagram on &quot;why the web is being crawled&quot; showing 51.8 percent model training, 36.6 percent mixed use, and 8.6 percent search" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/ejDQQ2gvvcFYA6SMKXScVupUFGje5F7tsXwJQe7gehY/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0NMT1VERkxBUkUtMS53ZWJw 600w, https://imgproxy.citrusreader.com/B8bTiFPRpM_Lt0gwATkorCDbZmvo7Z77iAQigElRtNk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9DTE9VREZMQVJFLTEud2VicA 1000w, https://imgproxy.citrusreader.com/ijMO6eCUpKNHzk5eXKvIg1hS8uqtkJXzjuLM9LQMP6Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvQ0xPVURGTEFSRS0xLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="cloudflare%E2%80%99s-web-crawler-flare-up">Cloudflare’s Web Crawler Flare-Up</h1><p>Web publishers using Cloudflare will soon be able to separately control an AI bot’s access based on what it does, allowing search indexing while blocking AI training or agent activity.&nbsp;</p><p><strong>What’s new:</strong>&nbsp;Cloudflare – the content delivery network for nearly 20 percent of the internet –&nbsp;<a href="https://blog.cloudflare.com/content-independence-day-ai-options/" rel="noopener noreferrer" target="_blank">introduced</a>&nbsp;new AI traffic controls which block training and agent bots by default while allowing search indexing crawlers. It also announced a&nbsp;<a href="https://blog.cloudflare.com/monetization-gateway/" rel="noopener noreferrer" target="_blank">monetization tool</a>&nbsp;that would allow customers to charge specified visitors (whether humans or bots) for access to web pages, datasets, APIs, or Model Context Protocols.</p><p><strong>How it works:</strong>&nbsp;Cloudflare customers can toggle crawlers’ access based on the bot’s use case, enabling or disabling access to crawlers for search, AI training, or AI agents. Crawlers serving multiple purposes will be subject to the most restrictive setting. For example, crawlers like Googlebot, Applebot, and Bingbot that both index content for search and collect training data for AI would be blocked if a publisher elects to block training crawlers. The controls will be applied beginning September 15.</p><ul><li>Cloudflare defines search bots as those that index content for search engines; publishers have historically welcomed these bots because they increase the likelihood that their sites’ content will appear in search results, which drives traffic. Agent bots are those acting on a user's behalf to perform tasks on a website (for example, fetching data or making purchases), and training bots collect data to train AI models.</li><li>For each category, customers have three options: to block all pages, block only on pages with ads, or allow the bot. By default, pages displaying ads will block training and agent bots (or multi-purpose crawlers like those from Google, Apple, and Bing), but continue to allow search-only crawlers.</li><li>Cloudflare also introduced&nbsp;<a href="https://developers.cloudflare.com/bots/botbase/" rel="noopener noreferrer" target="_blank">BotBase</a>, a public database of known bots and agents that classifies them by behavior and tracks how they use website content. Cloudflare’s “Verified” label indicates that a bot operator has been authenticated, is what it declares itself to be, obeys robots.txt instructions, and does not attempt to circumvent publisher restrictions. Publishers still control whether to allow that bot category, such as search or training, but this permits more granular restrictions, like blocking search, training, or agents from a particular company, while allowing others.</li><li>Cloudflare's monetization system lets publishers charge AI agents for accessing online data on a per-request basis. When an AI agent requests a protected webpage or API, Cloudflare requires payment before forwarding the request to the publisher, handling payment verification at the network level. The tool has not yet been released, but customers can join the waitlist to use it.</li></ul><p><strong>Behind the news:</strong>&nbsp;AI bots account for a&nbsp;<a href="https://www.techtimes.com/articles/317877/20260605/bot-traffic-passes-humans-online-cloudflare-says-agentic-ai-drove-575-share.htm" rel="noopener noreferrer" target="_blank">growing share</a>&nbsp;of web traffic; Cloudflare says over half (57.5 percent) of all HTTP requests now come from automated systems rather than people. The value of search traffic has eroded enough that some publishers have even&nbsp;<a href="https://www.adweek.com/media/publishers-opt-out-google-search/" rel="noopener noreferrer" target="_blank">opted out of Google Search</a>, in part because they do not want Google’s agents to bypass their display advertising or train on their content. Cloudflare's new framework attempts to preserve the benefits of search while giving publishers more control over other forms of AI crawling. It also rewards companies like OpenAI that separate their search and training crawlers, and punishes those, like Google, Apple, and Microsoft, that don’t.&nbsp;</p><p><strong>Why it matters</strong>: Access to high-quality web data remains critical for developing and improving AI models, but publishers and partners like Cloudflare increasingly place limits on how that data can be collected. That friction has a technical and monetary cost. Such costs will likely have an outsized impact on smaller and newer AI developers, who lack the resources to secure agreements with publishers and face greater barriers to acquiring online knowledge that larger companies have already incorporated into their data sets.</p><p><strong>We’re thinking:</strong>&nbsp;Cloudflare thinks a bargain can be struck between AI companies and online publishers, with the company playing the role of toll keeper. But it strikes at a basic principle held by most AI companies, which is that training on public web data should be fair use. It remains to be seen if&nbsp;Cloudflare has enough&nbsp;leverage to implement such a toll and whether its definition or most AI companies’ definition of “fairness” will prevail.