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Kernel of truth: GPT-5.6 Sol can cut its own costs, says OpenAI

Abstract red-and-black pattern of dense, irregular clusters resembling swirling smoke or tangled organic forms.

OpenAI has detailed how the GPT-5.6 model family balances capability and cost across its stack, and the company‘s most important claim is a benchmark result showing that its flagship model, GPT-5.6 Sol, with maximum reasoning, outperforms Claude Fable 5 from Anthropic on the Artificial Analysis Coding Agent Index. The margin comes with 54% fewer output tokens. The findings were shared in a company blog post on Wednesday.

For developers, what matters most is how OpenAI arrived at the benchmark results and the role GPT-5.6 Sol played in optimizing the infrastructure that now serves it.

The family spans three models across the price curve. In addition to Sol, there is Terra, which performs as well as GPT-5.5 on intelligence benchmarks at half the price, and Luna, the fastest and most affordable, which is priced 80% below Sol.

The efficiencies come from optimizations at four layers, spanning the models, inference, the API stack, and the agentic harness behind Codex and ChatGPT Work.

According to the post reviewed by The New Stack ahead of its publication, the efficiencies come from optimizations across four layers: models, inference, the API stack, and the agentic harness behind Codex and ChatGPT Work. The architecture diagrams in the post draw the same separation as three planes: the local harness, CPU-bound API orchestration, and GPU-bound model inference.

Source: OpenAI

For developers building and operating agents, the post is worth reading less as a product announcement and more as a systems paper. Nearly every technique it describes, from incremental tokenization to append-only context, applies to any team running a tool-calling loop at scale.

A model that rewrites its own serving code

The efficiency work starts in training. OpenAI says GPT-5.6 is trained to achieve more work per token, with training optimized for both task success and efficiency so the model takes a more direct path through a task.

With Codex, GPT-5.6 Sol autonomously rewrote and optimized OpenAI’s production kernels, the core code that executes the mathematical operations making up the model. OpenAI says this worked in part because GPT-5.6 is trained to write and improve kernels in Triton and Gluon. Both are open-source GPU programming languages maintained by OpenAI. These efforts, combined with broader kernel advancements from the model, reduced end-to-end serving costs by 20%.

Correctness is the obvious concern when a model rewrites the code it runs on. To address it, OpenAI reports heavy investment in verification tooling. That includes the open-source Floating-Point Sanitizer (FpSan), which validates the kernels GPT-5.6 Sol produces before they reach production.

The model went further with speculative decoding, a technique in which a smaller draft model proposes several tokens that the primary model verifies in parallel. The approach will feel familiar to anyone who understands how modern CPUs speculatively execute instructions ahead of a branch. Accepted proposals produce multiple output tokens from a single pass of the primary model. That reduces the expensive sequential computation the primary model would otherwise perform.

GPT-5.6 Sol in Codex improved its own draft model by designing and running hundreds of experiments on its architecture, with changes tested across size, structure, and features. The model also launched and monitored the speculative training process. It intervened autonomously when hardware failed or training became unstable. OpenAI reports the resulting improvements lifted token-generation efficiency by more than 15%.

More tokens from the same GPUs

OpenAI frames its inference work around a single objective – serving more tokens with the same hardware while preserving the intelligence, latency, availability, and reliability users expect. In a compute-constrained market where demand grows faster than capacity, that objective influences every design decision in the serving path.

Load balancing operates at three distinct levels. Globally, requests are routed based on geography, available capacity, and accelerator type. Within a cluster, work is distributed across model instances based on load, context length, and cache availability. Within each instance, work is partitioned across accelerators, the model’s experts, and computing cores. GPT-5.6 Sol in Codex helps OpenAI analyze production traffic and identify previously overlooked sources of imbalance. The same loop tests new routing strategies and helps engineers constantly tune the heuristics. OpenAI states that these load-balancing improvements alone dramatically reduced the cost of serving its models.

The key-value (KV) cache received the same treatment. When processing uncached input tokens, the model builds the KV cache in a single compute-intensive pass, then repeatedly reads from and extends it during generation. The optimal serving configuration depends heavily on prompt length, batch size, and cache hit rate. It covers batching, sharding, and cache management, and the configuration space was previously too large to tune systematically. With GPT-5.6 Sol in Codex, OpenAI analyzed production workloads and generated candidate configurations. The company says this makes workload-specific optimization practical at a level that broad heuristics could not reach earlier.

Process only what changed

The API team focuses on everything that happens around a model call. After a prompt is submitted, the API stack receives the request, loads context, and validates the input. Safety checks run next, and the text is converted into tokens for inference. OpenAI measures this overhead through time to first token (TTFT), time between tokens (TBT), and end-to-end time (E2E).

Tokenization is an O(n) operation, so longer prompts take longer to process. Codex would send the full conversation context after every tool call. That meant paying to tokenize the same conversation dozens of times per turn, even though only a small amount of context was new in each request. OpenAI solved this with a WebSocket integration that hoists tokenization state to the server. The first call renders and tokenizes the full prompt. Later calls send only the new input with a reference to the conversation, bringing the operation closer to O(1). The pattern mirrors an incremental build system that recompiles only the files that changed rather than the whole project.

These savings compound in tool-heavy workflows, where every tool result triggers another round trip through the API. For rollouts with 20 or more tool calls, OpenAI reports up to roughly 40% faster end-to-end execution.

Hardware turned out to matter as much as protocol design. All of OpenAI’s infrastructure runs on Kubernetes. The company found that nodes with the same instance type often carried different CPU generations, with many running outdated processors. In its measurements, the older processors consumed roughly twice the CPU resources for the same work. Reweighting traffic toward newer processors improved TTFT by about 20%, and CPU generation is now part of capacity planning.

OpenAI names four fates for application-layer overhead: delete it, overlap it with useful work, run it on faster hardware, or make the code consume fewer CPU cycles. Its asyncio changes move work off the critical path, while newer hardware and Rust implementations make the remaining work faster and more predictable.

An append-only harness

The agentic harness is a Rust-based orchestration layer that connects the models, tools, and the user’s environment. In a single turn, Codex might inspect source code, search deployment history, and read incident reports. Editing a file and running the tests each add another request. Since a task can require 30 model requests, an extra second per request adds up quickly.

Context bloat is the first target for the harness. As agents gain access to more tools, skills, plugins, and conversation history, context windows expand. The growth increases cost, distracts the model, and prompts unnecessary reasoning. The harness counters this with deferred discovery, which surfaces integrations, custom Model Context Protocol (MCP) tools, skills, and plugins only when needed. Tool output is capped at 10,000 tokens by default unless the model requests a different limit.

Prompt caching drives the second design choice. An agent loop resends the same instructions, tool definitions, and earlier results multiple times within a turn. The harness therefore treats all model-visible history as append-only, with new messages and tool results added at the end rather than inserted into earlier context. Tools are presented in a deterministic order, and runtime settings, such as approval policies, are applied during execution rather than embedded in tool definitions. OpenAI credits this design for the high prompt-cache hit rates in Codex and ChatGPT Work.

Source: OpenAI

Platform teams building internal agents can adopt every one of these choices without OpenAI’s scale. Append-only context, deterministic tool ordering, and capped tool output attack token spend directly. That makes them the most portable lessons in the post for enterprises watching inference bills grow with each new agent deployment.

Where the gains come from

The post associates a number with most of its optimizations, and the figures are OpenAI’s own production measurements. Taken together, they show how modest individual wins compound across a serving stack.

LayerTechniqueClaimed gain
Model inferenceAutonomous kernel rewrites in Triton and Gluon20% lower end-to-end serving costs
Model inferenceSpeculative decoding with a self-improved draft modelOver 15% better token-generation efficiency
API stackStateful WebSockets with incremental tokenizationUp to roughly 40% faster runs at 20+ tool calls
API stackRouting traffic toward newer CPU generationsAbout 20% better time to first token
Agent harnessDeferred discovery and a 10,000-token tool output capReduced context bloat and cost

The key takeaways

In summary, OpenAI describes the GPT-5.6 efficiency gains as the result of years of compounding improvements. They span research, inference, the API stack, and the agentic harness. The company states that the model’s role in landing many of them makes it optimistic that the pace of optimization will accelerate. Kernel work is called out as an area of continued investment.

The post positions efficiency, alongside raw intelligence, as the axis on which frontier labs now compete. The claimed 54% output-token advantage over Claude Fable 5 shows how OpenAI intends to fight that battle. The engineering blog makes a plausible case that software optimization is becoming an important lever alongside hardware improvements in reducing the cost of serving frontier models. The figures remain OpenAI’s own production measurements. The autonomy on display operates within Codex, with engineers in the loop. Developers and enterprises benefit either way, as these under-the-hood improvements reach them as more capable models at lower prices across the cost-intelligence curve.

The post Kernel of truth: GPT-5.6 Sol can cut its own costs, says OpenAI appeared first on The New Stack.

Personalization is a ranking problem — architecture makes it work

Monochromatic abstract 3D geometric render of overlapping twisting fins, representing real-time ranking architecture and AI signal pipelines.

Every product team is chasing the same moment: The user opens a page and thinks, this understands me.

