A paper on information retrieval published in 2024 has quietly documented what the market is only now pricing in: the constraint is no longer raw model capability, but rather the engineering discipline required to make retrieval systems actually work in production. The research reveals that dense embeddings and learned scoring functions, however sophisticated, leave substantial gaps when applied to latent patterns, low-frequency items, and domain-specific terminology. Solutions that persist across multiple papers combine sparse and dense signals, integrate structured metadata, and inject external knowledge through LLM-guided reasoning. The field has shifted from treating retrieval as a search problem to treating it as a state management and alignment problem. This matters because the market is now bifurcating between companies that can operationalize AI capability into defensible revenue streams and those still selling the promise of future returns. Anthropic's annualized revenue crossed $47 billion in May, up from $9 billion at the end of 2025, yet the company faces real tests ahead as it prepares for an IPO. Quantinuum continues to attract investor capital despite losing millions. This divergence reflects a market where the ability to convert AI capability into actual customer value now separates the winners from the venture-backed faith plays.
Infrastructure tooling is reshaping faster than applications can absorb it. Microsoft released Coreutils to reduce friction for developers moving between Windows and Linux environments. Google shipped Gemma 4 12B to run agentic workflows on consumer hardware. Microsoft's Web IQ and Rayfin SDK aim to give AI agents access to real-time web data and simplified backend deployment. These moves prioritize developer velocity and operational simplicity over raw model scale. Meanwhile, Anthropic's Claude is being used by the NSA for cyber operations, and Meta is building data centers in tents to slash costs. GitHub's trending repositories confirm this pattern: Headroom compresses LLM inputs by 60-95 percent without degrading output quality. Lance converts Parquet to a columnar format optimized for vector operations, delivering 100x faster random access. Trivy and PaddleOCR solve the upstream problem of getting structured data into AI pipelines in the first place. These aren't frameworks that ask you to rewrite your stack. They're tools that plug into existing workflows and reduce friction or expense. The constraint is no longer compute or models. It's infrastructure efficiency, developer tooling, and the ability to operationalize systems in production environments.
Distribution and integration now matter more than raw capability. Apple's pre-WWDC privacy campaign frames AI as something that only works if users trust the platform, while Poke became the first AI agent approved for Apple's Messages for Business platform. This signals Apple's strategy: controlled distribution of AI features through its own platforms, not open ecosystems. Google, Microsoft, and Meta are racing to embed AI into their existing products and services, turning them into runtime environments for agents. The lab announcements reveal the same pattern at a different scale. IBM is ceding the foundation layer to Google and building industry-specific agents on top of Gemini, effectively focusing on consulting delivery rather than competing head-to-head on models. Hugging Face is trying to own the middle layer where enterprises actually build, while NVIDIA sees durable value in gaming infrastructure and sovereign AI partnerships. The companies that already own distribution channels and user relationships are converting them into AI deployment infrastructure. Those without direct user access are competing on raw capability and hoping to be acquired or integrated. The coding automation space, measured by SWE-rebench and Artificial Analysis, is becoming a measurable competitive arena where engineering discipline matters as much as scale. The labs that won the last cycle are now building moats around deployment, customization, and operational integration rather than racing to announce bigger numbers.
