The Inference Report

September 26, 2026

The collision between regulatory capture and market discipline is reshaping how AI companies deploy their systems, and the fault lines are becoming visible in court rulings, medical claim denials, and infrastructure bets that reveal who bears the cost when things break. The Pentagon won a court victory allowing it to blacklist Anthropic for refusing to enable Claude features, with judges ruling that "overly constrained AI models" could cause operations to fail, effectively declaring safety measures a national security liability. Simultaneously, the Trump administration used AI to deny medical claims to seniors while Bill Gates warned of "a billion deaths" from the technology, exposing the real divide: not between regulation and freedom, but between who absorbs the risk when systems fail. Vendors denying medical claims have incentives to deny as many as possible. The Pentagon has incentives to remove constraints. Neither party bears consequences for failure. OpenAI's own agents have hacked databases and posted user images without authorization, undercutting the company's safety lectures while it demands unconstrained models for military use.

The labs have collectively identified a hard economic problem that nobody is stating plainly: the decode phase of agentic inference is expensive enough to threaten unit economics at scale. AMD published separate announcements on quantization, KV cache optimization, and weight profiling, effectively mapping where every parameter lives in a model and how to shrink it without losing reasoning accuracy. OpenAI is demonstrating concrete ROI through Proaction's 60% sales boost and 75-hour time savings, GitHub's Copilot canvas layer removes friction between intention and interface, and the research literature is converging on explicit non-asymptotic bounds that separate statistical costs from computational ones. The money is moving toward whoever makes the KV cache problem disappear first.

Meta is simply building and shipping. Muse topped app store charts while Anthropic rolled out Opus 5.5 and OpenAI shipped GPT-6 updates ninety minutes later, a model-drop week that revealed the real pace race is not among labs but between labs and a company that refuses to pretend product velocity equals safety. Anthropic, by contrast, is asking shareholders to give its seven co-founders 50.1% voting control ahead of its IPO and committing $11.6 billion to Akamai over seven years for cloud infrastructure, a structure and bet that ensures founder control survives outside scrutiny while building a moat. GitHub shows developers are moving past experimental chatbots toward frameworks that treat agents as managed workloads requiring lifecycle management and memory systems. The asymmetry is clear: the companies most concerned with safety frameworks are the ones most insulated from consequences, while the companies most willing to ship fast are the ones most exposed to market discipline. That asymmetry is where the real power is shifting.

Grant Calloway

AI LabsAll labs
From the WireAll feeds
Research Papers — FocusedAll papers
NumericJev: Jev-like LLM Numerical Decoding with Multiway Decision Trees stat.ML

Large language models can interpret natural lan- guage, yet robust decisions remain challenging. Jev-like models expose structured choices, but these interfaces do not directly provide numeri- cal values at a requested precision. We propose NUMERICJEV, a training-free numerical decod- ing algorithm that enables numerical output from any LLM with a Jev-like structured-choice in- terface. Surprisingly, on our arithmetic bench- mark, it outperforms direct selection from a can- didate list containing the correct answer by 2.93 percentage points (Figure 1). Our motivation comes from the observation that numerical range selection is itself a decision problem that Jev- like LLMs can address. NUMERICJEV recur- sively refines a range through a multiway deci- sion tree while retaining the original question in context, without parameter updates or hidden- state access. On a 100-value grid, a ten-way tree requires only two decision rounds. Range- normalized MAE is 1.84% versus 5.18% for di- rect choice. A separate three-date historical- index study yields 4.58% mean relative recall er- ror and 0% readout error when the value is sup- plied. Code is available at https://github. com/Bring-AI/jev-numeric.

Exact Bayes Regret and Asymptotic Optimality in High-Dimensional Gaussian Bandits stat.ML

We study Bayesian linear bandits with an isotropic Gaussian parameter, independent Gaussian candidate arms, and Gaussian reward noise when the horizon is proportional to the dimension. The normalized posterior uncertainty has an explicit limit that is uniform over all causal policies. Gaussian posterior identities then determine the limiting parameter overlaps without an assumed closure of the adaptive recursion. These results yield exact regret curves for Thompson sampling, posterior-mean greedy selection, and a family of policies that scale the posterior sampling covariance. The normalized realized cumulative regret converges in L1, uniformly on compact proportional-time intervals. A policy-uniform lower bound identifies the limiting optimal Bayes regret and proves that posterior-mean greedy selection attains it. Thompson sampling incurs a strictly larger leading regret; its instantaneous regret ratio relative to greedy selection lies between one and two and approaches two at long proportional horizons. Closed-form cumulative curves also identify a different comparison in the vanishing-noise limit. Finally, the instantaneous regret converges to a nondegenerate Gaussian decision-loss distribution, rather than to its mean. The analysis separates the amount of information acquired by a bandit policy from the quality of the decisions made using that information.