A shopper who loves floral prints should see more floral prints. A user who follows local politics should open their app to see news about local politics. A job candidate who keeps clicking remote roles should not keep getting shown in-office jobs.

That is not a niche feature anymore. It is the baseline expectation. Users decide quickly whether a product system understands them, and they rarely care whether the failure came from search, recommendations, merchandising rules, or stale data.

Here is the uncomfortable truth: Most teams do not have a personalization quality problem. They have a personalization architecture problem.

Personalization is not a widget bolted onto search. It is a ranking decision. The system has to decide, for this user and this request, what deserves the next slot. That means weighing the user, the item, the context, and the business goal at the same time. In many stacks, the ranking layer is the one place that cannot see all of those signals together.

The hard part is not collecting signals. The hard part is combining them while the user is still there.

Why personalization is hard in the first place

To put the right item in the right slot, a system has to understand several things at once:

  • Intent: What is the user asking for right now?
  • Item quality: What does each candidate actually contain or represent?
  • User history: What has this person clicked, bought, read, watched, or ignored?
  • Availability: Is the item in stock, fresh, nearby, legal to show, or ready to ship?
  • Business priority: What should the business promote, protect, or de-emphasize?

Those signals often disagree. The most relevant item may not be the most profitable. The most profitable item may be out of stock. The user may say “running shoes,” but their behavior says “trail running, wide fit, under $120.”

They also move on different clocks. Product attributes change slowly. Inventory and price can move throughout the day. Preferences shift with every click. External context — weather, breaking news, a championship game, a cultural moment — can matter without warning.

Personalization means folding all of that into one ordered list, on every request, in milliseconds. The signals themselves are not the bottleneck. Query-time ranking is.

The usual stack makes the problem harder

Most personalization systems are assembled from tools that were each designed for one slice of relevance.

Keyword search engines are excellent at lexical matching. They are good when the query language and catalog language line up. But shoppers, readers, and job seekers rarely speak in neat index terms. You indexed “athletic performance running footwear”; they typed “running shoes.” Synonym rules can help, but they do not scale gracefully across long-tail language, changing catalogs, and new user behavior.

Vector databases start from the opposite side. They are good at semantic similarity: “Find me things like this.” That is powerful, but nearest-neighbor search is not the same thing as personalization. Real ranking has to blend semantic similarity with live behavior, stock, price, margin, freshness, eligibility, and business rules.

Re-rankers, recommendation services, feature stores, and rule engines are usually added to glue everything together. That is where fragmentation creeps in.

A fragmented personalization stack compared with a unified query-time ranking pipeline
Figure 1. A fragmented personalization stack compared with a unified query-time ranking pipeline

When retrieval and ranking live in separate systems, the ranker often works from a partial, stale, or precomputed view of the world. Click history, session context, and the user’s live preference vector arrive too late. Business rules become filters or overrides instead of ranking signals. Fresh inventory or price changes require coordination across multiple systems.

Every hand-off adds latency. Every boundary creates another place for signals to drift. Every “quick rule” becomes another hard constraint that can accidentally turn “show the closest match” into “show nothing.”

“Every hand-off adds latency. Every boundary creates another place for signals to drift.”

The deeper issue is a timing assumption. Many architectures were built around offline ranking: process the catalog, compute scores in a batch job, and serve those scores until the next rebuild. That works when preferences are stable. It breaks when the most valuable signal is the click that happened two seconds ago.

What changes when ranking happens in one real-time pipeline

A real-time personalization architecture treats retrieval, ranking, and inference as one serving problem.

That is the core idea behind Vespa’s approach: Text search, vector similarity, structured filtering, ranking expressions, tensor computation, and model inference can live inside one query pipeline. Instead of retrieving somewhere, enriching somewhere else, and ranking at the end, the system can rank with the relevant signals while it is still deciding what to return.

That architectural choice changes the shape of the problem.

1. Retrieval is hybrid from the start

Lexical search, semantic search, and structured filtering can run together instead of being reconciled after the fact. A product query can combine text, embeddings, filters, session behavior, and item attributes in one request.

That matters because personalization is rarely one signal. The user’s query still matters. So does semantic similarity. So do category, availability, price, and business constraints. Hybrid retrieval keeps those signals in play before ranking starts.

2. Ranking can express the actual objective

A personalization score should not be trapped inside one similarity function. It should be a formula that reflects the product’s goals.

That formula might combine BM25, vector similarity, user affinity, stock level, margin, popularity, discount depth, freshness, rating, distance, or a weather term. Some of those signals need normalization first. Some should matter only for certain categories or users. Some should be tested as weights.

The important part is that they are all terms in the same ranking expression, not scattered across services.

A simplified version might look like this:

final_score =
    0.30 * lexical_relevance +
    0.25 * semantic_similarity +
    0.25 * user_affinity +
    0.10 * availability +
    0.10 * business_priority

In production, the formula can be more nuanced. But the principle is simple: personalization, relevance, and business logic belong in the same scoring decision.

3. Model inference can run where the data lives

Some signals should come from learned models rather than hand-tuned rules: propensity to buy, churn risk, quality prediction, fraud risk, query classification, or a learned-to-rank model.

When inference runs in the serving path, those model outputs can become ranking features instead of delayed batch scores. That reduces the need to ship data to a separate inference service, wait for a response, and stitch the score back into ranking.

4. Updates become immediately useful

“Real time” should not mean “after the next index rebuild.” If inventory changes, stock should be rankable immediately. If a user clicks two yellow dresses, “yellow” should matter on the next request. If a merchandising team adjusts a ranking weight if the weight is exposed as a query-time input, the experiment should start producing useful feedback right away.

That is the difference between personalization as a nightly job and personalization as a live ranking decision.

Tensors make the personalization concrete

The most useful mental model is simple: represent the user and the item in the same feature space, then rank by how well they match.

In Vespa, tensors make that practical. A tensor can be a scalar, a dense vector, a sparse map of feature-weight pairs, a matrix, or a more complex structure. That means the same framework can represent semantic embeddings, product attributes, user preferences, business objectives, and model features.

User and item tensors combined into a personalization score, then blended with other ranking signals
Figure 2. User and item tensors combined into a personalization score, then blended with other ranking signals

For example, each item can carry a sparse feature tensor:

{
  "floral": 0.90,
  "yellow": 0.70,
  "short_sleeve": 0.80,
  "crew_neck": 0.65
}

Each user can carry a tensor with the same feature names:

{
  "floral": 1.00,
  "yellow": 0.37,
  "short_sleeve": 0.33,
  "crew_neck": 0.31
}

Because the two tensors share a shape, personalization becomes a dot product: multiply matching features, sum the result, and use that score inside ranking.

In a Vespa rank profile, the core expression is compact:

# schema: item attributes stored as a sparse tensor
field item_features type tensor<float>(feature{}) {
    indexing: attribute | summary
}
 
# rank profile: the user's live preferences arrive as a query tensor
rank-profile personalized {
    inputs {
        query(user_features) tensor<float>(feature{})
    }
    first-phase {
        expression: sum(query(user_features) * attribute(item_features))
    }
}

That one expression is not the whole ranking function. It is the personalization term. BM25, vector similarity, stock, margin, freshness, distance, or a model score can be added as other terms with their own weights.

The user tensor is where real-time behavior becomes powerful. Click a floral item, and the “floral” weight rises. Click two yellow items, and “yellow” rises; the application feeds click events into the user profile. The next query can use those updated preferences immediately, without waiting for a nightly profile build.

Business goals stop fighting personalization

In fragmented stacks, business rules often become blunt instruments: boost this category, hide that brand, force these items to the top, filter these out. That can satisfy a short-term merchandising goal while damaging relevance.

When business logic is part of the ranking expression, it can be more subtle. You can boost overstocked inventory without ignoring intent. Promote umbrellas when rain is forecast without turning every search into an umbrella search. Give new sellers a small exploration boost. Prioritize destocking before a new product line launches. Surface team merchandise during a championship run.

“When business logic is part of the ranking expression, the user still gets relevant results. The business still influences outcomes.”

The user still gets relevant results. The business still influences outcomes. The difference is that both are expressed as ranking signals instead of competing systems.

That also makes experimentation easier. A merchandising or growth team can test weights, traffic splits, and ranking profiles without asking engineering to rewrite the whole pipeline. Relevance becomes a controllable growth lever rather than a fragile side effect.

The same pattern applies beyond commerce

The examples above are easy to picture in apparel, but the architecture is not commerce-specific. Personalization is the same ranking problem in many products:

  • Content feeds: Blend topic affinity, freshness, engagement, creator quality, and business rules.
  • News: Rank by reading history, topic interest, locality, freshness, and source diversity.
  • Jobs: Match candidate preferences such as remote work, seniority, compensation, location, and tech stack against role attributes.
  • Geo search: Treat distance as one normalized ranking term alongside relevance, quality, and preference.
  • Video and audio: Combine embeddings, viewing history, metadata, freshness, and learned ranking models.

Different domains need different features. The architecture pattern is the same: retrieve candidates, rank with the signals that matter, update those signals as behavior changes, and keep the decision close to the data.

Scale doesn’t have to be the trade-off

The natural concern is that a more expressive ranking system must be slower. In practice, that does not have to be true.

