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Received — 21 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Moonshot launched Kimi K3. Then demand shut down subscriptions in 48 hours.

Two crowded corridors of pawns trying to merge into single file, creating a bottleneck.

Moonshot AI became the latest AI company to discover that launching a popular model is only half the battle. Less than two days after releasing Kimi K3, the company stopped accepting new subscribers after demand exhausted its available GPU capacity. Existing users will keep access while Moonshot expands its infrastructure and reopens subscriptions in batches.

Inference demand outpaces supply

The incident emphasizes how demand is outpacing available infrastructure. As AI models take on longer, more coding and agentic workloads, companies are finding they need more inference capacity than they anticipated.

“Kimi K3 has received far more love than we expected,” the official Moonshot account writes on X. “Over the past 48 hours, demand has pushed close to the limits of our current capacity. We’re adding capacity as fast as we can and will reopen new subscription spots in batches.”

Kimi K3 has received far more love than we expected, and our GPUs are feeling it.

Over the past 48 hours, demand has pushed close to the limits of our current capacity. To protect the experience of existing subscribers, we're temporarily pausing new subscriptions and…

— Kimi.ai (@Kimi_Moonshot) July 19, 2026

“We’re adding capacity as fast as we can and will reopen new subscription spots in batches.”

For infrastructure engineers and developers, the resulting capacity crunch is a bold indication of why companies from OpenAI to Anthropic to Moonshot are rationing access instead of selling unlimited usage.

Open weights, closed capacity

At 2.8 trillion parameters, Kimi K3 is one of the largest open-weight models slated for release — Moonshot has scheduled the public weight drop for July 27. In Arena.ai’s Frontend Code Arena, K3 topped both OpenAI’s GPT-5.6 Sol and Anthropic’s Claude Fable 5. On the broader Artificial Analysis Intelligence Index, it trails both, scoring 57 to Fable 5’s 60 and Sol’s 59. That doesn’t make it any easier to run.

Open weights let anyone deploy the model, but whoever hosts it still has to pay the inference bill. Coding activities tend to tie up GPU resources far longer than a typical chatbot interaction, making it harder to keep latency low as more developers pile on.

“Agent tasks are not one-off question answering; they continuously generate, read, and process tokens during ongoing tasks,” wrote Citigroup semiconductor analyst Peter Lee in a research note.

Lee argued that as developers build longer agentic workflows, lower inference costs are quickly “re-converted into higher total resource consumption,” shifting the bottleneck from compute to server memory.

Moonshot’s subscription pause is a sign that keeping enough inference capacity online once developers start using it at scale might be just as hard as building the model.

“Agent tasks are not one-off question answering; they continuously generate, read, and process tokens during ongoing tasks.”

China’s chip constraints compound crunch

For a company like Moonshot, this general industry bottleneck is compounded by regional infrastructure realities. Unlike traditional software companies, AI developers typically rent much of this computing power from cloud providers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud rather than owning extensive data-center infrastructure themselves.

The capacity crunch illustrates the mounting challenge facing Chinese AI developers as US export controls continue to restrict access to leading chip provider Nvidia’s most advanced AI chips. As a result, companies such as Moonshot depend on a combination of older chips and domestically produced alternatives. These constraints have forced Chinese developers to concentrate strongly on software tuning and more efficient use of computing resources to narrow the performance gap with US rivals.

Token economics under pressure

The scramble for computing power has fueled a data-center construction boom across China. Alibaba has committed more than $53 billion to AI and cloud infrastructure over three years, while ByteDance is reportedly considering spending as much as $70 billion this year on AI data centers and related infrastructure.

AI companies typically charge customers based on the number of tokens, or units of text, processed by a model, making token prices a key measure of operating costs.

According to Bernstein Research, Moonshot charges $3 per million input tokens and $15 per million output tokens for Kimi K3. This makes it about 40% cheaper than Anthropic’s Opus 4.8 and roughly 70% cheaper than Claude Fable 5.

“A world where there are only [two to three] dominant frontier labs with 90 percent inference margins is net negative for every other layer while being awesome for those [two to three] labs,” wrote Atreides Management founder Gavin Baker on X. Baker argued that models like Kimi K3, Grok 4.5, and Muse 1.1 could shift value away from the model layer and toward chipmakers, cloud providers, and the software companies building the infrastructure that serves AI models.

For developers, Moonshot’s subscription freeze serves as an architectural warning. The era of assuming infinite, cheap API access is ending.

“A world where there are only [two to three] dominant frontier labs with 90 percent inference margins is net negative for every other layer while being awesome for those [two to three] labs.”

The post Moonshot launched Kimi K3. Then demand shut down subscriptions in 48 hours. appeared first on The New Stack.

Microsoft is building an AI stack it doesn’t fully own — on purpose

Colorful digital static resembling TV signal noise, evoking uncertainty over how AI agents like ChatGPT Work and Claude Cowork manage control, state, and data.

Microsoft and Mistral are deepening their partnership with a multibillion-dollar agreement focused on enterprise AI infrastructure. The goal is to give organizations more flexibility over where they run frontier models and how those deployments are managed, particularly in regions with tight data residency and sovereignty requirements.

Under the deal, announced Tuesday, Microsoft will use Mistral’s expanding European compute infrastructure to increase regional capacity. Mistral, meanwhile, plans to deploy thousands of NVIDIA Vera Rubin GPUs to power everything from model training to multi-agent workloads. 

For engineering teams in regulated industries, the announcement emphasizes where enterprise AI is heading. Many organizations no longer want the public cloud to be the only place they can run AI models. They’re asking for deployments that fit into the infrastructure they already have, including on-premises and air-gapped environments.

Sovereign compute meets agentic AI 

At the compute layer, the agreement gives Microsoft access to European-operated infrastructure outside its traditional first-party data centers and leased facilities. The move builds on Microsoft’s European Digital Commitments, announced in 2025, which focus on keeping customer data in Europe and helping organizations meet regional regulatory requirements.

Crucially, Mistral will power this infrastructure with NVIDIA’s next-generation Vera Rubin rack-scale platform. Because sovereign environments support multi-step agentic workflows, this hardware pairing is essential. NVIDIA claims the platform delivers up to 10x the agent throughput at scale compared to its Grace Blackwell generation.

“Europe should have access to the world’s most capable AI without compromising control over their data, operations or digital future.”

Even though exact financial terms, capacity allocations, and rollout timelines have not been made public, the agreement positions Mistral as both an AI model supplier and an independent European compute vendor for Microsoft’s enterprise ecosystem. For European companies wary of the US CLOUD Act, the appeal is obvious — though whether a US-headquartered provider can fully place data beyond its reach remains legally contested.

“Europe should have access to the world’s most capable AI without compromising control over their data, operations or digital future,” said Microsoft Vice Chair and President Brad Smith in the announcement. 

The model layer

At the model and API tier, Microsoft announced that Mistral Medium 3.5 and Mistral OCR 4 are now live in Microsoft Foundry, with Medium 3.5 also integrated into Microsoft Copilot Studio.

Among the models coming to Azure AI Foundry is Mistral Medium 3.5, an open-weight model with 128 billion parameters and a 256,000-token context window, which could indicate it’s better suited for applications that need to work across large documents or extended conversations.

Microsoft is also adding Mistral OCR 4, which is designed for document-heavy AI workflows. The model can process documents in 170 languages and preserve information about page layout, including bounding boxes, document structure, and confidence levels.

The model can process documents in 170 languages and preserve information about page layout, including bounding boxes, document structure, and confidence levels

Air-gapped deployments go mainstream 

For developers, the primary technical win is architectural symmetry. Engineers can build, test, and fine-tune applications inside Microsoft Foundry and migrate those workloads across public Azure, Azure Local, or sovereign infrastructure operated by Mistral without having to refactor underlying workflows.

This hybrid portability targets industries bound by strict compliance regulations. The deployment options also include fully air-gapped environments, allowing organizations to run AI workloads on networks that remain completely isolated from the public internet.

Deployment flexibility drives decisions

The partnership indicates that deployment flexibility is becoming part of the buying decision. Many organizations want the freedom to run AI in the cloud, on-premises, or in regional infrastructure without being locked into a single approach. And that’s where Microsoft’s expanded relationship with Mistral fits so well.

The companies are betting that giving customers more deployment options will weigh just as much as offering competitive models. If the strategy works, Microsoft will be providing the control plane for how the world’s most regulated industries run it. 

If the strategy works, Microsoft will be providing the control plane for how the world’s most regulated industries run it. 

The post Microsoft is building an AI stack it doesn’t fully own — on purpose appeared first on The New Stack.

The rise of the agent runtime: The compute platform behind production agents

Data center aisle with rows of illuminated server racks

The fast pace of AI research means organizations now have a wide range of models to choose from that can power AI agents to solve real business problems. But choosing a model doesn’t guarantee you effective agents or even good performance. For that, you need to run your agents in an environment that provides them with tools, state, security, and scale, with fast startup times and good integration with your existing business systems.

Picking the right agent runtime environment is like picking an enterprise app server but for AI systems — and agents have very different needs from traditional applications.

Gartner predicts more than 40% of agentic projects will be canceled by 2027; not because models aren’t powerful enough to be useful but because of unclear business value, inadequate risk controls and ballooning costs.

Gartner predicts more than 40% of agentic projects will be canceled by 2027; not because models aren’t powerful enough to be useful but because of unclear business value, inadequate risk controls and ballooning costs.  Agents that deliver in proof-of-concept systems will fail in production if the runtime stack powering them can’t keep up and keep them under control. 

Agentic compute is different

It’s easy to think of an AI agent as just another microservice that takes unstructured input, runs APIs or queries, and returns messages. But infrastructure designed for traditional enterprise applications with predictable business logic or even cloud-native stateless workloads doesn’t fit agents with their bursty, long-running, stateful, non-deterministic, code-writing, tool-invoking behaviors that might be triggered by a system event or an email — not just a chat session.

Model inference needs GPUs for speed, but agents also need reliable, durable compute that supports stateful sessions for long-running processes, along with strong security and real-time visibility.

You still need to think about familiar issues like hosting, scaling, identity, and security, but all that is complicated by the unpredictable, multi-stage workflow of the agent reasoning loop.

An agent pulls in input from multiple sources, reasons over its context about the execution plan for accomplishing the goal, calls other tools or writes its own code, iterates over the results of those calls, and maybe builds on them or switches to another approach that requires another reasoning loop and eventually delivers output. That might be updating a system or sending an email rather than just displaying an answer.

Model performance is only one part of making that useful. Architecting a successful agent system that can run at enterprise scale requires considering the agent runtime, the application layer that agents call, and the tools, APIs, and MCP servers they consume.


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You have to be able to integrate with business logic and existing systems, manage the usual quotas, rate limits and SLAs for APIs so agents don’t overload them — and you have to do all that while keeping up with AI developments that are moving too fast for you to build the infrastructure primitives you need to rely on from scratch every time.

Requirements of modern agentic infrastructure

Instead, you should look for flexible infrastructure that fits the way the agent works. As with any technology, if you build on an existing platform like Azure Container Apps, you can save effort in areas where your business can differentiate. And while AI agents have flaws (from hallucinations to high token costs) that aren’t fully solved, you can pick an agent runtime environment that makes it easier to get useful results despite them.

Agentic compute needs fast startup and resume. Whether it’s a human typing into a chat prompt or system events automatically launching multiple agents, agent infrastructure needs to spin up quickly. If it takes a few seconds to spin up a container, the reasoning loop can’t start till that’s done.

It also needs to scale up and down responsively, without costing you anything when it’s not running.

Because agent workloads are long-running and event-driven, agents need to start up, do some work, go idle for hours or even days, and then resume instantly with their memory, context, caches, connections, identity, and security intact. That means persisting and restoring state so long-running agents don’t have to pay the same startup tax over and over again. Whether the last stage of the agent’s reasoning loop was successful or a failure, it has to take another approach; you don’t want it to do the same work again.

Rather than building your own custom microVM stack, the new Azure Container Apps Sandboxes provide a temporary, secure, and stateful compute environment that spins up, executes code, snapshots disk and memory, then automatically idles and resumes just as fast. This is the stateful equivalent of Dynamic Sessions, with sub-second startup from pre-warmed pools; you can burst out to hundreds (and eventually thousands) of concurrent sandboxes when you need them, then scale back down to zero.

An agent runtime needs to be secure by default because agents are only useful when they take action — and by definition, they’re likely to do unexpected things, write and execute their own untrusted code, and keep trying to achieve their goal (sometimes even when there’s a policy that should stop certain behaviors).

To give agents secure, auditable access to the resources they need, run them and the code they generate in a sandbox, rather than on a developer laptop with production credentials and admin rights. Identity, access control, and execution boundaries have to be enforced at the runtime layer, not bolted on in a hidden prompt.

ACA Sandboxes have egress and access policies, so you can control outbound calls and limit what URLs they can access. If you can’t use managed identity for all the services an agent needs to connect to you, you can protect secrets by injecting API keys through an external egress gateway instead of hard-coding them. Because the gateway is external, outbound call decisions are controlled by policy outside the sandbox, not by agent code that will relentlessly try any method to get through.

If agents are useful, you’re going to run a lot of them, often simultaneously. AI agents need strong isolation for each task, so every untrusted code execution happens in its own sandbox and no data leaks between tasks.

You can manage them as groups, but each ACA Sandbox has its own secure boundary, so details from one customer support agent won’t end up in a chat with a different customer. If the untrusted code does turn out to be problematic, isolated sandboxes at least contain the blast radius.

Manage the tools agents call

You don’t want to rely on fragile glue code or ad hoc orchestration that you have to rewrite any time systems change for the calls agents make to tools, APIs, cloud services, and other workflows. You also don’t want to rely on manual cleanup of resources no longer needed. A runtime with built-in agent tool execution makes agents more robust. It takes the drudgery out of connecting the agent environment to your other systems, enabling them to interact securely, in isolation, and at scale.

“It’s not just about where the agent is running and what the capabilities of the agent are, but also what actions the agent can take.”

“It’s not just about where the agent is running and what the capabilities of the agent are, but also what actions the agent can take,” points out Vyom Nagrani, who runs the team of PMs responsible for both Azure Container Apps and the Azure SRE Agent that’s built on ACA Sandboxes. Sandboxes have access to a connector framework with over 1,400 enterprise-grade connectors, enabling them to take actions not only on Azure and Microsoft services but also on third-party tools.

“The runtime provides those connectors, and it provides a managed way of authenticating against all of these third-party systems, so now you can build an agent which can talk to many, many, many different systems. It’s not boxed into one authentication boundary,” Nagrani tells The New Stack.

MCP servers are a built-in capability of the connector framework. “You can take any of these connectors; you can take any REST API and expose it as an MCP server, which then the agent can consume.” Or if you want to build a custom MCP server, you can host that in a sandbox too. ACA Sandboxes can be both where agents run and, if that’s appropriate, where the tools they use are hosted.

If you’re building a user interface to wrap your agents, the application layer that makes calls to the agents can run in Azure Container Apps Express, a new service now in public preview, Nagrani says. 

“It’s a simplified app hosting stack for the app layer that responds to HTTP traffic and serves web traffic: that’s where the human interactivity comes in.”

Putting it all together

ACA Sandboxes offers an agent runtime environment that answers the key questions architects need to consider: where agents and the ephemeral compute they need access to run; where the application layer that calls agents runs; and how agents get access to all the tools, APIs, services, MCP servers, and existing business logic they need to orchestrate.

Whether you’re a platform engineer, a software vendor or a startup building a new AI platform, treating agent runtimes as the new application server and MCP servers as the new APIs requires agent infrastructure that supports agent workloads effectively, allowing governance to shift left into the runtime layer where it can scale with the ever-increasing numbers of agents. 

How real platforms build on agent runtimes

Azure Container Apps is already a strong platform for running agents. Auger, a startup launched by the former CEO of Amazon’s global consumer business to help mid-size enterprises get their complex supply chains out of Excel spreadsheets, used it to build a multi-agent system that can give real-time answers about shipments and forecasts in a world where mines or critical shipping lanes might be closed at any time by war or weather. 

Backend agents pull the unstructured data with all the details to answer those questions from different siloes, building ETL pipelines and creating an ontology of the supply chain ecosystem for each customer that includes functions and actions — all of which need to be audited and reversible. Frontend agents use that ontology to answer questions such as, “What happens if I build a new warehouse here or switch to a supplier in this country?”

ACA Sandboxes are built on Azure Container Apps, giving organizations an easier way to create agent services with strong isolation, dynamic scaling, fast startup, persistent state, and broad tool and service integrations.

That’s just what the Foundry team was looking for when they started work on the Microsoft Foundry Agent Service managed agent runtime. ACA Sandboxes gave them a platform that delivers fast start/resume, built-in tool execution (including for untrusted code), persistent state for long-running agents, strong per-agent isolation, and secure-by-default operations. Agent identity, “on‑behalf‑of” authentication to existing business services, and strict isolation are critical capabilities they didn’t have to build themselves.

“It’s the same enterprise-grade infrastructure behind Microsoft’s own agentic products, now available for all Azure customers to build on.”

The Foundry Agent Service adds a layer of visibility and observability into agent actions and conversations, allowing customers to monitor agent performance and see where the system is doing well and where it needs improvement.

“Azure Container Apps Sandboxes package the hard parts of an agent runtime into a first-class Azure resource — sub-second start and resume, built-in execution of tools and untrusted code, and snapshot-based state that lets long-running agents pick up exactly where they left off. Every agent gets its own hardware-isolated environment with secure-by-default operations, so builders can focus on what their agents do, not on the plumbing underneath,” Nagrani points out.

“It’s the same enterprise-grade infrastructure behind Microsoft’s own agentic products, now available for all Azure customers to build on.”

