The Inference Report

May 22, 2026

From ten thousand feet, the week presents a capital system in full retreat from constraint. SpaceX files an eighty-billion-dollar IPO embedding AI infrastructure as orbital hedge against regulatory exclusion. OpenAI prepares a trillion-dollar debut. The White House delays security review mandates, citing innovation concerns and competitive disadvantage against China rather than technical merit. When federal executives cite innovation as reason to suspend safety protocols, the market signal clarifies: builders move fast, regulators step back, and capital flows toward those positioned to exploit the gap. This is not a debate about whether AI should be regulated. It is a decision about who bears the cost of speed.

Beneath the capital movements sits a second pattern: the verticalization of AI consumption. Spotify embeds agentic audio generation into subscription tiers while striking revenue-share deals with Universal Music. Salesforce integrates Agentforce, Data Cloud, MuleSoft, and Tableau into a headless architecture for autonomous agents. Google folds CodeMinder into agent ecosystems. Microsoft open-sources safety tools. The underlying dynamic is not about individual AI features. It is about companies threading agentic systems into existing product surfaces and data flows, then monetizing through subscription and licensing structures already in place. Distribution wins. The AI becomes infrastructure.

Yet production reality diverges sharply from announcement narrative. The Path's mental health model scores 95 on the Vera-MH benchmark against 65 for consumer bots. Microsoft releases open-source safety tools. These claims measure isolated models in isolation. Enterprise teams report that production AI is significantly harder than early experimentation suggested, with most agents shipping as custom plumbing, fragile session logic, and security models held together by hope. Benchmarks do not capture agents operating inside messy environments, calling APIs, managing state, making decisions with consequences. The fiction of safety theater persists because safety gets announced at the model layer while risk accumulates at the integration layer, where few look and fewer measure.

Lab announcements reveal the real competition has shifted from capability to control. OpenAI targets enterprise workflow capture through ChatGPT for Healthcare. Google DeepMind frames environmental risk as regulatory alignment. NVIDIA treats the entire stack from data centers to edge devices as a single sales funnel. IBM positions quantum as a long-term hardware play backed by proposed federal funding. No lab announced a meaningful advance in underlying technology. Instead they announced distribution channels, geographic expansion, funding mechanisms. GitHub trending reinforces this: developers are moving past "can an LLM write code" toward practical agent infrastructure, skills frameworks, observability systems, and local execution. The unglamorous layer where traction accumulates. That is where the real competition lives now.

Grant Calloway

AI LabsAll labs
From the WireAll feeds
Research Papers — FocusedAll papers
Transformer-Based Flow Shop Scheduling Using MILP-Generated Training Data math.OC

Advances in machine learning (ML) have created new opportunities to complement traditional operations research (OR) methods. In particular, transformer models can capture complex interactions in token sequences by mapping tokens into a high-dimensional embedding space and propagating contextual information via attention. This makes them a candidate to model non-permutation flow shop scheduling with secondary resources as a next-token prediction task, where tokens represent job-machine-secondary resource tuples. For training, mixed-integer linear programming (MILP)-generated schedules are tokenized and used as next-token prediction data. During inference, partial token sequences (prefixes) are randomly generated and completed by the trained transformer through constrained decoding. A computational study is conducted on a flow shop with 8 jobs, 4 machines, and 3 secondary resources, where jobs are selected from a fixed pool of 20 jobs that is sampled during training and provides the candidates during prefix completion. The transformer achieves better solution quality (smaller makespans) compared to a genetic algorithm (GA), the NEH heuristic, and random search. It is outperformed only by the MILP model and the iterated greedy (IG) heuristic. The study concludes that transformer models can, to some extent, learn patterns from MILP-optimized non-permutation flow shop schedules and that transformer-based scheduling represents an interesting direction for future research, particularly in settings with a fixed, recurring job set.

A Unified Perspective on Conformal Prediction and Wasserstein Distributionally Robust Optimization for Uncertainty Quantification math.OC

Uncertainty quantification from finite data is central to machine learning, optimization, and automation systems, where decisions must remain reliable under limited samples and test-time distribution shift. Conformal prediction (CP) and distributionally robust optimization (DRO) offer two complementary approaches: CP constructs data-dependent prediction sets with distribution-free finite-sample validity under exchangeability, while DRO optimizes worst-case performance over an ambiguity set around an empirical distribution. We develop a unified probabilistic perspective on CP and DRO by viewing both as ways to turn finite calibration data into a data-dependent quantile estimator that a test score falls below with high probability. From this perspective, CP and DRO correct the empirical quantile along two coordinates of the same family of estimators: CP inflates the quantile level, whereas DRO shifts the quantile value through an ambiguity radius. Both methods provide the same calibration-conditional guarantee for the true distribution, requiring the target coverage to hold with high probability over the calibration sample. Their constructions differ, however: CP uses a closed-form, distribution-free level correction, while DRO uses a value-space correction whose certified radius depends on properties of the unknown distribution and additionally guarantees coverage uniformly over the ambiguity set. This distinction emerges in the tails of the score distribution. Because CP relies on sparse upper-tail order statistics of the calibration samples, its level inflation barely moves the estimator when those samples are dense near the target quantile but overshoots when they are sparse, whereas a well-chosen DRO radius corrects in value space and may avoid this overshoot.