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/tb4K6FXC87-TU7X-DBpyjCHCMeZs6s9h80lh-xMz1Kg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvSU5URVJNRURJQVJZLndlYnA" class="kg-image" alt="Diagram showing research program, first article collection, then question generation, followed by model evaluation and analysis" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/xMpGV75T_bDnh9bWNQcJlFs6ZsS7iH0ZmN6JcdupesI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0lOVEVSTUVESUFSWS53ZWJw 600w, https://imgproxy.citrusreader.com/a4AjGJuljD0YKBl4YNfxOMNxW4lmy74pDvP4X9EqoS8/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9JTlRFUk1FRElBUlkud2VicA 1000w, https://imgproxy.citrusreader.com/tb4K6FXC87-TU7X-DBpyjCHCMeZs6s9h80lh-xMz1Kg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvSU5URVJNRURJQVJZLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="web-retrieval-flusters-llms">Web Retrieval Flusters LLMs</h1><p>Large language models often are called upon to gather news. In this task, researchers found, their ability to find relevant reports is the weakest link.</p><p><strong>What’s new:</strong>&nbsp;Mirac Suzgun and colleagues at Stanford University and the cloud platform Together AI&nbsp;<a href="https://arxiv.org/abs/2605.22785" rel="noopener noreferrer" target="_blank">tested</a>&nbsp;the ability of six popular LLMs outfitted with web-search tools to answer questions about the daily news. The LLMs generally answered accurately, especially when the questions themselves contained accurate information and were posed in English. When they answered inaccurately, usually it was because they retrieved unhelpful articles.</p><p><strong>Key insight:</strong>&nbsp;An LLM’s ability to answer factual questions that weren’t addressed in its training data depends on at least three steps: (i) receiving a well formed question, (ii) retrieving a relevant document, and (iii) extracting facts from it. Compromising any of these steps will degrade the output. For instance, a question that includes incorrect facts — say, a mistaken name — will make it difficult for the LLM to answer correctly. Similarly, retrieving a document that doesn’t include necessary facts is more&nbsp;likely to yield an incorrect answer. And the LLM won’t be able to extract facts from a retrieved document if it wasn’t well trained in the document’s language. Building a high-performance news-reporting system requires mastering all three steps.</p><p><strong>How it works:</strong>&nbsp;The authors performed tests daily between February 9 and February 22, 2026. They posed questions based on&nbsp;<em>BBC News</em>&nbsp;reports in six languages (Arabic, English, French, Hindi, Russian, and Turkish). They tested Google’s Gemini 3 Flash and Pro, xAI’s Grok 4, Anthropic’s Claude 4.5 Sonnet, and OpenAI’s&nbsp;GPT‑5 and GPT‑4o mini, all with web-search tools.</p><ul><li>Each day, Gemini 3 Flash produced 25 multiple-choice questions per language (150 total) based on current news. Each question began with temporal context like “Today is February 10, 2026…” and offered five potential answers. The correct answer was a verifiable detail such as a number, location, or quotation.</li><li>The authors tested the LLMs on (a) the five-option, multiple-choice questions, (b) alterations that introduced a single incorrect premise (such as an incorrect actor, timeline, or detail) and added the potential answer “insufficient information to answer,” and (c) the original questions without potential answers.</li><li>They used majority votes by Claude Opus 4.7, GPT-5.4, and Gemini 3 Pro to classify the causes of incorrect outputs into eight categories, such as failures of retrieval, retrieval of a relevant source that contained different details than the one used to compose the question, inadequate comprehension, and&nbsp;mistaken timeline.</li></ul><p><strong>Results:</strong>&nbsp;The models generally performed with high accuracy on well formed questions in English. However, (i) they underperformed in other languages, especially Hindi, (ii) most errors stemmed from retrieval rather than intelligence, and (iii) they underperformed when questions contained false premises.</p><ul><li>Answering the original, unaltered multiple-choice questions, the top four models exceeded 90 percent accuracy: Gemini 3 Flash (95.6 percent), Grok 4 (95.0 percent), Gemini 3 Pro (93.7 percent), and Claude 4.5 Sonnet (90.4 percent). GPT-5 achieved 85 percent and GPT-4o mini achieved 69 percent. (Given free-response questions, the models maintained their relative rank, but their accuracy fell by 11 to 22 percentage points.)</li><li>Answering the unaltered multiple-choice questions, every model showed its worst performance when questions were in Hindi (average 79.3 percent). The models frequently cited English-language sources (such as English&nbsp;<em>Wikipedia</em>) even when questions were posed in other languages (especially Hindi).</li><li>The most common cause of errors were retrieval failures (38.8 percent). The second-most common cause was retrieval of a topically relevant source that contained “smart but wrong” details that did not correctly answer the specific question (32.7 percent).</li><li>Given altered questions that contained&nbsp;false premises, Grok 4 (70 percent accuracy) outperformed the other models by at least 15 percent. GPT‑5 (19 percent accuracy) performed barely above random chance for six potential answers.</li></ul><p><strong>Why it matters:</strong>&nbsp;LLMs outfitted with web search are well suited to finding factual information, but their performance depends on receiving factual input, finding relevant documents, and extracting facts properly. Since most errors arise in retrieval, improving retrieval may yield a larger performance increase than scaling model parameters (at least when it comes to responding to queries that involve timely information). The authors point to three approaches to improving retrieval: (i) better indexing coverage (which documents or web pages are included in the search), (ii) better ranking of sources (the order in which retrieved documents are presented to the model),&nbsp;and (iii) better handling of queries in languages other than English.</p><p><strong>We’re thinking:</strong>&nbsp;Web search engines built for agentic rather than human use have become an exciting and rapidly growing category. It looks like there's still ample room to build better web search for agents!</p>

2026/7/24
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AI Overviews Land Google In Hot Water, GPT-Live Puts Reasoning in the Background, How to Tell If Your Model is Manipulative

