Lessons from Scaling LLMs
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Technical screening is not only about technical knowledge. Here’s what companies really test in technical interviews.
Earth AI is helping enterprises and cities with everything from environmental monitoring to disaster response.
Fine-tuning has become much more accessible in 2024–2025, with parameter-efficient methods letting even 70B+ parameter models run on consumer GPUs.
3D simulations and movement control with PyBullet
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May Habib, co-founder and CEO of Writer AI, delivered one of the bluntest assessments of corporate AI failures at the TED AI conference on Tuesday, revealing that nearly half of Fortune 500 executives believe artificial intelligence is actively damaging their organizations — and placing the blame squarely on leadership's shoulders.The problem, according to Habib, isn't the technology. It's that business leaders are making a category error, treating AI transformation like previous technology rollouts and delegating it to IT departments. This approach, she warned, has led to "billions of dollars spent on AI initiatives that are going nowhere.""Earlier this year, we did a survey of 800 Fortune 500 C-suite executives," Habib told the audience of Silicon Valley executives and investors. "42% of them said AI is tearing their company apart."The diagnosis challenges conventional wisdom about how enterprises should approach AI adoption. While most major companies have stood up AI task forces, appointed chief AI officers, or expanded IT budgets, Habib argues these moves reflect a fundamental misunderstanding of what AI represents: not another software tool, but a wholesale reorganization of how work gets done."There is something leaders are missing when they compare AI to just another tech tool," Habib said. "This is not like giving accountants calculators or bankers Excel or designers Photoshop."Why the 'old playbook' of delegating to IT departments is failing companiesHabib, whose company has spent five years building AI systems for Fortune 500 companies and logged two million miles visiting customer sites, said the pattern is consistent: "When generative AI started showing up, we turned to the old playbook. We turned to IT and said, 'Go figure this out.'"That approach fails, she argued, because AI fundamentally changes the economics and organization of work itself. "For 100 years, enterprises have been built around the idea that execution is expensive and hard," Habib said. "The enterprise built complex org charts, complex processes, all to manage people doing stuff."AI inverts that model. "Execution is going from scarce and expensive to programmatic, on-demand and abundant," she said. In this new paradigm, the bottleneck shifts from execution capacity to strategic design — a shift that requires business leaders, not IT departments, to drive transformation."With AI technology, it can no longer be centralized. It's in every workflow, every business," Habib said. "It is now the most important part of a business leader's job. It cannot be delegated."The statement represents a direct challenge to how most large organizations have structured their AI initiatives, with centralized centers of excellence, dedicated AI teams, or IT-led implementations that business units are expected to adopt.A generational power shift is happening based on who understands AI workflow designHabib framed the shift in dramatic terms: "A generational transfer of power is happening right now. It's not about your age or how long you've been at a company. The generational transfer of power is about the nature of leadership itself."Traditional leadership, she argued, has been defined by the ability to manage complexity — big teams, big budgets, intricate processes. "The identity of leaders at these companies, people like us, has been tied to old school power structures: control, hierarchy, how big our teams are, how big our budgets are. Our value is measured by the sheer amount of complexity we could manage," Habib said. "Today we reward leaders for this. We promote leaders for this."AI makes that model obsolete. "When I am able to 10x the output of my team or do things that could never be possible, work is no longer about the 1x," she said. "Leadership is no longer about managing complex human execution."Instead, Habib outlined three fundamental shifts that define what she calls "AI-first leaders" — executives her company has worked with who have successfully deployed AI agents solving "$100 million plus problems."The first shift: Taking a machete to enterprise complexityThe new leadership mandate, according to Habib, is "taking a machete to the complexity that has calcified so many organizations." She pointed to the layers of friction that have accumulated in enterprises: "Brilliant ideas dying in memos, the endless cycles of approvals, the death by 1,000 clicks, meetings about meetings — a death, by the way, that's happening in 17 different browser tabs each for software that promises to be a single source of truth."Rather than accepting this complexity as inevitable, AI-first leaders redesign workflows from first principles. "There are very few legacy systems that can't be replaced in your organization, that won't be replaced," Habib said. "But they're not going to be replaced by another monolithic piece of software. They can only be replaced by a business leader articulating business logic and getting that into an agentic system."She offered a concrete example: "We have customers where it used to take them seven months to get a creative campaign — not even a product, a campaign. Now they can go from TikTok trend to digital shelf in 30 days. That is radical simplicity."The catch, she emphasized, is that CIOs can't drive this transformation alone. "Your CIO can't help flatten your org chart. Only a business leader can look at workflows and say, 'This part is necessary genius, this part is bureaucratic scar tissue that has to go.'"The second shift: Managing the fear as career ladders disappearWhen AI handles execution, "your humans are liberated to do what they're amazing at: judgment, strategy, creativity," Habib explained. "The old leadership playbook was about managing headcount. We managed people against revenue: one business development rep for every three account executives, one marketer for every five salespeople."But this liberation carries profound challenges that leaders must address directly. Habib acknowledged the elephant in the room that many executives avoid discussing: "These changes are still frightening for people, even when it's become unholy to talk about it." She's witnessed the fear firsthand. "It shows up as tears in an AI workshop when someone feels like their old skill set isn't translated to the new."She introduced a term for a common form of resistance: "productivity anchoring" — when employees "cling to the hard way