How to Maximize Your Coding Agent Subscriptions
Get more out of your coding agent subscriptions
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Get more out of your coding agent subscriptions
The post How to Maximize Your Coding Agent Subscriptions appeared first on Towards Data Science.
Retrieval is not evidence. How to build AI that proves its own claims.
The post Beyond RAGs: Building Actually Truthful AI Harnesses appeared first on Towards Data Science.
The database administrator of the future will spend considerably less time administering databases.
That sounds contradictory, but AI agents are taking over that work. For decades, DBAs have handled the decidedly hands-on work of keeping databases available, performant, secure, and affordable. They provision capacity, troubleshoot slow queries, manage migrations, and step in when something inevitably goes sideways.
AI is already taking on some of that work. At the same time, it is creating a much bigger data infrastructure fleet to manage.
The result is likely to be a very different kind of DBA: one who spends less time tending individual databases and more time supervising the autonomous systems doing it for them.
This shift starts with a familiar problem: more infrastructure needs managing than the people available to manage it.
Database automation is hardly new, but agents can potentially go further than the scripts and rules DBAs already rely on. Rather than automating one predetermined task, an agent can inspect what is happening, decide what needs attention, use tools to act on it, and check whether its intervention worked.
That changes the DBA’s relationship with the database. A performance problem that once required someone to dig through metrics, identify the troublesome query, and decide how to respond could increasingly be investigated by an agent before a human gets involved.
It doesn’t remove the DBA from the equation. Someone still has to decide what an agent can do, where human approval is required, and what happens when it gets something wrong. But the work moves up a layer. Instead of personally performing every operational task, DBAs start managing the systems carrying them out.
Instead of personally performing every operational task, DBAs start managing the systems carrying them out.
And before anyone gets too comfortable with that idea, the number of those systems could become enormous.
Gartner predicts that the average global Fortune 500 company will have more than 150,000 AI agents in use by 2028, up from fewer than 15 in 2025. Only 13% of organizations currently believe they have the right governance in place to manage them.
Not every agent will need its own database, but plenty will. They will create state, retrieve data, remember previous interactions, and exchange information with other agents. Many will also behave very differently from the applications DBAs are used to supporting: spinning up quickly, sitting idle for long stretches, and suddenly becoming busy when there is work to do.
Nobody is hiring 150,000 DBAs to manage them.
That is the scale problem Yugabyte is targeting with YugabyteDB AMP, or Agentic Multitenant PostgreSQL. Rather than treating each new agent workload as another database for an administrator to provision and babysit, AMP manages databases as a fleet.
The platform packs hundreds of small Postgres workloads onto shared distributed infrastructure while keeping their databases isolated. Lifecycle operations, including provisioning, branching, scaling, migration, and teardown, can be exposed to agents through MCP. Yugabyte has also built specialized agents for setup, migration, performance tuning, and integrations.
In that model, a DBA is no longer provisioning database number 14,372. The interesting job is setting the rules for how database number 14,372 is provisioned, operated, and fine-tuned without them.
Scale is only half of the problem. Someone also has to pay for all this stuff.
Agent workloads make traditional capacity planning particularly awkward because many are bursty and frequently idle. Giving every experimental agent permanently provisioned infrastructure could leave companies paying for many databases that spend much of their lives doing very little.
This is where consolidation becomes as much an economic question as an operational one.
AMP’s approach is serverless multitenancy and scale-to-zero. Multiple small workloads share the underlying distributed infrastructure, while customers pay by CPU minute and idle agents consume no compute. Resource governance can impose CPU limits on individual workloads, preventing a single overeager agent from consuming the capacity intended for its neighbors.
The human equivalent matters too. If routine setup, migrations, tuning and other database operations can increasingly be delegated, a smaller database team can potentially look after a much larger estate.
That doesn’t mean companies get to fire the DBAs and hand the keys to the robots. It means scarce database expertise can be spent on architecture, governance, and genuinely difficult problems instead of repeatedly doing the work that software can handle.
The harder question is what to build underneath all of this when nobody really knows what the enterprise AI estate will look like in two years.
An agent that begins as an experiment today could disappear next month. Another could suddenly become a production application used across the business. Building one infrastructure stack for cheap experiments and another for serious workloads risks creating a migration problem every time an experiment succeeds.
Yugabyte bets that both ends of that journey should sit on the same foundation.
YugabyteDB AMP lets workloads start on serverless Postgres and transition to fully distributed YugabyteDB as their scale and criticality increase, without rewriting the application or migrating data to a different database platform.
Then there is the problem above the individual database: agents need to remember what happened, and not just in a silo.