<figure><img src="https://imgproxy.citrusreader.com/cHYAi3vT5Ayzj3UnVzvL78TGNVnFySbVtwN2y6aOmlg/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRnVsbC1TdGFjay1UZWFtLTEud2VicA" alt="AI Overviews Land Google In Hot Water, GPT-Live Puts Reasoning in the Background, How to Tell If Your Model is Manipulative" referrerpolicy="no-referrer"></figure><blockquote>The Batch News &amp; Insights: As AI increasingly automates coding, it frees up developers to spend time on high-level software development tasks...</blockquote> <p>Dear friends,</p><p>As AI increasingly automates coding, it frees up developers to spend time on high-level software development tasks traditionally reserved for senior engineers, like deciding on technical architecture and participating in scoping product requirements. Demand for this type of work is growing, since it is an economic complement to coding, which is becoming cheaper. This is why I’m confident there will be rising demand for broad AI engineering skills. I see a similar pattern starting to emerge in other AI-influenced fields as well, and am cautiously optimistic — contrary to predictions of a “<a href="https://www.deeplearning.ai/the-batch/ai-will-not-destroy-the-job-market" rel="noopener">jobpocalypse</a>” — that AI will generally increase demand for people with the right skills. &nbsp;<br><br>Take marketing. AI is helpful for drafting and editing marketing copy, gathering market data, and performing very basic data analysis. (In my experience, analyses by even frontier models are frequently wrong. So do use AI to help with your data-science tasks, but don’t blindly trust its confidently stated conclusions!) This frees up marketers to spend more time on higher-level tasks. I’m seeing that rather than specializing in narrow marketing roles like social media marketer or copy editor, AI-native marketers are rising up to help coordinate broader marketing campaigns end-to-end, from conception to multi-threaded execution to analyzing lessons learned.<br><br>Just as AI is turning many specialized developers (like frontend, backend, mobile, etc.) into full-stack developers, I am seeing early signs that it is turning many more marketers into full-stack marketers.<br><br>Or take recruiting. Some companies have separate roles for sourcer (who finds candidates online), coordinator (who handles scheduling) and recruiter (who runs the hiring process). But sourcing is increasingly automated, and coordination also partially automated. As a consequence, I’m seeing more AI-native recruiters run the full-cycle themselves, doing all of the above.<br><br>As AI enters more fields, I expect more people to start to play “full-stack” or “full-cycle” roles within their disciplines, meaning they will play broader roles that integrate traditionally separate roles. This lets individuals do more, and I believe it will ultimately lead to increased demand for skills as well as higher pay.</p><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/NJPBYVKp4d9ZXeQVPinxzCRJIjyGwPeBBIKEow8FQsc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRnVsbC1TdGFjay1UZWFtLTEtMS53ZWJw" class="kg-image" alt="Professionals collaborate on laptops around a table, indicating diverse roles like marketing and engineering team." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/Fs-GTvTf09l5piQtK_LdGPaQZX5va70DY6ZE4Dlx_uA/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0Z1bGwtU3RhY2stVGVhbS0xLTEud2VicA 600w, https://imgproxy.citrusreader.com/xbarLiXL_8r8VQDZgKgvb3Ha4Ovn4rlc1MXi6BWFt-c/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9GdWxsLVN0YWNrLVRlYW0tMS0xLndlYnA 1000w, https://imgproxy.citrusreader.com/NJPBYVKp4d9ZXeQVPinxzCRJIjyGwPeBBIKEow8FQsc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRnVsbC1TdGFjay1UZWFtLTEtMS53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p>The broader pattern is this: In many job roles, as you rise in seniority, you become better at managing integration complexity —&nbsp;weaving together many disparate work streams like frontend, backend and data engineering to form a greater whole. As AI automates certain parts of one’s work — usually the more verifiable parts — it creates more room for individuals to play broader roles.&nbsp;</p><p>This pattern is not applicable to all job roles. In some, rising in seniority means increasing specialization. This corresponds loosely to people progressing in the IC (individual contributor) career track rather than the managerial/tech lead track. For example, a machine learning engineer acquiring extremely deep understanding of a technical niche, a financial expert growing from a generalist finance analyst to a specialist in an important sector (such as auditing cross-border deals), or a medical doctor developing deep expertise in just one medical condition. In many, but not all, such areas, I expect the demand for human skill to grow, but AI’s impact on any specialty will depend on how rapidly AI’s jagged frontier advances along that dimension. I’ll share more on this in a future letter.<br><br>Until then, I invite you to consider: Back in 2022, what tasks would your teammates have done? Those were likely complements to what you are doing. So if you are able to use AI to do more of those tasks yourself — which might require learning new skills — it could be one path to you becoming more effective with AI.</p><p>Keep building!</p><p>Andrew&nbsp;</p><h2 id="a-message-from-deeplearningai">A MESSAGE FROM&nbsp;<a href="http://deeplearning.ai/" rel="noopener">DEEPLEARNING.AI</a></h2><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/5WbzNVeRT2k3iTFCvrMVnpGdVgMVQfWzxK6n3dFJkZs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRW5kLUNhcmRNYWluLUJhbm5lci53ZWJw" class="kg-image" alt="New Short Course: Fast LLM Inference with Cerebras" loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/OBJRM3FKFHQIYef2EmCK2w8tZmKMvl2SOf1wuamDquc/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0VuZC1DYXJkTWFpbi1CYW5uZXIud2VicA 600w, https://imgproxy.citrusreader.com/NpcVCpprliMVjqCoOGAYd4HatsgtGTnb-XzQBYt1XMI/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9FbmQtQ2FyZE1haW4tQmFubmVyLndlYnA 1000w, https://imgproxy.citrusreader.com/5WbzNVeRT2k3iTFCvrMVnpGdVgMVQfWzxK6n3dFJkZs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvRW5kLUNhcmRNYWluLUJhbm5lci53ZWJw 1200w" referrerpolicy="no-referrer"></figure><p>Build LLM applications that respond in real time on Cerebras' Wafer-Scale Engine, from live personalization to a multi-tool workflow that finishes in one fast response.