of doing things because they feel productive, because their self-worth is tied to them, even when empirically AI can be better."The solution isn't to look away. "We have to design new pathways to impact, to show your people their value is not in executing a task. Their value is in orchestrating systems of execution, to ask the next great question," Habib said. She advocates replacing career "ladders" with "lattices" where "people need to grow laterally, to expand sideways."She was candid about the disruption: "The first rungs on our career ladders are indeed going away. I know because my company is automating them." But she insisted this creates opportunity for work that is "more creative, more strategic, more driven by curiosity and impact — and I believe a lot more human than the jobs that they're replacing."The third shift: When execution becomes free, ambition becomes the only bottleneckThe final shift is from optimization to creation. "Before AI, we used to call it transformation when we took 12 steps and made them nine," Habib said. "That's optimizing the world as it is. We can now create a new world. That is the greenfield mindset."She challenged executives to identify assumptions their industries are built on that AI now disrupts. Writer's customers, she said, are already seeing new categories of growth: treating every customer like their only customer, democratizing premium services to broader markets, and entering new markets at unprecedented speed because "AI strips away the friction to access new channels.""When execution is abundant, the only bottleneck is the scope of your own ambition," Habib declared.What this means for CIOs: Building the stadium while business leaders design the playsHabib didn't leave IT leaders without a role — she redefined it. "If tech is everyone's job, you might be asking, what is mine?" she addressed CIOs. "Yours is to provide the mission critical infrastructure that makes this revolution possible."As tens or hundreds of thousands of AI agents operate at various levels of autonomy within organizations, "governance becomes existential," she explained. "The business leader's job is to design the play, but you have to build the stadium, you have to write the rule book, and you have to make sure these plays can win at championship scale."The formulation suggests a partnership model: business leaders drive workflow redesign and strategic implementation while IT provides the infrastructure, governance frameworks, and security guardrails that make mass AI deployment safe and scalable. "One can't succeed without the other," Habib said.For CIOs and technical leaders, this represents a fundamental shift from gatekeeper to enabler. When business units deploy agents autonomously, IT faces governance challenges unlike anything in enterprise software history. Success requires genuine partnership between business and IT — neither can succeed alone, forcing cultural changes in how these functions collaborate.A real example: From multi-day scrambles to instant answers during a market crisisTo ground her arguments in concrete business impact, Habib described working with the chief client officer of a Fortune 500 wealth advisory firm during recent market volatility following tariff announcements."Their phone was ringing off the hook with customers trying to figure out their market exposure," she recounted. "Every request kicked off a multi-day, multi-person scramble: a portfolio manager ran the show, an analyst pulled charts, a relationship manager built the PowerPoint, a compliance officer had to review everything for disclosures. And the leader in all this — she was forwarding emails and chasing updates. This is the top job: managing complexity."With an agentic AI system, the same work happens programmatically. "A system of agents is able to assemble the answer faster than any number of people could have. No more midnight deck reviews. No more days on end" of coordination, Habib said.This isn't about marginal productivity gains — it's about fundamentally different operating models where senior executives shift from managing coordination to designing intelligent systems.Why so many AI initiatives are failing despite massive investmentHabib's arguments arrive as many enterprises face AI disillusionment. After initial excitement about generative AI, many companies have struggled to move beyond pilots and demonstrations to production deployments generating tangible business value.Her diagnosis — that leaders are delegating rather than driving transformation — aligns with growing evidence that organizational factors, not technical limitations, explain most failures. Companies often lack clarity on use cases, struggle with data preparation, or face internal resistance to workflow changes that AI requires.Perhaps the most striking aspect of Habib's presentation was her willingness to acknowledge the human cost of AI transformation — and insist leaders address it rather than avoid it. "Your job as a leader is to not look away from this fear. Your job is to face it with a plan," she told the audience.She described "productivity anchoring" as a form of "self-sabotage" where employees resist AI adoption because their identity and self-worth are tied to execution tasks AI can now perform. The phenomenon suggests that successful AI transformation requires not just technical and strategic changes but psychological and cultural work that many leaders may be unprepared for.Two challenges: Get your hands dirty, then reimagine everythingHabib closed by throwing down two gauntlets to her executive audience."First, a small one: get your hands dirty with agentic AI. Don't delegate. Choose a process that you oversee and automate it. See the difference from managing a complex process to redesigning it for yourself."The second was more ambitious: "Go back to your team and ask, what could we achieve if execution were free? What would work feel like, be like, look like if you're unbound from the friction and process that slows us down today?"She concluded: "The tools for creation are in your hands. The mandate for leadership is on your shoulders. What will you build?"For enterprise leaders accustomed to viewing AI as an IT initiative, Habib's message is clear: that approach isn't working, won't work, and reflects a fundamental misunderstanding of what AI represents. Whether executives embrace her call to personally drive transformation — or continue delegating to IT departments — may determine which organizations thrive and which become cautionary tales.The statistic she opened with lingers uncomfortably: 42% of Fortune 500 C-suite executives say AI is tearing their companies apart. Habib's diagnosis suggests they're tearing themselves apart by clinging to organizational models designed for an era when execution was scarce. The cure she prescribes requires leaders to do something most find uncomfortable: stop managing complexity and start dismantling it.