Vespa was built for large-scale serving from the beginning: billions of documents, high query volume, and low-latency ranking. The reason this works is multi-stage ranking. The system does not run the most expensive logic across every possible result. Instead, it uses a fast first phase to narrow the candidate set, then applies more precise ranking to the smaller group that remains.

For example, a cheap first phase narrows a huge candidate set. Then, once the candidate set is smaller, Vespa can apply full-precision scoring, richer tensor operations, business logic, and model inference where they matter most.

The result is a practical balance: speed across the full corpus, accuracy in the final ranking, and enough flexibility to personalize each query without turning the serving stack into a chain of fragile services.

What’s next

Personalization is not failing because teams lack data. Most teams already have plenty of signals: query intent, clicks, product attributes, inventory, margin, freshness, location, and business priorities. The harder problem is that those signals often live in different systems, move at different speeds, and arrive too late to influence the final ranking decision.

That is why personalization should be treated as a ranking problem. When retrieval, ranking, personalization, and business logic are split across separate systems, the ranker is forced to work with stale or incomplete context. The user moves faster than the architecture can respond. Every new signal becomes another integration project.

A unified real-time ranking pipeline changes that. User behavior, item attributes, semantic similarity, lexical relevance, inventory, and business goals can all become parts of the same scoring function. Tensors make those signals directly comparable and usable at query time. Instead of bolting personalization onto the end of the system, personalization becomes part of the decision the engine makes for every query.

The goal is simple: rank each result with the best context available, at the moment the user asks. That is when personalization stops feeling like a feature and starts feeling like relevance.

The post Personalization is a ranking problem — architecture makes it work appeared first on The New Stack.

Can prompt caching tame RAG costs without sacrificing accuracy?

Abstract dark digital wave distortion with chromatic aberration representing production RAG system tension and AI infrastructure scaling.

The AI ecosystem is drowning in tutorials on how to build a retrieval-augmented generation (RAG) app in five minutes. The pitch is appealing but flawed: Chunk a document, run it through an embeddings API, load it into a vector database, and slap a UI on top. This setup works locally. It might even survive a beta test with friendly users. But launch it into a production-grade B2B SaaS environment, and the architecture collapses.

Enterprise applications don’t handle neat, static files. They ingest dynamic, unpredictable streams of live data bound by strict legal and compliance constraints. Treating vector search as a solved infrastructure problem at scale is a dangerous mistake.

“Treating vector search as a solved infrastructure problem at scale is a dangerous mistake.”

Here is exactly what breaks when a naive RAG setup hits production, and the architectural trade-offs needed to fix it.

Bottleneck 1: the synchronous ingestion trap

Synchronous data ingestion is the most prevalent architectural flaw in new AI products. A user uploads a 500-page compliance manual. The client makes a POST call to a web server, which parses the document, splits the text, iterates over a sequence of synchronous API calls to OpenAI or Cohere for vectorization, and writes those vectors to the database.

This approach introduces two critical failures:

  • Timeouts: A 500-page document rarely finishes processing within standard HTTP timeouts (30 to 60 seconds) while waiting for the embedding API.
  • Cascade failures: If the system hits rate limits or latency spikes, the entire ingestion operation fails, throwing a 500 error and losing the user’s document.

The fix: the batched fan-out pipeline

Production-grade AI pipelines require persistent events rather than simple HTTP calls. However, sending the whole 500-page document to be processed by one consumer from Kafka or RabbitMQ is a mistake. If a consumer spends 10 continuous minutes generating embeddings, it misses its broker heartbeat. Assuming the worker died, the broker kills the consumer and triggers a partition rebalance, creating an infinite loop of duplicated work and stalled processing.

“Synchronous data ingestion is the most prevalent architectural flaw in new AI products.”

Conversely, granular chunking, where every chunk becomes an individual Kafka message, launches a self-inflicted denial-of-service (DoS) attack on downstream services. A document with 1,500 chunks generates 1,500 individual messages. This instantly exceeds upstream requests per minute (RPM) limits and floods the pipeline with network overhead.

The engineering sweet spot is a batched fan-out approach:

  • Asynchronous uploads: The web API stores the raw file in Amazon S3, triggers a document_uploaded event, and instantly returns a 202 Accepted status. This single, asynchronous path processes one-page invoices and 100-page SOC2 reports with equal reliability, eliminating the technical debt of maintaining separate “fast” and “slow” ingestion routes.
  • Micro-batching: A lightweight “Spitter” consumer downloads the file, chunks it, and groups those chunks into optimized micro-batches (e.g., 64 chunks per batch).
  • Controlled embedding: Embedding workers pull these batched events. To prevent concurrent workers from breaching upstream RPM limits, avoid fragile sleep() delays. Instead, enforce a token bucket rate limiter at the consumer level or strictly cap the number of active message broker partitions.
Python

# Conceptual snippet for architectural illustration
def handle_document_upload(event):
try:
raw_text = download_from_s3(event.file_uri)
chunks = semantic_chunking(raw_text)
except Exception as e:
# Log failure and raise so the message broker routes this to a Dead Letter Queue (DLQ)
print(f"Failed to process document {event.file_uri}: {e}")
raise

# Batch size heavily depends on the downstream embedding model's context limits
batch_size = int(os.environ.get("EMBEDDING_BATCH_SIZE", 64))

for i in range(0, len(chunks), batch_size):
chunk_batch = chunks[i:i + batch_size]
kafka.publish("embedding_tasks", {
"tenant_id": event.tenant_id,
"document_id": getattr(event, "document_id", event.file_uri),
"chunks": chunk_batch
})

This keeps individual consumer tasks short, respects upstream rate limits by maximizing payload density, and allows horizontal scaling of embedding workers during traffic spikes.

Bottleneck 2: the multi-tenant nightmare

Developers often treat multi-tenancy as an afterthought. The simplest way to handle multiple B2B tenants using a single RAG system is logical segregation, where all vectors reside in a large index, and each entry has a tenant_id associated with its metadata. Upon retrieval, the application filters results by adding a clause to the metadata payload.

Flaws of the approach:

  1. Security vulnerabilities: Relying on application-level filtering creates an unacceptable risk. If an engineer omits or misconfigures a metadata filter, one client can access another’s confidential data. In highly regulated environments, this breaks compliance.
  2. The noisy neighbor problem: If one customer uploads 10 million vectors to the shared index, memory usage skyrockets during vector searches. This degrades performance across the entire system, even for tenants with a handful of documents.

The fix: serverless compute-storage decoupling

Echo-chamber thinking assumes that the only solution is to provide each tenant with its own dedicated database cluster. This is prohibitively expensive and practically impossible to manage in a modern-day SaaS offering. 

The true gold standard here is using next-generation serverless vector databases like Pinecone Serverless or managed Qdrant implementations, which make a clear distinction between computing and storage.

Isolation strategyHow it worksTrade-offs
Shared index (logical)One index; application layer applies metadata filters.High compliance risk; prone to noisy neighbor performance degradation.
Database per tenant (physical)Client provisions a dedicated database cluster.Maximum security, but introduces massive operational overhead and idle compute costs.
Serverless namespaces (standard)Storage layer isolates vectors into namespaces; on-demand compute loads them only when queried.Namespace-level access control prevents cross-tenant leaks. Zero idle compute costs.

Engineering takeaway: stop building complex multi-tenant routing logic in your application code. Push the isolation boundary down to the infrastructure layer using serverless namespaces.

Bottleneck 3: the semantic caching trap

Once ingestion is asynchronous and tenants are segregated, inference costs become the final bottleneck. Hitting an LLM API for every individual query is economically unsustainable.

The industry defaults to semantic caching: embed the user’s prompt, calculate its cosine similarity against previous prompts, and return a pre-calculated LLM response if the score exceeds a set threshold (e.g., 0.95).

Why semantic caching fails

Embeddings capture overall semantic meaning, but they miss specific contexts and entities. The prompts “What was the holiday policy in 2023?” and “What is the holiday policy for 2024?” share a near-perfect cosine similarity score. The core semantics match, but returning a cached answer feeds the user incorrect or contradictory information.

The fix: hybrid verification vs. native prompt caching

To scale without compromising accuracy, there are only two choices to consider: application-layer validation or infrastructure-layer optimization.

Strategy A: combined lexical filtering and intent routing

When using an application-layer caching system (for instance, Redis), you need to layer the semantics search on top of extremely light guardrails.

  1. Exact-match filter: Apply a token-validation filter over vector similarity. In the case where the cached query is “2023”, and the current query is “2024,” throw out the cache hit right away.
  2. Intent routing: Before serving a cached answer, use an inexpensive, fast model as an intent match router.
Python

Query A: {incoming_query}
Query B: {cached_query}

Do these queries have the exact same intent and require the exact same factual answer? 
Respond only with YES or NO.

Strategy B: infrastructure-level prompt caching

If the system cannot tolerate the added latency of an application-layer verification router, bypass custom caching entirely and offload the problem to the infrastructure.

Modern LLM providers natively support prompt caching. It is crucial to understand what is being cached here: it is not the user’s short question. When multiple users query the same corporate knowledge domain, the massive system instructions and the heavy retrieved context documents (often 10k+ tokens) are cached automatically at the provider’s inference layer.