That’s where Meko fits into the Yugabyte stack. Meko is an agent-native context engine designed for multi-agent AI systems. It provides persistent memory, shared knowledge, decision traces, and autidability across multiple agents, rather than leaving each agent working from its own isolated context. An agent can pick up information learned by another agent instead of retrieving it again or restarting the reasoning process.
Taken together, it delivers a single data stack for an agent’s entire lifecycle: Meko for the context shared among agents, YugabyteDB AMP for agentically managing fleets of Postgres databases, and distributed Postgres-compatible YugabyteDB for workloads that outgrow their serverless beginnings.
Of course, there’s no guarantee that 2028 will look exactly like today’s forecasts. That’s rather the point. The safest architectural bet may be one that doesn’t require you to know in advance which of today’s tiny AI experiments will become tomorrow’s critical applications.
The DBA is still critical in that world, but the job will look different. The DBA of the future may manage fewer databases directly, while taking responsibility for vastly more of them. Instead, managing the autonomous systems that do the administering.
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Why a green test suite can mean nothing
The post Towards Spec-Driven Test Automation: Part 1 appeared first on Towards Data Science.
Learn how to effectively code up an internal tool using Claude code or Codex
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AI agents spend a ridiculous amount of compute generating text nobody actually needs. The decisions an agent makes along the way don’t require a written answer and yet, agents still send them to generative models, wait for an answer while burning through tokens and then parse that output back. The overhead is already drawing scrutiny — OpenAI’s own researchers recently disclosed spending $7,000 a day running agent workloads.
Kev, a new family of open decision models built on Qwen 3.5, takes a different approach and skips the generation entirely.
Developer Jared Palmer released a new generation of Kev on Sunday, with 0.8 billion, 4 billion, and 9 billion parameter models built on Qwen 3.5. Kev is prefill-only, processing the state, questions, and candidates in a single forward pass before reading the decisions from a pointer head without an autoregressive decoding loop.
Kev, a new family of open decision models built on Qwen 3.5, takes a different approach and skips the generation entirely.
Kev supports three decision types: Noul for yes/no, Choice for selecting among candidates, and Score for ordered levels, mirroring TypeSafe’s System One API. Developers provide the state and questions, and the pointer head returns probabilities across the available candidates.
For a tool-routing decision, the output could look like this:
search: 0.82
database: 0.13
calculator: 0.05
Kev can still choose the wrong tool, but because it scores only the candidates it’s given, it can’t introduce an option that isn’t on the list.
Routing, safety checks, escalation, and ranking can then move to the decision layer, leaving larger reasoning models to handle the open-ended work.
Kev can still choose the wrong tool, but because it scores only the candidates it’s given, it can’t introduce an option that isn’t on the list.
Multiple decisions can also be made against the same state in a single forward pass, with a block-causal attention mask isolating the questions while the pointer head scores each set of candidates independently.
Palmer’s documentation shows the 4B model processing three questions in 277 milliseconds in bf16 on an M5, although without a controlled comparison against Qwen generating equivalent answers on the same hardware, the result doesn’t establish how much faster the approach is in practice.
The ability to evaluate several decisions against the same context could become more useful as agent loops grow more complex, but skipping generation doesn’t make the resulting decisions inherently better.
The largest model, Kev-9B, reached 83.7% accuracy on the project’s locked out-of-domain test, according to Palmer’s model card. That’s a developer-reported benchmark, and Palmer documents some limitations alongside it.
The probabilities Kev returns don’t always reflect how confident developers should be in the result. Palmer found that temperature calibration can drift on unseen source distributions, a problem for agents that use probability thresholds to decide whether to execute an action or escalate it, since even a high-probability choice can still be wrong.
Fine-tuning also changes some of the capabilities inherited from the underlying model. Palmer’s evaluations show declines on general-knowledge and arithmetic tests, particularly among the smaller models. That’s consistent with Kev’s more specialized role alongside a general-purpose model, although its performance in dynamic agent environments will also depend on how well it handles tools, choices, and labels it never encountered during training — and debugging agent failures often points to infrastructure rather than the model itself.
The approach predates Kev. TypeSafe introduced Jev earlier this month as part of its System One platform, using the same Noul, Choice and Score primitives, and Kev implements its /v1/systemone request and response format so applications built against the API can point to a local Kev server instead.
The biggest difference is that Palmer released Kev under Apache 2.0 with the model weights, training code, and evaluation tooling, giving developers the option to run and train it on their own infrastructure. Jev’s weights and training data aren’t public, however, which makes direct performance comparisons difficult because differences between the models can’t be isolated to architecture, size, or training.
For applications that make only a handful of bounded decisions, constrained decoding on a model that’s already running may be simpler than adding another model to the stack. Agent loops can make those decisions constantly, however, moving through routing, ranking, safety checks, tool selection, and escalation before generating much user-facing text. It’s a pattern showing up across model architectures — stripping out unnecessary computation when the task doesn’t require it.