In a striking act of self-critique, one of the architects of the transformer technology that powers ChatGPT, Claude, and virtually every major AI system told an audience of industry leaders this week that artificial intelligence research has become dangerously narrow — and that he's moving on from his own creation.Llion Jones, who co-authored the seminal 2017 paper "Attention Is All You Need" and even coined the name "transformer," delivered an unusually candid assessment at the TED AI conference in San Francisco on Tuesday: Despite unprecedented investment and talent flooding into AI, the field has calcified around a single architectural approach, potentially blinding researchers to the next major breakthrough."Despite the fact that there's never been so much interest and resources and money and talent, this has somehow caused the narrowing of the research that we're doing," Jones told the audience. The culprit, he argued, is the "immense amount of pressure" from investors demanding returns and researchers scrambling to stand out in an overcrowded field.The warning carries particular weight given Jones's role in AI history. The transformer architecture he helped develop at Google has become the foundation of the generative AI boom, enabling systems that can write essays, generate images, and engage in human-like conversation. His paper has been cited more than 100,000 times, making it one of the most influential computer science publications of the century.Now, as CTO and co-founder of Tokyo-based Sakana AI, Jones is explicitly abandoning his own creation. "I personally made a decision in the beginning of this year that I'm going to drastically reduce the amount of time that I spend on transformers," he said. "I'm explicitly now exploring and looking for the next big thing."Why more AI funding has led to less creative research, according to a transformer pioneerJones painted a picture of an AI research community suffering from what he called a paradox: More resources have led to less creativity. He described researchers constantly checking whether they've been "scooped" by competitors working on identical ideas, and academics choosing safe, publishable projects over risky, potentially transformative ones."If you're doing standard AI research right now, you kind of have to assume that there's maybe three or four other groups doing something very similar, or maybe exactly the same," Jones said, describing an environment where "unfortunately, this pressure damages the science, because people are rushing their papers, and it's reducing the amount of creativity."He drew an analogy from AI itself — the "exploration versus exploitation" trade-off that governs how algorithms search for solutions. When a system exploits too much and explores too little, it finds mediocre local solutions while missing superior alternatives. "We are almost certainly in that situation right now in the AI industry," Jones argued.The implications are sobering. Jones recalled the period just before transformers emerged, when researchers were endlessly tweaking recurrent neural networks — the previous dominant architecture — for incremental gains. Once transformers arrived, all that work suddenly seemed irrelevant. "How much time do you think those researchers would have spent trying to improve the recurrent neural network if they knew something like transformers was around the corner?" he asked.He worries the field is repeating that pattern. "I'm worried that we're in that situation right now where we're just concentrating on one architecture and just permuting it and trying different things, where there might be a breakthrough just around the corner."How the 'Attention is all you need' paper was born from freedom, not pressureTo underscore his point, Jones described the conditions that allowed transformers to emerge in the first place — a stark contrast to today's environment. The project, he said, was "very organic, bottom up," born from "talking over lunch or scrawling randomly on the whiteboard in the office."Critically, "we didn't actually have a good idea, we had the freedom to actually spend time and go and work on it, and even more importantly, we didn't have any pressure that was coming down from management," Jones recounted. "No pressure to work on any particular project, publish a number of papers to push a certain metric up."That freedom, Jones suggested, is largely absent today. Even researchers recruited for astronomical salaries — "literally a million dollars a year, in some cases" — may not feel empowered to take risks. "Do you think that when they start their new position they feel empowered to try their wild ideas and more speculative ideas, or do they feel immense pressure to prove their worth and once again, go for the low hanging fruit?" he asked.Why one AI lab is betting that research freedom beats million-dollar salariesJones's proposed solution is deliberately provocative: Turn up the "explore dial" and openly share findings, even at competitive cost. He acknowledged the irony of his position. "It may sound a little controversial to hear one of the Transformers authors stand on stage and tell you that he's absolutely sick of them, but it's kind of fair enough, right? I've been working on them longer than anyone, with the possible exception of seven people."At Sakana AI, Jones said he's attempting to recreate that pre-transformer environment, with nature-inspired research and minimal pressure to chase publications or compete directly with rivals. He offered researchers a mantra from engineer Brian Cheung: "You should only do the research that wouldn't happen if you weren't doing it."One example is Sakana's "continuous thought machine," which incorporates brain-like synchronization into neural networks. An employee who pitched the idea told Jones he would have faced skepticism and pressure not to waste time at previous employers or academic positions. At Sakana, Jones gave him a week to explore. The project became successful enough to be spotlighted at NeurIPS, a major AI conference.Jones even suggested that freedom beats compensation in recruiting. "It's a really, really good way of getting talent," he said of the exploratory environment. "Think about it, talented, intelligent people, ambitious people, will naturally seek out this kind of environment."The transformer's success may be blocking AI's next breakthroughPerhaps most provocatively, Jones suggested transformers may be victims of their own success. "The fact that the current technology is so powerful and flexible... stopped us from looking for better," he said. "It makes sense that if the current technology was worse, more people would be looking for better."He was careful to clarify that he's not dismissing ongoing transformer research. "There's still plenty of very important work to be done on current technology and bringing a lot of value in the coming years," he said. "I'm just saying that given the amount of talent and resources that we have currently, we can afford to do a lot more."His ultimate message was one of collaboration over competition. "Genuinely, from my perspective, this is not a competition," Jones concluded. "We all have the same goal. We all want to see this technology progress so that we can all benefit from it. So if we can all collectively turn up the explore dial and then openly share what we find, we can get to our goal much faster."The high stakes of AI's exploration problemThe remarks arrive at a pivotal moment for artificial intelligence. The industry grapples with mounting evidence that simply building larger transformer models may be approaching diminishing returns. Leading researchers have begun openly discussing whether the current paradigm has fundamental limitations, with some suggesting that architectural innovations — not just scale — will be needed for continued progress toward more capable AI systems.Jones's warning suggests that finding those innovations may require dismantling the very incentive structures that have driven AI's recent boom. With tens of billions of dollars flowing into AI development annually and fierce competition among labs driving secrecy and rapid publication cycles, the exploratory research environment he described seems increasingly distant.Yet his insider perspective carries unusual weight. As someone who helped create the technology now dominating the field, Jones understands both what it takes to achieve breakthrough innovation and what the industry risks by abandoning that approach. His decision to walk away from transformers — the architecture that made his reputation — adds credibility to a message that might otherwise sound like contrarian positioning.Whether AI's power players will heed the call remains uncertain. But Jones offered a pointed reminder of what's at stake: The next transformer-scale breakthrough could be just around the corner, pursued by researchers with the freedom to explore. Or it could be languishing unexplored while thousands of researchers race to publish incremental improvements on architecture that, in Jones's words, one of its creators is "absolutely sick of."After all, he's been working on transformers longer than almost anyone. He would know when it's time to move on.
