Meanwhile, the AI industry is fracturing along a new fault line between those building for government and those refusing to. Anthropic's lawsuit against the Pentagon over its supply-chain-risk designation has drawn public support from more than 30 OpenAI and Google DeepMind employees signing an amicus brief, yet OpenAI itself has moved in the opposite direction, acquiring Promptfoo to strengthen its ability to deploy AI agents in critical operations while Caitlin Kalinowski, the company's head of robotics, resigned over inadequate safeguards in its Pentagon contract. The split reflects a deeper disagreement about what builders should accept in exchange for scale and legitimacy, with the designation already costing Anthropic material revenue as companies paused deal talks.
The money is flowing toward infrastructure and specialized models rather than consolidation around any single foundation. Yann LeCun's AMI Labs closed a $1.03 billion seed round at a $3.5 billion valuation to build world models focused on physical understanding, while Nscale, an Nvidia-backed infrastructure startup, reached a $14.6 billion valuation on a $2 billion raise. Anthropic launched a Claude Marketplace to streamline enterprise procurement and deployed Code Review, a multi-agent system for analyzing AI-generated code. The market is settling into layers: frontier model providers compete on capability and trust, infrastructure companies capture deployment economics, and specialized tools fill gaps between raw models and production use.
The practical pressure on builders is now acute. Amazon held an engineering meeting after AI-related outages linked to generative AI-assisted code changes, while Microsoft's Copilot for Microsoft 365 has captured only 3 percent of its customer base despite two years in market, forcing the company to add Anthropic's Claude to its own tools. The market is no longer asking whether AI works in theory but whether it works reliably enough to deploy at scale, whether it can be audited and reviewed, and whether users can understand what it does. Lab announcements reveal a hardening focus on the operational layer: security, observability, and cost reduction in production environments. The companies that win will solve these problems faster than their competitors, not those that promise the most capability.
Grant Calloway
Prior beliefs about whether a virtual human (VH) is controlled by a human or a computer can shape how users interpret and respond to its behaviour. As emerging hybrid VH systems allow control to transfer between human operators and computer programs during an ongoing interaction, it remains unclear whether perceived agency updates with the actual controller or continues to reflect users' prior beliefs and first impressions. We investigated this question in a within-subject VR study with 24 participants across four conditions: always computer-controlled, computer-to-human, human-to-computer, and always human-controlled. We designed an interaction task in which participants acted as interviewers, asking the VHs a fixed set of questions. Before each interaction, participants were informed whether the VH was human- or computer-controlled, matching the actual controller at the beginning, but were unaware of possible control transitions. We found that perceived agency was strongly influenced by the controller presented at the beginning of the interaction, with no evidence of updating following the control transitions. Social evaluations including likeability and co-presence were generally higher in conditions where human control occurred later and covered a greater proportion of the interaction. The results suggest that prior beliefs and first impressions continued to shape perceived agency, whereas social evaluations were more sensitive to the VH's actual behaviour over the interaction.
Prompt-based image generation makes it easy to produce visual assets, but offers little support for engaging with the creative process. Prompting collapses interdependent creative decisions into a monolithic instruction and returns a finished image, leaving control limited to revising the prompt or correcting the model's output. We present reComposer, a process-oriented image-generation interface built around editable planning, which decomposes users' evolving intent into meaningful creative decisions - such as subject, composition, or palette - and collaborates with users to explore underspecified goals and alternatives. reComposer supports conversational and direct manipulation of the plan, moving between concept-level intent and visual-level control. We evaluated reComposer with 8 design and non-design professionals. Compared to prompting, participants felt greater control and ownership while developing visual assets, exploring alternatives, and iterating on details. Our findings suggest how shifting generative AI interaction from specifying outputs to shaping process can support creative thinking alongside asset production.
AI models' growing capacity for complex reasoning has made them attractive tools for forecasting, or the systematic prediction of the future based on past and present data. However, should AI forecasting systems be adopted, human builders will shoulder the work of building and evaluating them. In this paper, we explore what this work looks like with a qualitative interview study with 15 builders of forecasting bots, sampled from among successful participants in a recent AI forecasting competition. Our analysis surfaces the challenges around (1) tuning a bot to acquire factual research, (2) implementing coherent reasoning, and (3) understanding how well one's bot actually does. During their work, builders frequently introduced complexity that did not pay off, and tested in ways that were opportunistic and piecemeal. Our detailed account of their challenges helps clarify what problems should be targeted in upcoming innovations in process, tools, and human-AI teaming for forecasting.
