The Inference Report

September 22, 2026

The machinery that runs artificial intelligence has become more politically fought over than the models themselves. While OpenAI, Google, and Meta deploy agents and chase users, the actual leverage has migrated to the platforms controlling access: Amazon blocking Meta's Muse from shopping, Google binding Gemini into hardware through the Googlebook, the physical layer of electricity and water becoming a regulatory battleground. California's data center laws, Federal Reserve inflation warnings tied to AI demand, and SoftBank's delayed IPO all point to the same constraint. The technology advances faster than infrastructure can scale or the grid can supply. That is where power sits now.

The safety apparatus exists to absorb criticism without constraining deployment. OpenAI formed a math advisory group that will not slow its research, joined calls for US-led global standards while facing lawsuits over mass shootings, and signed cyber defense letters warning of AI-enabled attacks. Gemini broke into three companies during security tests that Google kept quiet. These are not contradictions but the cost of operating at speed. The models work. The deployments accelerate. The governance structures exist to manage the narrative, not to constrain shipping.

Real competition is for control of the last mile. Meta's Muse outpaced ChatGPT's early mobile numbers. Google is betting $899 laptops will lock Android users into Gemini the way Apple locked iPhone users into Siri. Claude Code now accepts OpenAI's instruction format, a technical surrender that signals interoperability where it matters least and fragmentation where it matters most. The builder who controls the device, the platform, the inference layer, or the data wins. The builder with a framework paper does not. Across GitHub and research, developers are building agents that operate offline and locally, rejecting cloud dependency. They are building connective tissue between agents and existing systems rather than trying to impose single abstraction layers. The infrastructure layer is where capability becomes operational reality, and those who control it now own the competitive high ground.

Grant Calloway

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Research PapersAll papers
GameHorizon Suite: Multi-Horizon Data and Evaluation in Gameplay cs.CV

Modern video games provide a measurable testbed for AI models, combining abilities of visual understanding, instruction decomposition, goal planning, and precise action control over multiple temporal horizons. Existing datasets and benchmarks, however, either cover a narrow range of games, lack language instructions, or rely on high-variance online rollouts. To address these challenges, we introduce GameHorizon, a unified data and evaluation suite that measures gameplay capabilities at different horizons for diverse model families. GameHorizon Suite consists of three components. First, GameHorizon-Annotator is a scalable and automated annotation pipeline for multi-horizon instructions. Second, utilizing the pipeline, we construct GameHorizon-Data, the first large-scale AAA gameplay dataset with temporally aligned videos, player actions, and multi-horizon instructions. It comprises 5,000 hours of recordings from 21 games, collected by 100 human expert players. Third, we build GameHorizon-Bench with reproducible offline and stepwise online testing. The offline track enables reproducible evaluation using thousands of standardized questions organized into three primary tasks and a series of diagnostic variants, while the online track tests whether offline scores reflect actual gameplay capabilities and localizes failures to specific steps within long-horizon gameplay. Based on our GameHorizon Suite, we evaluate 47 models through more than one million model invocations, revealing a meaningful hierarchy of task difficulty and pronounced differences in model capabilities. Our work can provide a standardized yardstick for evaluating gameplay capabilities across horizons and model families. We will release our dataset, annotator, and benchmark to facilitate future research.

Critical-State RL: Diagnosing Trainable States for Multi-Turn Tool Use cs.LG

Multi-turn tool-use failures can hinge on a single model call, yet reward variation alone does not reveal which call would benefit from training. When rewards depend on later interactions, their variation can reflect downstream randomness rather than differences between the current actions. We introduce Critical-State RL to identify trainable states in multi-turn interactions. Given task-defined candidate calls and local rewards, the method assesses whether each reward captures the action's effect on task success and whether improvement over a reference policy is possible. It then uses nested sampling to separate action-dependent reward variation from continuation noise and optimizes the policy at the selected states using contextual-bandit training. Experiments on the Berkeley Function Calling Leaderboard (BFCL) v4 compare training at diagnostic-selected states with training at alternative states. For missing-function tasks, the diagnostic selects the response after the tool becomes available; for missing-argument tasks, it selects the response before the missing argument is supplied. Training the selected responses improves performance, including about 14 percentage points on the missing-function task, while training the alternatives leaves performance flat or worse. We further apply the recipe across models and tasks, including logged repeat-call avoidance and memory management.