“Stop approaching AI like a magic black box and instead approach it as a distributed systems problem.”

The application sends the full RAG query every time. The provider recognizes the repeated context block, slashes context token costs by up to 80%, and drops the time-to-first-token (TTFT) to milliseconds.  

The infrastructure surrounding a foundation model separates a prototype from a production AI system. Stop approaching AI like a magic black box and instead approach it as a distributed systems problem, and things will fall into place. Batched fan-out asynchronous queuing solves timeout and rate-limiting issues. Serverless namespacing resolves compliance risks. Prompt caching and intent routing secure unit economics. Designing a native AI product today means engineering for inevitable API failures, cross-tenant data attacks, and runaway LLM costs.

The post Can prompt caching tame RAG costs without sacrificing accuracy? 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.

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.

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.

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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.

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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 && 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.

“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.

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.

Why retrieval quality is becoming the defining challenge in AI agent architecture

Neon digital waves and scattered data particles on a dark background, representing hybrid search, data pipelines, and AI engineering infrastructure.

Agentic systems usually have two jobs: Build context, then use that context to produce an answer or action.

Many failures that look like LLM problems start in the context-building step. The answer the LLM gives is limited by the context it was given, or it finds through tool calls. If the agent model cannot find the right sources, then improving the generation model will not improve the overall system.

“Many failures that look like LLM problems start in the context-building step.”

A client, Specstory, wanted to give users the ability to ask questions from the agent’s history. For example, why a team chose Authlib for authentication and what alternatives they considered. The chatbot needs the right prior conversations, decisions, and tradeoffs from a large corpus of coding sessions. The model and system prompt help only after those chat turns have been retrieved and are in context.

If retrieval ranks implementation snippets above the discussion where the team weighed alternatives, the agent can still produce a confident answer. It may find code that imports Authlib and a few inline comments, then describe the decision based on implementation evidence rather than the actual trade-off discussion.

The same pattern showed up in an AnkiHub operator review in our private community. A request for help studying based on lecture slides only works if the agent’s tool calls retrieve the right flashcards. The hard part is not finding any related cards. A lecture on the function of the heart may match hundreds of cards. Ranking decides whether the core cards make it into context or whether the system has to raise top_k and flood the prompt.

The exact setup changes by product. The context-building step might use local search, semantic search, web or API calls, or database queries. It might be handled by an agent, a fixed workflow, or application code. The process stays the same: gather the right context, then generate from it.

For example, a coding agent runs rg, opens files, reads logs, and inspects tests before writing a patch. A research agent searches the web and internal notes before writing an answer. A study assistant searches deck facts and user context before suggesting what to learn next.

When context building fails, the symptoms look like generation failures.

Retrieval failures mimic generation bugs

SymptomRetrieval cause
HallucinationThe answer source never made it into context.
Context rotLow recall forces a high top_k, so noisy results fill the context window.
LatencyWeak retrieval leads to more tool calls, larger candidate sets, and larger context windows.

A better model helps with reasoning and writing, but it cannot give a better answer without the right context.

“A better model helps with reasoning and writing, but it cannot give a better answer without the right context.”

The Mixedbread OfficeQA-Pro Eval shows the same pattern at the benchmark scale. OfficeQA-Pro uses 89,000 pages of financial documents, dense tables, scanned PDFs, and questions that require reasoning across documents. Giving Codex better search tools reduced tool calls and improved answer quality.

A scatter plot mapping Accuracy (%) against Tool Calls for three AI configurations.

Plain-text tools like grep and rg work (ish) on flat code files. They do not work well when context lives in PDFs, tables, chat histories, multi-modal inputs, web results, and permissioned data. In those cases, the agent needs a retrieval that can combine exact terms, meaning, metadata, permissions, and ranking quality.

Retrieval needs traces and evals

Once retrieval enters the architecture, the next question is whether it finds the right information.

For that, you need traces and evals. For each retrieval step, the minimum trace is the input, the outputs, and a way to label whether each output was relevant.

A flowchart diagram illustrating a data workflow where a horizontal sequence connects four steps: Input, Tool call, Output, and Label.

For a coding agent using rg the input is the command, the output is the returned snippets, and the label says which snippets helped, which were noise, and which relevant files were missing.

For product retrieval, the step might be BM25, semantic search, hybrid search with reranking, a generated SQL query, or something else. Capture the query or arguments, the returned documents or chunks, and whether those results were helpful.

Trace each retrieval step by itself, then evaluate the full context-building pass. The local trace answers “Did this query return useful material?” The full trace answers “Did the system collect everything the model needed before generation?” If it did, failures are a generation problem. If not, it’s a retrieval problem.

You cannot know where the failure started or what to fix without traces.

Different failures need different fixes

“Improve retrieval” is too broad to be useful, as different problems require different solutions. If a relevant document is missing, the trace should show where it disappeared: query building, retrieval, filtering, ranking, or final context assembly.

A sequential flowchart which maps a five-stage pipeline—Query builder, Retriever, Filters, Ranking, and Context—with each stage pointing down to its respective failure mode.

The failed step, plus what the trace shows, tells you what change to make.

Failed stepWhat the trace showsChange to make
rg / grepA conceptual query returns literal matches while missing relevant files.Add semantic search over files or chunks, or generate better keyword queries before calling rg.
BM25The query uses the right concept but different words from the source material.Add semantic search, synonyms, or query expansion.
Semantic searchExact names, error strings, document IDs, or domain terms are missing from the results.Add a keyword or BM25 path, or boost exact term matches.
Hybrid retrievalThe relevant passage is ranked 7th, but the context only takes the top 5.Add or tune a reranker, or raise candidate top_k before reranking.

The right fix depends on what the system was trying to retrieve. A decision-history question requires the decision, the alternatives, and the chats in which the team worked through them. A study question depends on the lecture material, deck metadata, semantic matches, and the user’s study context.

The architecture

Once you trace individual retrieval calls, the full architecture has a simple shape: fan out to context-building tools, then fan in to generate the final output.

A system architecture diagram showing a RAG pipeline.

The retrieval layer might be a search engine, a vector database, an SQL query, a local file tool, a web search API, or a custom service. The pattern stays the same: build candidate context, narrow it, rank it, assemble it, then generate from it.

Give agents human search controls

Semantic search compares embeddings (numerical representations of meaning). It helps when wording differs, but most retrieval intents also depend on structured constraints. A meeting search box can use semantic search over transcripts and notes, but a useful interface also lets someone filter by person, date, project, and source. 

A finance search may need the latest filing, a specific quarter, or an official source in addition to the closest semantic match. In e-commerce, the best semantic match for “32×30 cargo pants” may be an out-of-stock product. The system still has to decide whether to hide it, return it with a backorder note, or show it so the user can check later. That product decision is a retrieval decision because it changes which candidates reach the agent.

In a chat interface, those controls are in the tool schema, query planner, or app logic. If an agent runs the search, it needs arguments for the same constraints a human would set with filters, sliders, tabs, and sort menus.

A retrieval system usually needs several controls working together:

ControlWhat it doesExample
Exact matchMatches names, IDs, error strings, quoted phrases, tickers, or product codes.Find EADDRINUSE, Authlib, or a specific SEC accession number.
Semantic matchFinds related content when the wording differs.Find the meeting where the team discussed authentication tradeoffs.
Hard filtersRemoves invalid results before ranking.Limit by tenant, permissions, person, date range, size, or stock status.
SortsOrders candidates by a structured field.Prefer the newest, latest filing, lowest price, highest rating, or recency.
RankingScores candidates based on their likely usefulness for this request.Combine semantic match, exact match, freshness, source quality, and use.
RerankingUses a slower model or scorer on a smaller candidate set.Compare the query against the top 100 candidates before returning 10.

Here, a chunk means a small piece of source content, and a candidate is a chunk returned by the first search step. Ranking is the scoring step that orders those candidates. Context assembly then selects which chunks and structured fields to include in the model prompt.

Better ranking improves precision, which means a larger share of the returned chunks is useful. If the relevant chunks are near the top, the system can pass fewer chunks to the model, use fewer tokens, reduce latency, and expose the model to less noise. If the right chunk is ranked 40th and the context only includes the top 10, the system behaves as if the retrieval missed it.

People and agents use the same basic search path: ask for results, inspect what comes back, and decide what to use. A person can skim ten search results, compare titles, snippets, dates, domains, and URLs, and decide whether the result set looks right. They can open the third result, ignore the rest, and search again with a better query. An agent usually receives a bounded set of returned documents and reasons from the context. If the right source falls below the cutoff, the agent may answer from partial context. To avoid this, the system has to retrieve more candidates, run more searches, or pass more evidence into the model.

A missed document can change what the agent searches for next. Suppose someone asks why the team chose Authlib. If the first search misses the transcript where the team compared Authlib with alternatives, the agent may search the codebase instead. It finds imports, callback handlers, tests, and maybe a comment. Then it asks follow-up questions about OAuth configuration. The context starts to look complete, but it supports the wrong answer. It explains how Authlib was used and why it makes sense in the codebase, not why the team chose it.

“The context starts to look complete, but it supports the wrong answer.”