Discover the top open source video generation models that rival Veo 3 and prioritize your privacy and control.
The math behind fitting a plane instead of a line.
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From afar, new LLMs and the applications they power seem shiny, or even magical. The unrelenting pace of product launches and media coverage adds to their aura, and generates extreme levels of FOMO among ML practitioners and business executives alike. The overall effect? The feeling that AI is inevitable, and its value unquestionable. The articles we’ve selected […]
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This article originally appeared on Medium. Tim O’Brien has given us permission to repost here on Radar. One of the most unexpected changes in software development right now comes from code generation. We’ve all known that it could speed up certain kinds of work, but what’s becoming clear is that it also reshapes the economics […]
AI browser warning, 3K AI courses, ChatGPT Atlas tested, and more...
One of the leading architects of the current generative AI boom — Microsoft CEO Satya Nadella, famed for having the software giant take an early investment in OpenAI (and later saying he was "good for my $80 billion") — published his latest annual letter yesterday on LinkedIn (a Microsoft subsidiary), and it's chock full of interesting ideas about the near-term future that enterprise technical decision makers would do well to pay attention to, as it could aid in their own planning and tech stack development.In a companion post on X, Nadella wrote, “AI is radically changing every layer of the tech stack, and we’re changing with it." The full letter reinforces that message: Microsoft sees itself not just participating in the AI revolution, but shaping its infrastructure, security, tooling and governance for decades to come.While the message is addressed to Microsoft shareholders, the implications reach much further. The letter is a strategic signal to enterprise engineering leaders: CIOs, CTOs, AI leads, platform architects and security directors. Nadella outlines the direction of Microsoft’s innovation, but also what it expects from its customers and partners. The AI era is here, but it will be built by those who combine technical vision with operational discipline.Below are the five most important takeaways for enterprise technical decision makers.1. Security and reliability are now the foundation of the AI stackNadella makes security the first priority in the letter and ties it directly to Microsoft’s relevance going forward. Through its Secure Future Initiative (SFI), Microsoft has assigned the equivalent of 34,000 engineers to secure its identity systems, networks and software supply chain. Its Quality Excellence Initiative (QEI) aims to increase platform resiliency and strengthen global service uptime.Microsoft’s positioning makes it clear that enterprises will no longer get away with “ship fast, harden later” AI deployments. Nadella calls security “non-negotiable,” signaling that AI infrastructure must now meet the standards of mission-critical software. That means identity-first architecture, zero-trust execution environments and change management discipline are now table stakes for enterprise AI.2. AI infrastructure strategy is hybrid, open and sovereignty-readyNadella commits Microsoft to building “planet-scale systems” and backs that up with numbers: more than 400 Azure datacenters across 70 regions, two gigawatts of new compute capacity added this year, and new liquid-cooled GPU clusters rolling out across Azure. Microsoft also introduced Fairwater, a massive new AI datacenter in Wisconsin positioned to deliver unprecedented scale. Just as important, Microsoft is now officially multi-model. Azure AI Foundry offers access to more than 11,000 models including OpenAI, Meta, Mistral, Cohere and xAI. Microsoft is no longer pushing a single-model future, but a hybrid AI strategy.Enterprises should interpret this as validation of “portfolio architectures,” where closed, open and domain-specific models coexist. Nadella also emphasizes growing investment in sovereign cloud offerings for regulated industries, previewing a world where AI systems will have to meet regional data residency and compliance requirements from day one.3. AI agents—not just chatbots—are now Microsoft’s futureThe AI shift inside Microsoft is no longer about copilots that answer questions. It is now about AI agents that perform work. Nadella points to the rollout of Agent Mode in Microsoft 365 Copilot, which turns natural language requests into multistep business workflows. GitHub Copilot evolves from code autocomplete into a “peer programmer” capable of executing tasks asynchronously. In security operations, Microsoft has deployed AI agents that autonomously respond to incidents. In healthcare, Copilot for Dragon Medical documents clinical encounters automatically.This represents a major architectural pivot. Enterprises will need to move beyond prompt-response interfaces and begin engineering agent ecosystems that safely take actions inside business systems. That requires workflow orchestration, API integration strategies and strong guardrails. Nadella’s letter frames this as the next software platform shift.4. Unified data platforms are required to unlock AI valueNadella devotes significant attention to Microsoft Fabric and OneLake, calling Fabric the company’s fastest-growing