The Inference Report

April 2, 2026

The compute arms race has entered a new phase where infrastructure control determines market position, and the companies that can lock in power, compress hardware deployment timelines, and absorb regulatory complexity are already separating from those that cannot. Meta's commitment to ten natural gas plants powering its Hyperion data center and Cognichip's $60 million raise on claims of 75% cost reduction and 50% timeline compression in chip design are not marginal improvements but structural bets that the next cycle belongs to whoever can compress the cost and time to deploy compute at scale. Poolside's stalled Texas project and forced negotiations with Google and other cloud providers make the calculus explicit: independent infrastructure plays are losing leverage to companies that can absorb the capital requirements and regulatory complexity of massive data center deployments. The economics have shifted decisively.

This consolidation around compute is matched by a bifurcation in how companies are deploying AI. OpenAI's Gradient Labs is shipping concrete product, AI account managers in banking using GPT-4.1 and purpose-built smaller models for latency-sensitive workflows, the kind of deployment that generates revenue and defensible customer relationships. GitHub's /fleet feature for parallel agent dispatch and Hugging Face's Holo3 announcement signal the same momentum: builders are moving past single-agent orchestration into systems that distribute work across multiple models and processes. By contrast, IBM and AMD are playing a different game, announcing FedRAMP authorizations, decade-long research initiatives, and detailed MLPerf submissions that establish them as trusted intermediaries in regulated environments and foundational research. Consumer-facing applications are racing ahead through product velocity and direct customer relationships. Infrastructure players are establishing credibility through partnerships, compliance achievements, and benchmark credentials.

The technical frontier has shifted from model architecture to the systems that deploy and secure them, and that shift exposes unresolved tensions. Anthropic's accidental mass takedown of GitHub repositories containing leaked Claude Code source, followed by the discovery that Claude Code can uncover zero-day exploits in Vim and GNU Emacs in seconds, reveals that the same tool making security research trivial also makes security risk trivial to create. Anthropic's response was operational damage control, not a technical solution. Meanwhile, Slack's repositioning of Slackbot as an orchestration layer for agentic workflows, Asana's emphasis on multiplayer AI agents, and Meta's semi-formal reasoning technique for code review achieving 93% accuracy show enterprises moving past chatbots toward systems that make decisions and execute tasks across multiple applications and teams. What remains unresolved is whether the tools that make this possible can be secured, and whether the companies deploying them have any meaningful way to audit what those agents are actually doing once they are turned loose on company infrastructure.

Benchmark volatility and developer momentum toward agentic tools underscore the stakes. Claude Opus 4.6 holds the top position on SWE-rebench at 65.3%, a 12.3-point gain from its prior ranking, yet the two major benchmarks diverge materially in their orderings, implying that they capture different failure modes in code generation or apply stricter evaluation criteria around execution correctness. Reasoning-focused variants like Kimi K2.5 are closing gaps on general-purpose models in software engineering tasks. On GitHub, Claude Code and related agentic tooling have moved from research artifact to daily driver, while infrastructure projects like Pixeltable, Rerun, and Qdrant represent a category shift toward unsexy but essential data plumbing for multimodal pipelines. Simultaneously, projects like PicoLLM signal a countercurrent toward running models locally without cloud dependencies. The field is scaling inference infrastructure while constraining it, building both the pipes and the guardrails.

Grant Calloway

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From the WireAll feeds
Research Papers — FocusedAll papers
Screwtape: Adversarial Transcript Editing for Monitor Red-Teaming cs.CR