But ranking cannot repair every search problem. If the agent failed to request the latest filing, a reranker may faithfully select an older document with a closer wording match. If the tool has no date_range, person, source_type, size, or in_stock argument, the model has to impose hard constraints in the search text and hope that retrieval infers them. A hard filter gives the model less to infer, making semantic search more reliable.

Scale changes the retrieval problem

Search systems already have tools for this: indexes, filters, facets, sorts, caching, bounded reranking, and freshness jobs. Agent systems need the same discipline.

A human might search, adjust a date filter, scan the first page, then search again. One agent request can do that many times in seconds: rewrite the query, run keyword and semantic search, inspect thin results, issue follow-up searches, fetch sources for citations, and ask for more context before answering. With many concurrent users or agents, the retrieval layer can become a bottleneck.

Humans often wait through a slow search if the result is good. Agent systems often turn slow and uncertain search into more work. When ranking is weak, teams compensate by raising top_k, running keyword and semantic searches in parallel, adding reranking, fetching more source documents, and passing larger evidence bundles to the model. That can improve answers, but it moves the cost into tokens, latency, and retrieval load. A better ranking lets the system return fewer, better candidates, rather than making every request carry a larger pile of possible evidence.

With a small corpus, you can still search comprehensively quickly and cheaply, even with fully agentic approaches. That’s what I recommend when you’re starting and don’t have much data. Don’t add complexity until you need it. But with millions or billions of chunks, every extra retrieval call, candidate, ranking pass, and returned token adds up quickly.

Multi-stage retrieval is the production shape

Most production systems should split retrieval into stages, even when the UI is a chat box.

StageWhat happensTrace question
Search argument constructionThe app or agent turns the request and state into a query, filters, and sort.Did it ask for the right content with the right constraints?
Candidate generationThe system finds plausible chunks from text, vectors, or structured data.Did the right source enter the candidate set?
FilteringPermissions and product constraints narrow what can be returned.Was the source correctly excluded or wrongly lost?
SortingStructured fields order results when order matters.Was the latest, cheapest, highest-rated, or current item surfaced?
RankingThe system scores the candidates based on their usefulness for this request.Was the source present but ranked too low?
Summary returnThe system returns only the fields the agent needs.Did the app receive usable evidence and provenance?
Context assemblyThe app selects, formats, and budgets evidence for the model.Did useful evidence get dropped before generation?
EvaluationHumans or automated checks label whether the retrieval path worked.Can the team turn the failure into a specific fix?

Each stage leaves a different repair path. If the agent chose the wrong filters, changing the embedding model will not help. If the latest document was available but the tool never sorted by date, the fix belongs in the search arguments or retrieval API. If the right source was present but below the cutoff, the fix belongs in the ranking. If the right source came back but was dropped before generation, the bug is in context assembly.

As retrieval becomes a core part of agent architecture, teams increasingly need infrastructure that can combine semantic search, exact matching, filtering, ranking, and large-scale retrieval in a single system. Depending on requirements, this may involve search and retrieval platforms such as Vespa, Elastic, or Coveo, each of which supports different approaches to ranking, retrieval, and operational scale. 

The important point is not the specific technology choice, but recognizing that retrieval quality has become a first-class engineering concern. As agent workloads grow, retrieval systems are increasingly determining the accuracy, cost, latency, and reliability of the overall application.

The post Why retrieval quality is becoming the defining challenge in AI agent architecture appeared first on The New Stack.

Coinbase runs 1,200 agents and just slashed its AI bill in half

Close-up of a server rack with rows of network cables connected to switches, illuminated by green LED lighting in a dimly lit data center.

Vercel CEO Guillermo Rauch and Coinbase CEO Brian Armstrong run very different companies, but they’re making the same architectural bet. Instead of building around a single AI provider, both are designing production systems that can route work across multiple models.

Rauch and Armstrong aren’t making this decision in a vacuum. Frontier models have become much closer in capability for everyday engineering work, open-weight alternatives have improved dramatically, and the price gap keeps widening. That makes it much easier to justify routing work across several models instead of committing to one. 

Trillion tokens, zero loyalty

In an interview with TechCrunch, Rauch said that Vercel now routes more than a trillion tokens a day across millions of deployments, and that the company is actively moving away from one-lab partnerships. Rauch’s point highlights that the model has become just one interchangeable component in a larger inference pipeline.

That’s a significant position from the CEO of a company that serves as deployment infrastructure for a huge share of the frontend ecosystem. Rauch is calling single-lab partnerships obsolete.

Rauch is calling single-lab partnerships obsolete.

Cheaper defaults, smarter routing

Armstrong is making the same bet, and the financial results state his case. Coinbase cut its internal AI spend by nearly half while overall token usage continued to grow, without imposing usage caps on engineers.

Their playbook basically runs on three core levers.

First, it’s an internal LLM gateway. Coinbase deliberately defaults its engineers to lower-cost open-weight models, specifically Z.ai’s GLM 5.2 and Moonshot AI’s Kimi 2.7. Engineers can still pull down a stronger model if a specific job absolutely demands it, but the pricing gap makes the default choice obvious. GLM 5.2 costs roughly $1.40 per million input tokens and $4.40 per million output tokens.

Compare that to Anthropic’s Opus 4.8, which sits around $5 for input and $25 for output. You are looking at a three- to six-times cost reduction per token. And it holds its own on major coding benchmarks, scoring 62.1 on SWE-bench Pro, compared to GPT-5.5’s 58.6. Plus, because Coinbase self-hosts these models, zero code or query data ever leaves their environment.

The second lever is task-based routing. Armstrong makes a highly practical point here, suggesting teams want a frontier model to do the heavy lifting for complex planning, but for pure execution tasks, where cheaper models perform just as well, there is zero reason to pay top dollar.

The third piece is aggressive caching. By keeping a conversation locked to the same model as long as the cached context is valid, Coinbase managed to push its cache hit rate from a measly 5% up to 60%. That 12x jump is a massive cost driver.

Gateways as control planes

If you want to understand Armstrong’s broader mindset, listen to his recent chat on the Sourcery podcast. He casually mentioned that Coinbase now operates with roughly 1,200 full-time AI agents, a number they calculate by normalizing compute hours to a standard 40- to 60-hour workweek. At that scale, he argues that human developers have absolutely no business manually choosing which model to use. The infrastructure has to automate that decision entirely.

Human developers have absolutely no business manually choosing which model to use.

Because foundation models are becoming so easy to swap in and out, the engineering focus is shifting to the surrounding infrastructure. Like a centralized control plane, a gateway intercepts every prompt and makes a dynamic, split-second decision about whether a workload actually requires the expensive reasoning capabilities of a frontier model or a cheaper, faster alternative can handle it. The infrastructure makes that call based on the cache state, the complexity of the task, and real-time pricing.

Teams need visibility into latency, uptime, token consumption, and cost across all providers because using multiple model providers changes observability requirements. Without that data, it’s difficult to know whether routing decisions are actually improving performance or reducing costs.

Test before you trust

Evaluation becomes just as important. Lower-cost models need to be continuously tested against the workloads that matter to an organization before they are deployed to production traffic. Public benchmarks are a useful starting point, but are no substitute for measuring how a model performs on your own code, data, and workflows.

Trying to pick the single best AI provider is a losing game.

What’s striking is that Vercel and Coinbase arrived at remarkably similar architectures despite solving different problems. Both assume that today’s best model probably won’t stay on top for long. If that’s true, the competitive advantage shifts away from the model itself and toward the infrastructure that decides which one to use. 

The post Coinbase runs 1,200 agents and just slashed its AI bill in half appeared first on The New Stack.

GitLab just surveyed 1,500 developers. Here’s why it matters for your codebase.

Minimalist geometric illustration of a solitary person straining against a rope. This perfectly visualizes the core insight that rapid AI coding speed without infrastructure control and governance becomes a major organizational liability.

For the past two years, the conversation about AI-assisted software development has been dominated by speed. A new GitLab survey of more than 1,500 developers and technology leaders found that 60% say AI coding ROI has already exceeded expectations, and 78% report their teams are writing and committing code faster since adopting AI tools. 

But speed without control is a liability.

Most organizations have pursued agentic engineering by adding AI coding tools on top of their existing infrastructure. Coding agents are delivering speed, but that speed isn’t showing up across the full software lifecycle: Only 21% of respondents report productivity gains beyond code generation itself.

“Speed without control is a liability.”

The infrastructure problem runs deeper. Git backends, toolchains, and governance frameworks were built for human-scale concurrency. Agents operate at machine scale, and that mismatch shows up fast. Platform reliability breaks down with millions of agent sessions hitting the same backend, security exposure widens as agents touch dependencies at scale, and cost overruns mount as agents consume tokens inefficiently on infrastructure that wasn’t built for them.

Agentic adoption outpaced governance

The adoption curve for AI coding tools outpaced the development of required guardrails, with 80% of organizations saying they adopted AI tools faster than they developed policies to govern them, and 82% reporting that AI-generated code risks creating a new form of technical debt that their organizations are not prepared to manage.

In practice, that means platform reliability challenges under agent load, security and compliance exposure that widens as agents touch dependencies at volume, and agents operating with artificial confidence because they lack full context. Only 28% of organizations say their software development lifecycle tools are fully integrated with shared data and workflows, which means most teams are trying to govern agent actions across a toolchain that was never designed for them.