When those steps only require a choice or probability, Kev can handle the decision directly while leaving open-ended reasoning and final responses to the larger generative model.
When those steps only require a choice or probability, Kev can handle the decision directly while leaving open-ended reasoning and final responses to the larger generative model.
The post Your AI agent is burning tokens on choices that don’t need words appeared first on The New Stack.
Why this matters less for what Astra can do and more for what every other model hasn't been tested for
The post GPT-6 Astra Just Hit OpenAI's Highest Cybersecurity Risk Level appeared first on Towards Data Science.
Five scikit-learn defaults that deserve a closer look before your next model reaches production
The post Your AI Assistant Wrote the Code. Who Checked the Defaults? appeared first on Towards Data Science.
One near miss, four months of running agents, and the question almost nobody is asking: what are you supposed to do while the AI writes the code?
The post AI Made Me 5x Faster. It Also Made Me 5x Worse at My Job. appeared first on Towards Data Science.
How to verify your app aligns with your intent without ever reading a line of generated code.
The post Coding Agents Keep Shipping Silent Failures — Here Is How to Catch Them appeared first on Towards Data Science.
You built a great agent, but something happened when it moved into production.
In testing, your agent reviewed pull requests efficiently on its own. It read the diff, grepped the codebase for related usages, ran the test suite, checked whether CI was still red from an earlier commit, and drafted a comment—all before you’d finished reading the diff yourself.
In production, however, imagine the same five steps ran behind every other PR review your team’s agents performed that hour. Some reviews landed in seconds; others sat for minutes because the test-suite step landed on a node that was mid-burst from someone else’s agent.
The agent didn’t change. The execution environment did, and that’s what decided whether review time held steady or crept up.
Agentic applications introduce a different execution pattern than traditional chat applications. As those workflows become longer and more dynamic, infrastructure has a much larger influence on latency, reliability, and cost than it does for a simple chatbot.
That’s why your agent is only as good as your infrastructure.
The difference between serving inference for a chatbot vs. an AI agent isn’t simply that one is “more capable.” They execute work differently:
“Infrastructure has a much larger influence on latency, reliability, and cost than it does for a simple chatbot.”
That execution model changes the infrastructure requirements for AI agents.
Instead of optimizing for individual inference requests, the system has to support long-running workflows whose latency and reliability depend on every component in the chain.
A single user request often expands into a sequence of inference and tool execution steps, sometimes called multi-turn tool calls or the agentic loop. Rather than generating one response, the model alternates between reasoning and interacting with external systems.
For example, you ask an agent why checkout latency spiked overnight. The agent pulls the deploy log, queries the monitoring system, runs a diagnostic against the connection pool, weighs whether the culprit is a bad deploy or a capacity issue, and then folds that into another inference call before finally producing a full-fledged response.
Each reasoning step becomes another inference request, and every tool result is added to the model’s context before the next step.
Multi-turn workflows are inherently sequential, which is why even low latency can quickly add up to a significant amount. Every inference step waits for the previous one to finish. If a database query takes two seconds, the model can’t begin the next reasoning step until that result returns. The model may generate tokens quickly, but the other steps slow it down.
“In this agentic workflow, every step in the chain has to hold, because the chain is only as strong as its slowest link.”
In this agentic workflow, every step in the chain has to hold, because the chain is only as strong as its slowest link. Instead of processing isolated inference requests, the inference stack has to orchestrate a chain of dependent model invocations and external tool calls. As those workflows become longer, the stack increasingly determines how quickly, reliably, and cost-effectively the application performs.
But the user doesn’t see an orchestration hiccup. They see an agent that hung or gave up.
That’s why end-to-end agent reliability depends on much more than model quality. Infrastructure determines whether each step has the resources it needs to execute predictably under load.
A second difference in agentic workflows catches teams off guard: demand patterns and their impact on your inference bill.
Most inference services, and the pricing built on top of them, assume traffic arrives at a predictable pace. A typical inference solution knows the predictable demand pattern: User traffic increases, request volume increases, and capacity scales accordingly. Cloud infrastructure is typically optimized for these steady request patterns using mechanisms such as autoscaling, load balancing, and capacity planning.
Agent workloads don’t behave that way. Individual workflows pause while waiting on external systems, then resume as soon as new information becomes available.
If you’re watching GPU utilization and it looks less like steady load and more like a heartbeat — flat, then a spike every time tool results come back — that’s the signature. It means you’re provisioning for the average when you should be provisioning for the peak, and it’s usually the first place p99 latency quietly blows out.