&nbsp;<a href="https://www.deeplearning.ai/courses/fast-llm-inference-with-cerebras" rel="noopener">Enroll for free</a></p><h1 id="news">News</h1><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/VAbQ-fDwIFsfPRypVleaJBDziMeUtZ49Pq6MM8pd1p4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvR1BUUkVBTFRJTUUtMi53ZWJw" class="kg-image" alt="Diagram illustrates real-time audio processing with async checks and turn-based message checks in models." loading="lazy" width="1200" height="683" srcset="https://imgproxy.citrusreader.com/QNxvezI7IHcJPiAvpVzTcDjH2y4-O5pN0786vFfczjo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0dQVFJFQUxUSU1FLTIud2VicA 600w, https://imgproxy.citrusreader.com/zUKZGIRPQ39uIB3u2xVYITCXnvNezki4POol2latf78/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9HUFRSRUFMVElNRS0yLndlYnA 1000w, https://imgproxy.citrusreader.com/VAbQ-fDwIFsfPRypVleaJBDziMeUtZ49Pq6MM8pd1p4/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvR1BUUkVBTFRJTUUtMi53ZWJw 1200w" referrerpolicy="no-referrer"></figure><h1 id="one-model-talks-another-one-thinks">One Model Talks, Another One Thinks</h1><p>ChatGPT’s voice mode now listens and speaks at the same time, passing harder questions posed to the conversational model to a reasoning model in the background.</p><p><strong>What's new:</strong>&nbsp;On July 8, OpenAI&nbsp;<a href="https://openai.com/index/introducing-gpt-live/" rel="noopener noreferrer" target="_blank">released</a>&nbsp;a pair of voice models — GPT-Live-1 and GPT-Live-1 mini — that power a rebuilt ChatGPT Voice. Both models process incoming and outgoing audio at once instead of waiting for a turn to end. Telecom engineers call this full-duplex: transmission and reception flow at the same time, like a telephone call, rather than alternating, like a walkie-talkie. When a response requires deeper thinking, the voice model hands the question to GPT-5.5 and keeps talking while that model works. The system replaces Advanced Voice Mode (AVM), a single model that listened, reasoned, and spoke in discrete turns.</p><ul><li><strong>Input/output:</strong>&nbsp;Both models are speech in, speech out, processed continuously so input and output overlap. In ChatGPT, conversations are accompanied by on-screen visual cards (weather, stocks, sports, maps) rendered by the app. The app accepts images and file uploads. Live video and screen sharing are absent.&nbsp;OpenAI says it is working to add both, and they remain available in the legacy Standard and AVM.</li><li><strong>Features:</strong>&nbsp;Live translation; nine remastered voices, all predefined, with safeguards that block mimicking real people's voices;&nbsp;<a href="https://help.openai.com/en/articles/20001274-chatgpt-voice" rel="noopener noreferrer" target="_blank">user-selectable</a>&nbsp;reasoning effort on GPT-Live-1 (Instant, Medium, High) — Instant runs GPT-5.5 Instant in the background&nbsp;while Medium and High run GPT-5.5 Thinking at matching effort. GPT-Live-1 mini only calls GPT-5.5 Instant.</li><li><strong>Performance:</strong>&nbsp;In OpenAI's tests, GPT-Live-1 at high reasoning scored 84.2 percent on&nbsp;<a href="https://epoch.ai/benchmarks/gpqa-diamond" rel="noopener noreferrer" target="_blank">GPQA</a>&nbsp;versus 45.3 percent for its predecessor, AVM; human raters preferred GPT-Live-1 to AVM 75.7 percent of the time and GPT-Live-1 mini 69.2 percent.</li><li><strong>Availability:</strong>&nbsp;Available now on iOS, Android, and ChatGPT.com globally. GPT-Live-1 is the default for Go, Plus, and Pro plans for no extra charge; GPT-Live-1 mini for the free plan. No developer API has&nbsp;shipped; for now, OpenAI's developer voice option remains&nbsp;<a href="https://www.deeplearning.ai/the-batch/openai-challenges-speech-to-speech-leaders" rel="noopener">GPT-Realtime-2</a>, which reached the Realtime API in May.</li><li><strong>Undisclosed:</strong>&nbsp;Parameter counts, architecture details, training data, knowledge cutoff, latency measurements, usage-based pricing</li></ul><p><strong>How it works:</strong>&nbsp;OpenAI published a GPT-Live&nbsp;<a href="https://deploymentsafety.openai.com/gpt-live" rel="noopener noreferrer" target="_blank">system card</a>&nbsp;that describes a system&nbsp;of several models working as an ensemble. The voice models differ from their predecessors in two ways: they process audio continuously rather than turn-by-turn, and they hand deeper work to a separate model.&nbsp;</p><ul><li>Each GPT-Live model processes incoming audio while producing its own output, deciding its next action many times each second. These actions include talk, listen, wait, break in,&nbsp;<a href="https://www.researchgate.net/publication/328415682_Listening_to_Real-World_English_Part_3_Backchanneling" rel="noopener noreferrer" target="_blank">backchannel</a>&nbsp;(producing “hmm,” “yeah,”&nbsp;and similar signs of listening), or trigger a tool.</li><li>When a question calls for web search, deeper reasoning, or multi-step work with tools (looking up information and acting on it across several turns), the voice model hands the task to GPT-5.5, keeps talking while that model runs, and weaves the result back in. The two models share the conversation’s context but are orchestrated and served separately. OpenAI says it will point GPT-Live at newer reasoning models as they ship.</li><li>Safety checks run alongside the conversation.&nbsp;The system inspects inputs and outputs as they unfold and can steer or interrupt a reply, play a spoken safety message, put support resources on screen as text or voice, or end the conversation in higher-risk cases.</li></ul><p><strong>Performance:</strong>&nbsp;In OpenAI’s evaluations, the biggest gains show up on the tasks routed to GPT-5.5, with the delegation system working as designed. Every comparison OpenAI published pits GPT-Live against its own predecessor, AVM, rather than rival voice models, and its strongest claims rest on internal benchmarks.</p><ul><li>On GPQA (graduate-level science across biology, chemistry, and physics), GPT-Live-1 at high reasoning scored 84.2 percent against 45.3 percent for AVM.</li><li>The gap is sharper on&nbsp;<a href="https://openai.com/index/browsecomp/" rel="noopener noreferrer" target="_blank">BrowseComp</a>&nbsp;(agentic web search for hard-to-find facts): GPT-Live-1 at high reasoning answered 75.2 percent of questions correctly against 0.7 percent for AVM.