Agentic engineering needs agentic infrastructure

Agentic engineering requires two things: agentic coding and agentic infrastructure. Most organizations have the first but lack the second.

Agentic infrastructure spans four areas: the execution layer, the context layer, the governance layer, and the orchestration layer working together.

The first is machine-scale execution. Git backends, CI/CD pipelines, and deployment systems were designed for human-paced development. In the agentic era, they need to handle millions of agent sessions without breaking. When a production incident occurs, the path from symptom back to origin should take minutes, not days.

The second is context that travels with code. As Bastian Stahmer, Business Owner of Vehicle Software Development Platform at Mercedes-Benz, put it on a panel recently, “An agent can only be as good as the context and semantics fed to it.” A context graph connecting code, work items, pipelines, security findings, and production signals is what makes agents genuinely useful at scale and keeps artificial confidence in check.

“An agent can only be as good as the context and semantics fed to it.”

The third is governance built into the flow. Agent actions need to be tied to an identity, logged against a policy, and provable to a reviewer. Low-risk changes move fast, while higher-risk changes trigger review. For Mercedes, operating under automotive regulatory standards that require full traceability and human accountability, GitLab is the control plane where that accountability lives.

The fourth is orchestration. Execution, context, and governance are only as effective as the system coordinating them. The orchestration layer coordinates agent actions across the full software lifecycle according to the policies teams define, determining which agents run, in what order, and how failures and handoffs are managed. Without it, agentic infrastructure is a set of independent capabilities rather than a working system.

What’s next

The next phase of AI in software will focus less on generating code and more on governing it, according to 85% of respondents. That shift reflects how enterprises are maturing their thinking about AI, from a productivity tool to a foundational capability that needs to be trusted, traced, and maintained at scale.

When governance is built into the platform, speed and control are no longer in tension. Traceability becomes a competitive advantage. Context becomes institutional memory. And the codebase, rather than accumulating invisible risk, becomes an asset that grows more reliable over time.

The post GitLab just surveyed 1,500 developers. Here’s why it matters for your codebase. appeared first on The New Stack.

Cursor, GitLab and Zed agree GitHub is breaking. They disagree on how to rebuild it.

A heavily glitched, distorted image of a paragraph of text overlaid on a black background with jagged red and dark teal digital artifacts. The partially legible text reads about grammars evolving, separation of human populations, and the advent of written representations and formal rules about language, but much of it is broken up and obscured by the visual noise.

The biggest news to emerge from the AI world this week was undoubtedly that Elon Musk’s SpaceX had agreed to acquire AI coding startup Cursor in an all-stock deal valued at $60 billion.

But on the very same day, at an invite-only developer conference hosted by Cursor in San Francisco, Tomas Reimers took to the stage to unveil a fledgling project that could prove just as consequential for the developer tools industry.

Origin, as it’s called, is a Git-compatible code-hosting platform designed from the ground up for a world where AI agents — rather than humans — do the bulk of the work.

Reimers, it’s worth noting, is co-founder of Graphite, a code-review startup that Cursor revealed it was acquiring back in December (a deal that apparently closed in January). At the time, some commentators noted the deal’s implications for GitHub — among them was Gergely Orosz.

Orosz, author of The Pragmatic Engineer newsletter and an investor in Graphite, who wrote on LinkedIn: “I’m telling you: GitHub’s biggest competitor could soon be Cursor. Graphite — in my view — is the best AI code review + stacked diffs + PR workflow product out there. GitHub is already playing catch-up to Cursor/Graphite.”

Put simply, Graphite had already built workflow tools that GitHub was scrambling to replicate — and with Cursor’s resources behind it, the gap was only going to widen. And now with the might of SpaceX, a $2.5 trillion company, behind it, things could be about to get very interesting.

The Origin origin story

On stage in San Francisco ahead of Origin’s unveiling, Reimers pointed to Graphite’s customer base — which includes Shopify, Snowflake, Notion, and Figma — as evidence of a problem already well underway before Origin existed.

“When we were acquired by Cursor, we accelerated our most ambitious project — to rebuild that tooling from scratch.”

“Over the past few years, we noticed the trend as these companies adopt AI tooling,” Reimers said. “The tools that they relied on started to become unreliable. That’s because over the past few years, AI tooling has totally changed our industry. It’s enabled every developer to be a 10 to 100x developer, but that change has required fundamentally different tooling. That’s why, when we were acquired by Cursor, we accelerated our most ambitious project — to rebuild that tooling from scratch.”

Amid all the hullaballoo of SpaceX hitting the public markets, becoming one of the world’s most valuable companies overnight, and doling out a cool $60 billion for a four-year-old startup, it’s easy to appreciate why Origin might have slipped under the radar. But the infrastructure problem it’s setting out to solve is real.

It’s easy to appreciate why Origin might have slipped under the radar. But the infrastructure problem it’s setting out to solve is real.

GitHub, the world’s dominant code hosting platform by some distance, is having a rough time of it. As The New Stack reported in June, the platform has logged hundreds of incidents over the past 12 months, struggling to keep pace with the volume of code that AI agents are generating. The company says it’s now processing about 1.4 billion commits per month — up from 1 billion across all of 2025 — with agents alone generating more than 17 million pull requests per month.

The irony isn’t lost on anyone: GitHub helped kickstart the AI coding era with the launch of Copilot in 2021, and it’s now buckling under the weight of it. And for some, the cracks are already showing in their day-to-day habits.

Brian Douglas, GitHub’s former director of developer advocacy who recently launched his own AI infrastructure startup called Paper Compute, tells The New Stack that the shift is already underway.

“Agents are quickly killing the will for doing open source.”

“Agents are quickly killing the will for doing open source,” Douglas says. “I’d love to see what GitHub’s [monthly active user] numbers look like today, because I am sure there are a number of folks choosing to do code reviews elsewhere — or exclusively collaborating with agents to get the work to the last mile — which is at an all-time high.”

Douglas, for what it’s worth, counts himself among them, saying he now does much of his review and PR work directly in AI coding tools.

“As a GitHub power user, I find myself using it less, and relying more on Claude and Codex for review and PR interactions,” he says.

A post-GitHub world?

Origin remains in waitlist-only mode ahead of a planned fall launch, and those present at Compile reported enough detail to sketch its ambitions. Developer advocate and independent commentator Shawn Wang Yuexian, known as swyx, described it as a “long-awaited Git competitor, scalable for agent workloads, extensible with API and MCP, and with built-in merge conflict and CI failure agent resolution.”

Whatever Origin looks like in its launch guise, it’s clear the appetite for an alternative to the status quo is growing. The software development world has changed considerably since GitHub popularized the pull request model back in 2008 — a feature that Douglas calls its “best ever.” But the pull request was designed for a world where humans deliberately wrote and reviewed code, one change at a time. That world is receding fast.

“Right now, the velocity of projects being created is overwhelming GitHub, and engineers are not looking at the code.”

“Right now, the velocity of projects being created is overwhelming GitHub, and engineers are not looking at the code,” Douglas says. “So if the goal is to put it in the cloud so agents are managing the code, I think that is absolutely an opportunity for disruption.”

So, as AI agents push code at a rate no human reviewer can keep up with, the pull request risks becoming a formality — a box to tick rather than a meaningful quality gate. Which raises a deeper question about how the industry should measure the value of software work at all.

For Douglas, the answer lies in a different unit entirely. Commits and lines of code — the traditional proxies for developer output — tell you little in a world where an agent can generate thousands of lines in seconds. Tokens, by contrast, map directly to compute cost and, therefore, to the real effort and value generated. It’s a reframing that suits Cursor rather well.

“Tokens are a better metric than commits.”

“Tokens are a better metric than commits,” Douglas says. “They align to a dollar spent that correlates to the effort of work. Previously, we pretended lines of code were the metric, and that was proven incorrect. But tokens plus agent sessions equals customer value — and Cursor is positioned well to own a deeper part of the collaboration stack.”

Cursor, though, isn’t alone in that conviction, and a slew of tangential efforts to rebuild that infrastructure for the agentic era are emerging.

At its Transcend conference in London on June 10, GitLab announced a private beta of what it calls Next Generation Source Code Management — known internally as Project Switch. Unveiled on stage by GitLab chief product and marketing officer Manav Khurana, the new backend keeps the Git protocol intact but redesigns the underlying architecture entirely, allowing agents to query repositories server-side rather than cloning them in full.

GitLab says it delivers up to 50 times faster task execution per agent, with up to 3 times fewer tokens consumed. And notably, Anthropic is a design partner on the project.

“The most popular Git platforms in the world are buckling under the load, not just because of your teams cloning, branching, and merging code, but also dozens, in some cases hundreds, of agents working simultaneously and putting a lot of pressure on those systems,” Khurana said.

The day after GitLab’s Transcend announcement, Zed co-founder Nathan Sobo published details of DeltaDB, a project the company had first teased the previous fall. A more radical proposition than either Origin or Project Switch, DeltaDB replaces Git’s commit-based model entirely with a continuous stream of fine-grained deltas — every operation an agent performs, linked directly to the conversation that produced it. Sobo confirmed that a beta version is just weeks away.