data and analytics product ever. Fabric promises to centralize enterprise data from multiple cloud and analytics environments. OneLake provides a universal storage layer that binds analytics and AI workloads together.Microsoft’s message is blunt: siloed data means stalled AI. Enterprise teams that want AI at scale must unify operational and analytical data into a single architecture, enforce consistent data contracts and standardize metadata governance. AI success is now a data engineering problem more than a model problem.5. Trust, compliance and responsible AI are now mandatory for deployment“People want technology they can trust,” Nadella writes. Microsoft now publishes Responsible AI Transparency Reports and aligns parts of its development process with UN human rights guidance. Microsoft is also committing to digital resilience in Europe and proactive safeguards against misuse of AI-generated content.This shifts responsible AI out of the realm of corporate messaging and into engineering practice. Enterprises will need model documentation, reproducibility practices, audit trails, risk monitoring and human-in-the-loop checkpoints. Nadella signals that compliance will become integrated with product delivery—not an afterthought layered on top.The real meaning of Microsoft’s AI strategyTaken together, these five pillars send a clear message to enterprise leaders: AI maturity is no longer about building prototypes or proving use cases. System-level readiness now defines success. Nadella frames Microsoft’s mission as helping customers “think in decades and execute in quarters,” and that is more than corporate poetry. It is a call to build AI platforms engineered for longevity.The companies that win in enterprise AI will be the ones that invest early in secure cloud foundations, unify their data architectures, enable agent-based workflows and embrace responsible AI as a prerequisite for scale—not a press release. Nadella is betting that the next industrial transformation will be powered by AI infrastructure, not AI demos. With this letter, he has made Microsoft’s ambition clear: to become the platform on which that transformation is built.
In this post, we explore how product teams can leverage Amazon Bedrock and AWS services to transform their creative workflows through generative AI, enabling rapid content iteration across multiple formats while maintaining brand consistency and compliance. The solution demonstrates how teams can deploy a scalable generative AI application that accelerates everything from product descriptions and marketing copy to visual concepts and video content, significantly reducing time to market while enhancing creative quality.
In this post, we explore advanced cost monitoring strategies for Amazon Bedrock deployments, introducing granular custom tagging approaches for precise cost allocation and comprehensive reporting mechanisms that build upon the proactive cost management foundation established in Part 1. The solution demonstrates how to implement invocation-level tagging, application inference profiles, and integration with AWS Cost Explorer to create a complete 360-degree view of generative AI usage and expenses.
In this post, we introduce a comprehensive solution for proactively managing Amazon Bedrock inference costs through a cost sentry mechanism designed to establish and enforce token usage limits, providing organizations with a robust framework for controlling generative AI expenses. The solution uses serverless workflows and native Amazon Bedrock integration to deliver a predictable, cost-effective approach that aligns with organizational financial constraints while preventing runaway costs through leading indicators and real-time budget enforcement.
In this post, we demonstrate how Amazon Nova Premier with Amazon Bedrock can systematically migrate legacy C code to modern Java/Spring applications using an intelligent agentic workflow that breaks down complex conversions into specialized agent roles. The solution reduces migration time and costs while improving code quality through automated validation, security assessment, and iterative refinement processes that handle even large codebases exceeding token limitations.
Quantum Machine Learning principles
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A practical guide to designing and analyzing robust aggregation strategies
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Here are some tips on how to avoid the typical traps of the human mind and help people get your data storytelling.
Professors Facundo Batista and Dina Katabi, along with three additional MIT alumni, are honored for their outstanding professional achievement and commitment to service.
In the epoch of LLMs, it may seem like the most classical machine learning concepts, methods, and techniques like feature engineering are no longer in the spotlight.
In this post, we detail how Metagenomi partnered with AWS to implement the Progen2 protein language model on AWS Inferentia, achieving up to 56% cost reduction for high-throughput enzyme generation workflows. The implementation enabled cost-effective generation of millions of novel enzyme variants using EC2 Inf2 Spot Instances and AWS Batch, demonstrating how cloud-based generative AI can make large-scale protein design more accessible for biotechnology applications .
We are disappointed by the CMA’s designation of an open mobile ecosystem with strategic market status.