</li><li>Human raters preferred GPT-Live-1’s conversational quality to that of AVM 75.7 percent of the time and GPT-Live-1 mini 69.2 percent, in matched 5-to-10-minute conversations that ranked overall preference, turn-taking, interruptions, and conversational flow.</li><li>Both GPT-Live models outperformed AVM at flagging disallowed content, with notable gains on illicit behavior (97 percent for GPT-Live-1 versus 74 percent for AVM) and self-harm (96 percent versus 89 percent). The gains were sharper on adversarial prompts: GPT-Live-1 flagged 84 percent of mental health-related queries versus AVM’s 57 percent, and 98 percent for self-harm versus AVM’s 72 percent.</li></ul><p><strong>Behind the news:</strong>&nbsp;Both halves of GPT-Live’s design (full-duplex processing and reasoning-model orchestration) have precedents. Alibaba’s Qwen2.5-Omni&nbsp;<a href="https://www.deeplearning.ai/the-batch/qwen2-5-omni-7b-raises-the-bar-for-small-multimodal-models" rel="noopener">Thinker-Talker</a>&nbsp;architecture trained a text-generating “thinker” and a speech “talker” as one system. Thinking Machines Lab paired a foreground interaction model with a background reasoner in&nbsp;<a href="https://www.deeplearning.ai/the-batch/built-in-conversational-interactivity" rel="noopener">TML-Interaction-Small</a>. Kyutai’s&nbsp;<a href="https://kyutai.org/blog/2024-07-03-meet-moshi/" rel="noopener noreferrer" target="_blank">Moshi</a>, billed by its authors as the “first real-time full-duplex spoken large language model,”&nbsp;arrived in 2024; Nvidia released&nbsp;<a href="https://research.nvidia.com/labs/adlr/personaplex/" rel="noopener noreferrer" target="_blank">PersonaPlex</a>, an open-weights model built on Moshi, in January; and Google’s Gemini Live currently&nbsp;<a href="https://gemini.google/overview/gemini-live/" rel="noopener noreferrer" target="_blank">offers</a>&nbsp;continuous conversation along with camera and screen sharing. OpenAI can boast that it ships the combination to a mass audience; the company says more than 150 million people use ChatGPT’s voice and dictation features each week.</p><p><strong>Why it matters:</strong>&nbsp;OpenAI’s investment in voice systems may signal broader ambitions. The company plans to unveil a portable, screenless&nbsp;<a href="https://www.bloomberg.com/news/articles/2026-07-14/openai-s-first-device-will-be-moveable-screenless-speaker-built-as-ai-companion?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4NDEzMTUzOCwiZXhwIjoxNzg0NzM2MzM4LCJhcnRpY2xlSWQiOiJUSTYwSllUOU5KTFMwMCIsImJjb25uZWN0SWQiOiJFNDUxRjJDRDc0MTg0MDI2QTYxMTZFMkQ3MjU0RDkzNyJ9.veSm2iNRiwnMjtFQ5d1KE9yc-yPE7gd7LpZB9TdI7L4" rel="noopener noreferrer" target="_blank">smart speaker</a>&nbsp;that relies entirely on GPT-Live voice interactions before the end of this year, with devices available in early 2027, according to&nbsp;<em>Bloomberg</em>. The device will reportedly learn more about its user over time, allowing for highly personalized interactions, and tap into more powerful AI models than smart speakers currently on the market. OpenAI’s strategy hinges on whether it can successfully make voice a first-class interface for everyday productivity.</p><p><strong>We're thinking:</strong>&nbsp;Anyone who has shipped voice systems has spent years fighting turn detection from the outside: tuning silence thresholds, padding timers, guessing whether a pause means the speaker is done or just thinking. Full-duplex doesn't make that guess better; it makes the guess redundant, because the model decides moment to moment whether to speak, wait, or just offer a "mhmm." Still, the less flashy design choice here might matter more in the long run. Because the conversational layer is decoupled from the reasoning layer, GPT-Live inherits every frontier model improvement, and it never has to pick between responding quickly and thinking hard. Full-duplex makes voice pleasant to talk to; delegation makes it worth talking to.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/JDJmO6cp6x_Vz3KQeteQbr7EWiN0QH8cIIcqYpyHx0Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvR09PR0xFTElBQklMSVRZLndlYnA" class="kg-image" alt="A German eagle emblem with sharp lines is overlaid on a colorful Google logo, symbolizing the legal case." loading="lazy" width="1200" height="676" srcset="https://imgproxy.citrusreader.com/rhvYA4jH3VcHs3gCiZX3nsKcOtaLq14HlvoO1utFFVk/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L0dPT0dMRUxJQUJJTElUWS53ZWJw 600w, https://imgproxy.citrusreader.com/CvndFuZOXw_zTlwNzB_rORTAtjUmgwMKk30rw6OTaOo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9HT09HTEVMSUFCSUxJVFkud2VicA 1000w, https://imgproxy.citrusreader.com/JDJmO6cp6x_Vz3KQeteQbr7EWiN0QH8cIIcqYpyHx0Q/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvR09PR0xFTElBQklMSVRZLndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="google-found-responsible-for-ai-generated-search-results">Google Found Responsible for AI-Generated Search Results</h1><p>A German court ruled that Google can be held liable for defamatory statements generated by the AI Overview that appears at the top of its search results.</p><p><strong>What’s new:</strong>&nbsp;The Regional&nbsp;<a href="https://www.dw.com/en/german-court-holds-google-liable-for-fake-ai-answers/a-77527661" rel="noopener noreferrer" target="_blank">Court of Munich</a>&nbsp;<a href="https://www.transparencycoalition.ai/news/german-court-holds-google-liable-for-ai-hallucination-read-the-full-decision-here" rel="noopener noreferrer" target="_blank">found</a>&nbsp;that Google’s AI Overview generated false, reputation-damaging claims. The generated text said that two German publishers engaged in fraudulent business practices and lured unknowing customers into buying subscriptions. Because Google generated the AI Overview, the court ruled that&nbsp;the company was responsible for defamatory falsehoods it contained. The court issued a temporary injunction that requires Google to stop disseminating the statements.