HashiCorp co-founder Mitchell Hashimoto, meanwhile, has seen this coming. Back in December, he wrote on X: “The AI companies are on track to become GitHub faster than GitHub is becoming an AI company.”

The AI companies are on track to become GitHub faster than GitHub is becoming an AI company. I'm sure there's a lot of sycophants within GH/MS showing off PowerBI dashboards to argue against this for their own personal gain, but wake the fuck up.

— Mitchell Hashimoto (@mitchellh) December 19, 2025

When Origin was announced this week, he retweeted himself with a single line: “Cursor announced Origin today. More will come.”

*taps sign* Cursor announced Origin today. More will come. https://t.co/MwLN0Q7dHX

— Mitchell Hashimoto (@mitchellh) June 16, 2026

Hashimoto, as it happens, is an investor in another agent-native code hosting startup called East River Source Control (ERSC), which is building a Git-compatible platform designed to land thousands of commits per second.

The model is the moat

For Douglas, the convergence of competing efforts to rebuild version control from the ground up isn’t hugely surprising. In the past year, he points out, a similar dynamic played out with developer sandboxes — the environments where code gets written and tested — as companies like Docker, Cloudflare, and Vercel moved into that space because that’s where developers were spending their time.

The same gravitational pull is now acting on version control. The way developers work has changed fundamentally — where once they wrote code directly inside their editors, many now spend their time directing AI agents that do the writing for them. The IDE is no longer primarily a place to type; it’s increasingly a place to watch, review, and steer.

“I think all the folks who are part of the story have a shot, and we need to rethink our infrastructure to prepare for this.”

“Now, IDEs are suffering from the fact that developers have evolved to foundational model harnesses writing code, and they need to position themselves as the tool you open to watch agents write the code,” Douglas says. “I think all the folks who are part of the story have a shot, and we need to rethink our infrastructure to prepare for this.”

Underpinning all of this, though, is a commercial reality. Cursor has been building toward this position for some time, having launched its own first-party coding model, Composer, in 2025 and iterating on Composer 2.5 in May, giving it cheaper, in-house inference rather than relying entirely on costly API calls to Anthropic and OpenAI. Composer 2.5 costs a fraction of Claude Opus at equivalent tasks — as much as a tenfold difference on output tokens. Owning the model, in other words, is what makes owning the rest of the stack viable.

Introducing Composer 2.5, our most powerful model yet.

It's more intelligent, better at sustained work on long-running tasks, and more reliable at following complex instructions.

For the next week, we’re doubling the included usage of the model. pic.twitter.com/N87ojcXlOC

— Cursor (@cursor_ai) May 18, 2026

“It’s clear you can’t just insert an OpenAI key and expect hyper-growth or longevity in this market anymore,” Douglas says. “Instead, you need to own the model to win.”

Whether SpaceX’s firepower accelerates that ambition or complicates it remains to be seen. But the companies placing bets on the next era of software development aren’t waiting for GitHub to catch up.

The post Cursor, GitLab and Zed agree GitHub is breaking. They disagree on how to rebuild it. appeared first on The New Stack.

Why AI retrieval and ranking need more than vector search

Artistic illustration of a silhouette hiker journeying toward complex, layered mountain peaks under a glowing aurora sky, serving as a metaphor for moving beyond vector search to multi-dimensional AI retrieval architectures.

A recent GigaOm CxO Decision Brief explores how AI retrieval architectures are evolving beyond flat vector databases as organizations combine semantic search, ranking, personalization, and machine learning inference in production systems.

Vector search changed the AI infrastructure landscape by making semantic retrieval practical at scale. By converting text, images, and user behavior into embeddings, organizations could move beyond exact keyword matching and retrieve information based on meaning. But production AI systems rarely stop at vector similarity.

A real-world query often requires multiple signals to be evaluated simultaneously. Semantic relevance may be one factor, but so are structured attributes, business rules, personalization signals, freshness, access controls, recommendation logic, and machine-learned ranking models. As organizations move from AI experimentation to production-scale applications, the challenge is no longer simply finding similar items. It is in combining all of the signals that matter while maintaining low latency and operational simplicity. This is where tensors are attracting increasing attention.

While vectors represent information as a single dimension of numerical values, tensors provide a more general framework for representing and operating on complex, multi-dimensional data structures. They offer more control in how relevance is computed, allowing dense embeddings, sparse features, metadata, and model outputs to be evaluated together within a unified retrieval and ranking process. For organizations building large-scale retrieval systems, this raises an important architectural question: is a flat vector store sufficient, or does the next generation of AI applications require something more expressive?

“Tensors provide a more general framework for representing and operating on complex, multi-dimensional data structures.”

A new GigaOm CxO Decision Brief, “The Tensor Advantage in AI Search,” explores this question in depth.

Among the findings:

  • Production AI systems increasingly depend on combining semantic, lexical, behavioral, and business signals rather than relying on vector similarity alone.
  • Architectural fragmentation between vector databases, search engines, rerankers, and feature stores introduces latency, operational complexity, and synchronization challenges that become more significant as workloads scale.
  • Emerging retrieval models, including multi-vector and late-interaction approaches, place new demands on infrastructure that were not anticipated when first-generation vector databases were designed.
  • Tensor-native architectures provide an alternative approach by treating multidimensional data structures as first-class citizens rather than forcing them into simpler vector abstractions.

The paper also examines the infrastructure, operational, and organizational implications of these architectural choices, including benchmark data, deployment considerations, and the trade-offs engineering leaders should evaluate when planning future AI retrieval systems.

“Retrieval is evolving from a nearest-neighbor problem into a ranking and decision-making problem.”

As AI applications become more sophisticated, retrieval is evolving from a nearest-neighbor problem into a ranking and decision-making problem. Understanding the role tensors play in that transition may be one of the most important architectural discussions facing engineering leaders today.

Download the GigaOm CxO Decision Brief to explore the findings in full.

The post Why AI retrieval and ranking need more than vector search appeared first on The New Stack.

Microsoft’s pitch to enterprises: Ditch Azure Repos for GitHub, despite its rocky reliability record

alt text for this 18:09 A sinister robotic figure peers through blinds on a computer monitor, surrounded by binary code, against a deep blue background.

GitHub hasn’t had an easy year. The platform has been hit by repeated outages affecting core services — including the Actions-based CI/CD pipelines that engineering teams depend on daily — and has had to issue public apologies as a result.

The scale of the problem is staggering: Where GitHub handled roughly 1 billion commits across the whole of 2025, it now processes 1.4 billion every month, with AI agents alone responsible for more than 17 million pull requests in the same period. GitHub’s COO Kyle Daigle told The New Stack in early June that the company is now targeting capacity to handle 30 times its current load — a challenge he described as far beyond the normal playbook of adding more machines.

Against that backdrop, Microsoft has chosen this moment to make its most direct push yet to push enterprise customers off Azure Repos — its own Git-based source code platform, which has existed in various forms since 2013, predating Microsoft’s $7.5 billion acquisition of GitHub in 2018 — and onto GitHub.

The exit ramp

The tool Microsoft is using to make that case is Enterprise Live Migrations (ELM), currently in limited public preview. The core problem it solves is downtime: previously, moving large repositories from x to x could take days, leaving teams frozen out of active development.

In a blog post authored by Soo Stahl, principal product manager at Azure DevOps, and product manager Bhuvan Shah, the pair explain that ELM works by keeping the source and destination repositories in sync while developers continue working in Azure Repos, with a final switchover window that they say typically takes under 30 minutes.

“Teams can migrate at their own pace, without coordinating complex, high-risk ‘all-at-once’ migrations.”

“This means no extended freeze periods, no multi-day outages – just a controlled, predictable transition that fits into your operations,” they write. “Teams can migrate at their own pace, without coordinating complex, high-risk ‘all-at-once’ migrations.”

There are real limitations worth acknowledging. ELM carries over the fundamentals — full Git history, branches, tags, pull request metadata, including comments and user history, and branch policies translated into GitHub rulesets — which, for teams whose work is primarily code-focused, may cover most of what they need.

But pipelines, work items, wikis, and test plans all have to be handled separately, and for enterprises deeply embedded in Azure DevOps’s broader project management and CI/CD tooling, ELM is a starting point rather than a complete solution.

For large organizations with hundreds of repositories, this is a multi-stage undertaking regardless.

Migration to GitHub
Migration to GitHub

For Microsoft, the calculus is all about AI — GitHub is where Copilot, the Copilot Coding Agent, and the broader agentic development suite live, and Azure Repos is not part of that picture.

To demonstrate that this is more than a customer pitch, Microsoft recently published details of its own migration — its Copilot, Agents and Platforms (CAP) organization moved over 1,600 repositories and 3,100 developers across in six months, with a team of just two dedicated engineering leads driving the effort.

By consuming its own dog food at scale, Microsoft is making the case that the disruption is manageable and the payoff meaningful. Poonam Gupta, partner director of product management for 1ES and Azure DevOps at Microsoft, cites AI as the primary driver of the migration.

“Software development is being reshaped by AI, and where code lives now have a direct impact on how much value organizations can capture.”

“Software development is being reshaped by AI, and where code lives now has a direct impact on how much value organizations can capture,” Gupta writes. “For teams that want to take full advantage of AI-native development, repository location is becoming a strategic decision.”