The post The rise of the agent runtime: The compute platform behind production agents appeared first on The New Stack.

Is retrieval engineering becoming AI’s next bottleneck?

Abstract dark digital render of a metallic geometric vortex spiraling inward, representing complex AI engineering workflows and data infrastructure.

Public AI assistants have become so commonplace that software vendors are increasingly adding AI search, conversational experiences, and AI agents to their own applications. From eCommerce and customer support to enterprise software, AI is rapidly becoming the primary interface to many applications.

Companies that build products around proprietary information are particularly well positioned to benefit from this shift. Whether they provide financial intelligence, market intelligence, legal research, scientific publishing, or business information, their products help professionals make better decisions by transforming trusted information into actionable insight. 

AI allows these organizations to deliver that expertise through entirely new user experiences. Increasingly, they compete not only on the quality of their proprietary information, but on how intelligently they retrieve, understand, and transform it into customer value.

“Increasingly, they compete not only on the quality of their proprietary information, but on how intelligently they retrieve, understand, and transform it into customer value.”

A new competitive battleground is emerging. As AI becomes the primary interface to proprietary knowledge, the ability to retrieve, verify, rank, and assemble information is becoming almost as important as the proprietary information itself. 

Much of the industry’s attention has focused on increasingly capable language models, but those models are only as effective as the context they receive. Designing retrieval workflows that consistently deliver trusted, relevant, and up-to-date information is rapidly becoming one of the defining engineering challenges for AI-native applications.

Retrieval engineering: optimizing the workflow

For decades, search engineering has focused on helping people find the right information. Whether searching a website, a legal database, or a financial research platform, the challenge was to retrieve the most relevant results while balancing competing priorities such as relevance, latency, scalability, and cost. The search system’s job was to retrieve relevant information. The human’s job was to evaluate it.

AI fundamentally changes that role.

Instead of retrieving information for people to evaluate, retrieval systems increasingly assemble the context that large language models and AI agents use to investigate, reason, and act. Every retrieval decision now becomes part of an automated workflow in which relevance, freshness, latency, and trust directly influence the final answer.

“Prompt engineering influences how a language model reasons. Retrieval Engineering determines what it has to reason about.”

This shifts the engineering challenge away from individual technologies and towards the retrieval workflow itself. The goal is no longer simply finding relevant documents, but orchestrating retrieval, ranking, filtering, inference, and real-time updates so they work together efficiently. We believe this emerging discipline deserves its own name: Retrieval Engineering. Prompt engineering influences how a language model reasons. Retrieval Engineering determines what it has to reason about. Both matter, but as AI applications become increasingly autonomous, the quality of retrieval increasingly determines the quality of the outcome.

As AI applications evolve from conversational assistants to deep research systems and autonomous agents, optimizing workflows rather than individual components becomes increasingly important. A single user request may trigger dozens—or even hundreds—of retrieval operations before a response is generated.

The challenge isn’t vector search

Vector databases solved an important problem by making semantic retrieval practical at scale. But semantic retrieval is only one stage of a much larger workflow.

Production AI applications increasingly combine vector similarity with keyword search, structured filtering, business rules, personalization, machine-learned ranking, and real-time inference to assemble the context that language models depend on. The engineering challenge is no longer selecting the best retrieval technology—it is orchestrating increasingly sophisticated retrieval workflows that remain accurate, responsive, and cost-effective.

Many organizations address this by combining specialist technologies. A vector database provides semantic retrieval. A search engine handles lexical matching. Additional services provide reranking, personalization, and inference. This works well initially, but every additional component introduces another network hop, another operational dependency, and another source of latency. The problem is no longer vector search. It is engineering an efficient retrieval architecture.

From components to platforms

This shift is changing how retrieval infrastructure is designed. Instead of optimizing individual components in isolation, engineering teams increasingly need to optimize the retrieval workflow as a complete system—balancing retrieval quality, latency, freshness, scalability, and infrastructure cost.

“The problem is no longer vector search. It is engineering an efficient retrieval architecture.”

That is why AI Search Platforms are emerging. Rather than stitching together retrieval, ranking, inference, and serving from multiple independent services, they execute the workflow within a single distributed architecture. The optimization problem changes from integrating components to engineering the workflow itself.

AI has transformed the user interface. It is now transforming the retrieval infrastructure behind it. For organizations building applications around proprietary knowledge, the next competitive advantage will not come solely from larger language models or better embeddings. It will come from building retrieval workflows that consistently deliver trusted, relevant, and timely context at scale.

Retrieval Engineering is rapidly becoming one of the disciplines defining the next generation of AI-native applications.

If you’re interested in exploring these ideas in more depth—including Retrieval Engineering, AI Search Platforms, and the architectural patterns behind AI-native information platforms—we cover them in our ebook, Building AI-Native Information Platforms.

The post Is retrieval engineering becoming AI’s next bottleneck? appeared first on The New Stack.

Received — 20 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Google just bet its inference future on a chip built for one model

"MCP: A Practical Security Blueprint for Developers" featured image. Abstract architectural image

The race to make AI inference cheaper is pushing chip design beyond general-purpose accelerators. We’re now moving toward silicon that is tailored to individual models. And Google’s reported “Frozen v2” project suggests the Gemini AI model is part of the movement.

First reported by The Information, the unannounced chip would reportedly hardwire parts of Gemini’s architecture while leaving its weights updatable. That compromise could give Google much of the efficiency of model-specific silicon without making the hardware obsolete every time Gemini changes.

A spokesperson for Google tells The New Stack, “Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers.”

A spokesperson for Google tells The New Stack, “Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers. While not every project moves into production, this rigorous exploration is central to our full stack approach. By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads.”

According to the reporting, Google hopes the chip will help relieve the AI compute crunch that’s made it harder for cloud providers to keep up with demand, while also making Gemini much cheaper and more efficient to serve. Internal projections reportedly estimate the design could deliver six to ten times more tokens per watt than Google’s current generation of AI chips.

If the project moves forward, it would represent a different approach to AI infrastructure because Google would be building hardware specifically for Gemini. For developers, that’s an early indication that future AI systems may be designed with much tighter integration between the model and the hardware beneath it. 

Specialized silicon replaces flexibility

Currently, the vast majority of AI inferences run on Nvidia GPUs or Google’s own Tensor Processing Units (TPUs). Because these chips are intended to accommodate a wide variety of AI models, they carry a high degree of processing load.

There’s precedent for this kind of shift. Bitcoin mining followed a similar path, starting with CPUs, then GPUs, before ultimately settling on ASICs. AI inference may be headed in the same direction. Training still benefits from the flexibility of GPUs, but once a model reaches production, the priority shifts to serving as many requests as possible while using less power. 

Training still benefits from the flexibility of GPUs, but once a model reaches production, the priority shifts to serving as many requests as possible while using less power.

Competitors hardwire their own

Google isn’t the only company looking beyond general-purpose GPUs for AI inference. As inference becomes a larger share of AI workloads, more companies are experimenting with specialized hardware designed to improve performance while using less power. Even Nvidia, whose GPUs dominate the AI market, has invested heavily in inference, striking a reported $20 billion deal with Groq last year to license the startup’s technology.

Among the more ambitious efforts is Canadian startup Taalas. The company has demonstrated a chip with an entire 8-billion-parameter Llama model embedded directly into the silicon. By keeping the model on the chip instead of constantly moving data back and forth from external memory, Taalas says it can dramatically speed up inference, claiming throughput of roughly 17,000 tokens per second. Meanwhile, other companies are optimizing the spatial distance between memory and compute to avoid hardware lock-in.

d-Matrix’s new Corsair platform uses an SRAM-based in-memory compute architecture rather than relying on standard high-bandwidth memory (HBM) packaging. Similarly, SambaNova is deploying custom dataflow technology with a three-tier memory architecture to maximize tokens per watt for advanced workflows.

Google’s Frozen v2 sits uniquely in this landscape — borrowing the hyper-efficiency of hardwired architectures like Taalas, but retaining just enough flexibility to remain viable across multiple product cycles.

Freezing architecture, not weights

The “Frozen” name reportedly comes from the idea of permanently etching part of Gemini’s design into the chip itself. According to The Information, Google’s engineers have spent years trying to find the right balance between efficiency and flexibility.

An earlier concept, led by Google DeepMind Chief Scientist Jeff Dean, reportedly would have embedded Gemini’s model weights directly into the silicon. That idea was eventually abandoned because it would have tied the hardware to a single version of the model, dramatically limiting its useful life as Gemini continued to evolve.

Frozen v2 reportedly takes a different approach. Rather than locking in the weights, the chip would hardwire parts of Gemini’s underlying design while still allowing the weights to be updated over time. That would let Google continue improving the model without needing to replace the hardware every time Gemini receives a new version.

Rather than locking in the weights, the chip would hardwire parts of Gemini’s underlying design while still allowing the weights to be updated over time.

Cheaper inference reaches developers

By moving some of Gemini’s execution into the chip itself, Google could reduce some of the overhead that comes with running models on more general-purpose hardware. That could translate into lower latency, especially for applications that depend on near real-time responses. 

Google’s reported goal of delivering six to ten times more tokens per watt is ultimately about efficiency, and those savings could eventually make their way to enterprise teams building on Gemini, through lower API costs or more available capacity. While Google hasn’t said how it would pass those gains along, reducing the cost of inference has become a priority across the industry.

The post Google just bet its inference future on a chip built for one model appeared first on The New Stack.

Amazon, Microsoft, and Google are converging on the same enterprise agent architecture

Abstract textured illustration of radiating shapes in blue and teal

Over the past nine months, Amazon, Microsoft, and Google have each introduced or renamed an enterprise agent platform. And all three have converged on the same core architecture. Runtime, memory, tool gateway, identity, observability, and governance now appear in Amazon Bedrock AgentCore, Microsoft Foundry, and the Gemini Enterprise Agent Platform, albeit under slightly different names. Each vendor presents these components as the foundation for production agents. What was a fragmented collection of libraries just 18 months ago is becoming a distinct platform layer.

To see where that shift may lead, consider the evolution of platform as a service. Between 2011 and 2016, developers built applications from virtual machines, load balancers, message queues, secret stores, and monitoring agents — each with its own API and operational model. Cloud Foundry and Heroku unified those pieces around an application contract. Developers could think less about machines and more about applications. The agent ecosystem is approaching a similar inflection point, but it still lacks an equivalent contract — and no open-source project has stepped forward to define one.

The plumbing a production agent still needs

Imagine a platform team putting a customer support agent into production this quarter. They choose a model provider, then a framework, and finally a place to store session state and long-term memory. They add a tool gateway so the agent can reach the ticketing system. An identity layer follows, so the agent acts on behalf of the person who asked, and a sandbox keeps generated code somewhere safe. Evaluation and tracing are considered last, once someone asks how quality regressions will surface before customers find them.

Each of those choices looks small on its own. When combined, they decide which cloud the workload lives in. Session state resides in a single provider’s managed store. The traces are logged in that same provider’s telemetry service, and the agent’s identity is derived from its directory. Moving that agent a year later means rebuilding the whole assembly, which is where enterprises were before PaaS gave applications a portable shape.

What Cloud Foundry got right before it lost the market

Cloud Foundry reduced application deployment to a single command, and the platform took responsibility for everything after it. Buildpacks detected the language and produced a runnable artifact. Service brokers provisioned a database or a message broker and bound the credentials into the application environment. Routing, logging, autoscaling, and health checks arrived as platform behavior, not as a queue of tickets aimed at an operations team.

What mattered was the contract, not the implementation. An application declared what it needed and stayed agnostic of where it ran. Buildpacks began life at Heroku back in 2011. Pivotal and Heroku started the Cloud Native Buildpacks project in January 2018, and the CNCF accepted it that October. A PaaS idea outlived the platform that produced it.

Cloud Foundry never became the dominant platform. Kubernetes did, and the Cloud Foundry community eventually rebuilt its abstraction on top of Kubernetes through Korifi. The design principles traveled anyway, and enterprises running that platform in 2016 had portability that most agent teams cannot buy today.

The same primitives across three clouds

Let me dissect the three platforms because the similarities are conveniently hidden behind the branding.

AgentCore reached general availability in October 2025 with seven composable services, namely runtime, gateway, memory, browser, code interpreter, identity, and observability. The runtime offers eight-hour execution windows with complete session isolation. The gateway connects to existing MCP servers and turns APIs and Lambda functions into agent-compatible tools, while observability exports through OpenTelemetry into CloudWatch.

Microsoft renamed Azure AI Foundry to Microsoft Foundry effective January 1, 2026. Foundry Agent Service covers the same ground. Microsoft documents hosted agents running in a session-isolated managed runtime, with Entra Agent ID handling identity. Managed memory spans session, user, and procedural scopes, and tracing is built on OpenTelemetry.

Google retired the Vertex AI name at Cloud Next 2026 and folded the platform into Gemini Enterprise Agent Platform. What was Agent Engine became Deployments, and Memory Bank, Sessions, Agent Registry, Policies, and Gateways sit alongside it under an agent-first information architecture.

The convergence is rational behavior rather than a conspiracy, since infrastructure companies build vertically integrated platforms because integration is where the margin lives. The consequence lands on customers rather than on the vendors. Identity, telemetry, and deployment all terminate within a single provider, which makes the operational layer beneath the agent the part that resists moving. Recently, I analyzed the runtime aspect of this problem in a piece about Google’s Agent Substrate.

The contract an agent platform would inherit

Any agent platform can be tested by one question: what would a Cloud Foundry-style contract look like if it had been written for agents rather than for web applications? The mapping is close enough to be instructive and different enough to be interesting.

PaaS abstractionAgent platform equivalentWhere portability breaks today
Application sourceAgent code, instructions and evaluation suiteEach framework defines its own package shape
BuildpackFramework detection and agent packagingNo shared build contract across SDKs
Backing serviceModel, memory, retrieval or tool providerProviders are wired into agent logic
Service bindingAuthenticated attachment of tools and dataCredentials are issued by the host cloud
RouterAgent endpoint, MCP or A2A interfaceThe protocols exist but not the lifecycle
Logs and metricsTraces, tool calls, cost and quality scoresGenAI conventions remain in development
Release promotionEvaluate, version and progressively deployEvaluation couples to one vendor’s harness
Platform policyAgent identity, permissions and approvalsIdentity ties to the provider’s directory

Real deployments will mix these rows rather than adopt them cleanly, and no team needs the complete set from day one.

Package the agent as one deployable unit

The thing developers ship has to be versionable, testable, and movable as a single artifact. The code, the instructions, the tool dependencies, the memory contract, the permissions, and the evaluation suite all travel together, or none of them do. AWS gets close with its harness export path. One command turns a configured harness into Strands code, and AWS says the export preserves the model, prompt, tools, memory wiring, and container environment. Customers can easily move from configuration to code without an architecture rewrite, which is the right instinct pointed at a single cloud.

Bind capabilities rather than embed providers

The Twelve-Factor App taught developers to treat databases and caches as attached resources reached through configuration. Models, memory stores, retrieval engines, browsers and tool gateways deserve the same treatment. An agent that names its model provider inside application logic has already given up portability, whatever the platform brochure claims.

Make operations part of the abstraction

Rather than just enabling deployment, PaaS proved its value by offering built-in capabilities like routing, logging, autoscaling, and rollback. The questions that matter for agents look different, and they should be the ones enterprises must ask. Platform teams want to know whether the agent completed the task and whether it chose the right tools. They also want to know whether it exceeded its authority, what the run cost was, and whether quality regressed after a model update.

How agents differ from applications

Agents are not web applications with a model attached, and a platform built on that assumption will fail in production. Three differences carry most of the weight here. Agent behavior is probabilistic, so two identical inputs can produce different tool calls. Agents act with delegated user authority, which turns a permissions bug into a real-world side effect rather than an error page. An agent’s dependencies can also change its behavior without any code deployment. A model update or a revised tool description alters what the agent decides to do.

The Twelve-Factor rule that processes should be stateless does not survive that. An agent platform needs disposable execution workers alongside durable, inspectable, and portable agent state. LangGraph already demonstrates the combination in open source, with checkpointing at every step, first-class human interrupts, and execution that resumes after a crash. The control plane around it is part of the commercial LangSmith product, covering deployment, evaluation, and observability. The fragmentation appears within a single project.

What the open protocols leave out

Most of the primitives a neutral platform would need already exist. The Model Context Protocol standardizes how agents access tools and data. A2A covers discovery and communication between independent agents. OpenTelemetry is defining GenAI conventions for agent spans, tool calls, and token usage, though most of those attributes remain marked as in development. OCI images stay available as the packaging escape hatch for anything a managed runtime cannot host.

The vendors have already conceded that a neutral layer matters. The Linux Foundation announced the Agentic AI Foundation in December 2025. Its founding projects were MCP from Anthropic, goose from Block, and AGENTS.md from OpenAI, and AWS, Google, and Microsoft joined as platinum members. Google also moved A2A into the Linux Foundation.

Protocols are not the same thing as a lifecycle platform. A foundation that governs how agents talk to tools says nothing about versioning an agent. It says nothing about promoting that agent through environments, or rolling it back when an evaluation regresses. Enterprises running diligence on agent platforms can work through three plain questions. The first is governance: whether the project is controlled by a neutral foundation or by the vendor selling the managed version. The second is packaging, where the same agent artifact should run on two different clouds without a rewrite. The third is state, where memory has to live somewhere the enterprise can export from. No open project answers all three today.

Where is this headed?

Kubernetes defined pods, deployments, and services, and those abstractions influenced how an entire industry thinks about running software. The equivalent agent abstractions have not been fixed yet. Whoever ends up owning the agent control plane will not merely own deployment. That owner defines what an agent is, which components it contains, and what a platform team is permitted to swap out.

