The Inference Report

June 22, 2026

Across the infrastructure layer where AI's actual power is consolidating, a pattern emerges that the consumer-facing announcements obscure entirely. Samsung's deployment of ChatGPT Enterprise to over 250,000 employees represents not innovation but scale, the moment when software lock-in becomes operational fact. NVIDIA's higher-temperature cooling systems, allowing liquid cooling at 45 degrees Celsius, reduce the marginal cost of running that software at enterprise volume, which matters more than any capability announcement because it determines who can afford to compete. OpenAI captures the software layer and enterprise dependency, NVIDIA owns the hardware economics that make that dependency affordable, and the field is consolidating around that vertical arrangement while everyone else scrambles for a defensible position between them.

The distributed computing research reveals what happens when that infrastructure encounters reality. Published systems claim efficiency gains and adaptive scheduling, yet the orchestration literature surfaces a methodological crisis: RL results fail to reproduce under production-relevant perturbations, evaluation choices reverse conclusions, and institutional incentives for benchmark gains have outpaced evidence standards for deployment. The gap between measured laboratory performance and production operational evidence has widened to the point where it obscures genuine capability differences from measurement sensitivity. Even on the SWE-rebench, where top-tier models hold stable, middle-rank volatility indicates either real model differentiation in narrow domains or benchmark drift that makes strong inference impossible without disclosure of methodology, task composition, and whether the evaluation itself underwent revision.

Meanwhile, developers are building the scaffolding for agents to operate at scale. Deer-Flow and Cognee standardize on structured knowledge graphs and persistent state across sessions rather than prompt-level context windows. DeusData's codebase-memory-mcp reduces token overhead by 99 percent and returns results in sub-millisecond time, solving the practical problem of agents reasoning over large codebases without burning context. The pattern holds across video production tooling: OpenMontage positions itself as agentic with 52 tools and 500 agent skills, while Palmier-Pro takes the opposite stance as a native macOS editor for human-AI collaboration. Penpot's dominance shows that open-source alternatives gain traction when they preserve existing workflows rather than reinvent them. Agents need scaffolding, and that scaffolding either integrates into existing tools or replaces them entirely. There is little middle ground, and whoever controls that integration layer controls how labor actually gets displaced.

Grant Calloway

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Research Papers — FocusedAll papers
Online Dynamic Batching with Formal Guarantees for LLM Training cs.DC

Modern LLM training breaks a core assumption behind offline batch samplers: the true training cost of a sample is only observable after preprocessing, augmentation, templating, tokenization, and multimodal visual-token expansion. Unless one pays for a preprocessing- and augmentation-dependent length cache, batch construction is therefore blind to the quantity that determines padding, memory use, and GPU saturation. We introduce Online Dynamic Batching (ODB), a DataLoader-side drop-in system that moves batch formation to this point of accurate observability while preserving DDP step alignment. We formalize this synchronization requirement as the Distributed Group Alignment Problem and prove deadlock-free bounded termination with default join-mode identity coverage and opt-in non-join sample-quota closure. ODB requires no model, optimizer, or attention-kernel changes and is released as online-dynamic-batching with lightweight trainer adapters. Across public 2B/8B Qwen3-VL runs on UltraChat/LLaVA/ShareGPT4o, ODB improves literal emitted-sample throughput vs. fixed-batch Standard by 1.58-2.51x on single-node Full FT/LoRA and 1.71-3.78x on two-node Full FT, with Standard-comparable quality; production MM-Mix reaches 4.43x. Against GMT/BMT offline token-budget oracles, ODB is within 15% on UltraChat/LLaVA and faster on high-CV ShareGPT4o: 2.24-2.39x single-node Full FT/LoRA and 3.06-3.69x two-node Full FT. Together, ODB occupies the online/drop-in regime for high-heterogeneity LLM fine-tuning: large throughput gains at Standard-comparable quality, formal DGAP guarantees, and no length-cache precompute or kernel rewrites.

Mixed-Precision Communication-Avoiding SGD for Generalized Linear Models on GPUs cs.DC

Distributed stochastic gradient descent (SGD) is limited by communication rather than computation, since each iteration requires an AllReduce across processes. Communication-avoiding SGD (CA-SGD) amortizes communication over $s$ iterations by replacing $s$ consecutive AllReduces with a single AllReduce of an $sb\times sb$ Gram matrix, trading more computation and bandwidth for fewer synchronization points. Modern GPUs with matrix hardware and reduced-precision formats offset this by accelerating the Gram GEMM and shrinking BF16 traffic. We study mixed-precision CA-SGD for generalized linear models on NVIDIA GPUs. Our finite-precision analysis decomposes the local rounding error of one CA-SGD outer iteration into nine independent precision choices, depending on the hardware only through its low-precision unit roundoffs, so the resulting recipes transfer in principle across GPU generations. The recipe stores the input matrix and margin vector in low precision, computes the Gram matrix from low-precision inputs with high-precision accumulation, communicates it in high precision, and performs the inner recurrence and weight updates in high precision. On NERSC Perlmutter A100 GPUs, mixed-precision CA-SGD matches FP32 SGD loss within $0.5\%$ on logistic, linear, and Poisson problems and reaches $5.1$--$6.8\times$ speedup over FP32 SGD on epsilon, SUSY, HIGGS, synth, and Poisson-synth. Our software is available at https://doi.org/10.5281/zenodo.20448273

Spotlight: Synergizing Seed Exploration and Spot GPUs for DiT RL Post-Training cs.DC