Grant Calloway
Retrieval-augmented question answering requires control decisions about when to decompose a question, search, reformulate, extract evidence, synthesize facts, verify progress, and stop. We study whether trajectory fine-tuning can improve small language models (SLMs) as next-action controllers. We additionally evaluate a low-resource setting in which a single SLM serves as both the controller and the final-answer generator. From accepted teacher search traces, we build a seven-way action-prediction task, where the model predicts the next structured teacher action from the current trajectory state, and evaluate LoRA-supervised fine-tuning across SLMs and xSLMs as controllers. On 1,646 held-out action examples, Granite 4.1 3B trained on 13,194 actions reaches macro-F1 0.6536, compared with 0.1736 for zero-shot prompting of the same model and 0.5399 for a TF-IDF logistic-regression baseline. In an end-to-end controller/generator swap evaluation over 149 held-out trajectories, using the fine-tuned model for both roles improves Exact Match from 0.7530 to 0.7946 and token F1 from 0.7783 to 0.8295 compared with using the base model as both controller and generator. The cross-role conditions show that the fine-tuned controller increases evidence-fact recording when the generator is fixed, while controller-only final-answer gains are not statistically clear. Overall, trajectory supervision improves action prediction and evidence-recording behaviour in this evaluated pipeline. Code is available at https://github.com/padas-lab-de/agent-action-controller
Cross-country recommendation on modern e-commerce platforms is typically deployed with disjoint user and item ID spaces across markets, removing the shared anchors that conventional cross-domain methods rely on. Generative recommendation (GR) mitigates this by mapping items into a shared token space and training a unified model, but existing approaches keep behavior sequences strictly country-specific, so knowledge transfer occurs only at the parameter level and remains absent at the data level. Inspired by code-switching corpora in multilingual natural language processing, we propose CMRec, a cross-country GR framework that injects cross-country supervision at the data level via dual-constrained, context-aware code-mixing. CMRec first learns a shared semantic codebook from multi-modal content and behavioral co-occurrence across countries. It then uses this codebook to synthesize mixed-country sequences via token-level substitutions that satisfy both static (content) and dynamic (e.g., price, audience, popularity) constraints. Finally, it introduces a context-aware loss that reweights mixed samples according to their plausibility in the current sequence. Experiments on two real-world multi-country datasets and an online A/B test show that CMRec substantially improves recommendation quality in data-sparse countries while preserving performance in data-rich countries, achieving +1.77% advertising revenue and +2.64% orders on a large-scale e-commerce platform.
Search quality evaluation provides essential supervision and diagnostic signals for the development and iteration of industrial search systems. Although large language models (LLMs) offer a scalable alternative to manual assessment, reliable automatic evaluation remains challenging: users experience search results at the page level, while the applicable evaluation criteria are multi-dimensional and continuously evolving. Packing all evaluation criteria into a unified prompt introduces irrelevant context and potential criterion interference, whereas internalizing them through post-training tightly couples rule updates with costly model retraining cycles. To address these issues, we propose Skill-routed Evaluation with Evolvable Knowledge (SEEK). Specifically, SEEK externalizes specific search evaluation criteria into a skill bank, dynamically routes relevant skills for each query-result list pair, and employs a task-adapted listwise evaluator to produce page-level judgments and failure mode attribution. A two-stage training pipeline teaches the evaluator to align evaluation criteria with human preferences, while a replay-gated skill bank allows recurring evaluation knowledge gaps to be incorporated without model retraining. Experiments on industrial short-video search show that SEEK improves listwise quality evaluation accuracy and achieves significant progress in attribution diagnosis. SEEK has been deployed at Kuaishou, a short-video platform with over 400 million daily active users, significantly improving the scale and quality of online search evaluation.
Generative recommendation reformulates item retrieval as sequence generation, allowing a unified model to directly generate the next item from a user's interaction history. Semantic IDs further make this paradigm effective and scalable by representing each item as discrete codes, enabling knowledge sharing among semantically related items. Recent studies introduce explicit reasoning before Semantic-ID generation, helping models summarize user interests and infer possible preference transitions. However, reasoning is not inherently beneficial: Inaccurate or uninformative reasoning may mislead subsequent item generation and ultimately degrade recommendation performance. This raises a central challenge: how can a recommender select and learn effective reasoning traces and progressively evolve toward better reasoning from its own generations? In this work, we propose Evo-Rec, a three-stage framework for learning better reasoning and further enhancing it through reinforcement learning. First, we align Semantic IDs with their textual and behavioral contexts, enabling the model to understand and generate item identifiers. Second, we sample multiple candidate reasoning traces and retain those that improve the prediction of the ground-truth item, providing a stronger reasoning initialization through supervised fine-tuning. Third, we further optimize the reasoning policy through reinforcement learning with catalog-constrained item generation and ranking-aware recommendation feedback. Experiments on three Amazon Review benchmarks show that Evo-Rec consistently outperforms discriminative, generative, and reasoning-enhanced recommenders across all evaluation metrics. These results demonstrate the effectiveness of our framework in learning better reasoning for SID-based generative recommendation.