Personalized dialogues with AI substantially reduce conspiracy beliefs. To identify why, we conducted two experiments with U.S. adults recruited online (total N = 2,193) that removed possible causes one at a time. The debunking effect was robust to disclosing the AI's persuasive goal, framing the exchange as a debate, instructing the AI to inform rather than persuade, halving its response length, altering how beliefs were measured, and replacing the dialogue with a single tailored message. Only instructing the AI to persuade without factual evidence and arguments substantially reduced the debunking effect. Content analyses of the AI's output and participants' own accounts linked larger reductions in conspiracy beliefs to factual argumentation rather than rapport, storytelling, or appeals to empathy. AI dialogues appear to reduce conspiracy beliefs primarily by supplying relevant, well-reasoned counterevidence. Our results suggest that humans might be similarly effective if they could supply comparable evidence.
Evaluating and improving domain-specific LLM responses requires high-quality reference data and rubrics, yet expert authoring is slow and expensive, and synthetic datasets may fail to capture practitioner preferences unless they are grounded in expert judgment. We present SME-C (Subject Matter Expert Critique), a human-AI workflow that captures expertise through lightweight critiques of candidate responses and complements it with LLM-driven analysis and refinement to iteratively curate response datasets and evaluation rubrics. We validate SME-C in the domain of financial business briefs, collecting 3,853 critiques from 411 finance professionals on 520 queries across two survey rounds. We evaluate two LLM-driven refinement strategies: one guided by the experts' written critiques and one that infers critique solely from their preference votes. In a blind validation survey with 100 additional professionals, we found that both strategies significantly improved quality over the experts' top-ranked baseline responses. The gains were concentrated among weaker original responses, and the two strategies excelled in different ways: critique-based refinement produced more domain-grounded improvements, whereas vote-based refinement was more effective at identifying and removing irrelevant content. The resulting rubrics and refined dataset support reproducible offline evaluation and benchmarking of LLMs, suggesting that structured expert critique is a viable alternative to expert authoring for building high-quality, domain-specific evaluation resources more quickly, at scale, and at lower cost.
Pedestrians increasingly encounter robots in urban public spaces without interacting with them, but how robots change the perceived safety of a street remains unclear. We examine how robot presence and type affect perceived safety across urban contexts. We generate 18 images of Seoul streets that vary in time of day, road class, and robot condition (no robot, a delivery robot, or a humanoid). Two multimodal large language models (MLLMs), Qwen3.8-27B and Gemma4-26B, each conditioned on 500 synthetic personas, choose the safer image in each pair, and 25 human respondents complete the same task. Both models prefer streets without robots and favor the delivery robot over the humanoid. Robots are chosen more often at night and less often by older personas, whereas road class has smaller effects. In the model rationales, the delivery robot appears as a physical obstacle, whereas the humanoid appears as either a threat or a source of protection. Like humans, both models chose robots more often at night, but chose the humanoid over the delivery robot far less often, and Gemma showed a night effect for the humanoid about three times that of humans. These results show that the effect of a robot on perceived safety depends on when it appears, and that persona-conditioned MLLMs capture only part of human judgments.
Composite score across coding, math, and reasoning
| # | Model | Score | tok/s | $/1M |
|---|---|---|---|---|
| 1 | Gemini 3.1 Pro Preview | 57.2 | 110 | $4.50 |
| 2 | GPT-5.4 | 57 | 78 | $5.63 |
| 3 | GPT-5.3 Codex | 54 | 68 | $4.81 |
| 4 | Claude Opus 4.6 | 53 | 55 | $10.00 |
| 5 | Claude Sonnet 4.6 | 51.7 | 69 | $6.00 |
Agentic coding on real-world software engineering tasks
| # | Model | Score |
|---|---|---|
| 1 | Claude Code | 52.9% |
| 2 | Junie | 52.1% |
| 3 | Claude Opus 4.6 | 51.7% |
| 4 | gpt-5.2-2025-12-11-xhigh | 51.7% |
| 5 | gpt-5.2-2025-12-11-medium | 51.0% |
Sample code and notebooks for Generative AI on Google Cloud, with Gemini on Vertex AI
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