Reinforcement learning (RL) post-training of Diffusion Transformers (DiTs) is prohibitively expensive, requiring thousands of high-end GPUs. Existing works explore two directions to reduce cost: seed exploration improves training convergence by selecting high-contrast samples, yet adds compute to the critical path; spot GPUs offer 69--77\% lower cost, yet sit idle during training because DiT rollouts finish nearly simultaneously, which prevents LLM-style pipelining of rollout with training. Spot preemptions further break Sequence Parallelism (SP) groups, fragmenting GPU topology. We present Spotlight, the first system that harvests spot GPUs for DiT RL post-training. Spotlight rests on two key insights we devise: (1)~we show that exploration can tolerate stale model weights because exploration that uses the model weights from the previous iteration preserves the relative ranking of random seeds, allowing exploration to run on idle spot GPUs during training. (2)~SP reconfiguration can reuse on-node state, reducing group recovery from minutes to sub-second launches. Built on these insights, Spotlight introduces three techniques: a bandit-based exploration planner that maximizes reward variance within the training time budget, elastic sequence parallelism that reconfigures SP groups on the fly via persistent schedulers and intra-node weight copying, and a preemption-aware pull-based request scheduler that balances load and commits in-flight state upon preemption. We implement Spotlight on the open-source RL platform ROLL and evaluate it on Qwen-Image post-training. Spotlight reaches the same target validation score $4\times$ faster than baselines, reducing total cost by $1.4$-$6.4\times$ while achieving superior image quality on DeepSeek-OCR and Geneval datasets with resolution $512\times512$ and $1280\times1280$.

AoiZora: Topology-Aware Auto-Parallel Optimization for Inference of Diffusion Transformers cs.DC

Video diffusion has quickly grown into a key generative serving workload, yet producing each clip demands many denoising iterations over large spatio-temporal latents, which puts low-latency inference out of reach on a single device. A denoising step is therefore typically distributed across multiple accelerators, and TPU sub-slices have become an attractive and practical fabric for doing so. Current auto-parallel systems, however, search almost exclusively over logical device meshes and disregard how a chosen sharding is actually laid out on the physical TPU interconnect -- an oversight that leaves large, topology-dependent performance on the table. We address this gap with AoiZora, a compiler-mediated topology planner built for low-latency video diffusion inference on TPU sub-slices. Its guiding principle is to reconnect logical sharding with physical placement by drawing on different points in the compilation flow: AoiZora first eliminates weak sharding candidates from inexpensive pre-compilation IRs, then compiles only the ones that survive and orders their physical placements using compiled HLO together with a topology-aware communication model. The winning plan is realized along the ordinary compiler path, leaving model code, compiler lowering, collective kernels, and network routing entirely intact. On TPU v5e sub-slices, AoiZora reduces Wan 2.1 one-step denoising latency by as much as 1.42x relative to existing solutions.

Quantifying the Impact of Lossy Compression on Neural Generative Surrogate Modeling cs.DC

Neural networks are used as generative surrogate models for scientific discovery, which are trainable approximations of scientific simulations. These models enable users to replace time-consuming numerical simulations with learned alternatives, providing quick solutions. However, high-fidelity generative surrogate models require massive training datasets, which can create storage and I/O challenges. Lossy compression is a promising way to reduce this burden, but compression errors may affect the model quality in subtle ways, making it challenging to quantify their impact. In this work, we examine how lossy compression of training data impacts the quality of generative surrogate models. We begin by characterizing the uncertainty inherent in training neural networks, showing that identical training configurations can produce different models. By exploiting this variability, we propose a method to estimate how much compression-induced error a surrogate model can tolerate without affecting its accuracy. Evaluation of two application simulations demonstrates that our approach significantly reduces memory/storage requirements and speeds up training while producing high-quality surrogate models. These results show that lossy compression saves data storage up to 23.7x and 39x with negligible impact on the quality of the surrogate model. Meanwhile, reducing the size of the training data set also enhances the data loading speed and reduces the training time by up to 3x.

PreLort: Prefix-Nested LoRA for Federated Fine-Tuning under Rank Heterogeneity cs.DC

Federated fine-tuning of large language models using parameter-efficient methods such as LoRA enables privacy-preserving adaptation of foundation models. Heterogeneous hardware resources introduce challenges, as clients with different adapter ranks cannot be directly aggregated. While existing methods enable aggregation under heterogeneous ranks, they fail to control how information is distributed across rank dimensions, leading to suboptimal use of shared low-rank representations. Instead, we propose PreLort: a nested low-rank formulation for federated LoRA that organizes adapter dimensions into a prefix hierarchy. Our approach ensures that lower-rank dimensions encode task-relevant information, while higher-rank dimensions capture additional capacity. Building on this, we introduce (i) a segment-wise aggregation rule that averages only over clients contributing to each rank segment, avoiding dilution from zero-padded lower-rank clients, and (ii) a prefix-nested training strategy that optimizes each adapter under multiple rank truncations, encouraging useful signal to concentrate in low-rank prefix dimensions. Together, these components encourage a consistent low-rank prefix capturing the most task-relevant information, while higher-rank dimensions learn additional capacity. This allows low-rank clients to benefit from richer information contributed by higher-rank clients, as prefix dimensions are consistently learned and aggregated. Experiments demonstrate that our method consistently outperforms prior heterogeneous federated LoRA methods in accuracy and ROUGE-L, while achieving lower or comparable perplexity across multiple base models.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1Claude Fable 559.90$20.00
2Claude Opus 4.855.769$10.00
3GPT-5.554.863$11.25
4Claude Opus 4.753.553$10.00
5GPT-5.451.4165$5.63
SWE-rebench

Agentic coding on real-world software engineering tasks

#ModelScore
1gpt-5.5-2026-04-23-xhigh62.7%
2Junie61.6%
3Codex60.4%
4Claude Code59.6%
5gpt-5.5-2026-04-23-medium58.9%