“If you’re watching GPU utilization and it looks less like steady load and more like a heartbeat, that’s the signature.”
Inference services designed around steady or predictable request streams can struggle to allocate resources efficiently under these conditions. This leads to inconsistent latency, GPU underutilization, or higher operating costs.
When performance becomes unpredictable, or a bill doesn’t match what you expected, it’s evidence your infrastructure was built for a different workload than the one you’re actually running.
Agentic applications place different demands on infrastructure than traditional AI workloads: long dependency chains, bursty demand, and continuous evolution. Because of this, the infrastructure is deciding whether the chain holds, and whether the bill holds too.
For an agent to run, it needs infrastructure purpose-built to support:
Performance that holds across the whole chain. The infrastructure must keep latency consistent across multi-step and multi-tool workflows.
Scalability that responds to bursty demand. Infrastructure should scale quickly as inference demand fluctuates, without requiring capacity to remain provisioned during idle periods.
Your agent is only as good as your infrastructure. Get it right, and your agent’s responsiveness, reliability, and cost-effectiveness will improve your work.
Learn more about how infrastructure can be purpose-built for agentic workflows: Check out the documentation to get started.
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Multi-agent coding systems don't necessarily fail because agents can't communicate. They can fail because important commitments made in conversation have nowhere to live afterward.
The post Multi-Agent Coding Isn’t Enough — Agents Need a Commitment Layer appeared first on Towards Data Science.
Perplexity decided it was paying too much for DynamoDB and wasn’t getting the control it wanted over read performance. So it built its own database: CobbleDB.
Built by two engineers in two months with help from hundreds of persistent coding agents throughout development, CobbleDB is a roughly 40,000-line Rust key-value store that now handles part of Perplexity’s production search traffic. The company measured median batch-read latency at 5.6 milliseconds after the move, compared with 31.4 ms on DynamoDB before the cutover, while p99 went from 123 ms to 24.2 ms.
It’s expected to cost at least 20% less than DynamoDB and plans to open-source the database at some point.
But the database itself is only part of the story. CMU professor Andy Pavlo argued at Percona Live earlier this year that databases are the hardest and most important challenge for AI agents, in part because mistakes involving production data can be difficult or impossible to reverse.
Perplexity went ahead and used hundreds of agents to help build one anyway, but they weren’t given the keys to production.
It’s expected to cost at least 20% less than DynamoDB and plans to open-source the database at some point.
Each search requires the serving layer to retrieve pre-chunked passages and vector embeddings, with a single Search API call fetching 100 to 120 page keys in batches of 10 to 20. Each item averages about 50 KB.
DynamoDB gave Perplexity little control over how it handled reads, which meant a slow replica could hold up the entire things. It also charged for the steady flow of large reads and writes generated by search, crawling, and reprocessing, which made cloud costs difficult to justify as traffic and the corpus grew.
That led Perplexity to separate long-term document storage from the database serving live searches.
The storage stack is split into three pieces. Pillar keeps durable document state in YTsaurus on HDDs, including versioned metadata, chunks and embeddings, while Lorry packages updates into partition-specific batches and moves them through S3 to CobbleDB.
Processed page data is spread across three replicas per partition, with hashed URLs as keys and RocksDB keeping often accessed data in memory while the rest stays on local NVMe. Reads stay within the same availability zone when possible, and the router can try another replica if one is slow rather than hold up the batch.
Updates come through S3 and are applied independently, allowing a replica to fall behind and catch up without blocking the others.
Perplexity was handling approximately 200,000 requests per second when it measured CobbleDB at 5.6 ms for a median batch read, down from the 31.4 ms it had recorded on DynamoDB. At p99, latency went from 123 ms to 24.2 ms.
In later load testing, CobbleDB reached 500,000 requests per second before performance started to decline.
The comparison comes with an important caveat; DynamoDB and CobbleDB weren’t tested side by side against identical traffic: the DynamoDB figures were recorded before the cutover, and CobbleDB’s afterward. Perplexity separately ran synthetic benchmarks using batches of 10 to 15 keys with values ranging from 100 bytes to 100 KiB.
Its cost model puts CobbleDB at least 20% below DynamoDB across the commitment options evaluated, though that estimate doesn’t include the engineering cost of supporting the database.
In later load testing, CobbleDB reached 500,000 requests per second before performance started to decline.
The agents carried context across sessions, catching problems with restore assumptions and runtime configuration while working on fixes and tests. But they weren’t running the database.
The two engineers kept control of the architecture and production system, particularly important given Pavlo’s warning about putting agents near critical production data.
Shipping CobbleDB in eight weeks solved Perplexity’s immediate engineering bottleneck, but maintaining a custom datastore could prove considerably harder. The latency results aren’t from a controlled side-by-side benchmark, and the projected savings don’t include the engineers needed to maintain CobbleDB and respond when something breaks.