In summary, hyperscalers are building robust platforms that effectively address operational questions. They also answer them inside a single cloud. If a neutral project assembles the same lifecycle atop the protocols already in place at the Linux Foundation, enterprises will regain the negotiating position that buildpacks and service brokers once gave them. An open, cloud-agnostic agent platform would benefit vendors as much as buyers, because a stable contract is what allowed the cloud-native ecosystem to grow beyond any single provider.

The post Amazon, Microsoft, and Google are converging on the same enterprise agent architecture appeared first on The New Stack.

Anthropic employees worked “literally around the clock” to keep Fable 5 from disappearing

Abstract illustration of a purple hand holding a tilted hourglass with red sand, symbolizing a closing compliance timeline.

After weeks of extending temporary access while bringing additional inference capacity online, Anthropic has finalized Claude Fable 5 subscriptions.

In a Friday announcement on X, the company said Claude Fable 5 will become a permanent part of Max and Team Premium subscriptions beginning Monday, July 20, at 50% of each plan’s usage limits. Pro and Team Standard users will transition to using the model through usage credits and will receive a one-time $100 credit.

An Anthropic spokesperson tells The New Stack, “Friday’s announcement means that Fable 5 at 50% of usage limits is now a standard, permanent part of Max and Team Premium plans.”

The changes bring an end to weeks of temporary extensions that left subscribers wondering whether Fable 5 would remain part of their subscription. Rather than introducing a new usage policy, Anthropic is making permanent the same access level subscribers have had since Fable 5 was redeployed on July 1.

Capacity drove the timeline

The move gives a glimpse into the economics of serving frontier AI models. Although Anthropic repeatedly extended temporary access over the past several weeks, the company says making Fable 5 a permanent part of Max and Team Premium subscriptions was always the goal.

An Anthropic spokesperson tells The New Stack, “Friday’s announcement means that Fable 5 at 50% of usage limits is now a standard, permanent part of Max and Team Premium plans. This was always our intention with Fable access (see more in our original launch blog on June 9). We planned to expand Fable 5 access in stages as we brought additional inference capacity online, with the ultimate goal of making it a standard part of subscription plans.”

Fable 5 usage limits explained

Anthropic has not explained exactly how it calculates the 50% limit or how many prompts that will translate to in practice. Developers using Fable 5 for heavy workflows are likely to reach the limit sooner than lighter users.

The company has said demand for Claude Fable 5 was difficult to predict and that broader access depended on bringing more capacity online. Reuters reported earlier this week that the company is in talks with Meta over a potential compute lease worth up to $10 billion, which could give Anthropic access to Meta’s AI infrastructure for as long as two years. 

Meta compute deal looms

Thariq Shihipar, an Anthropic Developer Relations team member, posted on X, crediting the company’s employees with getting the necessary capacity online.

“This was due to a heroic effort by many people at Anthropic working sometimes literally around the clock,” Shihipar wrote on X. “It was not at all clear that we’d be able to do this in time, and so proud of everyone who made it happen. Enjoy Fable.”

“This was due to a heroic effort by many people at Anthropic working sometimes literally around the clock. It was not at all clear that we’d be able to do this in time, and so proud of everyone who made it happen. Enjoy Fable.”

Claude expands into India

The revised policy reflects broader changes across the AI industry. Frontier models are becoming expensive, which means AI companies are forced to balance compute costs with subscription pricing. OpenAI recently introduced GPT-5.6 Sol, while Chinese AI companies have released increasingly capable open-weight models, including Moonshot AI’s Kimi K3. Although Anthropic has not linked today’s pricing decision to competitive pressure, both model capability and the cost of serving those models have become key competitive factors.

…both model capability and the cost of serving those models have become key competitive factors.

Alongside the subscription changes, Anthropic is also formalizing its presence in one of its fastest-growing markets by introducing local pricing for Claude in India.

Indian customers can now pay for Claude in rupees instead of U.S. dollars, with GST included in the listed prices. That removes foreign currency conversions and other cross-border payment costs that previously came with subscribing. Claude Pro is now priced at Rs. 2,000 per month with annual billing or Rs. 2,399 on a month-to-month plan (previously $20 USD per month).

Industry reports have identified India as Claude’s second-largest user base after the United States. Together, the announcements show Anthropic expanding Claude in two ways: by making subscriptions easier to purchase in a major growth market while locking in an access policy determined by the compute required to serve Fable 5.

The post Anthropic employees worked “literally around the clock” to keep Fable 5 from disappearing appeared first on The New Stack.

Received — 19 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Spark 4.2 has a feature that could retire your vector database

Apache Spark 4.2 launched last week, and it signals an expansion of Spark’s decade-plus role at the center of enterprise data processing

With new features for AI workloads, including governed metrics, vector retrieval primitives, real-time processing, improved Python support and native geospatial analytics, Spark 4.2 builds on a recent history of new AI and streaming features, reflecting how many engineering teams use the platform today. The release builds on Spark’s traditional role as a data processing engine by adding more of the capabilities needed to support production AI applications.

The launch introduced several features that enable developers to do more without leaving the platform, and for teams already using Spark, that could mean fewer systems to manage.

Governed metrics prevent conflicts

One team’s definition of a business metric isn’t always the same as another’s. Over time, those differences can lead to conflicting reports and uncertainty about which number to trust.

That becomes even more problematic when AI applications start consuming the same enterprise data that analysts and business intelligence tools use. If different teams define the same metric differently, AI systems can produce inconsistent results for the same question.

Spark 4.2 introduces governed metric views to address that issue. Organizations can define a business metric once and reuse that definition across applications. A metric view makes dimensions and measures first-class objects that Spark understands, so the engine can preserve the intended aggregation semantics regardless of who or what is querying it.

Organizations can define a business metric once and reuse that definition across applications.

Vector search goes native

One of the more significant additions is native vector search, which reduces the need to move data between Spark and a separate vector database.

Spark 4.2 introduces vector distance and similarity functions, vector normalization, vector aggregation, and NEAREST BY, a new SQL operator for top-K similarity searches. By bringing vector search into Spark, developers can keep more of their retrieval pipeline on the same platform.

By bringing vector search into Spark, developers can keep more of their retrieval pipeline in the same platform.

Python interoperability gets easier

Spark 4.2 makes it easier to move data between Spark and Arrow-native tools. With support for the Arrow C Data Interface and the PyCapsule protocol, Spark DataFrames can be passed directly to tools like Polars and DuckDB without copying or serializing the underlying data, as long as both sides support the standards.

Python also gets a few other updates. PySpark has been expanded; Arrow-optimized UDF execution is now the default, and Python Data Sources now include built-in time and memory profiling to help developers troubleshoot custom connectors.

Spark Connect makes the engine callable by agents

Spark Connect, which separates the client from the Spark server via a gRPC- and Arrow-based protocol, receives several updates in 4.2. The key idea is that a client builds a logical plan, the server handles analysis, optimization, and execution, and the results come back as Arrow batches. The client doesn’t need a full Spark runtime or a colocated JVM.

This update includes several changes to Spark Connect, the project’s client-server interface. AI applications can send processing requests to a remote Spark cluster while the work continues to run inside Spark. The release improves RDD API compatibility, error handling, and status reporting along that path.

Streaming powers real-time AI

Streaming gets several updates in Spark 4.2, including Auto CDC and Real-Time Mode. Many AI applications depend on continuously updated data rather than scheduled batch jobs. Auto CDC brings first-class change data capture to Spark Declarative Pipelines, handling the merge logic for keeping target tables current as source data changes — something that previously required hand-written, error-prone code. The new CHANGES SQL clause allows teams to retrieve data changes through a single SQL interface.

Spark 4.2 also adds built-in GEOMETRY and GEOGRAPHY types along with ST_* functions for location-aware analytics, without requiring external spatial extensions. For teams doing anything with location data — logistics, real estate, IoT — this removes another reason to move data out of Spark.

The bigger picture

Spark 4.2 brings more of the AI and data stack into the platform itself. Features that once depended on separate tools can now be handled directly in Spark.

For teams that currently use Spark for ETL and then hand data off to other systems for retrieval, governance, or real-time processing, this release starts to blur that line. As more AI applications run directly on operational data, Spark is becoming part of the serving layer rather than simply preparing data for it.

Spark is becoming part of the serving layer rather than simply preparing data for it.

The post Spark 4.2 has a feature that could retire your vector database appeared first on The New Stack.

Self-healing GPU nodes in Kubernetes: What we learned building the EKS node monitoring agent

Abstract digital topography of glowing blue particle waves and data streams, representing Kubernetes cluster telemetry and network monitoring.

When you run Kubernetes at the scale we do on Amazon EKS, nodes break constantly. GPUs fall off the PCIe bus. Container runtimes wedge. Network interfaces disappear. Across tens of thousands of clusters, “rare” hardware failures happen multiple times a day, somewhere in the fleet.

For years, everyone responded the same way: an operator wakes up, reads a dashboard, SSHes into the node, cordons it, drains it, terminates the instance, and waits for a replacement. Every step is human-paced. Every step is toil. And if the failure lands at 3 a.m. on a weekend, the workload sits degraded for hours before anyone looks.

We built the EKS Node Monitoring Agent to help close that gap, which we open-sourced in April earlier this year. It detects node failures and writes Kubernetes NodeConditions that signal the problem to Karpenter, which then automatically replaces the node if required. The agent is one piece of a larger system. To understand where it fits, you need to understand what manages the nodes it monitors.

“Across tens of thousands of clusters, ‘rare’ hardware failures happen multiple times a day, somewhere in the fleet.”

AWS launched Amazon EKS Auto Mode that fully automates Kubernetes cluster infrastructure: compute provisioning, scaling, networking, storage, OS patching, and security hardening, so teams focus on applications, not cluster operations. It dynamically selects optimal EC2 instances (including GPU instances like P5, P6, and G6 families), scales based on workload demand, consolidates underutilized nodes, and keeps the operating system patched. EKS Auto Mode ships with automatic node repair as the default behavior: detection, severity classification, and Karpenter-driven node replacement all run out of the box with no add-on to install, no controller to configure, and no repair policy to write.

This is the story of how we built automatic node repair, the design decisions that shaped the system, and the hard lessons that came from operating it at GPU scale.

Six lessons from building self-healing Kubernetes nodes at scale

After operating this across thousands of clusters, the lessons compress into a short list. These are not unique to our system. The same patterns show up in NPD, NVSentinel, AKS Periscope, GKE’s auto-repair, and anyone building a custom node controller. They are folklore that should be a checklist. The open-source repo reflects each of these lessons in code, from the reason-code stability guarantees in the API to the jitter implementation that solved GPU workload interference.

“Your reason codes are an API contract. Additions are features. Renames are breaking changes.”

  1. Your reason codes are an API contract. Every downstream consumer (repair controllers, dashboards, customer automation) keys on them by literal string match. Additions are features. Renames are breaking changes. Severity changes are breaking changes. Plan for them the way you plan for API versioning.
  2. Absent and Unknown are not the same thing. “We are not watching” and “we are watching but cannot tell” require different responses from downstream automation. If your disabled monitor writes Unknown, some controller somewhere will eventually act on it. Emit nothing when you are not watching.
  3. Don’t cross ownership boundaries. The kubelet owns workload-driven conditions. Your node-health agent owns hardware and infrastructure failures. Crossing that boundary means your repair system is fighting the kubelet’s eviction system, and one of them will make the wrong call.
  4. Measure latency from the source. The detection SLO includes every hop in the signal chain: hardware event to driver log, driver log to journald, journald to agent poll, agent poll to NodeCondition write. The longest hop dominates. For kernel-level signals, journald flush cadence is the bottleneck. For GPU telemetry through DCGM, push-based policy violations (DBE, XID, NVLink) are near-instant, but polled field watches (NVSwitch fabric health, clock throttle) have a 5-minute floor. Know which path each detection uses.
  5. Detection and diagnosis are separate systems with separate consumers. Detection feeds automation (fast, continuous, minimal data). Diagnosis feeds humans (on-demand, detailed, heavyweight). Conflating them degrades both.
  6. Test telemetry interpretation against the spec, not empirical values. Hardware telemetry interfaces are not boolean. We read a DCGM bitfield for GPU fabric health and treated non-zero as failure. When a driver update changed the healthy return value from zero to a spec-defined non-zero mask, every GPU node was flagged unhealthy at once. The safety breaker held (by design), giving us time to ship the fix. The lesson: if you’re parsing packed enums or bitfields from GPU firmware, your test fixtures must come from the vendor documentation, not from what the field happened to return on previous hardware.

Node health detection in Kubernetes: Traps no one warns you about

Every node health agent in the Kubernetes ecosystem performs the same translation. Node Problem Detector (NPD), NVSentinel, GKE’s auto-repair, AKS’s Linux Extension, and the EKS Node Monitoring Agent all take noisy, low-level signals from a machine and translate them into a set of Kubernetes primitives: NodeCondition, Event, sometimes a CRD. The translation looks simple. It isn’t.

The output is a NodeCondition, which is just a type, a status (True/False/Unknown), a reason code, and a message. Four fields. But that surface area hides decisions that determine whether a repair action helps or hurts.

Reason codes are a public API. We learned this the hard way. In version 1.6.2, we changed NvidiaDeviceCountMismatch from Warning severity to Fatal. The technical reasoning was sound: once a GPU drops off the PCIe bus, it doesn’t come back without a node reboot or replacement. Leaving it as Warning meant GPU workloads kept getting scheduled onto degraded nodes, wasting expensive accelerator capacity. So we shipped the fix. Downstream automation broke. Customers had repair configurations keyed on the old severity. Dashboards that filtered on Warning stopped showing the fault. Automation that only acted on Fatal suddenly started draining nodes it hadn’t touched before. Dashboards that filtered on Warning stopped showing the fault. Automation that only acted on Fatal suddenly started draining nodes it hadn’t touched before. From that point, we treat every reason code addition as feature work and every rename or severity change as a breaking change.

“Absent” must not equal “healthy.” When we shipped per-monitor configurability in v1.6.0, we had to make a choice. A disabled monitor needs to produce some output (or no output). The three options: write True (your auto-repair now thinks the node is healthy because you’re not watching), write Unknown (ambiguous, might trigger repair depending on downstream logic), or omit the condition entirely. Only the third is safe.

This seems obvious in retrospect, but consider that NPD achieves the same result through a completely different mechanism: compile-time disable via build tags. NVSentinel delegates it to operator-authored CEL rules. The upstream Kubernetes spec defines what Unknown means, but if your repair automation treats Unknown as actionable, you will lose nodes for no reason. We chose to emit nothing when a monitor is off, and documented it as a hard contract.

Detection latency is bounded by the source, not by the agent. We originally told customers, “We detect kernel panics within 30 seconds.” This was wrong. Our agent’s detection time was under 30 seconds. But the kernel panic shows up in journald, and journald’s flush cadence is the actual bottleneck. If journald takes 45 seconds to write the line, our 30-second claim was incomplete.

For GPU faults, the picture is more nuanced because we use two detection paths with very different latency characteristics. The critical faults (double-bit ECC errors, XID errors, NVLink failures, page retirements, thermal and power violations) go through DCGM’s push-based policy violation channel. DCGM notifies our agent the moment it detects the violation; there is no polling interval. Detection of these faults is near-instant (sub-second in practice). A separate path uses a 5-minute field-value window to monitor NVSwitch fabric health, Fabric Manager status, and clock-throttle reasons. That window is the floor for those specific detections, but it does not apply to the critical GPU faults that trigger automatic repair. The lesson: the customer-facing SLO must include source-of-truth latency, and different signal paths within the same subsystem can have radically different floors.

Two severities, one switch: How auto-repair decides which nodes to replace

The kubelet already reports DiskPressure, MemoryPressure, and PIDPressure. NMA complements those with five additional conditions covering domains the kubelet does not monitor: kernel health, container runtime, networking, storage, and accelerated hardware. Every detection carries one of two severities, and severity is the switch that decides whether the repair cycle fires.

Condition severity is a terminal fault. It flips the matching condition to False and makes the node eligible for automatic repair. GPU device-count mismatches, critical XID and double-bit ECC errors, NVLink and NVSwitch fabric failures, a missing Fabric Manager, and Neuron DMA and HBM uncorrectable errors. On the networking and runtime side: VPC CNI process down, IPAMD unable to reach the API server, fork failures due to PID exhaustion, and pods wedged, terminating behind a broken container runtime. These are faults that won’t recover on their own. On GPU nodes, a single degraded accelerator can corrupt training checkpoints or waste thousands of dollars in compute per hour.

Event severity is informational. It posts a Kubernetes event, the NodeCondition remains True, and operators get visibility without disruption. Bandwidth ceilings, connection-tracking limits, Amazon Elastic Block Store (Amazon EBS) IOPS throttling, I/O delays, filesystem fragmentation, clock drift, liveness and readiness probe failures, kube-proxy anomalies, GPU thermal and power warnings, PCIe link degradation, and page-retirement thresholds. These signal trouble building before it turns terminal.

Getting severity wrong in either direction is expensive. Too aggressive, and you terminate healthy nodes and needlessly displace workloads. Too conservative, and degraded nodes serve traffic for hours while a GPU with a failing memory bank corrupts training checkpoints. The classification principle: if the failure is deterministic and infrastructure-owned (hardware broke, firmware crashed, a physical link went down), it triggers replacement. If the signal could be application-induced or transient, it stays informational. You never want to terminate a healthy node because a misbehaving pod saturated a resource.

“Getting severity wrong in either direction is expensive. Too aggressive, and you terminate healthy nodes. Too conservative, and degraded nodes serve traffic for hours.”