Semantic IDs (SIDs) encode each catalog item as a short token sequence, enabling generative recommenders to predict the next item autoregressively. Reasoning-enhanced variants, an increasingly common extension, first generate a textual trace and then decode a next-item SID by beam search. Such recommenders are commonly trained with group-relative policy optimization under an exact-match SID reward, which is sparse in large catalogs. Two failure modes follow. When all rollouts in a group miss the target, the group yields zero advantage and no learning signal. Rollouts sharing the same SID reward receive identical advantages, however much their traces differ. In both cases the reward reflects only the decoded SID, never the reasoning that produced it. This creates a credit-assignment gap. We address this gap with retrieval-grounded query attribution. Each trace is structured into a history summary, a set of interest hypotheses, and a final SID. A frozen retriever executes every hypothesis as a catalog query, so that each hypothesis becomes independently verifiable rather than judged only through the final SID. A rollout is rewarded when any of its queries retrieves the target within the \mbox{top-$K$}, and per-query hit indicators localize that reward to individual hypotheses. Credit is thus assigned at the span level: only hypotheses that individually hit receive positive retrieval advantage, while the retrieval channel never updates the final SID span. Rollouts that share a SID reward can therefore receive different updates. Across experiments on three Amazon Reviews datasets, this yields consistent improvements in SID recommendation. On Video Games, an oracle analysis further reveals the potential of interest-conditioned SID decoding: selecting the target-relevant query among generated interests improves both recall and ranking.
Generative search systems rank products and services for consequential decisions, and publishers can cheaply make candidate text look relevant. Yet evidence status is not a text property but a claim-evidence relation: text-only rankers and defenses cannot separate honest detailed content from fabricated detail, creating an identifiability gap. We audit this gap with an evidence-paired benchmark (50 e-commerce queries, 1,950 cases) and a claim-level reranker, GroundedGEO, that penalizes query-relevant claims lacking support in a supplied packet. Matched rich variants control format and volume; packet twins add attestations at fixed text, while thinned packets withdraw them. On the frozen listwise ranker Qwen2.5-7B, unsupported-rich variants show significant normalized rank gain over clean candidates (+0.065 to +0.092 across claim profiles, Holm-corrected), while supported and neutral controls do not; the effect is model-dependent (marginal on MiMo-v2.5, absent on GLM-5.3-Flash). On a frozen pointwise scorer, oracle evidence labels cut the unsupported-rich top-3 rate from 0.65 to 0.43 (laundering from 0.61 to 0.39) at lambda=40 with zero false suppression; packet twins restore the original rates without changing text. Against a 370-claim human gold, all tested automatic judges fail the preregistered reliability gate, although the best local judge retains 79-100% of oracle suppression with zero measured false suppression on protected arms. Separately, stripping attestation coverage increases false suppression by 0.307. These diagnostic effects identify two limits on the evidence channel: label quality and packet coverage. They do not validate an automatic defense, and interpretation of the adverse human-gold arm remains pending adjudication.
Composite score across coding, math, and reasoning
| # | Model | Score | tok/s | $/1M |
|---|---|---|---|---|
| 1 | Claude Opus 4.8 | 61.4 | 58 | $10.94 |
| 2 | GPT-5.5 | 60.2 | 62 | $11.25 |
| 3 | Claude Opus 4.7 | 57.3 | 52 | $10.94 |
| 4 | Gemini 3.1 Pro Preview | 57.2 | 123 | $4.50 |
| 5 | GPT-5.4 | 56.8 | 80 | $5.63 |
Agentic coding on real-world software engineering tasks
| # | Model | Score |
|---|---|---|
| 1 | gpt-5.5-2026-04-23-xhigh | 62.7% |
| 2 | Codex | 60.4% |
| 3 | Claude Code | 59.6% |
| 4 | gpt-5.5-2026-04-23-medium | 58.9% |
| 5 | Claude Opus 4.8-xhigh | 56.4% |
Compress tool outputs, logs, files, and RAG chunks before they reach the LLM. 60-95% fewer tokens, same answers. Library, proxy, MCP server.
The agent harness performance optimization system. Skills, instincts, memory, security, and research-first development for Claude Code, Codex, Opencode, Cursor and beyond.
Turn any PDF or image document into structured data for your AI. A powerful, lightweight OCR toolkit that bridges the gap between images/PDFs and LLMs. Supports 100+ languages.
💫 Toolkit to help you get started with Spec-Driven Development
Train, Evaluate, Optimize, Deploy Computer Vision Models via OpenVINO™
Open Lakehouse Format for Multimodal AI. Convert from Parquet in 2 lines of code for 100x faster random access, vector index, and data versioning. Compatible with Pandas, DuckDB, Polars, Pyarrow, and PyTorch with more integrations coming..
Official repository for IPython itself. Other repos in the IPython organization contain things like the website, documentation builds, etc.
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