Like Shopify and Ramp, which built custom coding agents around third-party models, Perplexity kept the cloud infrastructure but replaced a managed service with something built for its own needs. CobbleDB shows how AI-assisted development is changing that calculation, making custom infrastructure more practical for smaller engineering teams.
CobbleDB shows how AI-assisted development is changing that calculation, making custom infrastructure more practical for smaller engineering teams.
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Using Claude for anything beyond a quick question has always started with a routing decision to use Chat or Cowork? Anthropic has decided to eliminate that fork.
Starting Wednesday, Claude Chat and Cowork merge into a single interface where one conversation can handle everything from a simple answer to a multi-step project with connected tools and background execution. The company is also launching Claude Docs and Claude Slides in beta on paid plans, and moving Claude Design — previously a standalone workspace — into conversations.
The combined effect promises a streamlined experience with Claude picking up context, skills, and connectors as the work requires, and can keep running after you close your laptop.
The company is also launching Claude Docs and Claude Slides in beta on paid plans, and moving Claude Design, previously a standalone workspace, into conversations.
Anthropic built Cowork as a desktop-first agent for bigger work and Design as a separate workspace for visual output. Both shipped earlier this year and gained traction.
“We built Cowork as a separate place for bigger work, and Design for visual work,” Anthropic said in its announcement. “People used both, and told us the frustrating part was deciding where a task belonged.”
Anthropic has run into this problem before. When the company promised 20x more usage on its Max plan, developers complained that it wasn’t always clear where one limit ended and another began. Cowork and Design created a similar headache by making people decide where to start the work before they could actually start it.
Context didn’t always follow the work either, so moving from chat to Cowork or Design could mean bringing the same background along all over again. Anthropic addressed part of this in August when it unified Claude’s memory across chat and Cowork. Wednesday’s change goes further by merging the products themselves.
“We built Cowork as a separate place for bigger work, and Design for visual work,”
Cowork’s capabilities — local file access, multi-step execution, scheduled tasks and connected tools — now live inside the conversation. A workflow like that previously meant switching from chat to Cowork and carrying the context with it, and until Anthropic brought Cowork to web and mobile in July, it also required the desktop app.
Claude still asks before taking an action by default, but it can be set to keep working and check in only when something needs a closer look, while recurring tasks such as a weekly report can be scheduled to run every Monday without being started manually.
Claude Docs and Claude Slides launch in beta on paid plans, bringing document editing and presentation building directly into the app. Claude can turn work from an existing conversation into slides, which can then be edited, presented from Claude or downloaded as PowerPoint or PDF files.
The practical benefit is that a report and a slide deck based on it don’t have to begin as separate jobs with the same background supplied twice. Everything stays attached to the conversation that produced it.
Claude Design also now works inside conversations, in addition to remaining available on its own. For organizations that rely on MCP connectors to wire Claude into external tools and data, the merge means those connections are available wherever a conversation goes — without requiring users to start in a specific mode. Skills, connectors, and artifacts carry across what used to be product boundaries.
The practical benefit is that a report and a slide deck based on it don’t have to begin as separate jobs with the same background supplied twice.
The announcement leaves some gaps. It doesn’t say whether users can force a request to stay in simple chat mode rather than letting Claude decide how to handle it, or how that decision affects context windows and token consumption. There’s no mention of API changes, which makes this a consumer and team product shift, not a platform one, at least for now.
It also doesn’t address what happens to workflows built around the old separation. Shopify rebuilt its mobile development stack in 12 weeks when it consolidated tools that had grown apart — the question for Claude power users is whether their existing Cowork setups, skills, and scheduled tasks survive the merge cleanly. Anthropic says existing Cowork chats, projects, artifacts, connectors, and skills will remain available.
The unified interface rolls out to Pro and Max users across web, desktop, and mobile over the next few weeks. Anthropic says there’s nothing to enable. Team and Free plans follow. Enterprise customers are on a separate timeline; Anthropic is giving administrators at least 30 days’ notice before the change reaches their organizations.
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Keep your apps looking professional with Claude Code design skills
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Running an LLM on your PC is easy enough, but putting an agent to work there is a different story. Portable Computer, the local version of Perplexity’s Computer agent, is now available inside the Perplexity app for Windows on compatible Nvidia GeForce RTX and RTX PRO GPUs.
That’s the good news; the catch is, you’ll need an Nvidia GPU with at least 24GB of VRAM.