DiskPressure, MemoryPressure, and PIDPressure are the canonical examples. Every major auto-repair system (GKE, AKS, NPD) has independently converged on the same answer: don’t touch them. These are workload-driven conditions, not node-level faults. Replacing the node just moves the misbehaving workload to a fresh machine, where it will eat memory again. The correct response is kubelet-level pod eviction, not node replacement. If you’re building a node-health system, draw this boundary early and document it publicly.

The agent that hurt what it was protecting: GPU workload interference from health monitoring

The hardest lesson came from a customer running large-scale distributed GPU training. Their workload used NCCL collectives across hundreds of GPU nodes, where every node in a communication group must complete its step before any can proceed. One slow node makes every node wait.

They found that NMA itself was causing periodic slowdowns. The agent’s monitors all ran on independent goroutines, and when their polling intervals aligned, dozens of goroutines would wake simultaneously and burst onto many CPU cores at once. On a general-purpose web service, this would be invisible. In a distributed training job, microseconds of jitter on one node can cascade across the entire GPU cluster, causing measurable throughput loss.

The customer disabled NMA entirely and saw an immediate improvement. That was the worst possible outcome for us: a health agent that interferes with the workload it exists to protect is worse than no agent at all.

The fix was straightforward once we understood the problem. We added a startup jitter to every monitor’s polling interval. Each goroutine delays its first tick by a random offset (up to 20% of its base interval), staggering the wake times so they don’t align on boot. We cached system calls that hit /proc on every poll. We consolidated handlers that shared an interval into a single sequential work queue, reducing the goroutine count for monitors that didn’t need their own thread. The result was an agent whose CPU profile is flat and predictable rather than bursty.

The lesson generalized: if your health agent runs on the same host as the workload, its resource consumption pattern matters as much as its resource consumption total. A process that uses 0.5% CPU spread evenly is invisible. A process that uses 0.5% CPU in concentrated bursts can disrupt latency-sensitive distributed GPU workloads in ways that show up as lost training time rather than a CPU alarm.

This is why per-monitor configurability matters. Not every monitor is relevant to every workload. A dedicated GPU training cluster with one pod per node and no pod churn doesn’t need IPAMD monitoring or environment scanning. We shipped the ability to disable individual monitors so customers can keep the health coverage they need without paying the overhead of coverage they don’t.

How the repair cycle works

Karpenter is the compute controller that provisions and scales EKS Auto Mode nodes. It already owns the lifecycle of every node it launched, and consuming our NodeConditions for repair is a natural extension of that ownership. There’s no separate repair backend, no sidecar controller, no webhook chain. The same system that created the node is the one that replaces it.

Karpenter’s AWS cloud provider declares repair policies: each one pairs a condition type with a status that means “replace this node.” The policies include toleration windows that prevent reacting to transient blips:

  • Accelerated hardware faults: 10 minutes. These are unambiguous (a GPU is either present or absent) and expensive to leave running (a training job on a degraded node wastes GPU-hours).
  • Everything else (kernel, runtime, networking, storage, kubelet NotReady): 30 minutes. Enough time for a transient network blip or a temporary runtime hiccup to resolve on its own.

The flow:

  1. The agent detects a terminal fault and flips the matching condition to False with a reason code.
  2. Karpenter’s health controller sees the transition and starts a timer.
  3. If the condition clears before the window expires, the timer resets silently. The node was never touched.
  4. Past the toleration window, a safety gate checks fleet health. Karpenter will not repair more than 20% of nodes in a NodePool simultaneously. If a correlated event (a bad AMI rollout, a control-plane hiccup, a zonal impairment) trips conditions across many nodes at once, the system holds. Auto-repair also stands down while an Amazon Application Recovery Controller zonal shift is active, so deliberate traffic movement away from an impaired Availability Zone is not mistaken for a fleet of broken nodes.
  5. Inside the safety threshold, Karpenter taints the node to block new scheduling, gracefully drains running pods (respecting PodDisruptionBudgets), terminates the instance, and provisions a replacement sized for the displaced workload.

The replacement node comes up with a fresh agent monitoring it from boot. No operator in the path. In our testing, the full cycle from fault injection to replacement node running workloads took under 12 minutes. Detection landed in under a second (critical GPU faults use DCGM’s push-based policy channel, not polling). Then 10 minutes of toleration, and roughly 90 seconds for the replacement to launch and register.

The part that surprised us: detection and diagnosis are not the same problem

Auto-repair handles the common case: broken node gets replaced, workload keeps running. But “why did that node fail?” is a different question, and one we initially tried to answer inside the detection path. That was a mistake.

Detection answers “is this node healthy?” It runs continuously with minimal overhead, and it needs to be fast: a condition flip that takes 5 minutes to produce is 5 minutes of degraded workload. Diagnosis answers “what went wrong?” It needs to collect detailed artifacts: full journald output, containerd state, network configuration, dmesg, GPU driver logs. In our testing, that collection completes in about 7 seconds and produces a compressed log bundle. Baking it into the detection hot path would have slowed down the thing customers care most about: how fast the system reacts.

We built them as separate concerns sharing an agent binary. The NodeDiagnostic CRD lets you request a full log bundle from any node through kubectl, without SSH. On EKS Auto Mode, where nodes are Amazon Elastic Compute Cloud (Amazon EC2) managed instances with no shell access by design, this is the only way to investigate after a GPU failure or any other node-level fault.

The experience is one command:

kubectl ekslogs <node-name>

The plugin creates a NodeDiagnostic resource. The agent on the target node detects it via a watch, collects system state into a compressed tarball, and stores it temporarily (available for 10 minutes). The plugin then downloads it through the kubelet’s Node Log Query API (KEP-2258, GA in Kubernetes 1.36). No SSH, no security groups, no key pairs.

This separation means detection doesn’t slow down to collect evidence, diagnosis doesn’t need to be always-on (saving node resources), and you can diagnose a node that auto-repair has already flagged but hasn’t yet terminated. The 10-minute window for accelerated hardware faults gives you exactly enough time to grab the logs before the node is gone. If you’re interested in further improvements, engage with us on EKS public roadmap.

What this means if you’re running EKS

On EKS Auto Mode, all of this is on by default. Auto Mode fully manages your cluster infrastructure (compute, networking, storage, patching, and security hardening) so you focus on applications, not cluster operations. The agent runs as a systemd service in the node image (not a DaemonSet you manage), Karpenter consumes its conditions as part of the compute lifecycle it already owns, and kubectl ekslogs gives you diagnostic access without SSH. There is nothing to install, configure, or operate. For GPU workloads, this means your expensive accelerator nodes are automatically monitored, classified, and replaced without any operator intervention.

On managed node groups or self-managed Karpenter, you can assemble the same loop: install the Node Monitoring Agent as an EKS add-on and opt each node group into auto-repair. The architecture is the same, just not pre-assembled.

The EKS Node Monitoring Agent is Apache 2.0 open source at github.com/aws/eks-node-monitoring-agent. 

The failure modes we hit when running it at scale, and the fixes that come out of them, flow back to anyone using it. If you’re building a node-health system or running ours and hitting an edge case, come build with us!

The post Self-healing GPU nodes in Kubernetes: What we learned building the EKS node monitoring agent appeared first on The New Stack.

Received — 18 July 2026 ⏭ AI Infrastructure Archives - The New Stack

The bottleneck for AI agents isn’t the model anymore. It’s the context layer.

Abstract macro photograph of structured, wavy parallel ridges resembling organic layers, representing the complex context layer and infrastructure of AI agents.

There’s a pattern I’ve watched repeat for two years. A team builds an agent, hits reliability problems, upgrades the model, sees marginal improvement, and hits the same reliability problems in a slightly different form. The diagnosis is always the same: the model wasn’t smart enough. The fix is always to try a new, smarter model. The result is always the same: still broken. 

This isn’t a model problem. It never was.

Andrej Karpathy figured this out months ago, and in a post on X, he noted a shift in how he was spending his AI compute: “a large fraction of my recent token throughput is going less into manipulating code, and more into manipulating knowledge.” He wasn’t running a smarter model. He was building better infrastructure:  raw sources indexed into a directory, an LLM incrementally compiling them into a structured wiki with summaries, backlinks, and concept articles, tools handed to the agent as CLIs, outputs filed back into the base to enhance future queries. The model was constant. The infrastructure around it was the variable.

“This isn’t a model problem. It never was.”

I keep coming back to the framing. The model runs on context. The quality of execution depends on the quality of the context it receives, the precision of the actions it’s permitted to take, and the feedback loops that let the system learn from what it got wrong. None of that lives in the model. It lives in the infrastructure underneath. And it turns out, most teams haven’t built it.

The missing compile setup

Karpathy’s setup is built around one extra step. Raw data comes in. An LLM “compiles” it into a structured, queryable form. Then, agents operate over that compiled version with tools. That compilation step is where the work happens, and it’s what turns a mess of internal data into something an agent can reason over instead of guessing at.

Too many production agent systems still skip this step. They wire the model directly to raw data — databases, APIs, document stores — and expect it to compile at query time, within the context window, under latency pressure. What comes back is pattern-matched guesswork over a window full of noise.

The teams that got this right built the compilation step explicitly. Not a generic knowledge base: a structured representation of how their specific organization works. How things are named internally. What actual decision paths look like. What previous similar runs produced, and what was decided. The organizational equivalent of Karpathy’s wiki — built from operations, not from documentation.

This is harder to build than switching models and harder to maintain. It’s also the difference between an agent that operates in your organization’s actual reality and one that confidently operates in a hallucinated version of it.

The tool retrieval problem

Karpathy notes that once his wiki reached meaningful scale — around 100 articles and 400,000 words the system remained usable because the LLM maintained indexes and summaries, and because he began adding tools, including a small search engine exposed to the LLM over a CLI. The point is not that context disappears. It is that retrieval, indexing, and tool interfaces become part of the system you have to engineer.

Production agent systems hit this wall hard. Consider a mid-size engineering org: GitHub, Jira, Confluence, a handful of cloud providers, monitoring and alerting tools, a CI/CD platform, internal deployment tooling. Each integration is a family of tools with its own schema, naming conventions, and expected invocation patterns. Dropping all of that into a single context window is slow and expensive, and it produces poor tool selection. The model pattern-matches across noise.

Standard vector retrieval compounds the problem. It matches the semantic similarity between a user query and stored tool descriptions. It works when vocabulary aligns. It breaks when it doesn’t: a developer asks “why did the deploy fail,” the right tool is something like get_pipeline_run_logs, and the vector match between those two phrases is poor. The agent selects the plausible tool instead of the correct one.

The fix is to guess the answer first. Given the query, what would a working tool call look like? The system writes that hypothetical call, then matches against it instead of the raw question. “Why did the deploy fail” and “fetch pipeline logs” don’t look alike as text. But once you’re matching the shape of the right action instead of the words in the request, they line up.

This is a translation layer, from intent to action, and that translation is where most agent failures start. It’s an engineering problem, not a model problem. I’ve seen teams run this in production after watching vector retrieval fall apart at scale, and they say the same thing: switching from semantic similarity to hypothetical-invocation matching gave them more reliable tool selection than upgrading the model.

The guardrails gap

The capability-without-constraint failure mode shows up across contexts, and the pattern is consistent: an agent with broad tool access, executing correctly from its own perspective, takes an action nobody intended. Not because it hallucinated. Because the boundary between what it could do and what it should do wasn’t enforced.

Three cases illustrate the shape of the problem.

Start with GTG-1002, still the most detailed public account I’ve seen. In November 2025, Anthropic disclosed that a Chinese state-sponsored group had manipulated Claude Code in a cyber-espionage campaign against roughly 30 organizations, infiltrating in a few cases. Anthropic reported that AI did roughly 80-90% of the tactical work, with humans stepping in only at strategic decision points, and that, at peak, the AI was firing off thousands of requests, sometimes several a second. No human team could keep pace. This wasn’t a model-quality failure. It was a failure of execution boundaries. Once the attacker fragmented the work and slipped past the safeguards, the system could take high-risk actions faster than any human could supervise.

Prompt injection is a different vector, same structural failure. Researchers have repeatedly demonstrated agents executing injected instructions from content they retrieved:  a malicious payload in a web page or document that redirects the agent’s next tool call. The model does what the injected instruction says because nothing in the execution layer distinguishes “instruction from user” from “instruction found in retrieved content.” The agent is working correctly. The architecture isn’t.

The third pattern is quieter and more common: over-permissioned agents operating across multiple write-capable systems. An agent with access to a CRM, an email client, and a calendar does something unexpected — updates records, sends a draft, books a meeting — because a workflow reached a branch that wasn’t anticipated and there was no scoped permission model to prevent it. Nobody intended this. Nobody wrote a rule against it. The agent had access, so it acted.

“An agent with access to a CRM, an email client, and a calendar does something unexpected, because a workflow reached a branch that wasn’t anticipated and there was no scoped permission model to prevent it.”

What these have in common is that the model isn’t the failure point. The failure is the absence of an execution layer that defines, per action, what is permitted and enforces it regardless of what the model decides to do.

The architecture that addresses this intercepts every tool call before execution, masks sensitive data before the LLM processes it, blocks specific tool combinations at the execution layer rather than the prompt layer, enforces per-agent rate limits and role-based access, and generates a full audit trail with explicit reasoning for every invocation. Human checkpoints must be designed into high-stakes paths, and not as fallbacks, but as architecture.

We built our execution isolation layer at Mate around exactly this pattern. Every tool call gets validated, scoped, and logged before reaching the integration. The model never has direct write access to a downstream system;  it proposes actions to a layer that decides whether to execute them and at what scope.

Karpathy’s wiki points to the same discipline in miniature: health checks that find inconsistent data, impute missing fields, and suggest new connections. In an enterprise system, that linting layer needs permission boundaries. Some updates can be automatic; others should be routed to proposals, approvals, or review queues. The boundary between what an agent can change and what requires human judgment must be explicit.

What the engineering work actually looks like

The teams producing reliable production agents spend most of their engineering effort on infrastructure. I see four areas coming up again and again. 

The context graph first. Building and maintaining a compiled representation of org knowledge isn’t a one-time task. Schemas change. Systems get renamed. Personnel and processes shift. Teams that do this well treat the context graph as a product with an owner, an update cadence, and health checks, rather than a setup step that runs once at deploy time.

Observability second. Model-agnostic proxy layers are becoming standard: a single layer capturing full traces on every LLM call regardless of provider, enforcing per-tenant cost and rate limits, allowing model swaps without rearchitecting. Tracing for agents means capturing reasoning, not just requests: what the agent considered, which tool it selected and why, what came back, and what it did with the result. Without that, debugging is archaeology.

Continuous evaluation third. Per-agent, per-workflow datasets built from production traces rather than synthetic benchmarks. Two tracks: deterministic checks for things code can verify, like tool call correctness, rate limit compliance, scope violations, and model-as-judge for things it can’t, like reasoning coherence and response quality. When you promote a new prompt version or upgrade a model, you run it against real production data. The question isn’t “does it benchmark higher.” It’s “does it still work in this org’s actual context.”

Configuration management fourth. Prompt versions, model selections, and tool configurations need to be independently releasable and independently rollback-able. Changing which model an agent uses shouldn’t require a code deployment. Rolling back a prompt regression shouldn’t require an incident. The teams that figure this out early ship changes faster and break less. It’s the same ML engineering discipline that matured in recommendation systems five years ago, now applied to agent behavior, a practice most organizations are building from scratch.

The differentiator isn’t reasoning

Karpathy’s shift from manipulating code to manipulating knowledge describes where the hard work actually lives in agent systems. The model executes over context. How that context is structured, retrieved, and scoped determines the outcome. What constrains the model’s actions determines safety. What measures and improves the system determines reliability.

All of that is infrastructure. None of it is solved by a more capable model.

The model is commoditizing faster than most teams realize. The reasoning gap between major providers is narrow and narrowing. The infrastructure gap between teams that have built context plumbing and guardrails and teams that haven’t is wide and widening.

“The reasoning gap between major providers is narrow and narrowing. The infrastructure gap between teams that have built context plumbing and guardrails and teams that haven’t is wide and widening.”

A smarter model won’t help an agent that doesn’t know your organization. It won’t stop a prompt injection in a retrieved document. It won’t scope-limit an over-permissioned workflow. It won’t tell you that your tool retrieval accuracy dropped three weeks ago because someone renamed an integration.

The infrastructure does that. Build that first.

The post The bottleneck for AI agents isn’t the model anymore. It’s the context layer. appeared first on The New Stack.

Platform engineering’s new job: serving environments at agent speed

Abstract dark digital 3D render of a twisted, metallic ribbed infinity loop floating against a solid black background.

Platform engineering has won the argument. Some 90% of organizations have adopted at least one internal platform; golden paths are orthodoxy, and environment requests that once took days now close in hours. By the standard the discipline set for itself, that is victory.

Then the most demanding customer the platform has ever had showed up, and it is not a developer. A coding agent that wants to validate its work requests an environment the way a client calls an API: in bursts, concurrently, with a lifetime measured in minutes and an expectation measured in seconds.

A 100-developer organization in which each engineer supervises a few agent sessions per day generates hundreds of environment requests before lunch. Each request needs realistic dependencies, and each is dead weight the moment its validation finishes. That is not a ticket queue. That is traffic.

The most demanding tenant the platform has ever had

The demand is not speculative. GitHub’s Octoverse counted 43.2 million pull requests merged per month, up 23% year over year, with Copilot’s coding agent alone opening more than a million pull requests in its first five months. Every one of those changes needs somewhere realistic to run before it merges.

The tenant mix is shifting underneath those numbers. Stack Overflow’s 2025 survey found that half of professional developers already use AI tools daily, and every daily user is a candidate to operate two, three, or five concurrent agent sessions. Environment demand no longer tracks headcount. It tracks headcount multiplied by agents multiplied by iterations.