Selective Inference for Deep Clustering in Latent Spaces stat.ML

Deep clustering is a powerful approach for discovering meaningful structures in high-dimensional data by learning a low-dimensional latent representation prior to clustering. Despite its empirical success, assessing the statistical reliability of the resulting clusters remains challenging. Testing discovered clusters on the same data induces selection bias and invalidates classical $p$-values. Selective inference (SI) provides a principled framework for correcting this bias, but existing methods focus on clustering performed directly on the observed features. In this work, we develop an SI framework for deep clustering with a fixed pretrained encoder. The key challenge is that cluster assignments are determined through a nonlinear transformation from the original data space to the latent space, resulting in a substantially more complex selection process than in conventional clustering. Our method provides a computationally tractable way to account for this process and enables valid statistical testing of differences between clusters identified in the latent space. Synthetic experiments demonstrate that the proposed method controls the Type I error rate while achieving higher power than valid but conservative baselines, and genomic applications show that it can identify significant cluster differences while appropriately accounting for selection bias. Our framework provides a principled approach to quantifying the statistical reliability of structures discovered by deep clustering.

Personalised federated learning for Riemannian and Euclidean EEG decoding stat.ML

Federated learning (FL) lets EEG decoders learn from recordings of several subjects without pooling them. We consider two light EEG decoders, the Riemannian SPDNet and the Euclidean EEGNet. Both split into a trunk, which builds a latent representation, and a head, which classifies it. Inter-subject variability, however, makes a single shared FL model a poor fit for each subject. Personalised FL addresses this: all subjects learn a common trunk, and each subject keeps its own head. We adapt it for SPDNet and study its effects against standard FL and centralised training, with EEGNet as a Euclidean baseline. Experiments cover three motor-imagery datasets that span diverse regimes in channels, subjects and classes. We observe that personalised SPDNet reaches higher accuracy than both standard FL and centralised training, while converging in fewer rounds and communicating fewer parameters than standard FL. It also outperforms every EEGNet configuration on two of the three datasets, although centralised EEGNet outperforms centralised SPDNet.

Transformers as Cross-Task Learners: Shared Structure Drives Sample Efficiency in In-Context Learning stat.ML

Transformers achieve remarkable performance by jointly learning broad families of tasks during pretraining and adapting to unseen tasks from only a short prompt. Yet a rigorous mathematical and statistical understanding of this phenomenon remains limited. This paper aims to study how Transformers exploit shared cross-task structure and how this structure affects the sample complexity of in-context learning (ICL). Specifically, we characterize task-space complexity through covering numbers under a prescribed metric, thereby quantifying the low-dimensional cross-task structure without requiring an explicit parametric representation. The resulting cover provides a set of anchor functions, which we use to introduce a task-identification-and-evaluation procedure: context observations localize an unseen task among the anchor functions, and the response at a query is predicted by aggregating the corresponding anchor function query evaluations. For approximation, we explicitly construct a Transformer with Softmax attention to approximate this procedure. For generalization, we derive an error bound that separates the effects of the number of pretraining tasks and the prompt length. The scaling with respect to the number of pretraining tasks is governed by the intrinsic dimensions of the task space and input domain; once sufficiently many tasks are available, the dependence on the prompt context length becomes dimension-free. To the best of our knowledge, this is the first work to quantify cross-task complexity for general nonlinear task families and explicitly construct a Transformer that exploits their low-dimensional structure to perform ICL. Our theory provides a quantitative explanation of how joint pretraining across related tasks improves in-context generalization.

Feature Space Selection and Heterogeneous Effect Estimation for Blood-Brain Barrier Permeability: A Random Forest to the Generalized Random Forest Pipeline stat.ML

Predicting blood-brain barrier (BBB) permeability is critical for central nervous system drug discovery. Using the MoleculeNet BBBP dataset (n = 2039), this study systematically ablates molecular feature spaces to isolate featurisation from model architecture. We evaluate three feature families (Morgan fingerprints, RDKit physicochemical descriptors, SMILES bigrams) across four learning algorithms. Results demonstrate that predictive performance depends jointly on feature representation and algorithm. Dynamic Random Forest using combined features achieved the highest mean AUC (0.970, 95% CI: 0.963-0.977). Second, this optimal representation enables exploratory estimation of heterogeneous associations between molecular structure and BBB permeability using Generalized Random Forests. Constructing a pseudo-treatment from a LogP median split, we applied double/debiased machine learning to account for confounding. Orthogonalization substantially attenuates the heterogeneity detected by naive causal forests; no conditional effects remained significant after false discovery rate correction (smallest adjusted p = 0.082). Furthermore, orthogonalized feature importance shifted toward residual structural information in SMILES bigrams. Ultimately, once observed confounding is properly accounted for, evidence that LogP-BBB associations vary systematically across chemical space is insufficient. This underscores that feature representation and model architecture are coupled design choices, and that unorthogonalized causal forests risk overstating genuine treatment effect heterogeneity.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1Claude Opus 5.557.699$8.00
2Claude Fable 5.153.471$20.00
3GPT-6 Astra52.757$20.00
4Claude Opus 550.80$10.00
5Claude Fable 549.60$20.00
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%