The Windows launch gives Perplexity three platforms in less than three weeks. Portable Computer debuted on Linux and Nvidia DGX Spark on August 25, followed a week later by hybrid compute for Apple silicon, which splits tasks between local and cloud models on Macs. Now Windows joins the mix, but bringing Portable Computer over took more than simply porting the app. Perplexity had to adapt the model runtime, orchestration, security, and hardware integration for each platform while keeping the user experience the same.
you’ll need an Nvidia GPU with at least 24GB of VRAM to use it.
Portable Computer bundles those pieces together. On Windows, it supports PPLX 27B — Perplexity’s post-trained model — and Qwen 3.8 27B, both optimized for RTX GPUs, alongside a built-in browser, tool calling, and Perplexity’s proprietary SPACE sandbox.
It’s a different lane from LM Studio or Ollama, which make running models locally as painless as possible but stop well short of giving a model autonomy over multistep work. DeepSeek’s recent hiring spree of roughly 150 new roles, nearly all of them focused on agent infrastructure rather than the model, hints at how much engineering sits between a capable model and a capable agent.
DeepSeek’s recent hiring spree of roughly 150 new roles, nearly all of them focused on agent infrastructure rather than the model, hints at how much engineering sits between a capable model and a capable agent.
Perplexity ships connectors for Microsoft Outlook, OneDrive, and Word, plus Google Drive, Gmail, Slack, and GitHub — which tells you something about what “local” actually means here.
The agent can reach external services because it’s not air-gapped. Locally completed tasks can process files without sending documents to a cloud model. Once an agent has access to both local files and remote APIs on the same machine, figuring out which resources it actually needs and where to find them gets harder.
Perplexity isn’t pretending that a 27-billion-parameter model running on a desktop GPU can handle everything, which explains the hybrid architecture. When the agent determines that a task needs more reasoning power than the local model can deliver, it can escalate to Perplexity’s cloud models.
According to Nvidia, the agent identifies when cloud support would help and asks the user for permission before sending any data off the machine.
For organizations handling sensitive or regulated data, that split can make all the difference. A local agent can grind through source code or financial records without uploading them to a hosted model for basic processing. There’s a cost angle too, since tasks completed locally don’t burn Perplexity Computer credits.
Portable Computer is available with Perplexity Pro ($20/month) and Max ($200/month), across individual and enterprise plans, with Nvidia DGX Station support coming later. The real challenge is taking local agents from developer passion projects to enterprise-ready tools. By baking this into Windows, it immediately gets in front of the scale of users needed to make that happen.
The real challenge is taking local agents from developer passion projects to enterprise-ready tools.
The post Perplexity’s new agent runs entirely on your GPU — with one expensive catch appeared first on The New Stack.
Last October, the P99 conference — the online gathering for developers focused on high-performance, low-latency applications — featured a cracking keynote from Chip Huyen.
The author of the best-selling AI Engineering, Huyen opened with simple math: Training a frontier model is a one-off cost, but inference is the same cost paid over and over. That’s great for the frontier model providers, and bad for us token burners. Over the life of a model, Huyen reckons the compute split ratio lands somewhere between 1:10 and 1:100 for training to inference. Reasoning models — which burn even more tokens — push that out even further. We all know the feeling of hitting our weekly session quotas.
Huyen’s point is that if inference is too expensive, then nobody ever recovers the training bill, which might explain why there are so many memes about the “profitability” of frontier models. So, how do we optimize inference?
That’s a topic that Huyen spent months researching for her book. And in the spirit of optimization, Huyen distilled it down to 30 minutes for the conference in October 2025.
Huyen is returning for P99 CONF 2026 in a few weeks. Ahead of that moment, watch her full talk – or read the recap below – from last year, then let’s talk about how those ideas aged over the past 11 months.
Chip recommends focusing on a few key latency metrics:

With reasoning models, some of those tokens never reach the user. “The first generated token might not be the same as the first visible token,” Huyen explained. “The model might think for a while, and it will only show the first token of the final output to the user.”
“The first generated token might not be the same as the first visible token,”
— Chip Huyen
Some people also measure Time to Publish for that (i.e., how long until the user sees the first token). The best metric to prioritize depends on what matters most for your users.
Also consider “goodput” alongside throughput. Throughput measures requests processed in a given window. Goodput measures the requests that actually met your targets. Chip’s example: an app targets 200 ms time to first token and 100 ms time per output token, and processes 10 requests per minute, but only three hit both.

With inference servers, you can optimize from 3 different angles: the hardware, the model, and the service that manages the requests and responses.

Huyen previously worked at Nvidia and opted out of the hardware discussion: “Even though I find it to be an intellectually interesting topic, it’s not relevant to a lot of people because we don’t have the power to change the hardware itself,” Huyen explained. She also didn’t want to spend much time on the obvious solution: replica parallelism, or just adding more machines. It’s costly, and it gets complicated fast – especially if you end up with a mix of 80GB, 48GB and 24GB machines and models of varying sizes to distribute across them.