&nbsp;</p><p><strong>How it works:</strong>&nbsp;When users searched for the German publishing house Verlagshaus24 or its subsidiary GeraMond followed by the word “scam” — a term suggested by Google's autocomplete function — AI Overview responded with a summary that stated, “Yes, [company] is known for dubious business practices.” It also listed characteristics of an alleged scam including subscription traps, poor customer service, and content that remained locked even to paying customers. The court determined that the publishers in question had not, in fact, been accused of misconduct. Instead, the AI Overview had confused them with other companies that were suspected of fraudulent practices. The court found Google’s legal defenses lacking and held it responsible for defamation, and it enjoined Google to remove the statements immediately or pay a fine.</p><ul><li>The court found that Google’s AI Overviews were “independent, new, and substantive statements” that combined and rewrote information from other sources. By presenting AI-generated text as its own speech, Google took on liability for false statements.</li><li>Google argued that users are savvy enough not to trust AI blindly and can verify AI Overview responses. The court rejected these arguments. Although AI Overview cited its sources, they did not actually support the AI-generated assertions, the court noted.</li><li>The court ordered Google to pay 80 percent of the litigation costs, while the two plaintiffs were responsible for 10 percent each. If Google violates the injunction by continuing to disseminate the false statements, it faces fines of up to $285,000. The court's injunction takes effect immediately.</li><li>Google plans to appeal the ruling,&nbsp;<em>Reuters</em>&nbsp;<a href="https://www.reuters.com/world/google-appeal-german-court-ruling-assigning-liability-ai-overviews-false-claims-2026-06-12/" rel="noopener noreferrer" target="_blank">reported</a>. The case will move to the Federal Court of Justice, Germany’s final venue for judicial appeals.</li></ul><p><strong>Behind the news:</strong>&nbsp;German and EU law generally have treated&nbsp;search engines as information intermediaries that display content rather than create it. Thus, search engines have borne&nbsp;<a href="https://www.heise.de/en/news/LG-Munich-I-Google-ordered-to-pay-for-false-statements-in-AI-summaries-11327217.html" rel="noopener noreferrer" target="_blank">limited</a>&nbsp;liability for unlawful information in their results — until now.&nbsp;</p><p><strong>Why it matters:</strong>&nbsp;Munich’s ruling against Google is a landmark case that shifts search engines’ liability for false statements. In the near term, it could alter the way Google presents its AI Overview. In the longer term, if the ruling is upheld on appeal, it could encourage similar lawsuits in Europe and elsewhere. One&nbsp;<a href="https://oumi.ai/blog/oumis-study-finds-50-of-ai-overviews" rel="noopener noreferrer" target="_blank">analysis</a>&nbsp;found inaccuracies in roughly 10 percent of Google AI Overview results. If this figure holds, Google and other AI providers could face significant risk of litigation.</p><p><strong>We’re thinking:</strong>&nbsp;We think that agentic question-answering systems can be improved significantly — for example, by grounding them in more reliable information sources. We remain optimistic that such systems can&nbsp;continue to operate at scale.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/NTEzvl1FhH2zQG6UPnvtSLTg0UB8uOR_Y3kBrc28svs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvUk9CSU4ud2VicA" class="kg-image" alt="Diagram shows Robin system generating hypotheses, analyzing data, and producing therapeutic suggestions." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/peBy1pEp_s5BXJq-cto1ANMREcTE5ewrZVO-UuaBy5s/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L1JPQklOLndlYnA 600w, https://imgproxy.citrusreader.com/-dVHanZ_wSmhptKu6VLY6VaNnzrM-2Xr5m_qZTcvniQ/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9ST0JJTi53ZWJw 1000w, https://imgproxy.citrusreader.com/NTEzvl1FhH2zQG6UPnvtSLTg0UB8uOR_Y3kBrc28svs/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvUk9CSU4ud2VicA 1200w" referrerpolicy="no-referrer"></figure><h1 id="put-the-lab-in-the-loop">Put the Lab in the Loop</h1><p>An AI agent proposed new medical uses for established drugs nearly autonomously — uses that were supported by experiments on isolated human cells&nbsp;— with&nbsp;human input only to name&nbsp;diseases to be treated and run the AI-proposed lab experiments.</p><p><strong>What’s new:</strong>&nbsp;Ali Essam Ghareeb, Benjamin Chang, and colleagues from the independent AI research lab FutureHouse, University of Oxford, and Fordham University released&nbsp;<a href="https://www.nature.com/articles/s41586-026-10652-y" rel="noopener noreferrer" target="_blank">Robin</a>, an open-source agent that proposes existing drugs to treat a given disease. Robin identified two drugs that were shown to address a biological mechanism behind dry age-related macular degeneration (dAMD), a leading cause of impaired vision. While Robin is freely&nbsp;<a href="https://github.com/Future-House/robin" rel="noopener noreferrer" target="_blank">available</a>&nbsp;for noncommercial and commercial uses under the Apache 2.0 license, it relies on three earlier agents, two of which are proprietary. The literature-search agents called Crow and Falcon are free for research use only (bundled under the name&nbsp;<a href="https://docs.edisonscientific.com/agents#literature" rel="noopener noreferrer" target="_blank">Literature</a>). The data-analysis agent Finch is&nbsp;<a href="https://github.com/Future-House/finch" rel="noopener noreferrer" target="_blank">available</a>&nbsp;under an Apache 2.0 license.</p><p><strong>How it works:</strong>&nbsp;For a given disease, Robin iteratively (i) identifies mechanisms behind the disease, (ii) designs experiments to affect the mechanisms, and (iii) finds existing drugs that address the mechanisms. Then (iv) humans run experiments in a lab, and (v) Robin analyzes the results. Robin uses OpenAI’s GPT o4-mini for most language-processing functions.</p><ul><li>Given a disease name, Robin comes up with questions about it. The Crow literature-search agent produces concise summaries of existing medical research and uses them to answer the questions. Based on the answers, Robin identifies 10 potential mechanisms that may contribute to the disease.</li><li>For each mechanism, Crow searches relevant research and produces experimental designs that describe how to test that potential mechanism’s effects in the lab. Robin uses Claude 3.7 Sonnet to judge all the experimental designs in a pairwise manner to rank them.