“Coding agents turned environment requests into traffic: concurrent, short-lived, and relentless. The platform teams that keep up will be the ones that stop provisioning environments and start serving them.”

Platform teams can see what is coming. The latest State of Platform Engineering report found that 94% of organizations consider AI critical to platform engineering’s future, and its central theme is the shift from cloud-native platforms to AI-native ones.

What changed is not only the volume but also the shape. Human environment demand is diurnal, negotiable, and tolerant of a morning’s delay. Agents retry, fan out, and iterate in tight loops, and demand that the shape already has a name across the platform. The name is traffic.

Duplicate everything, and the cost curve kills you

The duplication model hands every request a full copy of the stack. Price one out: a 40-service system with its databases and queues costs a few dollars an hour per copy, takes tens of minutes to assemble, and sits mostly idle during the brief window of validation it exists to support.

Multiply by concurrency, and the model collapses. Hundreds of requests a day with modest overlap means dozens of full copies running at once, and a bill that scales linearly with agent activity. The latency is wrong by an order of magnitude too, because an agent that iterates in seconds cannot wait tens of minutes for its environment to arrive.

Pre-provisioning a warm pool does not rescue the model; it only moves the waste. Agent demand is bursty, so a pool sized for the peak idles through the trough, and a pool sized for the trough queues at the peak. Paying full-copy prices for capacity you mostly do not use is the definition of the wrong cost curve.

Share everything, and the queue kills you

The shared model runs one staging environment and admits tenants in turn. Queueing theory has described this failure mode since 1961. Little’s law says the number of requests in a system equals the arrival rate multiplied by time in the system, so as arrivals approach the rate the environment can absorb, wait times stop degrading gracefully and start exploding. Agents multiply the number of arrivals by 5-10 while the completion rate remains fixed.

Shared staging also fails on isolation. One broken change contaminates the environment for every tenant behind it, so the line does not merely lengthen; it periodically resets to zero while someone hunts down the offending commit.

Teams respond to the wait the way people always respond to a slow shared resource, by batching. Changes pile into larger deployments, making each trip through the environment count, which raises the blast radius of every failure and lengthens each occupancy. The queue teaches exactly the behavior that makes the queue worse.

Both models sit at the wrong ends of the same curve, paying full cost for full isolation or zero marginal cost for zero isolation. Neither is a point from which you can operate a serving system.

Chart showing the "marginal cost per environment" request against "isolation between changes."

Environments are a serving system now

The mental model that fits this demand curve already exists inside every platform team. It is the one used for compute. A serving system is judged on latency, concurrency, marginal cost per request, and safe multi-tenancy on shared infrastructure, and those are exactly the four requirements agent-driven demand imposes on environments. A serving system is also something its clients invoke directly, through an interface rather than a person, which is the property that matters most once those clients are agents.

Renaming the problem matters because it changes who owns it and how it gets measured. A provisioning workflow is done when the environment exists. A serving system is never done. It has dashboards, capacity plans, and error budgets, and it is expected to absorb demand spikes without a human in the loop.

“The unit of work ceases to be a ticket and becomes a request. The latency target drops from hours to seconds.”

The mindset gap shows up on every operational dimension. The unit of work ceases to be a ticket and becomes a request. The latency target drops from hours to seconds. The success metric shifts from closed tickets to p99 latency at peak concurrency.

Table comparing the characteristics of a provisioning mindset against a serving mindset.

Serve the delta, not the whole stack

One architecture meets all four serving requirements by refusing to copy anything that has not changed. Run a single high-fidelity, stable copy of the system, deployed continuously from main. When a validation request arrives, deploy only the services that changed as lightweight, ephemeral environments, and route that request’s traffic through their own versions, while everything else falls through to the shared, stable environment.

Each serving property follows from the delta. Latency lands in seconds because starting one or two services is fast. Marginal cost approaches zero because tenants share the stable environment. Concurrency is bounded by cluster capacity rather than by environment count, and isolation holds because each request sees only its own changed services, not anyone else’s.

Fidelity is not the thing you give up. A full duplicate is faithful, which is exactly why teams build one, and also why it is slow and costly to stand up and prone to drift between refreshes. Sharing one stable copy that is continuously deployed from main gives every validation request the same real, current dependencies without reproducing them per request.

Routing is the implementation detail rather than the point. Service meshes can carry the routing label, sidecar-free approaches can too, and propagating a label through a call chain is a solved problem in most modern stacks. This is the pattern Signadot enables off-the-shelf.

Agents provision their own environments

An environment that arrives in seconds and costs almost nothing is not only fast enough to keep up with agents. It is cheap and fast enough for them to operate. When requesting one is an API call rather than a ticket, provisioning becomes a step within the agent’s own loop: ask for an environment, deploy the change to it, run the checks, read the result, tear it down, and repeat in the next iteration.

Both properties are what make that possible. A workflow measured in minutes and gated on human approval can never fit within a build-test-fix cycle, because the agent would spend its run waiting in a queue it cannot influence. Near-zero marginal cost makes a discarded environment a non-event, and seconds of latency lets validation live inside the loop instead of after it. Once the environment is something an agent requests for itself, the human stops being the rate limiter, and the platform’s serving capacity takes over.

Validation throughput is what ships AI code

Agents made generation cheap and pushed the bottleneck downstream, onto whether a change can be validated as fast as it is written. Validation throughput, not lines generated, now decides how much AI-written code actually ships, and it is a property of your platform rather than any model.

“Validation throughput, not lines generated, now decides how much AI-written code actually ships.”

Treat environments as a serving system, and environment capacity becomes a dimension you plan and budget like compute or continuous integration (CI) runners. This turns agent adoption from a surprise infrastructure bill into a demand curve you can plan against. For a decade, platform engineering built self-service golden paths for people. 

The next job is self-service for developers and agents that can scale with agent-driven velocity, and we built Signadot for exactly that.

The post Platform engineering’s new job: serving environments at agent speed appeared first on The New Stack.

Received — 17 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Arm and Google offer a smarter option to run agentic AI workloads

Warp speed light streaks radiating outward on blue background

As enterprise leaders start deploying agentic workflows, they must establish the infrastructure to build and run them, one capable of fluidly routing a diverse set of workloads across the most efficient compute resources.

This requires the ability to manage heterogeneous infrastructure, utilizing high-performance accelerators for large-scale training and inference, and utilizing CPUs for the critical orchestration layer of agentic AI. As autonomous agents become more prevalent, CPUs are ideally suited for managing agent state, semantic routing, tool selection, and spinning up secure, isolated sandboxes to safely execute untrusted generated code.

The Google Axion advantage

Google Cloud, with its workload-optimized Compute Engine portfolio, which includes general-purpose and specialized offerings, shines in addressing this need.

Google Axion processors within this portfolio comprise a family of custom Arm processors engineered for performance, efficiency, and versatility, with a feature set that supports general-purpose workloads, CPU-based AI workloads, and other specialized tasks requiring Arm-native compatibility and direct hardware access.

Axion is Google’s first custom Arm-based server CPU, introduced in April 2024. It is designed specifically for hyperscale cloud and AI-era data center workloads. 

Axion also leverages more than a decade of Google’s custom silicon innovation. This enables Google to more readily incorporate customer feedback into chip designs and address the more general, though complex, needs of CPUs. 

Matching workload type to the processor

Bhumik Patel, Director of Software Ecosystem Development at Arm, says the key to all of this is to match the workload type as closely as possible to computing capacity. CPU-powered cloud instances are a practical option for certain AI workloads, particularly those with smaller datasets or less complex models. 

“Agentic tasks such as orchestrating, talking to APIs, and memory management are all ones CPUs are good at, so it’s a distributed and concurrent AI workload,” Patel tells The New Stack. Intelligent workload-processing apportionment makes agentic AI more cost-effective and efficient than running all workloads on a single compute type.

This efficiency is quantifiable. The Google Kubernetes Engine Agent Sandbox running on Google Axion N4A provides up to 30% better price performance than the next hyperscale cloud provider, says Google’s Mo Farhat, Axion Group Product Manager. The GKE Sandbox is an open-source Kubernetes-native primitive designed to execute untrusted AI-generated code safely. 

“Agentic tasks such as orchestrating, talking to APIs, and memory management are all ones CPUs are good at, so it’s a distributed and concurrent AI workload.”

Intelligent workload decoupling makes agentic AI significantly more cost-effective. Google Cloud’s fluid computing foundation enables engineering teams to reserve specialized accelerators strictly for heavy reasoning and generative workloads, while leveraging Axion CPUs for high-concurrency orchestration and context management.

Secure execution with the GKE Agent Sandbox

As agents begin to generate and execute dynamic code autonomously, security is non-negotiable. Running AI-generated code directly in a standard cluster poses severe security risks, as untrusted code could potentially access other apps or the underlying cluster node.

The Google Kubernetes Engine (GKE) Agent Sandbox resolves this by providing an isolated environment for safely executing untrusted code. Running on Axion-powered N4A instances, the sandbox provides up to 30% better price performance than comparable workloads on other hyperscalers.

The vertical stack isolates sensitive tasks at the kernel level with sub-second latency.

The vertical stack isolates sensitive tasks at the kernel level with sub-second latency.  GKE Agent Sandbox natively supports gVisor (an open-source application kernel developed by Google that acts as a secure sandbox for containers) and default-deny Kubernetes network policy. Agent Sandbox provides pluggable interfaces for open-source sandboxes, such as Kata Containers, enabling users to customize their kernel isolation. 

Powered by gVisor technologies with software support from Arm’s architecture, the sandboxes intercept and validate system calls before they reach the host kernel. These isolated execution environments enable deployment of autonomous systems at scale without sacrificing performance or operational agility.

To manage resources efficiently when agents sit idle, GKE Pod snapshots allow users to save and restore the exact process state of sandboxed environments. This functionality provides four major architectural benefits:

  • Fast startup: Reduces sandbox startup time by restoring from a pre-warmed snapshot rather than initializing from scratch.
  • Long-running agents: Pauses sandboxes that take a long time to run and resumes them later—or moves them across nodes—without losing progress.
  • Stateful workloads: Persist an agent’s context, such as conversation history or intermediate calculations.
  • Reproducibility: Captures a specific state to use as a baseline for spinning up multiple new sandboxes.

Getting started

As token generation, autonomous workflows, and continuous agent interactions grow exponentially, relying exclusively on accelerator-backed stacks for every task will become financially and architecturally unsustainable.

The combination of CPU and accelerator execution accounts for bursts in agent activity and unpredictable demand spikes by eliminating the inference tax. Google Cloud’s full-stack advantage enables organizations to deploy the right machine for the job. 

By using Google Axion and GKE Agent Sandbox, builders can optimize total cost of ownership and security while maintaining the performance required for AI agents.

Learn more about Google Axion.

The post Arm and Google offer a smarter option to run agentic AI workloads appeared first on The New Stack.

Received — 16 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Why smarter AI caching sometimes makes everything slower

Abstract 3D digital render of geometric concrete blocks and glowing red and cyan glass cubes, symbolizing complex AI database caching layers and infrastructure latency.

Caching was one of the most critical optimizations in modern AI systems long before most teams realized it. Early prototypes of Retrieval-Augmented Generation (RAG) pipelines, AI copilots, and semantic search platforms often performed perfectly on small datasets and with limited traffic. 

But as soon as real production workloads arrived, tail latency, compounding infrastructure costs, and repeated retrieval operations started becoming impossible to ignore.

Our first instinct was that it was an easy fix. Redis would solve this effortlessly.

It was fast, simple, tested, and already trusted in high-scale systems for session storage, API caching, and rate limiting. Exact-match prompt caching dramatically reduced response times, allowing many repeated AI requests to be served in milliseconds without touching the expensive retrieval or inference layers again. For a while, Redis proved us right and solved almost every performance problem we had.

Until our workloads changed.

Traditional string-matching caches break down the moment your infrastructure becomes semantic. Human language variation means two users will ask for the exact same information using completely different wording. 

“Traditional string-matching caches break down the moment your infrastructure becomes semantic.”

Because Redis relies on exact string matches, it misses those connections entirely, creating duplicate, fragmented cache entries for identical intents. Before long, our hit rates tanked, memory utilization spiked, and we were stuck with a massive cloud bill for storing redundant data contexts.

That was when semantic caching via vector databases started to look attractive. On paper, it seemed like the perfect architectural evolution: match queries based on vector-distance math so that varied prompts could reuse old embeddings, context chunks, or past LLM answers.

Of course, production reality was far messier than the hype suggested. Vector database caching introduced its own set of problems: latency spikes, false-positive matches, embedding drift, operational complexity, and difficult tuning decisions around similarity thresholds. In some workloads, semantic caching significantly improved performance. In others, it became slower and more expensive than the Redis setup it was supposed to replace.

“Of course, production reality was far messier than the hype suggested.”

What we eventually learned is that Redis and vector databases solve fundamentally different caching problems. One optimizes exact retrieval speed. The other optimizes semantic reuse. Treating them as interchangeable technologies led to architectural mistakes that only became apparent under real production traffic.

The AI architecture we started with

Before the caching problems started appearing, our AI stack looked fairly standard for a modern Retrieval-Augmented Generation (RAG) system. The pipeline was designed around three major stages: embedding generation, document retrieval, and LLM inference.

A user query first entered the API layer, where preprocessing handled normalization, authentication, rate limiting, and conversation context assembly. Once the request was validated, the query was converted into an embedding vector using an embedding model. That vector was then used to retrieve semantically relevant chunks from a vector database before the final context was passed into the language model for response generation.

The simplified request flow looked like this:

  • User sends a query
  • Query is embedded into a vector
  • Vector search retrieves relevant documents
  • Retrieved context is assembled into a prompt
  • LLM generates the final response
  • Response is optionally cached

On a small scale, this worked perfectly. The real headaches started when traffic scaled and we noticed the exact same database queries and heavy inference workloads hitting us thousands of times an hour.

One of the first optimizations we introduced was Redis-based caching

The initial idea was straightforward: avoid recomputing expensive operations for repeated requests. We started by caching exact prompt-response pairs, embedding results, and frequently accessed retrieval outputs. 

Because Redis operates entirely in memory, lookup times were rapid, immediately reducing pressure on both the vector database and the LLM layer.

A simplified Redis caching flow looked like this:

const cacheKey = `llm_cache:${hash(userQuery)}`;

try {
const cachedResponse = await redis.get(cacheKey);
if (cachedResponse) {
return JSON.parse(cachedResponse);
}
} catch (cacheError) {
console.warn("Cache read failed, falling back to LLM:", cacheError);
}

const embedding = await generateEmbedding(userQuery);
const documents = await vectorSearch(embedding);
const response = await generateLLMResponse(documents);

try {
await redis.set(cacheKey, JSON.stringify(response), "EX", 3600);
} catch (cacheError) {
console.error("Failed to write response to cache:", cacheError);
}

return response;

The immediate results were excellent: near-instant response times for duplicate prompts, reduced API costs, and stable infrastructure that handled high traffic without requiring aggressive LLM scale-out. If a query matched an existing keyword-for-word, we skipped the entire expensive AI pipeline and served the answer straight from memory.

Why Redis looked like the perfect solution

Unlike vector indexes, Redis gave us clean, predictable metrics for memory usage, throughput, and latency characteristics under load. There were no similarity thresholds to configure, no ANN indexes to optimize, and no recall-versus-latency trade-offs to worry about. A cache key either existed or it didn’t. That predictability made the system easier to reason about during incidents and easier to scale under pressure.

We initially used Redis across multiple layers of the AI pipeline, including prompt-response caching, embedding caching, session state storage, rate limiting, temporary conversation memory, and caching frequently accessed retrieval outputs.

const cacheKey = `prompt:${hash(query)}`;
try {
const cached = await redis.get(cacheKey);
if (cached) {
return JSON.parse(cached);
}
} catch (cacheError) {
console.warn("Cache read or parse failed, bypassing cache:", cacheError);
}

We also started caching embeddings because generating embeddings became surprisingly expensive at scale. Even though embeddings were much cheaper than LLM inference, generating them repeatedly for popular queries still consumed a noticeable amount of compute resources.

const embeddingKey = `embedding:${hash(query)}`;
let embedding;

try {
const cachedEmbedding = await redis.get(embeddingKey);
if (cachedEmbedding) {
embedding = JSON.parse(cachedEmbedding);
}
} catch (cacheError) {
console.warn("Redis read failed, proceeding to generate new embedding:", cacheError);
}

if (!embedding) {
embedding = await createEmbedding(query);

try {
await redis.set(
embeddingKey,
JSON.stringify(embedding),
"EX",
86400
);
} catch (cacheError) {
console.error("Failed to write embedding to Redis:", cacheError);
}
}

As an added bonus, scaling horizontally with Redis clusters is a familiar process for most infrastructure teams. For a while, Redis significantly reduced both latency and infrastructure costs. Cache hit rates were high, GPU workloads dropped, and the vector database handled far fewer retrieval requests.

The architecture looked efficient enough that we initially believed Redis alone would resolve most of our AI caching challenges. That belief did not survive real semantic workloads for very long.

The problem was that AI workloads rarely behave like traditional web workloads for long. Users almost never ask the same question repeatedly. Instead, they ask semantically similar questions with slightly different wording, tone, or context. From Redis’ perspective, these were entirely different cache keys, even when the retrieval results and final answers were nearly identical. That limitation eventually pushed us toward semantic caching using vector databases.

Why we moved toward vector DB caching

Unlike Redis, vector databases do not rely on exact string matching. Instead, they compare numerical embeddings that represent the semantic meaning of text. This made it possible to retrieve cached results for prompts that were semantically similar, even when the wording was completely different.

Instead of hashing the raw prompt into a Redis key, we would generate an embedding for the incoming query and search for previously cached embeddings that were semantically close enough to reuse. If a sufficiently similar match existed, the system could skip large parts of the retrieval or inference pipeline.