The elephant in the room

Rumors of Azure Repos’ eventual deprecation have circulated online for years, and while Microsoft has not confirmed anything on that front, the direction of travel is clear.

The community response to Gupta’s June 3 post captured the mood among enterprise customers: several questioned why AI capabilities couldn’t be brought to Azure Repos rather than requiring a platform change, while others raised the cost differential — Azure DevOps Basic costs $6 per user per month, compared with GitHub Enterprise’s $21.

And more than one commenter interpreted the post as a deprecation notice in all but name. “The writing was on the wall since MS [Microsoft] bought GitHub,” wrote one commenter. “[Azure DevOps] is dead and MS wants everyone moving to GitHub… Everybody saw this coming, and only MS denied it.”

Perhaps more important here is the question that Microsoft sidesteps: if GitHub has spent the past year struggling under the weight of agentic development traffic, why is now the right time for enterprises to bet their critical infrastructure on it?

The timing acquired an extra layer of awkwardness on Friday, when 73 Microsoft-owned GitHub repositories — including the Actions used to deploy Azure Functions — were disabled in a Miasma worm attack, breaking CI/CD pipelines for developers globally.

None of this necessarily undermines the strategic case for moving to GitHub. The AI development ecosystem is consolidating there, and the migration tooling is getting meaningfully better. But for enterprise teams weighing the decision, reliability and security aren’t footnotes — they are the main criteria. Microsoft is betting that access to Copilot and agentic workflows is compelling enough to tip the balance.

It may well be right, but a 30-minute cutover window is only part of what it will take to make that argument stick.

The post Microsoft’s pitch to enterprises: Ditch Azure Repos for GitHub, despite its rocky reliability record appeared first on The New Stack.

AI retrieval at scale is becoming a systems problem, not a tooling problem

Flat art illustration of a single winding road through a vast night desert landscape, serving as a visual metaphor for an integrated AI retrieval data pathway.

AI retrieval has moved well beyond embeddings and vector search. Early retrieval architectures focused primarily on semantic similarity. Still, production AI applications increasingly demand more from the retrieval layer: combining keyword matching, semantic retrieval, ranking, and real-time signals within a single request path.

Vector databases solved an important problem by making semantic retrieval practical. But production AI systems increasingly require more than retrieval alone. Customer-facing applications such as search, recommendations, and RAG must retrieve, filter, and rank results in real time while serving large user populations under tight latency constraints. 

As systems evolve toward conversational, research-oriented, and agentic workflows, retrieval performance, ranking quality, and architectural simplicity become increasingly important to maintaining relevance at scale.

In recently published research commissioned by Vespa, GigaOm explores how AI search platforms are evolving as organizations move beyond standalone vector search toward more integrated retrieval and ranking architectures. Rather than focusing purely on model quality, the report examines the operational and architectural trade-offs that emerge as AI workloads move into production.

GigaOm’s findings

AI retrieval architectures have become more fragmented over time. What begins as a straightforward search stack often evolves into a collection of loosely coupled systems: lexical search, vector retrieval, feature serving, reranking, synchronization pipelines, and model infrastructure. 

“What begins as a straightforward search stack often evolves into a collection of loosely coupled systems.”

GigaOm’s view is that the operational overhead of connecting and maintaining these layers is becoming a limiting factor in itself, slowing iteration cycles and making every relevance improvement dependent on coordinated changes across multiple systems.

One of the more interesting findings in the report is that consolidation is not framed primarily as a procurement exercise but as an engineering and systems design decision. GigaOm argues that teams increasingly pay for fragmentation through duplicated data movement, synchronization logic, operational maintenance, and cross-system tuning. 

The hidden cost is not simply infrastructure spend but the engineering effort required to keep retrieval pipelines aligned, rather than improving ranking quality, personalization, and user-facing AI capabilities.

“The hidden cost is not simply infrastructure spend but the engineering effort required to keep retrieval pipelines aligned.”

The report also suggests that platform convergence matters because modern retrieval workloads increasingly combine keyword search, vector retrieval, real-time features, and ML-based ranking in the same request path. 

GigaOm highlights architectures that bring these stages closer together to reduce latency, improve data freshness, and simplify experimentation, while acknowledging trade-offs such as concentration risk and migration complexity. 

Rather than recommending wholesale replacement, the report advocates a phased adoption approach, beginning with ranking and validation on production workloads before progressively consolidating retrieval capabilities.

Download a copy of the report.

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Claw-style AI agents are coming to the enterprise. The governance infrastructure is still catching up.

The press release version of Automation Anywhere‘s EnterpriseClaw announcement is straightforward enough: a new capability for deploying what the company calls “claw-style” AI agents.

These are autonomous agents that can access device file systems, create tools at runtime, and interact directly with applications across enterprise infrastructure, backed by partnerships with Cisco, Nvidia, Okta, and OpenAI. It offers better security, Nvidia is contributing OpenShell, Okta will offer identity management, and OpenAI will allow companies to use the all-new GPT 5.5 within EnterpriseClaw

The more interesting story is what EnterpriseClaw, introduced last week at the company’s Imagine 2026 event, reveals about the gap between how AI agents are being built and how enterprises operate.

A “claw-style” agent

Adi Kuruganti, Automation Anywhere’s Chief AI and Development Officer, is candid about where the idea came from. Nvidia’s OpenShell — an open source runtime for autonomous, self-evolving agents that could essentially allow agents to replicate anything a human operator could do at a keyboard. That combination of capabilities is what Automation Anywhere is calling a “claw-style” agent, a term the company coined.

EnterpriseClaw is essentially OpenShell’s capability wrapped in centralized governance, he says. A “claw-style” agent differs from a traditional agent in three ways: Device-level access (local or shared), dynamic tool creation at runtime, and interaction with the computer screen.

The problem, Kuruganti says, is that OpenShell “could access pretty much everything, which is not a good thing in enterprise settings.”

For individual users or isolated cloud environments, broad system access is a feature. For a healthcare system, a bank, or a manufacturer running processes in air-gapped data centers, it could lead to a governance failure.

EnterpriseClaw is Automation Anywhere’s answer. It takes the autonomy model, adds centralized governance, credential controls, observability, and the ability to run agents close to where data lives. That includes environments behind firewalls and those that will never touch a public cloud.

An industry-wide identity crisis

Of the four partner integrations, the most telling may be Okta’s. Kuruganti tells The New Stack that agent identity, which involves how an autonomous agent authenticates to enterprise systems, what access it gets, and how its actions are audited separately from the humans it works on behalf of, is still a work in progress across the industry.

The current state is awkward, he says. Most enterprises are still handing agents human credentials to access systems like Salesforce or SAP. That means when an agent executes a process autonomously, the audit trail shows a human did it.

“There’s no clear record of what the agent did versus the human,” Kuruganti says.

Okta’s “first-class identity” model — where each agent has its own identity, access scope, and audit trail — is the proposed fix, and the company is working to establish it as a cross-vendor standard, not just an Automation Anywhere integration. That work is ongoing.

The hybrid reality

Kuruganti notes that almost everyone is building for the cloud, but enterprise data is not there yet.

“Most of the agent platforms out there are really thinking all in on cloud only,” he says. “The reality is most of the data doesn’t live in the cloud.”

For large enterprises in healthcare, financial services, and manufacturing — which Kuruganti identifies as Automation Anywhere’s three core customer industries — data lives on-premises, in private cloud VPCs, and in some cases in air-gapped environments where cloud connectivity is not an option.

That’s the architectural bet EnterpriseClaw is making: that the customers who matter most for enterprise automation aren’t the ones who have moved everything to the cloud, but the ones who haven’t and won’t anytime soon, Kuruganti says.

Nvidia’s role in the partnership reflects this directly — Nemotron models running on-premises via OpenShell exist for the customer whose bare-metal data center has no path to a cloud inference endpoint, he adds.

The orchestration play

How Automation Anywhere positions EnterpriseClaw and the company’s orchestration capabilities against ServiceNow, Microsoft, and others is also worth examining. Kuruganti’s positioning of the company as “the Switzerland of business process orchestration” is a jab at platform-centric competitors.

His argument is that ServiceNow automates within ServiceNow’s ecosystem; Microsoft automates within Microsoft’s. Automation Anywhere’s Mozart Orchestrator, by contrast, is designed to manage agents built on any platform, including competitors’, under a single governance layer.

That is the company’s value proposition. Whether customers experience it that way is a separate issue. But the proliferation of agentic platforms is creating a new orchestration problem and requires a multi-platform agent governance solution.

Where it stands

EnterpriseClaw is in preview, available to Automation Anywhere customers now under existing consumption pricing. A formal GA with dedicated packaging is expected later this year. The company says the preview designation isn’t a technical limitation — production deployments are happening — but a commercial one: they haven’t finalized how they want to price it.

At Imagine, Automation Anywhere also announced Autonomous IT and Autonomous Finance — prebuilt solutions that combine AI agents, process intelligence, and governance controls for the CIO and CFO’s offices. Both are available now.

The post Claw-style AI agents are coming to the enterprise. The governance infrastructure is still catching up. appeared first on The New Stack.

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