That leaves the model and the service. Huyen offers these tips on how to decide: “If you want to host the models yourself, or if you have access to the model weights, or if you train a model yourself, or you want to fine-tune or distill a model, then model optimizations might be for you. However, if you want to take a model as-is and make it more efficient on your own inference service, you might want to look into service optimizations.
The following techniques change the actual weights so that they can change the model outputs.
Quantization lowers the precision used to store weights and activations (e.g., from four bytes per parameter at 32-bit to one byte at 8-bit). Huyen explained, “Reducing the precision not only reduces the memory requirement to run the model, making it cheaper. It can also make the model a lot faster. If you do additions bit by bit and each weight is 32 bits, you have to do it 32 times. If it’s 8 bits, you only have to do it eight times.”
The tradeoff is a small quality hit. Huyen continued: “It’s possible to reduce a lot of the model’s memory footprint with minimal quality degradation, and quantization is pretty generalizable to a wide variety of model architectures and model sizes. That’s why it’s very popular. I rarely see any companies running a model at full precision anymore.”
“I rarely see any companies running a model at full precision anymore.”
— Chip Huyen
Distillation involves using a large model to generate training data for a smaller model. For example, say you have a truly large model (the example Huyen used was o1) and want a model that performs like it, but is much smaller. Basically, you collect a large set of prompts, run them through the larger model, then train the smaller model on its responses.
Proceed with caution, though. Huyen warned, “A lot of model providers have the condition that they do not allow their models to be used to train competitive models. So even though it’s a very common technique, you need to check licensing.”
This set of techniques targets how requests are scheduled, routed, and reused. The actual weights aren’t affected.
Batching groups multiple requests so they’re processed together in a single pass through the model – which is much more efficient than dealing with them one at a time. Huyen presented a few batching options:

Decoupling prefill and decode separates the two phases of a request onto different machines. (Prefill processes the input, while decode generates the output.) Huyen said, “Input tokens can be processed in parallel, whereas output tokens need to be generated sequentially. With parallel processing, it’s bounded by compute, the processing power of the chip. With decoding, it’s bounded by memory, because you have to move model weights.”
Because each phase stresses different resources, most services now separate them. To improve time to first token, shift machines toward prefill. If you care more about improving time per output token, shift them to decode.

Parallelism splits work across machines. Replica parallelism copies the whole model onto more machines. Tensor parallelism divides a very large matrix, so different machines compute different parts of it. Pipeline parallelism divides the model by layer, so requests move through as a pipeline.

Prompt caching processes shared text once, saving cost and latency. A lot of repetition exists across requests to the same application: the system prompt, the examples, the same code base, the same document behind different questions. You might as well process that shared segment once, cache it, and reuse it.
The technique was relatively rare when Huyen was writing AI Engineering. “There was one paper about it, and it was not really known, but it made a lot of sense. So I included prompt caching in the book, and I’m very happy to see that nowadays it’s pretty much everywhere.”

The savings scale depending on how much of your prompt gets cached. In Claude Code logs, Huyen’s open-source tool Sniffly found cache hit rates of 90% to 97%. Some providers rewrite prompts internally to improve hit rates, but you might as well structure them yourself.
Huyen’s tip: since caching works on shared prefixes, put the stable parts of your prompt first and the variable parts later. “It’s pretty easy to do, and it can improve your application performance significantly,” she noted.
Huyen closed with a warning for anyone evaluating inference providers: “There are many inference companies that provide inference optimizations for models you want to use, and a lot of them advertise just cost and latency.
“But pay attention to how many inference optimization techniques also change the model behavior or reduce the model quality. So when evaluating an inference service, it’s important to look not just at cost and latency, but also at model quality. Does this model, provided on this service, also perform similarly on standard benchmarks?”
So where do we stand today, one year on from this keynote? Most of it actually aged quite well.
On the economics, I reckon Huyen was bang on… I think, for most of us as users, we don’t have all the cost levers to pull that Huyen outlined. But it’s great to understand what is happening. As a novice local LLM user myself, I found I could relate to her points on parallelism (I don’t have it) and prompt caching/quantization (within my grasp of control).
Prompt caching (which Huyen said was new when Huyen wrote AI Engineering) is now priced into every bundle purchase of API tokens. And her Claude Code observation (90% cache hit rates) is probably the reason we mere mortals can still afford agentic coding agents at all.
Some of it aged in ways that were hard to predict at the time. Huyen mentioned how reasoning models make inference even more significant. One year on, I think agents running multi-step loops with tool calls have turned that idea from a footnote into a way to turn Claude’s rate limits (and their infamous 99.x% availability) on their head.