The caching flow looked like this:

const embeddingKey = `embedding:${hash(query.toLowerCase().trim())}`;
const cachedString = await redis.get(embeddingKey);
let embedding;

if (cachedString) {
// Parse the stored string back into a workable array
embedding = JSON.parse(cachedString);
} else {
embedding = await createEmbedding(query);
await redis.set(
embeddingKey,
JSON.stringify(embedding),
"EX",
86400
);
}

This approach immediately solved one of Redis’ biggest weaknesses: wording variation. Queries that previously produced separate Redis entries could now reuse cached retrievals or responses if their embeddings were sufficiently close in vector space. This meant significantly higher cache hit rates for real conversational workloads.

The payoff from semantic caching was immediate, especially for conversational traffic where users ask the same question ten different ways. A string-matching setup like Redis misses completely if a user changes a single word. With a vector database, prompts like “How can I speed up vector search?” and “Best ways to optimize semantic retrieval performance?” resolve to the same underlying intent, allowing us to recycle the same cached response, context chunks, or embeddings seamlessly.

We also saw potential cost reductions beyond response caching alone. Embedding reuse became more effective because semantically similar prompts often generated nearly identical retrieval behavior. Retrieval outputs themselves could also be reused across related queries, reducing load on the vector search layer and decreasing the number of repeated context assembly operations.

Semantic caching appeared especially promising for RAG systems, AI copilots, internal knowledge assistants, search-heavy AI applications, and conversational agents with repeated intent patterns because these workloads frequently involve semantically similar queries that can benefit from intelligent cache reuse.

At first, the results were promising. Semantic caching immediately optimized our hit rates and reduced redundant retrieval calls across varied prompts. However, scaling this layout under full production traffic quickly exposed a brand new category of latency and performance constraints.

Where vector DBs started breaking

The advantages of semantic caching were real, but so were the new problems it introduced. As traffic increased and vector indexes grew larger, the system began to develop issues that were harder to predict and debug than the Redis problems we had dealt with earlier.

The first major issue was latency instability. Unlike Redis, which provided highly predictable exact-match lookups, vector similarity search performance degraded unpredictably under load, query complexity, metadata filters, and concurrency levels. Under heavy workloads, some semantic cache lookups became significantly slower than expected, especially when the system searched across millions of embeddings.

A typical semantic lookup now involves multiple operations:

  • Generating an embedding
  • Running ANN similarity search
  • Evaluating similarity thresholds
  • Retrieving metadata and cached responses

Even before LLM inference occurred, the cache layer itself was becoming computationally expensive.

False-positive matches also became a serious problem. Two prompts could appear semantically similar in vector space yet require very different responses in practice. This occasionally caused cached responses to be reused in contexts where they were only partially relevant or subtly incorrect. For context, a query about optimizing vector search for low-latency chat applications might accidentally reuse cached retrievals intended for large-scale offline analytics systems simply because the embeddings appeared highly similar.

The hardest part was tuning similarity thresholds correctly.

const SIMILARITY_THRESHOLD = parseFloat(process.env.CACHE_SIMILARITY_THRESHOLD || "0.93");
const cacheKey = `llm_cache:${hash(userQuery)}`;

try {
const cachedResponse = await redis.get(cacheKey);
if (cachedResponse) {
return JSON.parse(cachedResponse);
}
} catch (cacheError) {
console.warn("Cache read failed, falling back to semantic search:", cacheError);
}

const embedding = await createEmbedding(userQuery);

const result = await vectorIndex.query({
vector: embedding,
topK: 3,
});

if (result.matches &amp;&amp; result.matches.length > 0) {
const bestMatch = result.matches[0];

if (bestMatch.score >= SIMILARITY_THRESHOLD) {
return bestMatch.metadata?.cachedResponse ?? bestMatch.cachedResponse;
}
}

const response = await generateLLMResponse(result.matches);

try {
await redis.set(cacheKey, JSON.stringify(response), "EX", 3600);
} catch (cacheError) {
console.error("Failed to write response to cache:", cacheError);
}

return response;

Another benefit was the reduction of repeated embedding and retrieval workloads. Since semantically related prompts often produced highly similar retrieval patterns, the infrastructure handled fewer redundant searches overall. This became especially valuable under high concurrency, where reducing repeated vector searches significantly lowered infrastructure load.

Semantic caching also improved the user experience in some scenarios. Similar prompts tended to receive more consistent responses because they reused previously validated retrieval contexts rather than generating entirely fresh retrieval paths every time.

For a while, vector database caching looked like the clear evolution of AI caching systems. The architecture appeared smarter, more adaptive, and better aligned with how humans naturally communicate.

But the more we pushed into production, the more we started discovering the hidden costs of semantic similarity itself. Finding a stable similarity threshold proved incredibly fragile. Low thresholds maximized cache hits at the expense of precision, while tight thresholds neutralized false positives but destroyed cache utility. This sensitivity turned threshold management into a major operational bottleneck, directly impacting downstream inference costs and system accuracy.

if (match.score >= 0.90) {
return match.cachedResponse;
}

Embedding drift introduced another long-term challenge. As embedding models changed over time, older cached vectors gradually became less compatible with newer embeddings. Semantic relationships shifted, reducing retrieval accuracy and forcing expensive re-indexing operations across the cache layer.

Operational complexity also increased substantially compared to Redis. Maintaining vector indexes required tuning ANN algorithms, balancing shards, handling index rebuilds, and monitoring recall accuracy as workloads changed. The infrastructure became harder to reason about because semantic correctness was no longer deterministic.

We also discovered that semantic caching consumed resources differently than traditional caching systems. Even cache hits still required embedding generation and vector search operations before matches could be identified. Unlike Redis, where a successful lookup was nearly free, semantic cache hits still carried noticeable computational overhead.

In production, the system began to reveal an uncomfortable reality. Semantic caching solved the exact-match problem, but it introduced an entirely new category of latency, accuracy, and operational challenges that traditional caching systems rarely encounter.

Redis vs Vector DB: The real production trade-offs

Once both systems had been running in production long enough, the comparison between Redis and vector database caching became much clearer. Neither technology was universally better. Each one is optimized for a completely different type of workload, and the real trade-offs only become visible under large-scale AI traffic.

Redis dominated in raw speed and predictability. Exact-match lookups were extremely fast, operationally simple, and relatively easy to scale. If a query had already been seen before in the exact same form, Redis almost always delivered the lowest possible latency. Cache hits are often completed in milliseconds with minimal computational overhead.

Operationally, Redis was also easier to maintain. Debugging cache misses was straightforward because the behavior was deterministic. A cache key either existed or it did not. Infrastructure teams already understood replication, sharding, persistence, and monitoring strategies because Redis has been battle-tested for years across traditional distributed systems.

Its weakness was semantic rigidity. Humans don’t write identical strings. If someone adds a typo or changes a single word, Redis drops the ball and treats it as a brand-new cache entry. Vector databases fixed that exact-match rigidity by letting us cache responses based on meaning. On paper, it’s a dream for RAG pipelines and copilots. In production, though, you realize you’re just paying a different tax. Vector lookups have actual computational weight. Unlike Redis, where an O(1) RAM read takes single-digit milliseconds, checking a semantic cache means you’re stuck waiting on an embedding model call and a graph traversal step just to see if you have a match.

“Unlike Redis, where an O(1) RAM read takes single-digit milliseconds, checking a semantic cache means you’re stuck waiting on an embedding model call and a graph traversal step.”

Worse, you lose determinism. With Redis, a key is either there or it isn’t. A vector cache forces you to manage a fuzzy threshold where the system occasionally treats two completely distinct user intents as “similar enough,” blindly serving bad data. Our infrastructure bill transformed too: we went from a system that was heavily memory-bound on RAM to one that aggressively chewed through compute just to optimize and search indexes.

The hybrid architecture that finally worked

After months of experimenting with both systems independently, we eventually stopped trying to choose between them and began using Redis and vector databases as complementary layers rather than competing technologies.

The final architecture used a multi-layer caching strategy. Redis handled ultra-fast exact-match caching for highly repetitive requests, session state, temporary conversation memory, and hot-path retrievals. The vector database handled semantic reuse for prompts that were conceptually similar but not textually identical.

The request flow became layered. The system first checked Redis for an exact-match cache hit, and if that failed, it moved on to a semantic vector cache lookup. If the semantic lookup also missed, the request proceeded through the full pipeline of retrieval and inference, after which the resulting output was stored back into both cache layers where appropriate.

A simplified hybrid flow looked like this:

try {
const exactCached = await redis.get(cacheKey);
if (exactCached) {
return JSON.parse(exactCached);
}
} catch (cacheError) {
console.warn("Redis read failed, proceeding to semantic search:", cacheError);
}

const embedding = await createEmbedding(query);
const semanticMatch = await vectorIndex.query({
vector: embedding,
topK: 1,
});
const SIMILARITY_THRESHOLD = parseFloat(process.env.SEMANTIC_CACHE_THRESHOLD || "0.93");

const bestMatch = semanticMatch.matches[0];

if (bestMatch?.score >= SIMILARITY_THRESHOLD) {
  return bestMatch.metadata?.response;
}


const response = await generateLLMResponse(query);
try {
await redis.set(cacheKey, JSON.stringify(response), "EX", 3600);
} catch (cacheError) {
console.error("Failed to write exact match to Redis:", cacheError);
}
await vectorIndex.upsert([
{
id: crypto.randomUUID(), // Most vector DBs require a unique ID
vector: embedding,
metadata: {
response,
},
},
]);
} catch (vectorError) {
console.error("Failed to upsert semantic cache to vector index:", vectorError);
}
return response;

This hybrid approach solved several problems simultaneously. Redis continued to handle the lowest-latency exact cache hits, protecting the infrastructure during traffic spikes and repetitive workloads. The vector cache improved semantic reuse without forcing every request through expensive ANN searches unnecessarily.

The layered design also improved reliability. Even if vector search latency increased temporarily, Redis still absorbed a large share of repeated traffic. Likewise, if exact-match cache hit rates dropped, semantic caching still recovered some of the lost reuse efficiency.

The architecture became easier to optimize because each layer had a clearly defined responsibility: Redis optimized speed, the vector database optimized semantic understanding, and the inference layer handled only true cache misses.

Over time, we also became more selective about what entered the semantic cache. Not every response benefited from semantic reuse, especially highly dynamic or context-sensitive outputs. Restricting semantic caching to stable retrieval patterns improved both precision and infrastructure efficiency.

Production lessons we learned

The biggest lesson was that AI caching behaves fundamentally differently from traditional application caching. Human language introduces semantic variation that exact-match systems struggle with, but semantic systems introduce probabilistic complexity that exact-match systems avoid.

In production, we learned that Redis and vector databases are not competing solutions but tools optimized for different layers of AI caching. Redis excels at fast, deterministic exact-match retrievals, while vector databases are better suited for semantic reuse in variable, intent-driven workloads. The most stable systems are not built on choosing one over the other, but on combining both in a layered architecture that matches the nature of AI traffic.

Ultimately, there is no “best” caching system for AI workloads. Redis and vector databases solve fundamentally different problems, and treating them as interchangeable leads to architectural inefficiencies at scale. 

Redis delivers speed and predictability for exact-match scenarios, while vector DB caching enables semantic reuse where user intent matters more than exact wording. In real production systems, the most reliable approach is not replacement but combination.

The post Why smarter AI caching sometimes makes everything slower appeared first on The New Stack.

Received — 15 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Kubernetes won the container decade. Google’s Agent Substrate wants the next one.

Abstract blurred glowing shapes in pink, yellow, and blue on black background

Google made GKE Agent Sandbox generally available in May 2026 and, in the same post, introduced a second project called Agent Substrate. These two announcements concede a point that Kubernetes veterans have been reluctant to call out.

That indirect admission is that the platform that won the container decade is not the right control plane for AI agents. Agent Sandbox provides agents with a secure environment to run untrusted code. Agent Substrate adds a scheduling layer that routes around the Kubernetes control plane because the API server was never designed for how agents behave.

Compare agents to processes in an operating system rather than services in a data center, and the mismatch is obvious. A modern OS runs thousands of processes that spend most of their life asleep. It wakes each one on an event, hands it a slice of a CPU, then pages its idle memory out to disk to make room for the next. Agents behave almost exactly like those processes. Kubernetes was originally created to manage a fixed set of long-running, replicated services. This fundamental design explains why much of the agent infrastructure now runs on Kubernetes rather than being integrated into it as one of the workloads, such as a Deployment or a StatefulSet.

What an agent actually is as a workload

An agent is a long-running, stateful session that stays idle for most of its life, wakes to execute a burst of code, then goes quiet again. The code it runs is generated by a model at runtime. The host has to treat it as untrusted by default. Each session needs a stable identity, the ability to pause and resume without losing memory, and hard isolation from its neighbors.

Think of the agent as a process in a time-sharing OS. Just as the scheduler suspends a sleeping process and restores it the moment a keystroke arrives, an agent runtime must hibernate an idle session and restore it with its working memory intact. The wake path is where the user is waiting, so every millisecond on it is felt.

Consider a coding agent that a developer leaves open across an afternoon. It runs for ten seconds when a prompt lands, then waits twenty minutes for the next one. Multiply that by every developer on a team, and you have thousands of sessions that are alive on paper and asleep in practice.

The hyperscalers have already moved in this direction. The session-aware, isolated runtime for agents has now become the fourth compute offering in addition to virtual machines, containers, and serverless.

Sessions that sleep for hours

Agent sessions are bursty in a way web services never are. Holding a full Pod for each idle session wastes the memory and CPU that the Pod reserves, which is why the emerging runtimes snapshot idle sessions out of compute entirely.

Code the platform did not write

Because a model writes the code an agent executes, the runtime cannot assume the workload is well-behaved. It must be able to run a process capable of performing any action, which moves isolation responsibilities from the container boundary to the kernel boundary.

State that has to survive a nap

An agent that loses its context each time it suspends becomes unusable. So, the runtime must save its volatile RAM and filesystem state during hibernation and restore them upon resuming.

Why the Kubernetes control plane sits in the wrong place

Kubernetes schedules work through a central API server and a scheduler designed for a modest number of long-lived Pods. That design assumes placement decisions are rare and durable. Agents violate the assumption by generating a constant stream of fine-grained scheduling events, making the control plane the bottleneck rather than the referee.

The scheduling policies are the first to be strained. Researchers studying agent scheduling have documented that the round-robin and random placement strategies common in Kubernetes clusters work well when requests are short and arrival rates are high, because a bad decision is amortized quickly. Agent requests run longer and arrive less often, so a poor routing choice lingers, amplifying tail latency for the user stuck behind it.

The second pressure point is the API server itself. Storing every agent, active or idle, as a Kubernetes object would mean millions of resources in a system never sized for that many. Agent Substrate’s own architecture notes are blunt about this, acknowledging that there is no clever way to make the standard control plane hold that many objects, so the runtime keeps most agents out of it. Routing takes a similar detour, with a dedicated networking layer that sends each request straight to the correct session and wakes it if it is asleep.

Kubernetes is a fine data center scheduler, and it stays useful for provisioning the machines underneath. It is the wrong scheduler for a workload that looks like a swarm of sleeping processes.

Agent Sandbox, a secure box for untrusted code

Agent Sandbox is the layer that answers the isolation problem. It is an open-source execution environment built on Kubernetes that gives each agent a hardened place to run model-generated code, and Google moved it to general availability after roughly 16x growth in GKE sandboxes in under five months.

The mental model is a jail rather than a container. A normal container shares the host kernel and trusts the workload to stay in its lane, whereas a sandbox assumes the workload is hostile and puts a real boundary around it. Agent Sandbox reaches that boundary through gVisor by default, adds a default-deny network policy, and exposes a pluggable interface so teams can swap in Kata Containers for full kernel isolation.

Customers such as LangChain and Lovable are already running millions of agents on it, which is what forced the performance work. The result is a runtime that treats security and speed as the same problem rather than opposing ones.

Warm pools for the cold-start problem

Spinning up a fresh sandbox per request would add seconds of latency, so Agent Sandbox keeps a warm pool of pre-provisioned replicas. Google reports the API can allocate 300 sandboxes per second per cluster, with 90 percent of allocations finishing in 200 milliseconds.

Pod snapshots for idle sessions

Idle agents are suspended via Pod snapshots and resumed on demand in seconds, freeing the underlying compute rather than paying to keep a sleeping session resident.

Kernel isolation as the default

The isolation is not an add-on for the paranoid. gVisor and network lockdown ship as the baseline, on the assumption that any agent might run something it should not.

Agent Substrate, a runtime for millions of mostly-idle agents

If Agent Sandbox is the secure box, Agent Substrate is the runtime that decides which agent runs where. It reuses the secure runtime and snapshotting from Agent Sandbox and pairs them with a small, focused control plane that sits alongside a Kubernetes cluster, taking the standard control plane off the critical path.

The trick is virtual memory overcommit applied to compute. An OS lets programs address far more memory than the machine physically holds by paging cold pages to disk. Agent Substrate does the same with sessions, multiplexing a large registry of stateful actors onto a much smaller pool of pre-warmed worker Pods and snapshotting the idle ones out to storage. The project reports 30x or more oversubscription with sub-second activation, because the worker Pods are already running when an event arrives and never wait on the Kubernetes scheduler.

The developer-facing shape consists of two custom resources, a WorkerPool that defines the ready compute, and an ActorTemplate that defines the agents. Substrate is framework-agnostic, running ADK, LangChain, Claude Code, or any OCI container as an actor, which is what lets it host full agent harnesses rather than single agents.

A control plane beside Kubernetes, not inside it

Substrate does not replace Kubernetes. It uses Pods and autoscaling for provisioning and layers its own scheduler on top for the agent-specific decisions Kubernetes handles poorly.