China is on track to dominate consumer artificial intelligence applications and robotics manufacturing within years, but the United States will maintain its substantial lead in enterprise AI adoption and cutting-edge research, according to Kai-Fu Lee, one of the world's most prominent AI scientists and investors.In a rare, unvarnished assessment delivered via video link from Beijing to the TED AI conference in San Francisco Tuesday, Lee — a former executive at Apple, Microsoft, and Google who now runs both a major venture capital firm and his own AI company — laid out a technology landscape splitting along geographic and economic lines, with profound implications for both commercial competition and national security."China's robotics has the advantage of having integrated AI into much lower costs, better supply chain and fast turnaround, so companies like Unitree are actually the farthest ahead in the world in terms of building affordable, embodied humanoid AI," Lee said, referring to a Chinese robotics manufacturer that has undercut Western competitors on price while advancing capabilities.The comments, made to a room filled with Silicon Valley executives, investors, and researchers, represented one of the most detailed public assessments from Lee about the comparative strengths and weaknesses of the world's two AI superpowers — and suggested that the race for artificial intelligence leadership is becoming less a single contest than a series of parallel competitions with different winners.Why venture capital is flowing in opposite directions in the U.S. and ChinaAt the heart of Lee's analysis lies a fundamental difference in how capital flows in the two countries' innovation ecosystems. American venture capitalists, Lee said, are pouring money into generative AI companies building large language models and enterprise software, while Chinese investors are betting heavily on robotics and hardware."The VCs in the US don't fund robotics the way the VCs do in China," Lee said. "Just like the VCs in China don't fund generative AI the way the VCs do in the US."This investment divergence reflects different economic incentives and market structures. In the United States, where companies have grown accustomed to paying for software subscriptions and where labor costs are high, enterprise AI tools that boost white-collar productivity command premium prices. In China, where software subscription models have historically struggled to gain traction but manufacturing dominates the economy, robotics offers a clearer path to commercialization.The result, Lee suggested, is that each country is pulling ahead in different domains — and may continue to do so."China's got some challenges to overcome in getting a company funded as well as OpenAI or Anthropic," Lee acknowledged, referring to the leading American AI labs. "But I think U.S., on the flip side, will have trouble developing the investment interest and value creation in the robotics" sector.Why American companies dominate enterprise AI while Chinese firms struggle with subscriptionsLee was explicit about one area where the United States maintains what appears to be a durable advantage: getting businesses to actually adopt and pay for AI software."The enterprise adoption will clearly be led by the United States," Lee said. "The Chinese companies have not yet developed a habit of paying for software on a subscription."This seemingly mundane difference in business culture — whether companies will pay monthly fees for software — has become a critical factor in the AI race. The explosion of spending on tools like GitHub Copilot, ChatGPT Enterprise, and other AI-powered productivity software has fueled American companies' ability to invest billions in further research and development.Lee noted that China has historically overcome similar challenges in consumer technology by developing alternative business models. "In the early days of internet software, China was also well behind because people weren't willing to pay for software," he said. "But then advertising models, e-commerce models really propelled China forward."Still, he suggested, someone will need to "find a new business model that isn't just pay per software per use or per month basis. That's going to not happen in China anytime soon."The implication: American companies building enterprise AI tools have a window — perhaps a substantial one — where they can generate revenue and reinvest in R&D without facing serious Chinese competition in their core market.How ByteDance, Alibaba and Tencent will outpace Meta and Google in consumer AIWhere Lee sees China pulling ahead decisively is in consumer-facing AI applications — the kind embedded in social media, e-commerce, and entertainment platforms that billions of people use daily."In terms of consumer usage, that's likely to happen," Lee said, referring to China matching or surpassing the United States in AI deployment. "The Chinese giants, like ByteDance and Alibaba and Tencent, will definitely move a lot faster than their equivalent in the United States, companies like Meta, YouTube and so on."Lee pointed to a cultural advantage: Chinese technology companies have spent the past decade obsessively optimizing for user engagement and product-market fit in brutally competitive markets. "The Chinese giants really work tenaciously, and they have mastered the art of figuring out product market fit," he said. "Now they have to add technology to it. So that is inevitably going to happen."This assessment aligns with recent industry observations. ByteDance's TikTok became the world's most downloaded app through sophisticated AI-driven content recommendation, and Chinese companies have pioneered AI-powered features in areas like live-streaming commerce and short-form video that Western companies later copied.Lee also noted that China has already deployed AI more widely in certain domains. "There are a lot of areas where China has also done a great job, such as using computer vision, speech recognition, and translation more widely," he said.The surprising open-source shift that has Chinese models beating Meta's LlamaPerhaps Lee's most striking data point concerned open-source AI development — an area where China appears to have seized leadership from American companies in a remarkably short time."The 10 highest rated open source [models] are from China," Lee said. "These companies have now eclipsed Meta's Llama, which used to be number one."This represents a significant shift. Meta's Llama models were widely viewed as the gold standard for open-source large language models as recently as early 2024. But Chinese companies — including Lee's own firm, 01.AI, along with Alibaba, Baidu, and others — have released a flood of open-source models that, according to various benchmarks, now outperform their American counterparts.The open-source question has become a flashpoint in AI development. Lee made an extensive case for why open-source models will prove essential to the technology's future, even as closed models from companies like OpenAI command higher prices and, often, superior performance."I think open source has a number of major advantages," Lee argued. With open-source models, "you