We present Screwtape, a pipeline that converts real agent transcripts into attacks that evade action-only monitors. An LLM attacker edits a transcript so that the agent causes a specified harm, such as leaking an API key or spawning an unmonitored agent. The edited actions are never executed, so we use an LLM verifier to reject attacks that are inconsistent with the original transcript or below a severity bar. The attacker revises the edit until the monitor no longer flags it. We applied Screwtape to 94 Claude Code and Codex transcripts from Redwood Research staff, optimizing against our own monitors. Across 252 runs, it produced 35 attacks that passed the verifier and evaded these monitors. Six of them, confirmed valid by human review, also evaded a held-out monitor provided by a frontier developer. We therefore demonstrate that a red-teamer without access to a developer's infrastructure can find confirmed failures of the developer's monitor. We expect to find more attacks when the pipeline runs inside the developer's infrastructure, with frontier attacker models that lack refusal safeguards and direct optimization against the production monitor. Developers can use these attacks to fix monitor blind spots, and evaluators can use them as counterexamples to safety claims about the monitor.

Approve What, Exactly? Effect Binding and Trusted Rendering for Agent Step-Up Authorization cs.CR

AI agents now pause for approval before they send money, delete files or email outsiders, and that approval is usually treated as a second factor. We argue it is one only when compromising the agent cannot produce it and when it names exactly what it approves, and we test both conditions. We define twelve attacks on the approval path, including decoy recipients, amount cancellation, card padding, label spoofing, enrollment squatting and threshold splitting, and run them against the Agent Payments Protocol (AP2), the Microsoft action-bound approval design and Model Context Protocol (MCP) elicitation. An audit of ten agent runtimes finds no third-party verifiable approval record, no flood limits where measurable, and post-approval argument changes in four of eight runtimes with measurable binding. As a reference defense we build ASU (Agent Step-Up), a gateway that renders the approval card from a canonical effect descriptor, has a passkey on the phone of the user sign its digest, and executes only the stored call. Tamarin proves its binding, single-use and key-level non-repudiation properties under three stated hypotheses (53 lemmas). Across 27,108 scripted trials and 609 AgentDojo attack pairs, ASU stops substitution, replay and grant stretching, and the trusted card cuts forged-narration attack success from 0.54 to 0.03. With 15 current language models as automated approvers, the trusted card raises the attack catch rate from 0.30 to 0.98, at the cost of refusing 16 percent of harmless near misses, mostly due to a placeholder artifact in our stimuli. A second device adds nothing measurable over a trusted on-host confirmation in these experiments, flooding still succeeds 0.45 to 0.60 of the time against a modeled approver, and approval cannot stop effects that policy already allows. Code, data and proofs: https://github.com/Sports-Vision-Inc/agent-step-up

Stronger Judges Do Not See More: Deployment-Integrity Blindness in LLM Evaluation cs.CR

LLM-agent evaluation reports behavioral scores but leaves the identity of the deployed runtime stack unreported. A tampered deployment that preserves evaluated outputs passes every output-only evaluator. We introduce DIB-Bench, a benchmark that measures this deployment-integrity blindness across 7,560 scored examples, six tamper types, and an evaluator ladder from regex scorers through LLM judges to GPT-5-nano. Stronger evaluators accept more tampered outputs: mean acceptance rises from 88.6% (rule-based) to 94.1% (GPT-5-nano), and a trigger-conditional tamper invisible on the evaluation suite produces 48-100% harmful outputs, rising with model capability. A PAC-style bound shows that tampers with zero output shift are undetectable from outputs at any sample size; a manifest-hash identity channel detects them with zero samples. Behavioral fingerprinting identifies the model component above chance (76.7%) but covers one of six stack components. We also propose a graded deployment-identity descriptor for evaluation reports.