The path to production through kagent

Solo.io has already wired Substrate into kagent, its Kubernetes-native agent platform, exposing Agent Substrate as a selectable runtime so an OpenClaw-style harness can be scheduled as an actor onto a worker pool from a single UI.

Choosing where your agents run

The two projects are not competitors, and neither replaces the cluster underneath. The decision is about which layer owns which job, and most real deployments will use all three together.

RequirementRecommended layerRationale
Running untrusted model-generated code safelyAgent SandboxKernel isolation via gVisor, though it adds overhead
Millions of idle sessions on limited hardwareAgent SubstrateActor multiplexing trades some cold-path latency for density
Provisioning machines and long-lived servicesKubernetesProven at scale, but not tuned for bursty agents
A production agent platform with a UIkagent on SubstratePackages the runtime, still early and evolving

In practice, most teams will not pick just one of these. A team running coding agents at scale is likely to sandbox the code, schedule it through Substrate, and let Kubernetes provision the nodes beneath both.

What this means to the Cloud Native ecosystem

Anyone who has managed a busy cluster will easily recognize this pattern. The agent is a process, the worker pool is a set of CPU cores, snapshotting an idle session is paging memory to disk, and oversubscription is the same bet virtual memory has always made. Kubernetes remains the underlying machine, and the layer that schedules agents is being rebuilt on top of it to better match how agents actually run.

The open question is who owns that layer. Agent Substrate is a first look rather than a finished product; kagent is early, and rival runtimes will arrive as the cost of idle agents becomes a line item that platform teams can no longer ignore. The next thing worth watching is whether this agent control plane consolidates around a single open project, the way container orchestration once settled on Kubernetes. The alternative is that every hyperscaler ships its own, and the fragmentation that agents were meant to escape returns one layer up.

The post Kubernetes won the container decade. Google’s Agent Substrate wants the next one. appeared first on The New Stack.

Meta and the rise of the accidental cloud

Close-up of server rack hard drive bays with yellow locking handles

In the same quarter, a $1.7 trillion social network and a shoe company both became cloud providers. Nobody’s operating model was designed for this.

On July 1, Bloomberg reported that Meta was building a cloud business to sell its excess AI capacity, signaling that one of the largest GPU fleets on Earth is about to get a price list.

As the report outlines, the company is still weighing two business models that are part of its Meta Compute initiative: it could offer hosted access to AI models running on Meta infrastructure (similar to AWS Bedrock), or directly rent raw compute capacity, à la the CoreWeave model.

Two weeks before that report, Allbirds had finished becoming Smartbird. The erstwhile sneaker company — which hit its peak in 2022 in selling 3 million pairs — sold its footwear brand for $39 million, lined up a convertible note facility that it later expanded to $100 million, hired an ex-AWS executive as CEO, and set out to sell GPU-as-a-Service. 

When it first announced the pivot in April, the stock spiked nearly 600% in a day, adding more than $100 million in market value at its peak — all before the company had racked a single GPU.

One of these is a serious supplier, and the other is a public shell chasing an AI multiple, but I don’t think the distinction matters much. Compute supply is fragmenting faster than any enterprise can absorb it, and overbuild always finds a buyer.

Overbuild becomes inventory

Meta isn’t selling compute because its leaders woke up wanting to fight AWS. It’s selling compute because it provisioned for its own peak, and there’s a gap between what it built and what it uses. That’s what an accidental cloud is: Infrastructure that was never meant to be a product, monetized because the alternative is depreciation.

That’s what an accidental cloud is: Infrastructure that was never meant to be a product, monetized because the alternative is depreciation.

Meta won’t be the last. Everyone who bought more GPUs than they needed in the last three years is facing the same math. Some will eat the write-down. The rest will sell. Stack that on top of the neoclouds (CoreWeave, Nebius, Lambda), the sovereign clouds, and now the Smartbirds, and the list of places you can buy serious compute has gone from a handful to many in about two years. 

The market read the Meta news as bad for neoclouds. CoreWeave and Nebius both dropped double digits on the day, and I get why: Nebius has a $27 billion contract with Meta and CoreWeave a $21 billion deal. Both had Meta as a customer and later witnessed it become a competitor in the compute business. But I’d pull a different lesson from it. It’s not that one supplier wins and another loses. It’s that supplier positions are now unstable everywhere. 

If the suppliers can’t predict their position two years out, betting your operating model on any one of them is a risk you’re not pricing.

More suppliers should mean leverage. Mostly it means sprawl.

On paper, a fragmenting supply side is great for buyers: price competition, more choice, more leverage. Cheaper compute is coming, and for AI workloads, it’s coming fast.

Most teams I talk to can’t capture any of it. Every new supplier shows up with its own console, its own billing format, its own identity model, and its own hole in your governance coverage. Signing a supplier is cheap. Operating one is not. The security review, the tagging standards, the budget enforcement, the offboarding plan — all of it gets rebuilt per provider. Choice without governance isn’t leverage. It’s sprawl, and sprawl costs more than the discount that created it.

Choice without governance isn’t leverage. It’s sprawl, and sprawl costs more than the discount that created it.

This bites hardest with GPU capacity, because that’s where the fragmentation is happening and where the money is. Workloads end up pinned to whichever supplier had chips available the day the contract was signed, and they stay there. Not because moving is impossible, but because nothing above the suppliers makes moving routine, and the team that signed the contract usually isn’t the team on the hook for utilization. Those incentives don’t fix themselves.

The Smartbird end of the market makes this non-optional. Capacity from a vendor with no enterprise track record is only usable if you can exit it in a day. That’s something you design for up front, not something you negotiate into a contract.

The durable position is above the suppliers

Every argument about picking the right cloud assumes the list of clouds is stable. It isn’t, and it’s about to get less stable. The position that survives supplier churn is the layer above them: a single control plane where every provider — hyperscaler, neocloud, or accidental cloud — is just a target you provision to, under the same policies, approvals, cost visibility, and exit path.

This is the VMware argument, extended forward. Broadcom taught the industry what single-supplier dependence costs when the supplier’s incentives change. Meta just taught the follow-up lesson. The future holds more clouds, not fewer, arriving faster and from stranger directions than anyone planned for.

The enterprises that win the price war won’t be the ones that picked the right supplier. They’ll be the ones for whom the supplier stopped mattering.

The practical version of this is an abstraction layer that treats every supplier as a provisioning target rather than a separate operating model. When a new supplier appears — Meta Compute, or a neocloud that didn’t exist last quarter — it plugs into the governance the team already defined, rather than becoming a new operating model to build from scratch. The policies get written once; the supplier list underneath can churn.

Meta selling compute and a sneaker company selling GPUs are the same headline: supply is no longer scarce; it’s fragmented. The enterprises that win the price war won’t be the ones that picked the right supplier. They’ll be the ones for whom the supplier stopped mattering.

The post Meta and the rise of the accidental cloud appeared first on The New Stack.

“The database is the product”: What breaks when memory devices scale

Abstract 3D digital render of dark, monolithic towers textured with microchip patterns, symbolizing complex database architecture and infrastructure scale.

Imagine you just finished a two-hour meeting. You were wearing a small AI work companion that promised to capture the conversation, structure it, and let you ask questions about it later. Two hours after the meeting, you open the app and ask for the transcript. You wait. The spinner turns. The whole reason you bought the device was so you’d never have to remember a meeting again, and now the one thing it promised to do well — recall what was said — is the thing that’s making you wait.

This is the failure mode that fascinates me about AI hardware products, because it’s not a model problem. The transcription was perfect. The summarization was good. The thing that frayed was the part nobody markets: getting the right bytes off disk and onto the screen at the moment the user asks. That’s a data problem. And for a product whose entire promise is memory, a data problem is a product problem. 

“For a product whose entire promise is memory, a data problem is a product problem.”

I want to walk through a real version of this because the team that hit it, Plaud, makes the most popular AI notetaker on the market, and the architecture that broke is the architecture almost every team in this category starts with. It feels reasonable at launch. It becomes a liability at scale. And the reasons why are worth understanding before you ship, not after.

First, what was built correctly

It would be easy to tell this story as “they made a mistake.” They didn’t. The original architecture was a sensible set of decisions, and I want to be precise about that before I dissect what went wrong, because the lesson is in the gap between “reasonable” and “right at scale,” not in anyone’s competence.

Plaud’s product generates two very different kinds of data per recording. There’s structured metadata: who recorded it, when, how long, what tags, what state the processing pipeline is in. And there’s the unstructured payload: the audio file and its transcript, which can run tens of megabytes per session. The team did the textbook thing. They put the structured metadata in MySQL, where relational queries and transactions are cheap, and they put the large objects in S3, where storage is cheap and effectively infinite.

If you’ve built systems, you’ve made this exact call. Object storage for blobs, a relational database for everything you need to query. It’s in every architecture diagram. It’s the default. And for a long stretch of the product’s life, it worked fine.

The problem is not that the decision was wrong. The problem is that it contained a hidden assumption: that the metadata and the content could live in separate systems because they would never need to be consistent with each other in real time. For most applications, that assumption holds. For a product whose core interaction is “give me back exactly what I recorded, right now,” it doesn’t. And the gap between those two worlds is where everything started to fail.

The transcript sidecar

In my article on RAG retrieval, I identified an anti-pattern I called the vector sidecar: the habit of standing up a separate vector database alongside your primary store, only to discover that the two systems can’t answer a single query together. The Plaud architecture is the same shape, applied to an AI hardware product. Call it the transcript sidecar.

The transcript sidecar is what you get whenever you split structured metadata from unstructured content across two systems with no shared transaction guarantee. The metadata says a recording exists, is complete, and is ready. The content lives elsewhere, reached via a separate call, with its own latency and failure modes. Nothing ties the two together. There is no transaction boundary that spans “the row that says this transcript is ready” and “the object that contains the transcript.”

This produces three distinct compounding problems.

  • Retrieval latency is not a network problem; it’s a data locality problem. S3 is excellent object storage. It is not a database. When you make object storage the primary retrieval path for tens-of-megabytes payloads under concurrent load, you’re trading the consistency and latency guarantees of a database for the simplicity of a blob store. Under light load, the trade is invisible. Under heavy concurrent load, S3 retrieval latency and its variability become the user’s experience of your product.
  • Consistency gaps open between two systems that fail independently. The MySQL row can indicate that a recording is ready a moment before the S3 object is durably reachable, or a replica can lag, causing the metadata a user sees and the content they fetch to disagree. With no shared transaction, the application layer inherits the job of papering over the gap, with retries, polling, and reconciliation logic that grows more elaborate every quarter.
  • The schema becomes immovable at exactly the wrong time. More on this below, but the short version is that the metadata store hit a scale ceiling where changing the schema required a maintenance window. For a product still evolving its feature set, that’s a database governing the roadmap, rather than the other way around.

The unifying insight is the one I keep coming back to throughout this whole series: any time you split data across systems that can fail independently, you have handed the consistency problem to the application layer, where it is not solved so much as managed, and where it compounds over time.

When the database governs the roadmap

The most interesting failure in the Plaud story isn’t the latency. It’s the schema freeze, because it’s the one that teams least expect and feel most acutely.

With around 300 million rows, the team’s MySQL setup reached a point where schema changes such as adding a column or changing an index — the routine evolution of any growing product — could no longer be performed online without risk. DDL operations on a table that large, on that architecture, meant locking, replication strain, and the real possibility of downtime. So changes had to be batched into maintenance windows.

Sit with what that means. A maintenance window for a schema change is the time the database allows the product team to ship. The roadmap now bends around the database’s limitations. A feature that needs a new column will wait until the next window. The product’s cadence is set by the operational fragility of the data layer. Most teams don’t notice this inversion because it happens gradually, and then one day a product manager asks why a small change is a two-week project, and the answer is “the database.”

“A maintenance window for a schema change is the time the database allows the product team to ship. The roadmap now bends around the database’s limitations.”

The 300-million-row ceiling is a forcing function that teams hit later than they expect and should hit later than they do. Expect, because single-instance MySQL feels limitless right up until it doesn’t. Should, because the architecture that gets you to 300 million rows is rarely the architecture that takes you past it, and the migration is far more disruptive at 300 million rows than it would have been at 30 million. The ceiling is real; it is predictable, and most teams plan for it only after they’ve hit it.

What changing the architecture actually fixed

Plaud’s resolution was to consolidate the metadata layer into a distributed SQL database (they moved to TiDB), which removed the single-instance ceiling and restored online schema changes. I’m going to use their numbers, but not as a product pitch. I want them as evidence for a claim about where architectural debt goes in a product like this.

Before (dual-store-brain at scale)After (consolidated metadata layer)
Throughput strained under concurrent load~10x QPS headroom
Tail latency variable under loadP95 under 10 ms
Schema changes require maintenance windowsOnline DDL, no downtime
Single-instance ceiling at hundreds of millions of rowsHorizontal scale across multiple clusters
Figures per Plaud’s reported migration results.

QPS headroom and tail latency matter, but the first result I’d point to is the online DDL. Restoring the ability to change the schema without a maintenance window is what handed the roadmap back to the product team. The database stopped governing the release cadence. That’s not a performance win you can put on a benchmark chart, but it’s the one the product organization feels every week.

Also notice what the fix did not do: it did not attempt to store 30-megabyte audio files in the database. Large objects can still be stored in object storage. The point was never “put everything in one system for its own sake.” The point was that the metadata layer, the part that has to be consistent, queryable, and evolvable in real time, needed to actually behave like a database at scale, instead of becoming the fragile half of a split-brain architecture.

Where architectural debt goes

Here’s the claim the Plaud numbers are evidence for. When the database is the product, architectural debt does not accumulate in some back-office system that only the platform team feels. It accumulates in the product experience, where every user feels it.

This is the structural difference between an AI note-taker and, say, an internal analytics tool. For a product like this, every meaningful user interaction is a database operation. Recording creates rows and objects. Transcription updates state. Retrieval is a read. Editing is a write. Search is a query. There is no part of the product that isn’t, underneath, the database doing something. Architectural problems surface as product problems, one-for-one. A consistency gap becomes a transcript that is briefly missing. Slow retrieval reads as a product that is slow to remember. A frozen schema means features arrive late.

No user will ever file a bug report that says “your metadata store and your object store lack a shared transaction boundary.” Left unaddressed, this class of debt manifests as a product that feels less dependable precisely when someone depends on it. For a product whose entire value proposition is “trust me to remember,” the debt lands on the promise itself. This is why Plaud’s decision to re-architect when it did matter. The team fixed the data layer before the failure became noticeable to users.

“You can have the best transcription model in the category and still ship a product that feels unreliable, because reliability for this kind of product is a data architecture property, not a model property.”

This is why I say the database is the product. Not as a slogan. As a literal description of where the product’s quality is determined. You can have the best transcription model in the category and still ship a product that feels unreliable, because reliability for this kind of product is a data architecture property, not a model property.

The trap is waiting for the whole category

AI hardware is having a moment. Note-takers, wearables, ambient recorders, pendants, badges — each built on the premise that the device will remember so you don’t have to. The category is growing, and the products are getting better at the parts everyone talks about: the models, the form factor, the battery life.

But underneath, almost all of them start with the same architecture Plaud started with, because it’s the reasonable default. Structured metadata in a single-instance relational database. Large content in object storage. No shared transaction boundary. A schema that’s easy to change at ten million rows and frozen at three hundred million. The trap is identical, and it’s waiting at the same place on the growth curve for every team in the category.

The teams that will do well are the ones that recognize this early, understand that, for a memory product, the metadata layer is not back-office plumbing but the spine of the user experience, and plan their data architecture for the scale they’re trying to reach rather than the scale they’re at. Plaud’s migration is the pattern worth studying before you hit 300 million rows, not after. The lesson is cheaper to learn from someone else’s 300 million rows than from your own.

When your database and your product are the same thing, you don’t get to treat the database as someone else’s problem. It is the product. Build it like one.

The post “The database is the product”: What breaks when memory devices scale appeared first on The New Stack.

Received — 14 July 2026 ⏭ AI Infrastructure Archives - The New Stack

“We did not adapt and move quickly enough”: What IBM’s earnings miss says about enterprise AI spending

Dealing with Distributed Data When Training AI Models

IBM’s value has plunged after the company issued a preliminary second-quarter earnings update that fell short of Wall Street’s expectations.

Ahead of next week’s full earnings report, IBM CEO Arvind Krishna issued a statement on Tuesday warning that second-quarter revenue will miss expectations as customers continue to redirect IT budgets toward AI initiatives.

Why it matters for developers: The double-digit drop in IBM stock highlights another consequence of the AI buildout: Enterprise spending is shifting faster than some incumbent vendors can adapt.

Here’s what developers and platform teams should know.

IBM surprised investors on Tuesday by releasing a preliminary look at its second-quarter results, more than a week before its scheduled earnings report on July 22. The company now expects second-quarter revenue of $17.2 billion, up 1% year over year, with non-GAAP diluted earnings per share of $2.93, up 5%.

Those figures fell short of Wall Street’s expectations: FactSet analysts had forecast revenue of $17.86 billion and earnings per share of $3.01, the Associated Press reported. The early update did little to calm investors, sending IBM shares sharply lower.

But the miss itself wasn’t the full story. Management’s explanation for the weaker outlook may be even more important for developers and platform teams.

Capex shifts toward AI hardware

IBM now derives much of its business from enterprise software and infrastructure. As a major player in the enterprise (B2B) market, it provides software solutions ranging from security and data analysis to “middleware,” the software that lets myriad apps, databases, and platforms interconnect.

Software enterprise products are generally high-margin, making them great for a company’s bottom line. The problem for IBM is that the AI boom is causing many of its largest customers to cut spending on software services, enabling them to transfer funds toward purchasing the hardware components needed to build large AI data centers.