can examine it, tune it, improve it. It's yours, and it's free, and it's important for building if you want to build an application or tune the model to do something specific."He drew an analogy to operating systems: "People who work in operating systems loved Linux, and that's why its adoption went through the roof. And I think in the future, open source will also allow people to tune a sovereign model for a country, make it work better for a particular language."Still, Lee predicted both approaches will coexist. "I don't think open source models will win," he said. "I think just like we have Apple, which is closed, but provides a somewhat better experience than Android... I think we're going to see more apps using open-source models, more engineers wanting to build open-source models, but I think more money will remain in the closed model."Why China's manufacturing advantage makes the robotics race 'not over, but' nearly decidedOn robotics, Lee's message was blunt: the combination of China's manufacturing prowess, lower costs, and aggressive investment has created an advantage that will be difficult for American companies to overcome.When asked directly whether the robotics race was already over with China victorious, Lee hedged only slightly. "It's not over, but I think the U.S. is still capable of coming up with the best robotic research ideas," he said. "But the VCs in the U.S. don't fund robotics the way the VCs do in China."The challenge is structural. Building robots requires not just software and AI, but hardware manufacturing at scale — precisely the kind of integrated supply chain and low-cost production that China has spent decades perfecting. While American labs at universities and companies like Boston Dynamics continue to produce impressive research prototypes, turning those prototypes into affordable commercial products requires the manufacturing ecosystem that China possesses.Companies like Unitree have demonstrated this advantage concretely. The company's humanoid robots and quadrupedal robots cost a fraction of their American-made equivalents while offering comparable or superior capabilities — a price-to-performance ratio that could prove decisive in commercial markets.What worries Lee most: not AGI, but the race itselfDespite his generally measured tone about China's AI development, Lee expressed concern about one area where he believes the global AI community faces real danger — not the far-future risk of superintelligent AI, but the near-term consequences of moving too fast.When asked about AGI risks, Lee reframed the question. "I'm less afraid of AI becoming self-aware and causing danger for humans in the short term," he said, "but more worried about it being used by bad people to do terrible things, or by the AI race pushing people to work so hard, so fast and furious and move fast and break things that they build products that have problems and holes to be exploited."He continued: "I'm very worried about that. In fact, I think some terrible event will happen that will be a wake up call from this sort of problem."Lee's perspective carries unusual weight because of his unique vantage point spanning both Chinese and American AI development. Over a career spanning more than three decades, he has held senior positions at Apple, Microsoft, and Google, while also founding Sinovation Ventures, which has invested in more than 400 companies across both countries. His AI company, 01.AI, founded in 2023, has released several open-source models that rank among the most capable in the world.For American companies and policymakers, Lee's analysis presents a complex strategic picture. The United States appears to have clear advantages in enterprise AI software, fundamental research, and computing infrastructure. But China is moving faster in consumer applications, manufacturing robotics at lower costs, and potentially pulling ahead in open-source model development.The bifurcation suggests that rather than a single "winner" in AI, the world may be heading toward a technology landscape where different countries excel in different domains — with all the economic and geopolitical complications that implies.As the TED AI conference continued Wednesday, Lee's assessment hung over subsequent discussions. His message seemed clear: the AI race is not one contest, but many — and the United States and China are each winning different races.Standing in the conference hall afterward, one venture capitalist, who asked not to be named, summed up the mood in the room: "We're not competing with China anymore. We're competing on parallel tracks." Whether those tracks eventually converge — or diverge into entirely separate technology ecosystems — may be the defining question of the next decade.
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Presented by ArmA simpler software stack is the key to portable, scalable AI across cloud and edge. AI is now powering real-world applications, yet fragmented software stacks are holding it back. Developers routinely rebuild the same models for different hardware targets, losing time to glue code instead of shipping features. The good news is that a shift is underway. Unified toolchains and optimized libraries are making it possible to deploy models across platforms without compromising performance.Yet one critical hurdle remains: software complexity. Disparate tools, hardware-specific optimizations, and layered tech stacks continue to bottleneck progress. To unlock the next wave of AI innovation, the industry must pivot decisively away from siloed development and toward streamlined, end-to-end platforms.This transformation is already taking shape. Major cloud providers, edge platform vendors, and open-source communities are converging on unified toolchains that simplify development and accelerate deployment, from cloud to edge. In this article, we’ll explore why simplification is the key to scalable AI, what’s driving this momentum, and how next-gen platforms are turning that vision into real-world results.The bottleneck: fragmentation, complexity, and inefficiencyThe issue isn’t just hardware variety; it’s duplicated effort across frameworks and targets that slows time-to-value.Diverse hardware targets: GPUs, NPUs, CPU-only devices, mobile SoCs, and custom accelerators.Tooling and framework fragmentation: TensorFlow, PyTorch, ONNX, MediaPipe, and others.Edge constraints: Devices require real-time, energy-efficient performance with minimal overhead.According to Gartner Research, these mismatches create a key hurdle: over 60% of AI initiatives stall before production, driven by integration complexity and performance variability. What software simplification looks likeSimplification is coalescing around five moves that cut re-engineering cost and risk:Cross-platform abstraction layers that minimize re-engineering when porting models.Performance-tuned libraries integrated into major ML frameworks.Unified architectural designs that scale from datacenter to mobile.Open standards and runtimes (e.g., ONNX, MLIR) reducing lock-in and improving compatibility.Developer-first ecosystems emphasizing speed, reproducibility, and scalability.These shifts are making AI more