CARE-SD: Explainable Reasoning Architecture for Local SLM Self-Disclosure Analysis in Textual Data cs.CR

Cybersecurity interviews uncover critical security experiences, behaviors, and privacy concerns often not fully captured by conventional technical assessments. Consequently, identifying genuine self-disclosures is challenging because statements are context-dependent, categories overlap, and automated interpretations may introduce unsupported claims. Locally deployed Small Language Models (SLMs) protect sensitive participant data by keeping processing within controlled environments, but their limited reasoning capabilities make simple prompting insufficient for context-aware and factually reliable analysis. This study developed CARE-SD (Context-Adaptive Reasoning and Explanation for Self-Disclosure), a novel four-module architecture integrating context-adaptive processing, hierarchical disclosure reasoning, explanation-consistency verification, and cross-batch reconciliation. We evaluated three local SLMs, including Llama 1B, Qwen 1.5B, and Llama 3B, using 82 independently annotated cybersecurity interviews across five organizational sectors. Comparisons included conventional classifiers, three prompting strategies, larger 8B--32B models, and architectural ablations. Two independent reviewers assessed disclosure labels, factual claims, and explanation correctness. CARE-SD improved the accuracy and evidence reliability of SLMs, increasing Llama 3B Macro-F1 from 0.80 to 0.88 while reducing unsupported claims by 60\%. Remarkably, the 3B model matched the 20B reference model in category Macro-F1, demonstrating the effectiveness of the architecture without requiring a larger model.

FedSumUp: User-Auditable Privacy-Aware Representation Sharing for Resource-Constrained Federated Intelligence cs.CR

Existing federated data condensation methods face privacy risks, as uploaded synthetic data may preserve sensitive information and remain vulnerable to reconstruction attacks. Moreover, their generation often incurs considerable client-side computational overhead, limiting deployment on resource-constrained devices. To address these issues, we propose FedSumUp, which employs a learnable lossy compressor on clients to generate compact and visually interpretable representations. By controlling information capacity, FedSumUp reduces privacy leakage while allowing users to directly assess the privacy-utility tradeoff. We further introduce a dual-objective optimization mechanism to preserve task-relevant semantics while suppressing reconstruction risks. The compressor is trained on the server and only performs lightweight inference on clients. Since the server cannot access raw data, we develop a data-free closed-loop optimization strategy that optimizes the compressor by minimizing the discrepancy between original and twice-compressed representations after structure-preserving upsampling. Experiments on BloodMNIST, CIFAR-10, and ChestMNIST demonstrate reconstruction PSNR as low as 8.56 dB (with synthetic PSNR as low as 5.45 dB), client runtime reductions up to 96.5% (from 778s to 27s on ChestMNIST), and competitive classification accuracy (89.72% ChestMNIST, 82.24% BloodMNIST, 65.63% CIFAR-10), while remaining inherently robust to non-IID data distributions.

Clean Data Can Still Carry Backdoors: Support-Persistent Backdoors for Model Reuse cs.CR

Traditional backdoor attacks inject artificial trigger patterns into training data, causing models to misclassify triggered inputs while maintaining normal behavior on clean samples. Since these artificial triggers are absent in clean datasets, standard knowledge distillation (KD) typically eliminates them, leading to the common belief that KD serves as an effective purification defense. In this paper, we propose DAR (Discover-and-Relabel), a support-persistent backdoor method that retains its behavior even after clean-data distillation. DAR identifies naturally abundant patterns in low-dimensional feature subspaces using subspace clustering and applies label-only poisoning to samples that inherently satisfy the discovered rule. At test time, the backdoor is activated by locally modifying the corresponding subspace of the target images. By instantiating spatial and frequency operators, DAR achieves attack accuracy comparable to state-of-the-art backdoor attacks in ImageNet classification and CLIP-based prompt tuning. Notably, DAR keeps attack success above 96% after clean KD and remains defense-resistant in practice. Project page: https://junhoo.me/backdoor

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1GPT-5.457.275$5.63
2Gemini 3.1 Pro Preview57.2117$4.50
3GPT-5.3 Codex5467$4.81
4Claude Opus 4.65351$10.00
5Claude Sonnet 4.651.754$6.00
SWE-rebench

Agentic coding on real-world software engineering tasks

#ModelScore
1Claude Opus 4.665.3%
2gpt-5.2-2025-12-11-medium64.4%
3GLM-562.8%
4gpt-5.4-2026-03-05-medium62.8%
5Gemini 3.1 Pro Preview62.3%