“In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases,” Krishna writes in the announcement. “This dynamic impacted client buying patterns.”

“In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases.”

However, Krishna also points out that IBM itself dropped the ball because it “did not anticipate the magnitude of the capex reprioritization.”

“These conditions require our teams to execute perfectly, and this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.”

“These conditions require our teams to execute perfectly, and this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.”

Middleware costs fall on developers

For software developers, the chain reactions of this capex reallocation will be felt nearly immediately. When enterprises freeze spending on high-margin middleware and off-the-shelf software from IBM and its competitors, the burden of consolidation falls entirely on internal engineering teams. To address the lack of expensive vendor solutions, platform engineers will be tasked with paving “golden paths” and building Internal Developer Portals (IDPs) using open-source tools.

If a company refuses to license the software required to connect legacy databases smoothly to new, expensive AI environments…developers will have to build those bridges manually.

Building bridges without vendor tools

If a company refuses to license the software required to connect legacy databases smoothly to new, expensive AI environments — like building ETL pipelines to feed legacy mainframe data into vector databases for Retrieval-Augmented Generation (RAG) — developers will have to build those bridges manually. This means more time writing custom APIs, maintaining brittle integrations using open-source alternatives like Apache Kafka or Envoy, and stitching systems together by hand.

What follows the infrastructure buildout

One way to interpret IBM’s warning is that many enterprises are still building AI infrastructure. Rather than expanding software budgets, organizations are prioritizing spending on servers, storage, memory, and other hardware needed to support AI workloads.

Once that infrastructure is in place, executives will expect it to generate business value. For engineering teams, the next phase is likely to focus on building AI applications, agentic workflows, retrieval systems, and production services that justify the billions already invested in compute.

In the near term, that could leave developers balancing two competing priorities of integrating new AI infrastructure while working within tighter software budgets.  Whether those software budgets rebound later this year remains to be seen.

The post “We did not adapt and move quickly enough”: What IBM’s earnings miss says about enterprise AI spending appeared first on The New Stack.

AI can finally read your handwriting — here’s why enterprises care

The seemingly unquenchable thirst of the AI data ingestion pipeline spans language, numerical, and tabular data in the first instance, while other tangential platforms have been building large audio, image, and video models at the same time. 

Straddling potentially all of these domains are the file structures where complex documents and forms of unstructured data reside; this is the road less traveled in terms of the source DNA modern AI draws from.

The schema-less, freeform, uncurated data lake

In a bid to bridge connections to the schema-less, freeform, uncurated information that all organizations naturally harbor, enterprise visual intelligence company Valantor announced its acquisition of unstructured information RAG specialist EyeLevel on Tuesday. The acquisition formally launches Valantor’s Enterprise Visual Intelligence platform, combining EyeLevel’s document intelligence with its own operational expertise.

Benjamin Fletcher, CEO and co-founder of EyeLevel, tells The New Stack that where organizations fail to adopt visual intelligence, human-only processing breaks down pretty quickly in the age of AI.

“About 80% of corporate knowledge is in millions of pages of visually complex PDFs, PPTX, and DOCX files,” Fletcher says. “This information is far beyond the capacity of any LLM context window and is effectively inaccessible to LLMs and agents.” 

“We’ve found the golden datasets that teams build by hand routinely carry 10 to 25 percent error rates. Ironically, those same teams often hold AI to a far higher standard than their own people.”

Humans are slow, expensive & prone to errors

He explains that transactional workflows (such as invoice and claims processing) typically involve documents “so visually complex and diverse” that enterprises still rely on humans to process them, who can be slow, expensive, and error-prone. 

“We’ve found the golden datasets that teams build by hand routinely carry 10 to 25 percent error rates,” Fletcher says. “Ironically, those same teams often hold AI to a far higher standard than their own people. If data sovereignty matters to a business, everything gets harder now: solving these problems with AI while your documents stay inside your own infrastructure is the hard mode version of the job, and very few tools can do it.”

Where does invisible corporate information live?

Valantor has noted that while most AI companies concentrate on models, the company itself is “focused on the information those models can’t see” today. The suggestion is that this unseen morass of valuable data is locked inside documents, claims files, contracts, engineering drawings, reports, forms, presentations, and other visually complex content.

Valantor’s flagship platform product, GroundX, operates where data resides, including private cloud, sovereign infrastructure, on-premises deployments, and fully air-gapped environments. 

“GroundX is the ingestion and retrieval layer for unstructured documents,” explains Fletcher. “It is one tightly tuned system where retrieval consumes exactly what ingestion produces. Everything is exposed through REST APIs, SDKs, and MCP. It ships as REST APIs, SDKs, and MCP, and the Helm chart drops straight into a team’s existing deploy pipeline, and our agent harness gives coding agents like Claude and Codex the skills to build the integration themselves.

As part of the acquisition announcement, Valantor is introducing GroundX Studio. The harness capabilities within GroundX Studio integrate with modern AI development environments, enabling developers to build secure AI applications that operate on enterprise knowledge while remaining within existing infrastructure. 

GroundX Studio also extends capabilities to business users, allowing organizations to create AI-powered workflows and applications without extensive custom development.

“Each agent does one small task, so cheaper models are often good enough, and teams that want direct control over cost can run the whole stack on their own hardware with Helm.”

Risk of latency-laden performance and spiraling costs?

If it feels like this new data ingestion stream is going to place a new burden on cloud workloads, application execution latency, database retrieval times, and (of course) overall token usage, then Valantor and EyeLevel say that this consideration has been taken into account by dint of their own platform’s orchestration layers.

“We never send a whole schematic to a language model; our vision model splits each page into its elements first,” Fletcher confirms. “Processing runs in multiple passes at different levels of the document, and everything inside a pass runs in parallel, so there’s a minimum processing time, but it does not scale linearly with page count. Each agent does one small task, so cheaper models are often good enough, and teams that want direct control over cost can run the whole stack on their own hardware with Helm.”

The intersection of AI and handwriting

sWhile we already know that AI and handwriting do mix in the same cocktail glass — the ViWoods AiPaper digital e-ink handwriting tablets have a useful set of AI functions on board, and similar products are available from manufacturers including reMarkable — it’s not a widely deployed use case yet. Valantor claims that its underlying data models and custom heuristics bridge the “data comprehension gap” when processing handwritten annotations.

“Our proprietary vision model, fine-tuned on more than a million pages of enterprise documents, sees the page the way a human does: tables, paragraphs, and figures,” underlines Fletcher. 

He says that handwritten marks are captured as page elements with their layout context intact. Narrow agents then distill each element into a contextual object tuned for both search and LLM completion. 

“Smaller pieces, less cognitive load — that’s how we close the gap, with better accuracy at lower cost, driving better performance and significant cost advantages,” he adds.

Working examples of this technology include Air France-KLM, which used GroundX to develop an AI-powered customer service assistant trained on thousands of policy documents, achieving 96+% accuracy on complex policy-related questions. AskVet used the platform to operationalize more than a decade of proprietary veterinary data, enabling autonomous resolution of up to 85% of customer inquiries while significantly improving operational efficiency.

Is document management sexy now?

Taking all of this on board, are we at the point where we can ask whether document management has just become interesting, compelling, and sexy? 

No, of course it didn’t; it will arguably always suffer from a degree of stigmatized disdain. That may change in the future as we interact more directly with AI tools that begin analyzing the unstructured information we know organizations have been sitting on for so long. For now, it may still remain the corporate equivalent of eating your vegetables — pass the Brussels sprouts and steamed turnips, please.

The post AI can finally read your handwriting — here’s why enterprises care appeared first on The New Stack.

Received — 13 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Microsoft CEO Satya Nadella says you’re paying for AI twice — the second price is worse

Abstract digital illustration of intense neon red and purple glowing bars under compression against a dark black background.

Microsoft Chairman and CEO Satya Nadella took to the internet to share his thoughts about the hidden cost of enterprise AI.

In a lengthy post on X (formerly Twitter) on Sunday, Nadella describes the problem as a “reverse information paradox,” arguing that AI flips Nobel Prize-winning economist Kenneth Arrow’s classic information paradox on its head.

Arrow’s paradox focused on the seller’s dilemma of how to demonstrate the value of information without disclosing it. Nadella argues enterprise AI shifts that burden to the buyer, who must share proprietary processes and institutional expertise to get the strongest results from a model.

“You essentially pay for intelligence twice, once with money, and again with something even more valuable: the proprietary knowledge you must reveal to make that intelligence useful,” he writes. “The better you want the model to perform, the more of that knowledge you have to feed it.”

“You essentially pay for intelligence twice, once with money, and again with something even more valuable: the proprietary knowledge you must reveal to make that intelligence useful.”

When “exhaust” becomes a competitive advantage 

According to Nadella, every engagement with an enterprise AI system generates what he describes as “exhaust” that gradually captures how an organization operates.

“Every correction is distilled into institutional know-how,” Nadella writes. “It’s the kind of knowledge a competitor could never buy, and the kind that leaks almost imperceptibly: trace by trace, correction by correction, eval by eval.”

“Every correction is distilled into institutional know-how. It’s the kind of knowledge a competitor could never buy, and the kind that leaks almost imperceptibly: trace by trace, correction by correction, eval by eval.”

Over time, those thousands of interactions create an internal corpus of organizational knowledge that may be more valuable than the original documents that seeded the system. The more employees use AI, the more an organization’s expertise becomes embedded in how those systems operate.

Redefining the trust boundary 

In practice, those troves of knowledge could push enterprises toward model-agnostic AI stacks in which prompts and memory stores remain under their control — even as the underlying foundation model changes.

In his post, Nadella also took aim at current AI business practices, arguing that model providers claim broad rights to learn from public data while limiting how customers can reuse or build on the knowledge created inside their own organizations.

https://t.co/xv6csf1SbV

— Satya Nadella (@satyanadella) July 12, 2026

Some observers may see an irony in the argument coming from Microsoft’s CEO. Nadella warns that enterprises risk losing valuable organizational knowledge to AI systems, yet Microsoft sells Copilot, a product whose value depends in part on wide access to enterprise data. Copilot works by traversing Microsoft Graph, allowing it to reason over documents, emails, chats, and other information that a user is already authorized to access.

Security researchers have raised concerns about the amount of sensitive information such systems can expose if organizations have overly permissive access controls. Research from Concentric AI showed that Copilot accessed nearly three million confidential records per organization during the first half of 2025, while EPC Group audits found that roughly 80% of enterprise Microsoft 365 tenants had significant oversharing risks, including salary information, merger documents, and customer data that could be surfaced through Copilot. The U.S. House of Representatives also banned staff — but later reversed that ban — from using Copilot over data security concerns.

The Microsoft distinction

Microsoft, however, draws a distinction between accessing enterprise data to answer user requests and using that data to train foundation models. The company says information retrieved through Microsoft Graph is not used to train its AI models, and that Copilot respects existing permissions, identity controls, and sensitivity labels.

Still, the commercial strategy here is hiding in plain sight: Nadella’s Sunday “reverse information paradox” post is effectively a roadmap to Azure. Everything Nadella recommends building runs on cloud infrastructure. Essentially, enterprises can swap out the foundation model, but they’re not going to swap out the cloud.

Owning your AI learning loop 

To counter the perceived shift toward giving over information to frontier labs, Nadella outlined several priorities for enterprise AI architecture. Among his recommendations:

  • Keeping organizational memory inside the enterprise tenant.
  • Building private evaluation and learning systems.
  • Decoupling orchestration layers from any single foundation model.
  • Preserving the ability to switch models without losing accumulated organizational knowledge.

Taken together, Nadella’s argument comes back to the idea that enterprises should own their learning loop rather than handing pieces of it to the companies that provide their AI models.

Nadella reinforced that idea by quoting Palantir CEO Alex Karp, who has similarly argued that enterprises want complete ownership over their AI infrastructure.

Model-agnostic orchestration emerges 

In the end, by maintaining control over their means of production, enterprises can finally ensure that when they invest in AI, the compounding value stays inside the business where it belongs. Tools like LangChain and Haystack are gaining traction specifically because they let engineering teams treat foundation models as plug-and-play commodities, rather than hardcoded dependencies.

“What the technical customers want is control over their compute, their models, their data stack, and their alpha,” Nadella quoted Karp. “They want to know they own the means of production, and it’s not being transferred to someone else.”

“They want to know they own the means of production, and it’s not being transferred to someone else.”

The post Microsoft CEO Satya Nadella says you’re paying for AI twice — the second price is worse appeared first on The New Stack.

Received — 12 July 2026 ⏭ AI Infrastructure Archives - The New Stack

Anthropic’s newest enterprise partner is training 20,000 people on Claude — here’s the shift it signals

The clearest signal of a major pivot in enterprise AI came this week when Anthropic announced its second Global Premier Partner in the Claude Partner Network: UST.

Anthropic’s partnership with UST, an AI and technology transformation organization, is expected to improve the ability of UST to guide enterprise customers beyond proof-of-concept AI projects and into production-scale deployments.

Moving an AI pilot out of the sandbox and into a production-grade enterprise system is notoriously difficult, especially when every development team is building on a different large language model. The next phase of enterprise AI is the standardization of the stack.

This shift pulls model selection away from developers and hands it to enterprise platform teams, changing how engineering workflows will operate in the near future. As systems integrators increasingly embed a single model into the platforms they build and manage, AI selection is expected to become an architectural decision rather than an individual developer’s choice. The near-future reality might be that the model will become part of the stack itself, selected once at the platform level and inherited by every engineering team that relies on it.

This shift pulls model selection away from developers and hands it to enterprise platform teams, changing how engineering workflows will operate in the near future.

Standardizing the AI stack

As part of the agreement, UST will incorporate Claude into the engineering platforms and workflows it develops and operates for customers.

“Our alliance with Anthropic reflects UST’s unwavering commitment to helping clients navigate the AI landscape with confidence and achieve meaningful business outcomes,” said Krishna Sudheendra, CEO of UST.

“By combining the capabilities of Claude with UST’s engineering, industry knowledge, and delivery expertise, we are bringing to market industry-specific platforms and digital and engineering solutions that improve productivity, accelerate business outcomes, and help clients operationalize AI-led decisions in a safe and secure environment.”

Claude inside engineering platforms

One example of the coming standardization is UST’s integration of Claude into its engineering platforms, which are used by companies in the semiconductor, telecommunications, manufacturing, automotive, embedded systems, and IoT industries for design verification, chip validation, factory operations, and field service.

By using Claude, teams are expected to catch design flaws earlier, speed up chip validation, and integrate hardware and software into a single system, effectively laying the foundation for physical AI.

UST points to its UST-iDEC platform as an early example. The hardware and silicon validation platform already automates much of the validation process, which the company says reduces cycle times by up to 70% and halves typical turnaround times. By including Claude in the pipeline, UST aims to give the system more advanced reasoning capabilities rather than treating AI as a standalone assistant.

Claude Code now natively reads chip pinouts and hardware schematics to automatically write and execute regression tests that engineers previously had to script by hand. Concurrently, Claude’s reasoning models evaluate live edge data against digital twins to identify firmware regressions and signal-integrity faults. By uniting these capabilities, UST is accelerating an already-fast validation pipeline through less manual scripting and earlier fault detection.

Training 20,000 technical associates

Standardizing an AI stack requires aligning the workforce behind it. A central part of the alliance is UST’s commitment to training 20,000 developers and technical experts. Those associates will be certified on Claude across roles worldwide, including architects, engineers, consultants, industry specialists, and forward-deployed engineers who work directly alongside client teams.

“UST helps the world’s banks, telecoms, and manufacturers put new technology to work,” said Paul Smith, Chief Commercial Officer at Anthropic, in a statement. “They’re proving Claude inside their own engineering first, training 20,000 of their own people on it, before bringing it into the systems they build and run for clients.”

“They’re proving Claude inside their own engineering first, training 20,000 of their own people on it, before bringing it into the systems they build and run for clients.”

For engineering organizations, that level of standardization changes more than procurement. It reshapes day-to-day development. Shared AI workflows become reusable across teams, governance policies can be enforced centrally, and integrations with internal systems no longer need to be recreated for every project. The trade-off is that developers gain uniformity while giving up some freedom to choose whichever model they personally prefer.

Enterprise workflows beyond hardware

Outside physical AI, Anthropic has announced that UST is putting Claude to work by integrating it into selected industry and horizontal enterprise platforms.

In healthcare, UST’s CarePath uses Claude Code and MCP connectors to simplify member services and claims, routing recommended actions through an agentic layer for human approval. For telecom, UST IntelliOps introduces Claude’s reasoning into network operations to predict RAN failures and reduce the time NOC teams spend sorting signal from noise. Meanwhile, in the banking sector, UST FinX uses Claude to accelerate onboarding and automate document processing, providing staff with faster access to account data while maintaining built-in governance and audit controls.

“We are wiring Claude into how UST designs, builds, and runs solutions across our consulting, platforms, engineering services, and industry offerings,” said Manu Gopinath, President of UST. “This alliance with Anthropic helps us deliver higher-value outcomes for clients as advancing UST’s transformation into an AI-native organization.”

“We are wiring Claude into how UST designs, builds, and runs solutions across our consulting, platforms, engineering services, and industry offerings.”

By acquiring firsthand experience with the operational, technical, and change management challenges of AI adoption internally, UST is building an operating playbook of tested workflows. For enterprise organizations, the takeaway is clear: The future of AI relies on standardizing the stack and moving AI selection out of the sandbox and into the platform layer.

As more systems integrators adopt this approach, developers will increasingly inherit the AI stack their organization has already chosen.

The post Anthropic’s newest enterprise partner is training 20,000 people on Claude — here’s the shift it signals appeared first on The New Stack.

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