The Inference Report

July 11, 2026

Across AI development and deployment this week, a single pressure is reshaping competition: the cost of operation is outpacing the cost of capability. Meta's Muse Spark 1.1 is undercutting OpenAI and Anthropic on API pricing while matching Claude Opus 4.8 and GPT-5.5 on agentic benchmarks. OpenAI launched ChatGPT Work and is rolling out GPT-5.6 with claims of lower operating costs. Mistral entered robotics with a single RGB camera instead of depth sensors and LiDAR, trading sensor complexity for algorithmic efficiency. Meanwhile, enterprises are discovering that AI token costs run 10 to 20 times higher than projected, and capital is flowing toward infrastructure rather than toward the companies that rent models. SK Hynix just raised $26.5 billion in the largest foreign IPO in US history, with the market already asking Samsung and SK Hynix to build US fabs. The question is no longer which company has the best frontier model. The question is which company can deliver capability cheaply enough to justify adoption.

Regulation and user friction are simultaneously pushing closed platforms toward openness. Meta faces EU fines for autoplay and infinite scroll while backing away from its AI image generation feature after user pushback, revealing a company suddenly responsive to friction it once ignored. Open source is no longer fringe: Hugging Face now serves roughly half the Fortune 500 as a distribution platform for models and datasets. Companies are done renting their AI because the rental model assumes lock-in, and open alternatives now exist with enough capability to matter. Prompt injection attacks are proliferating across five new techniques that CrowdStrike has catalogued, and data exfiltration through seemingly benign agent actions is now a documented threat. In this environment, the company with the most defensible moat is the one that controls the chips, not the one that controls the API.

GitHub's post-mortem on Copilot code review exposes the operational reality underneath capability claims. Migrating to Unix-style code exploration tools and reshaping agent workflows around pull request evidence reduced costs by forcing the system to reason over actual evidence rather than hallucinate context. The trending GitHub repos reveal developers recognizing that agent capability scales through composition, not through better prompts: repos like obra/superpowers and mattpocock/skills have accumulated massive star counts because they solve a real coordination problem, offering reusable abstractions over terminal control, file operations, and office automation. Agents are moving from proof-of-concept to production, which means people are now paying attention to cost, observability, and integration quality. The SWE-rebench rankings show no movement in the top tier, with OpenAI's gpt-5.5 remaining at 62.7 percent, suggesting either that the controlled coding task environment has stabilized or that the evaluation window was too brief to detect meaningful change. Neither announcement is about capability breakthrough. Both are about operational reality catching up to initial hype.

Grant Calloway

AI LabsAll labs
From the WireAll feeds
Research Papers — FocusedAll papers
Neural Sampling with Reweighted Normalizing Flows via the Wasserstein--Fisher--Rao JKO Scheme math.NA

We propose a neural algorithm for sampling from distributions specified by unnormalized Boltzmann densities. Our approach is based on the Jordan--Kinderlehrer--Otto scheme for the Kullback--Leibler divergence in the Wasserstein--Fisher--Rao geometry (WFR JKO scheme). Our contributions are twofold. First, we prove that, for any fixed step size, the exact WFR JKO iterates converge exponentially fast to the target as the number of iterations tends to infinity. Notably, this result requires no structural assumptions on the target, such as log-concavity or a logarithmic Sobolev inequality. Second, we develop a neural implementation of the WFR JKO scheme that parametrizes its transport and reaction components using reweighted normalizing flows. Numerical experiments on challenging multimodal targets demonstrate the promising performance of the proposed method.

A Neural JKO Scheme for Hellinger-Kantorovich Gradient Flows via Monge-Growth Pairs math.NA

We develop a mesh-free neural JKO scheme for advection-reaction-diffusion equations with a gradient-flow structure in the Hellinger-Kantorovich (HK) geometry of unbalanced optimal transport. Each update is parametrized by a spatial map and a mass-changing factor, allowing spatial redistribution and local mass creation or loss to be treated jointly within a single variational step. Their cone action bounds the squared HK distance from above, yielding a sufficient condition for discrete energy dissipation through comparison with the identity pair. Minimizing the pair objective over all admissible pairs recovers the exact JKO minimum when the source and a minimizer have positive densities. We establish existence and mass bounds for JKO minimizers and, under additional assumptions, obtain positivity and regularity together with a discrete Euler-Lagrange equation and a metric-dissipation identity. The self-consistent chemical potential is then nonincreasing along an optimal map. There exist parametric pairs whose endpoint densities and objective values converge to those of an exact JKO minimizer, provided a regular-pair approximation hypothesis holds. Finally, we show that a primal-dual gap controls objective suboptimality and, for Boltzmann entropy, the $L^1$ density error, assuming exact-step regularity, positive-semidefinite interactions, and global dual feasibility. Numerical experiments examine pointwise agreement with the PDE, energy dissipation, and the roles of transport, reaction, and fully implicit interactions.