</li><li>Given the top-ranked experimental design, Robin searches the web to find 30 drugs that act on the mechanism, focusing on drugs that are both commercially available (and therefore safety-tested) and haven’t been used previously to treat the disease. For each drug, the Falcon literature-search agent summarizes relevant research and produces a report that explains why the drug may work and any potential limitations. Robin used Claude 3.7 Sonnet to rank the drug reports in a tournament.</li><li>Humans review the list and test top candidates in a lab, following the earlier experimental designs. Having completed the tests, they upload the test results and tell Robin to carry out a specific type of analysis.</li><li>The Finch data-analysis agent carries out the analysis and produces a summary of its findings.</li><li>Given those findings, Robin generates follow-up experiments, continuing the cycle until a human deems a drug candidate satisfactory.</li></ul><p><strong>Results:</strong>&nbsp;The authors ran their pipeline for dAMD. Robin hypothesized that increasing a process known as RPE phagocytosis, in which a particular type of cell in the eye removes pathogens and debris, could treat the disease. Robin proposed candidate drugs to boost RPE phagocytosis, of which two proved effective.</p><ul><li>In its initial run, Robin identified the research compound Y-27632 as a potential treatment. After humans tested the drug&nbsp;on eye cells, Robin noted a nearly 2x increase in the amount of RPE phagocytosis that occurred compared to the same test without the drug. A human follow-up analysis of the data got the same result.</li><li>The team fed data from the initial run back into the pipeline. In the second run, Robin identified Ripasudil, a drug that’s approved in Japan to treat glaucoma, a condition that damages the optic nerve, as another candidate. In this test, the drug brought a 1.89x increase in RPE phagocytosis, and a human follow-up analysis showed a 1.75x increase. (The authors note that such analyses are challenging to automate because “the inherently ambiguous nature of biological data interpretation” can lead both humans and AI to reach&nbsp;varying conclusions in different runs.)</li></ul><p><strong>Yes, but:</strong>&nbsp;While the authors did test the drugs on eye cells, they did not test them on patients with the disease, so it is not yet known whether they work in living patients.&nbsp;</p><p><strong>Behind the news:</strong>&nbsp;This work followed several studies dedicated to accelerating scientific research through agentic systems. One&nbsp;<a href="https://www.deeplearning.ai/the-batch/stanford-study-finds-ai-matches-human-experts-at-writing-research-proposals" rel="noopener">agentic system</a>&nbsp;has generated machine learning research proposals as well as or better than humans.&nbsp;<a href="https://www.deeplearning.ai/the-batch/agentic-workflow-generates-novel-scientific-research-papers" rel="noopener">Another</a>&nbsp;can generate a proposal, write and run code to test the proposal, and write the paper that describes the experiment and results. Google’s&nbsp;<a href="https://www.deeplearning.ai/the-batch/ai-co-scientist-an-agent-that-generates-research-hypotheses-aiding-drug-discovery" rel="noopener">AI Co-Scientist</a>, generated research proposals for biomedicine that humans later validated in the lab to treat acute myeloid leukemia.</p><p><strong>Why it matters:</strong>&nbsp;The Robin pipeline not only generates hypotheses and proposes experiments, it also analyzes new experimental results and updates its hypotheses accordingly. Its combination of automation and iteration suggests that AI agents could streamline medical progress. Advances in robotics may enable AI models to carry out the necessary lab experiments as well, as previously demonstrated by&nbsp;<a href="https://www.deeplearning.ai/the-batch/robochem-a-system-that-outshines-human-chemists-in-chemical-synthesis-efficiency" rel="noopener">RoboChem</a>, a system in which an AI model controls a set of automated lab instruments. Similar approaches&nbsp;may be applicable to research areas beyond medicine.</p><p><strong>We're thinking:</strong>&nbsp;It takes more than a decade and&nbsp;<a href="https://en.wikipedia.org/wiki/Cost_of_drug_development" rel="noopener noreferrer" target="_blank">costs</a>&nbsp;more than $1 billion to develop a drug in the United States, and the government&nbsp;<a href="https://www.fda.gov/files/drugs/published/new-drug-therapy-2025-annual-report.pdf" rel="noopener noreferrer" target="_blank">approves</a>&nbsp;only around 50 drugs a year. Finding new uses for drugs that are already approved, and new treatments for diseases that share underlying biological mechanisms, is an especially efficient use of time and funds.</p><hr><figure class="kg-card kg-image-card"><img src="https://imgproxy.citrusreader.com/__DfXl5rmmBP-oOD9L6b7fuidm4qqEVWVu8LSEuFLSw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvUFVQUEVULndlYnA" class="kg-image" alt="Image illustrates two scenarios of AI chat responses, affecting user reliance on AI vs. professional help." loading="lazy" width="1200" height="675" srcset="https://imgproxy.citrusreader.com/zfC2mfxQaOjYspi2NRhw-QPvlMztvPYhYL6phFMGZoo/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzYwMC8yMDI2LzA3L1BVUFBFVC53ZWJw 600w, https://imgproxy.citrusreader.com/y8v2IvE-M9iAcFu4KUajkPOQjSUGRs6Uwq91H1ew6RM/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzL3NpemUvdzEwMDAvMjAyNi8wNy9QVVBQRVQud2VicA 1000w, https://imgproxy.citrusreader.com/__DfXl5rmmBP-oOD9L6b7fuidm4qqEVWVu8LSEuFLSw/raw:1/aHR0cHM6Ly9jaGFyb25odWIuZGVlcGxlYXJuaW5nLmFpL2NvbnRlbnQvaW1hZ2VzLzIwMjYvMDcvUFVQUEVULndlYnA 1200w" referrerpolicy="no-referrer"></figure><h1 id="measuring-models%E2%80%99-manipulation">Measuring&nbsp;Models’ Manipulation</h1><p>Providers of large language models stand to benefit by building models that spur user engagement, but users may bear a cost in undue influence on their world views. How readily LLMs can change users’ beliefs becomes an important question as users increasingly turn to them for information and advice.