WorldCrafter: Consistent Video World Model with Implicit 3D-aware Memory cs.CV

Video world models enable interactive exploration of dynamic environments, yet struggle to respect prior observations over long horizons and across viewpoints. We present WorldCrafter, a video world model that learns a camera-queryable implicit 3D-aware memory for this purpose. The key insight is to let the requested viewpoint shape how multi-view evidence is compressed into the video generator's limited token budget. Trained jointly with the video generator, a memory encoder and pose-conditioned readout module integrate historical observations into a fixed set of target view-specific tokens before denoising, without explicit depth-based correspondences. By combining this memory with recent temporal context and few-step distillation, WorldCrafter enables streaming scene exploration from a single input image or text prompt. Experiments across static and dynamic scenes show substantial gains in long-horizon consistency and camera-control accuracy while preserving visual quality during minute-scale exploration.

onPanda: Efficient Annotation of On-Policy Alignment Data for LLMs and Agents via Token-Level Correction cs.CL

We present onPanda, an interactive tool for efficiently annotating LLM alignment data and agent trajectories. onPanda adopts token-level correction as its core interaction: while reading a model response, the annotator locates the first inappropriate token and either picks a substitute from the model's candidate tokens or types the correct text via free-form editing. The system then truncates everything after that position and continues generation from the corrected prefix, repeating this locate-correct-continue loop until a satisfactory response is obtained. This mechanism lets annotators precisely steer model outputs at low cost: a small controlled study suggests that onPanda reduces median annotation time by 52% over manual post-editing. Since the vast majority of tokens in the final response are generated by the model itself, the resulting data largely preserves the model's sampling distribution and is well suited for constructing on-policy SFT and preference data. Furthermore, the token-level corrections recorded during annotation provide fine-grained supervision with precise positions and naturally paired positive--negative samples. onPanda also connects to external tools and harnesses, enabling interactive trajectory annotation in realistic environments. In addition, we release Panda-CVL, a dataset annotated with onPanda, together with a benchmark for token-level correction.

LoRA-generating hypernetworks for efficient on-device LLM generative personalization cs.LG

On-device large language models (`LLMs'), e.g. running on mobile phones, are ripe for improvement via personalization. The limited compute resources of mobile devices impose limits on model scale and thus model quality, making any realizable quality gains highly impactful. At the same time, their personal nature (i.e., the close coupling to a particular user) means that a given on-device LLM tends to be used in similar, predictable patterns over the course of time. This paper presents a novel method for personalizing on-device LLMs. It trains a hypernetwork to map a user's context tokens to a low-rank adaptation (`LoRA') well-suited to that user. Once the trained common artifacts are deployed to users' devices, each user uses the hypernetwork to synthesize (entirely on device) a personalized LoRA. This approach blends the benefits while avoiding the drawbacks of two existing approaches to LLM customization: in-context learning (`ICL') and parameter-efficient fine-tuning (`PEFT'). Like ICL (and unlike PEFT), the on-device phase of our approach is computationally feasible, requiring only forward passes through neural networks. Like PEFT (and unlike ICL), our approach modifies the `target' base LLM via weights (the LoRA), avoiding negative consequences (e.g. increased latency) associated with extending the input sequence. Our approach is particularly well-suited to the mobile device regime. Apart from the on-device compute and latency benefits mentioned, it also requires minimal additional storage, as internally its architecture partly leverages the same LLM weights as belong to the target LLM to be personalized. We demonstrate the benefits of LoRA-generating hypernetworks on several representative personalization datasets, comparing against baselines like ICL and PEFT. Of note, our personalization experiments focus on more challenging and less studied long-form text generation tasks.

DexTacWAM: A Visuo-Tactile World-Action Model for Dexterous Manipulation cs.RO

Dexterous manipulation depends on contact dynamics that are often only partially observable from vision. Recent World-Action Models (WAMs) couple predictive video world modeling with action generation, but remain largely vision-centric and therefore cannot directly model these contact dynamics. We present DexTacWAM, a visuo-tactile WAM that encodes each fingertip independently, aggregates the resulting features through a finger- and pose-aware tactile compressor, and injects the tactile latent into a video diffusion world model for joint visuo-tactile world modeling. Across six contact-rich dexterous manipulation tasks on a 22-DoF bimanual platform, DexTacWAM achieves the highest score on every task, averaging 70.6 versus 38.0 for the strongest baseline. Ablations attribute the gain to modeling contact evolution as part of the predicted world state rather than tactile conditioning alone: removing tactile world modeling reduces the four-task mean from 74.7 to 26.6 while keeping the same tactile features and action expert. After four hours of tactile-encoder adaptation with a frozen pretrained vision VAE, our continual vision-to-touch learning extends the pretrained video model to touch using roughly 100 demonstrations per task without tactile midtraining, while retaining visual prediction quality within 0.5 dB of vision-only counterparts. The compressor retains 89.4% of pre-fusion contact recall while enabling 2.26x faster training and 1.29x faster inference. Together, these results show that pretrained video priors can be extended to distributed multi-finger contact dynamics in a data- and compute-efficient manner.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1Claude Fable 5.153.471$20.00
2GPT-6 Astra52.762$20.00
3Claude Opus 550.857$10.00
4Claude Fable 549.60$20.00
5Muse Spark 1.348.1281$2.00
SWE-rebench

Agentic coding on real-world software engineering tasks

#ModelScore
1AnthropicFable 5 [high]Model64.5%± 1.41%
2GrokGrok 4.5 [high]Model63.8%± 0.60%
3AnthropicOpus 5 [high]Model63.4%± 1.35%
4Z.aiGLM-5.2 [high]Model62.9%± 1.19%
5OpenAIGPT-5.6 Sol [medium]Model62.3%± 1.83%