Learned Adaptive Multiresolution Diffusion Imaging math.NA

Adaptive multiresolution methods reduce representation cost by concentrating fine-scale degrees of freedom where needed, but their tree updates are usually governed by fixed local criteria. We introduce Learned Adaptive Multiresolution Diffusion Imaging (Learned AMDI), which preserves the AMDI fixed-tree propagator and hierarchy constraints while replacing the post-propagation selector with a shared local policy trained by proximal policy optimization. Regression tests reproduce deterministic AMDI trajectories to machine precision when identical trees are used. In the Haar implementation studied here, the deterministic one-step selector accepts no refinements in 54 decisions. Across nine held-out cases, Learned AMDI executes 393 refinements and reduces the mean terminal reference discrepancy from $0.17496$ to $0.13657$, while occupancy rises from $0.13737$ to $0.26660$. Step-resolved diagnostics reveal occasional small adaptation-energy increases; fixed-tree energy stability therefore does not guarantee monotonicity of the learned outer iteration. At comparable occupancy, a validation-tuned observed-detail threshold reaches a discrepancy of $0.13792$ with slightly better RMSE and SSIM, placing both methods on essentially the same accuracy--occupancy tradeoff. A decision-1-only control reaches $0.13742$, indicating that most of the improvement on this static benchmark arises from the initial allocation. The shared actor transfers without retraining to $64\times64$ and $128\times128$ images, improving reference discrepancy, RMSE, and SSIM relative to deterministic AMDI, while the frozen threshold rule remains competitive. Learned AMDI thus provides a hierarchy-constrained, resolution-transferable mechanism for adaptive allocation and clarifies the contribution of sequential decisions.

FOSLS-deRhaNN: native de Rham neural classes for H(div) and H(curl) with applications to first-order system least-squares neural network methods for partial differential equations math.NA

We construct neural approximation classes native to the graph spaces H(div) and H(curl), in two and three dimensions and, for H(div), in any dimension. Every realization lies in the space for all parameter values, and with kinked potentials, such as ReLU networks, the admissible jumps appear at finite width. The classes are images of scalar and componentwise networks under fixed operators of the de Rham complex, and do not involve a mesh or finite element emulation. For H(div) in R^n two native classes are given on an equal footing, with a skew-symmetric potential $A$: $\mathrm{Div}\,A+R_nq+\mathbf{h}$, with the divergence $q$ as an explicit unknown, and $\mathrm{Div}\,A+\mathbf{z}$ with an $H^1$ field $\mathbf{z}$; for H(curl) the analogous classes are $\mathrm{grad}\,φ+Sr+\mathbf{h}$ in two dimensions and $\mathrm{grad}\,φ+\mathbf{z}$ in two and three dimensions. In all of them every interface jump of the field is carried by the potential term, $\mathrm{Div}\,A$ or $\mathrm{grad}\,φ$, while the remaining part has no interface jump (it is an $H^1$ field in the regular-decomposition classes); the classes with $\mathbf{z}$ are the componentwise approach enriched by this term. Known or learned interface geometry enters the potential through factors with trainable amplitudes, and the remaining part if the divergence jumps. The classes lead to the FOSLS-deRhaNN method, first-order system least squares with de Rham neural networks, whose loss is the least-squares functional posed in the natural spaces of the weak formulation; for elliptic equations this includes $H^{-1}$ right-hand sides and $H^{1/2}$ Dirichlet data. Elliptic equations with discontinuous coefficients and curl-curl problems are treated as instances, with the functional equivalent to the error; linear transport with discontinuous solutions and conservation laws with shocks use the same flux classes.

IGA-KAN: Isogeometric Analysis with Physics-Informed Closed-Form Kolmogorov-Arnold Networks for Forward and Inverse PDEs math.NA

Isogeometric analysis (IGA) solves partial differential equations accurately on exact NURBS geometry, whereas neural solvers are mesh-free but often orders of magnitude less accurate and typically trained by non-convex optimization without error control. We propose IGA-KAN, which uses local Kolmogorov-Arnold networks, fitted in closed form, to improve the IGA solution instead of replacing it. An IGA Galerkin solve produces u_h; on every knot-vertex patch a Kolmogorov-Arnold ridge model is fitted to the strong form of the equation, the exact boundary data and u_h, and the models are blended by IGA hat functions. With fixed inner functions the fit is one batched linear least-squares problem, without optimizer, learning rate or initialization. An a posteriori safeguard, motivated by a maximum-principle bound, decides where local models are used, keeping the IGA solution elsewhere. On eight benchmarks with exact solutions, five from the literature and one also posed on a domain fitted to a brain slice from MRI, the method reduces the error of IGA, at an unchanged number of Galerkin unknowns, by factors of 4.2 to 90 in L^2 and 4.1 to 220 in H^1 on the reference meshes, and its L^2 error is 6 to 6x10^4 times smaller than that of the best Kolmogorov-Arnold network trained from scratch on the same equations with a fixed budget. In an inverse problem it recovers an unknown constant source from one noise-free observation 167 times more accurately than IGA. The gain is attributed to the superconvergence of local averages of the Galerkin solution.

Singular parameters and missing limits in neural PDE solvers math.NA

Neural solvers for partial differential equations (PDEs) can approach an accurate solution while their parameters grow without bound. In such cases, the limiting solution may have no finite representation in the chosen model, leaving the best loss unattained. Our analysis connects missing limits in deep neural tanh- networks to unbounded hidden parameters or increasingly redundant neurons. For a class of models built from translated kernels, we describe the missing functions and recover them by adding kernel derivatives to the model. This completion makes the best approximation attainable under standard assumptions. Numerical studies follow the associated parameter growth and explore how completion affects PDE optimization.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1Claude Fable 559.972$20.00
2GPT-5.6 Sol58.992$11.25
3Claude Opus 4.855.757$10.00
4GPT-5.6 Terra55178$5.63
5GPT-5.554.864$11.25
SWE-rebench

Agentic coding on real-world software engineering tasks

#ModelScore
1OpenAIgpt-5.5-2026-04-23-xhighModel62.7%± 0.91%
2JunieJunieAgent61.6%± 0.64%
3OpenAICodexAgent60.4%± 1.37%
4AnthropicClaude CodeAgent59.6%± 1.98%
5OpenAIgpt-5.5-2026-04-23-mediumModel58.9%± 0.78%