accessible, especially for startups and academic teams that previously lacked the resources for bespoke optimization. Projects like Hugging Face’s Optimum and MLPerf benchmarks are also helping standardize and validate cross-hardware performance.Ecosystem momentum and real-world signals Simplification is no longer aspirational; it’s happening now. Across the industry, software considerations are influencing decisions at the IP and silicon design level, resulting in solutions that are production-ready from day one. Major ecosystem players are driving this shift by aligning hardware and software development efforts, delivering tighter integration across the stack.A key catalyst is the rapid rise of edge inference, where AI models are deployed directly on devices rather than in the cloud. This has intensified demand for streamlined software stacks that support end-to-end optimization, from silicon to system to application. Companies like Arm are responding by enabling tighter coupling between their compute platforms and software toolchains, helping developers accelerate time-to-deployment without sacrificing performance or portability. The emergence of multi-modal and general-purpose foundation models (e.g., LLaMA, Gemini, Claude) has also added urgency. These models require flexible runtimes that can scale across cloud and edge environments. AI agents, which interact, adapt, and perform tasks autonomously, further drive the need for high-efficiency, cross-platform software.MLPerf Inference v3.1 included over 13,500 performance results from 26 submitters, validating multi-platform benchmarking of AI workloads. Results spanned both data center and edge devices, demonstrating the diversity of optimized deployments now being tested and shared.Taken together, these signals make clear that the market’s demand and incentives are aligning around a common set of priorities, including maximizing performance-per-watt, ensuring portability, minimizing latency, and delivering security and consistency at scale.What must happen for successful simplificationTo realize the promise of simplified AI platforms, several things must occur:Strong hardware/software co-design: hardware features that are exposed in software frameworks (e.g., matrix multipliers, accelerator instructions), and conversely, software that is designed to take advantage of underlying hardware.Consistent, robust toolchains and libraries: developers need reliable, well-documented libraries that work across devices. Performance portability is only useful if the tools are stable and well supported.Open ecosystem: hardware vendors, software framework maintainers, and model developers need to cooperate. Standards and shared projects help avoid re-inventing the wheel for every new device or use case.Abstractions that don’t obscure performance: while high-level abstraction helps developers, they must still allow tuning or visibility where needed. The right balance between abstraction and control is key.Security, privacy, and trust built in: especially as more compute shifts to devices (edge/mobile), issues like data protection, safe execution, model integrity, and privacy matter.Arm as one example of ecosystem-led simplification Simplifying AI at scale now hinges on system-wide design, where silicon, software, and developer tools evolve in lockstep. This approach enables AI workloads to run efficiently across diverse environments, from cloud inference clusters to battery-constrained edge devices. It also reduces the overhead of bespoke optimization, making it easier to bring new products to market faster. Arm (Nasdaq:Arm) is advancing this model with a platform-centric focus that pushes hardware-software optimizations up through the software stack. At COMPUTEX 2025, Arm demonstrated how its latest Arm9 CPUs, combined with AI-specific ISA extensions and the Kleidi libraries, enable tighter integration with widely used frameworks like PyTorch, ExecuTorch, ONNX Runtime, and MediaPipe. This alignment reduces the need for custom kernels or hand-tuned operators, allowing developers to unlock hardware performance without abandoning familiar toolchains. The real-world implications are significant. In the data center, Arm-based platforms are delivering improved performance-per-watt, critical for scaling AI workloads sustainably. On consumer devices, these optimizations enable ultra-responsive user experiences and background intelligence that’s always on, yet power efficient.More broadly, the industry is coalescing around simplification as a design imperative, embedding AI support directly into hardware roadmaps, optimizing for software portability, and standardizing support for mainstream AI runtimes. Arm’s approach illustrates how deep integration across the compute stack can make scalable AI a practical reality.Market validation and momentumIn 2025, nearly half of the compute shipped to major hyperscalers will run on Arm-based architectures, a milestone that underscores a significant shift in cloud infrastructure. As AI workloads become more resource-intensive, cloud providers are prioritizing architectures that deliver superior performance-per-watt and support seamless software portability. This evolution marks a strategic pivot toward energy-efficient, scalable infrastructure optimized for the performance and demands of modern AI.At the edge, Arm-compatible inference engines are enabling real-time experiences, such as live translation and always-on voice assistants, on battery-powered devices. These advancements bring powerful AI capabilities directly to users, without sacrificing energy efficiency.Developer momentum is accelerating as well. In a recent collaboration, GitHub and Arm introduced native Arm Linux and Windows runners for GitHub Actions, streamlining CI workflows for Arm-based platforms. These tools lower the barrier to entry for developers and enable more efficient, cross-platform development at scale. What comes nextSimplification doesn’t mean removing complexity entirely; it means managing it in ways that empower innovation. As the AI stack stabilizes, winners will be those who deliver seamless performance across a fragmented landscape.From a future-facing perspective, expect:Benchmarks as guardrails: MLPerf + OSS suites guide where to optimize next.More upstream, fewer forks: Hardware features land in mainstream tools, not custom branches.Convergence of research + production: Faster handoff from papers to product via shared runtimes.ConclusionAI’s next phase isn’t about exotic hardware; it’s also about software that travels well. When the same model lands efficiently on cloud, client, and edge, teams ship faster and spend less time rebuilding the stack.Ecosystem-wide simplification, not brand-led slogans, will separate the winners. The practical playbook is clear: unify platforms, upstream optimizations, and measure with open benchmarks. Explore how Arm AI software platforms are enabling this future — efficiently, securely, and at scale.Sponsored articles are content produced by a company that is either paying for the post or has a business relationship with VentureBeat, and they’re always clearly marked. For more information, contact sales@venturebeat.com.