Dec-BFTRL: Squre-Root Regret for Decentralized Online Upper-Linearizable Optimization under Separation Access with Application to Continuous Submodular Maximization math.OC

We study decentralized online optimization of upper-linearizable payoffs over an action set under efficient separation access, with applications to online continuous diminishing-return (DR) submodular maximization. We propose Decentralized Barrier Follow-the-Regularized-Leader (Dec-BFTRL), and evaluate each agent's played action against the average of all local objectives. Each agent maps an internal iterate to a feasible action through an approximate gauge projection, communicates only a cumulative surrogate-gradient dual state, and invokes the local HybridNewton procedure to approximately minimize its post-communication BFTRL potential. For every agent, we achieve expected network-aggregate regret of $\widetilde O(\sqrt{T})$. Over $T$ rounds, each agent uses $T$ neighbor-mixing steps and $\widetilde O(T)$ separation-oracle calls. We give four wrapper instantiations covering three DR-submodular maximization problems.

A Multi-View Coupled Tensor Decomposition for Lightweight Online Adaptive Traffic Prediction math.OC

Accurate online traffic prediction is essential for intelligent transportation systems, where forecasting must be performed continuously under imperfect sensing conditions. Missing observations and anomalous disturbances make this task challenging, particularly when prediction relies on a single traffic view. This paper proposes a Multi-View Coupled Tensor Decomposition (MVCTD) model for online traffic prediction from imperfect multi-view observations, such as speed, flow, and occupancy. The proposed model uses coupled tensor decomposition to build a structured latent forecasting space, in which shared spatial structures across traffic views and view-specific temporal dynamics are jointly modeled. A group sparse regularization is further introduced to capture correlated abnormal responses induced by real traffic anomalies and thus reduce their influence on forecasts. For streaming deployment, MVCTD performs iterative refinement only on the current latent tensor, while the remaining model variables are updated by lightweight closed-form steps based on summarized historical information, thereby avoiding repeated optimization over the full historical sequence. Experiments on real-world traffic datasets demonstrate that MVCTD achieves accurate forecasts with favorable runtime under severe missingness, confirming its suitability for online traffic prediction.

The Value of Human Expertise math.OC

We consider optimization applications with unknown parameters where the decision maker believes that the optimal value of the nominal problem-the optimization problem they would have solved if the true parameters were known-is unlikely to be large. This belief derives from information that humans have that is not captured in datasets, obtained from domain knowledge and interacting with the physical world. We propose an approach to evaluating policies that provides tighter performance guarantees if the decision maker's belief happens to be correct. Our main result shows that if computing a policy's worst-case performance is a convex program, then the value of human expertise-the maximum improvement in performance guarantees that can be obtained from the belief about the nominal problem-is equal to the minimax gap of a max-min problem. We illustrate our developments in assortment optimization and shortest path problems.

Dimensionless Controls of Plasticity Under Alternating Tasks: From Evolutionary Biology to Continual Learning math.OC

Plasticity under changing environments is central to both evolutionary biology and continual learning. Motivated by recent work on genotype--phenotype maps, we study a minimal deep-learning analogue where a network is trained alternately on two Boolean label sets, and ask which biological controls of plasticity survive the translation to gradient descent. Reinterpreting four proposed biological factors as quantities of training dynamics, we find the system reduces to two dimensionless controls: the task disagreement $r$, the fraction of disagreeing labels, and the reach $ηT$, the product of learning rate and switching period. We derive two bounds on plasticity: $r$ alone fixes an extremal geometric floor on the utopia distance, while $r$ and $ηT$ jointly bound forgetting. Across 9,720 trajectories, an ANOVA confirms that $r$, $η$, and $T$ dominate, while the effect of neutral-set size (emphasized in the biological setting) is negligible. The optimal reach itself follows an approximate inverse power law $ηT^{*}\propto r^{-1.18}$, yielding a heuristic that sets the optimal reach $ηT^*$ from the task disagreement alone. The analogy that survives is therefore dynamical rather than geometric, and our setting enables a view of plasticity through the lens of other driven systems in physics and engineering.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1GPT-5.560.265$11.25
2Claude Opus 4.757.349$10.94
3Gemini 3.1 Pro Preview57.2142$4.50
4GPT-5.456.893$5.63
5Qwen3.7 Max56.60$3.75
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%
4Junie62.8%
5gpt-5.4-2026-03-05-medium62.8%