All the metrics Huyen described – time to first token, time to publish, goodput under a latency SLO, etc., are all now part of the lingo and probably need to be reasoned about differently.
That’s one thing I hope she’s talking about this year! Grab a free conference pass and join us online.
Grab a complimentary pass to PG 99 Conf 2026 and join us on October 21 and 22 to chat with Huyen.
The post Chip Huyen explains how to cut inference costs without new hardware appeared first on The New Stack.
OpenAI rolled out its Agents API in public beta Thursday, opening the backend behind Codex to developers looking to run agents unattended for days.
Now, developers don’t have to build their own system to keep an agent going because the API tracks the job as it progresses and gives the agent somewhere to execute its work, even when a task stretches well beyond a single context window.
That makes long-running agents easier to try, but it also gives developers more ways to burn through compute. Interestingly enough, on the same day Agents API launched, OpenAI paused new sign-ups for its $200-a-month Pro plan after demand for GPT-6 Astra strained capacity.
Thibault Sottiaux, engineering lead for Codex, writes on X that Pro subscriptions “put the most strain on our systems,” adding that OpenAI was working to add capacity “as fast as we can.”
To make sure our current users have an incredible experience and continued access to Astra, we are going to pause subscriptions to our $200 Pro plan. These put the most strain on our systems and we wanted to take the smallest step that allows us to continue giving the broadest… https://t.co/WhLEm3HBL7
— Tibo (@thsottiaux) September 10, 2026
The Agents API and ChatGPT Pro are separate products, so there’s no reason to assume one is taking capacity from the other. Still, the timing stands out: the company is making it easier for developers to run agents for hours or days while pulling back access to its heaviest-use consumer plan and working to add more capacity.
As a task gets longer, the API can compress earlier context, so the agent doesn’t just stop when it reaches the model’s context limit. It can also bring in tools only when they’re needed or send parts of a larger job to subagents working in parallel. The actual work can run in OpenAI’s sandbox or on infrastructure the developer controls.
The actual work can run in OpenAI’s sandbox or on infrastructure the developer controls.
As agents make progress, they go back to the model for the next step, and a job that takes hours can rack up far more inference than a typical API call. The usage climbs even faster when agents work in parallel.
OpenAI has already seen this inside its own shop. In a research report published September 6, OpenAI said its research organization was logging 3.1 agent-workdays for every human workday by mid-August, measured in standard eight-hour equivalents. The median researcher, ranked by agent usage, was spending more than $600 per day on inference at API prices, while the 90th percentile exceeded $7,000.
Before June, OpenAI’s researchers were still putting in more hours than their agent, but by mid-August, the agents were doing three times as much work.
Arguably, OpenAI’s researchers are an extreme case, but the numbers show what happens when agent use starts to scale. One person can suddenly generate far more inference than their headcount would suggest.
One person can suddenly generate far more inference than their headcount would suggest.
The Agents API lowers the cost of that experimentation by leaving the orchestration layer out of the bill. Developers pay for the models, tools, and hosted compute their agents actually use.
The flip side is that it’s now easier to consume more inference. Context compaction is a good example. A full context window used to force developers to decide what to discard or how to summarize the work so far. Now the API handles that automatically and the agent keeps going. That’s useful for developers, but it also means the workload doesn’t stop when the context window fills up.
The Astra rollout offers a preview of what that could look like. OpenAI stopped accepting new Pro subscribers less than two weeks after the model launched on September 3, saying those accounts put the most strain on its systems. The Agents API has its own rate limits and usage tiers, so the Pro pause doesn’t directly affect developers using it. Still, the company is already having to manage capacity around its newest model.
The more agents developers run, and the longer they run them, the faster that usage adds up. One developer might have several agents working at once, each going back to the model throughout the task. So headcount alone doesn’t tell you much about how much compute you’re using.
For long-running agents, the challenge is keeping the work moving without wasting tokens or losing track of the task. Cloudflare made a similar bet this summer, arguing that the infrastructure around AI workloads would eventually matter as much as the models themselves.
For long-running agents, the challenge is keeping the work moving without wasting tokens or losing track of the task.
The post OpenAI’s researchers burned $7,000 a day on AI agents — now it’s opening the floodgates appeared first on The New Stack.
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The post Coding Agents Don't Need Longer History — They Need Intent Continuity appeared first on Towards Data Science.
Deploying a large language model is only the first step toward production-ready serving. Production teams also need to serve as many concurrent users as possible on available GPU infrastructure while preserving the interactivity that keeps applications responsive. That tradeoff matters even more for agentic AI workloads, where prompts can be long, context can be reused across steps…