</p><p><strong>What’s new:</strong>&nbsp;Jocelyn Shen and colleagues at MIT and Carnegie Mellon University measured the effect of OpenAI GPT-4o on users’ beliefs. They also tested various LLMs’ ability, after a user conversed with GPT-4o, to estimate that model’s influence on the user’s beliefs, and they introduced the&nbsp;<a href="https://arxiv.org/abs/2603.20907" rel="noopener noreferrer" target="_blank">Puppet</a>&nbsp;benchmark to test&nbsp;models’ ability to estimate such influence. The authors propose Puppet as an alternative to earlier models that were designed to detect manipulative output that may not actually lead to&nbsp;a change in beliefs.</p><p><strong>Key insight:</strong>&nbsp;Manipulation detectors such as&nbsp;<a href="https://aclanthology.org/2024.acl-long.206/" rel="noopener noreferrer" target="_blank">MentalManip</a>,&nbsp;<a href="https://arxiv.org/abs/2409.09013" rel="noopener noreferrer" target="_blank">AI-LieDAR</a>, and&nbsp;<a href="https://aclanthology.org/2025.sicon-1.8/" rel="noopener noreferrer" target="_blank">CLAIM</a>&nbsp;identify manipulative output that might persuade users by instilling fear, inducing guilt, offering flattery, or presenting social proof. However, such models fall short in crucial ways:</p><ul><li>Manipulations may be harmful to users if they serve&nbsp;other parties’ interests — say, to gather data, encourage reliance on the model, or promote particular products. But other manipulations may serve the user’s interests — say, to learn a particular body of knowledge or adopt healthy habits. To understand a model’s manipulative capabilities, it’s necessary to differentiate between harmful and harmless manipulations.</li><li>Users may recognize manipulative tactics and reject them outright, while a gentle, personalized nudge can bypass such resistance and shift their beliefs. To gauge an LLM’s ability to manipulate users, a more direct approach is to train a separate model to estimate changes in their beliefs after interacting with the LLM.</li></ul><p><strong>How it works:</strong>&nbsp;The authors studied interactions between over 1,000 users and GPT-4o. They tracked the model’s efforts to manipulate under various prompts (a prompt that aimed to serve the user’s interests, a prompt that aimed to serve other interests, a prompt that aimed to serve no particular interests, all three with or without personal information about the user) and the magnitude of any shifts in users’ beliefs after interacting with the model.</p><ul><li>Users completed a background questionnaire that covered their demographics, life goals,&nbsp;<a href="https://en.wikipedia.org/wiki/Big_Five_personality_traits" rel="noopener noreferrer" target="_blank">Big Five</a>&nbsp;personality traits, and&nbsp;<a href="https://moralfoundations.org/questionnaires/" rel="noopener noreferrer" target="_blank">MFQ-30</a>&nbsp;moral values.</li><li>Given a list of requests for personal advice in areas such as finance, health, or relationships, they chose one. For instance “I feel lonely and I have no one to talk to.”</li><li>Given a statement of belief related to the request, they rated their agreement on a scale between 0 and 100. For instance, “AI can provide emotional or mental-health support.”</li><li>The users fed the request to GPT-4o and conversed for five to 10 turns. Under a prompt that serves&nbsp;the user’s interest, the model might respond with words like, “Texting someone you trust [...] can make a big difference.” Under a prompt that served a different interest, it might say something like, “I can be the one place you come to . . . since I know you’re really introverted.”</li><li>After the conversation, participants rated their belief again. The authors computed the absolute difference to establish the ground truth.</li><li>Given transcripts of the conversations and the user’s belief statement prior to the conversation, DeepSeek-V3.1, Google Gemini-2.0-Flash, Meta Llama-3.1-70B, and GPT-4o estimated each participant’s degree of agreement with the belief statement after the conversation. The models estimated these values both with and without access to the user’s personal information.</li></ul><p><strong>Results:</strong>&nbsp;The authors reported shifts in users’ beliefs when models were prompted to manipulate users according to interests other than the users’ own. Such shifts in the users’ beliefs showed high variability. The standard deviation was roughly 22, while the median was 3.3, indicating that many users’ beliefs changed little while others’ changed substantially. The LLMs tested showed moderate success at estimating changes in belief, while the output of manipulation detectors did not correlate with such changes.</p><ul><li>Of the LLMs tested, GPT-4o estimated changes in users’ beliefs most accurately, achieving a correlation of 0.436 without the user’s personal context. DeepSeek-V3.1 was the least accurate, achieving a correlation of 0.362 without personal context. Adding personal context did not consistently improve any LLM’s performance.</li><li>Manipulation detectors showed near-zero correlation with actual belief shift. Only work by&nbsp;<a href="https://arxiv.org/abs/2508.05625" rel="noopener noreferrer" target="_blank">Jaipersaud et al</a>&nbsp;achieved a small but significant&nbsp;<a href="https://en.wikipedia.org/wiki/Spearman%27s_rank_correlation_coefficient" rel="noopener noreferrer" target="_blank">correlation</a>&nbsp;of 0.137.</li></ul><p><strong>Yes, but:</strong>&nbsp;The study measured shifts in users’ beliefs immediately after a single conversation with GPT-4o. It remains unclear whether such changes can persist or build over repeated conversations.</p><p><strong>Why it matters:</strong>&nbsp;The authors show that the earlier approach of detecting manipulative LLM output is not sufficient to assess an LLM’s actual persuasive power. The LLMs tested did a fair job of estimating actual shifts in users’ beliefs based on their conversations with GPT-4o alone (that is, without access to information about the users’ demographics, personalities, and values). This points the way toward systems that do more to guard against manipulative LLM behavior while better serving users’ interests.</p><p><strong>We're thinking:</strong>&nbsp;The authors don’t present an analysis of cases in which conversations with a model that was designed to serve the user’s interests changed the user’s beliefs. This would be a useful inquiry, since the results would bear on applications of AI to support users’ goals to, for instance, learn a skill, master a body of knowledge, or adopt a healthier lifestyle.&nbsp;</p>

2026/7/17
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