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Your agent is only as good as your infrastructure

Dark abstract 3D glass ribbon rendering symbolizing complex AI agent infrastructure and bursty data workflows.

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.

Agents aren’t chatbots with more steps

The difference between serving inference for a chatbot vs. an AI agent isn’t simply that one is “more capable.” They execute work differently:

  • A chatbot usually makes one inference call per user message. The model receives a prompt, generates a response, and waits for the next user input before proceeding.
  • An agent executes the entire workflow, turning one user message into a chain of inference calls. It might decide to search documentation, retrieve data from a database, call an API, execute code, evaluate the result, and then repeat that process before producing an answer. Each of those decisions may trigger another inference call, and every result becomes additional context for the next step.

“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. 

One question, many steps behind it

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.

This workflow changes what reliability means

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.

Why the bill and the performance both feel unpredictable

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.

  • The pause: The agent waits on an external API or database, so the GPU serving that workflow has no inference work to perform, and its accumulated context may be evicted from GPU memory while it waits
  • The burst: As soon as external systems return results, inference resumes simultaneously across many workflows, creating short and sharp spikes in GPU demand, each re-processing its full accumulated context

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.

What infrastructure built for agents actually looks like

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.

  • Predictable economics even for dynamic workloads. The infrastructure bill should reflect actual usage.
  • None of this makes bursty demand disappear, but it changes how the system absorbs it. A large enough simultaneous burst, or a workflow that accumulates enough context before pausing, still costs something. The goal isn’t zero cost or zero limit; it’s making both predictable.

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.

The post Your agent is only as good as your infrastructure appeared first on The New Stack.

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Multi-Agent Coding Isn’t Enough — Agents Need a Commitment Layer

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.

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Perplexity’s AI agents helped build a database. They weren’t allowed to run it.

Abstract glitch wave

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.

Why DynamoDB couldn’t keep up

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.

Three tiers for search data

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.

Roughly 5X Lower Batch-Read Latency

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.

Agents built it, engineers controlled it

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.

Ownership has long-term costs

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.

The post Perplexity’s AI agents helped build a database. They weren’t allowed to run it. appeared first on The New Stack.

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Anthropic bet users were choosing wrong. So it removed the choice.

Single lane

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.

Two modes, one problem

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,”

Context that finally travels

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.

Output stays in-conversation

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.

What Anthropic hasn’t said

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.

Rollout starts with Pro

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.

The post Anthropic bet users were choosing wrong. So it removed the choice. appeared first on The New Stack.

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Perplexity’s new agent runs entirely on your GPU — with one expensive catch

Abstract server

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.

Orchestration beyond the model

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.

Connectors blur local boundaries

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.

Hybrid cloud as fallback

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.

High VRAM floor limits reach

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.

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Chip Huyen explains how to cut inference costs without new hardware

Layers of wavy yellow horizontal strips with deep shadows between them, forming an abstract pattern.

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.

What to measure

Chip recommends focusing on a few key latency metrics:

  • Time to first token (TTFT): How much time elapses before the user sees anything
  • Time per output token (TPOT): The average time between consecutive tokens (aka inter-token latency)
  • End-to-end latency: Time to first token, plus time per output token, multiplied by the number of output tokens minus one
(Click to enlarge graphic.)

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. 

(Click to enlarge graphic.)

3 ways to optimize LLM inference

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

(Click to enlarge graphic.)

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.

Model optimization

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.”

Service optimization

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:

  • Static batching waits for the batch to fill. This maximizes compute utilization, but it might increase the latency for the first requests.
  • Dynamic batching runs on a timer instead (e.g., batching every 15 ms). This is less compute-efficient, but it’s better for latency.
  • Continuous batching handles the case where requests finish at wildly different times, which is common with LLMs. One request asks for the capital of Vietnam; another kicks off deep research. With static or dynamic batching, the finished request’s slot sits idle until the slowest one completes – and new requests queue up behind it. Continuous batching returns each request as it finishes and fills the spot with another request. That can improve compute resource utilization and latency.
(Click to enlarge graphic.)

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. 

(Click to enlarge graphic.)

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. 

(Click to enlarge graphic.)

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.”

(Click to enlarge graphic.)

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. 

Evaluating inference providers

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?”

What’s changed one year later?

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.

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OpenAI’s researchers burned $7,000 a day on AI agents — now it’s opening the floodgates

speed abstract

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.

Agent inference adds up fast

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.

Friction limited compute demand

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.

Astra demand hit the ceiling

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.

Infrastructure outweighs benchmarks now

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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Coding Agents Don't Need Longer History — They Need Intent Continuity

I built a system that automatically discovers, verifies, and applies relevant requirements from earlier interactions without asking the user where they came from.

The post Coding Agents Don't Need Longer History — They Need Intent Continuity appeared first on Towards Data Science.

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How Full-Stack NIM Optimizations Deliver 2.5x More Users on Nemotron 3 Ultra

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...

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…

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DeepSeek is hiring 150 engineers, and none of them will touch a model

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Hundreds of thousands of AI agent sandboxes can already run concurrently on a single DeepSeek cluster. Now the company is staffing up to handle what happens as that number — along with its training, evaluation, and other backend workloads — keeps climbing.

Cui Tianyi, who joined DeepSeek in March and works on its Harness team, the group responsible for the infrastructure and environments used to run and evaluate agents, announced in an X post that roughly 150 engineering positions on September 7, with the hiring concentrated in server-side engineering and Agent Elastic Compute rather than AI research. The work spans operating systems, virtualization, networking, storage, scheduling, and the control-plane services that coordinate those resources.

Cui said DeepSeek’s existing backend systems will need upgrades, maintenance, and rewrites as workloads grow. One such system at the center of that scaling challenge is DeepSeek Elastic Compute, or DSec, the sandbox infrastructure DeepSeek built to execute agent workloads during post-training and evaluation.

Cui said DeepSeek’s existing backend systems will need upgrades, maintenance, and rewrites as workloads grow.

Four sandboxes, one SDK

Agent workloads require more than GPUs for inference, with each agent also needing an isolated environment to run code, call tools, change files, and collect the results.

DSec supports four types of those environments through the same Python SDK. Simple function calls go to pre-warmed containers, while Docker-compatible containers handle jobs that need a persistent environment. DeepSeek uses Firecracker microVMs when stronger isolation is needed and QEMU virtual machines for workloads that require a full guest operating system.

That range means the same infrastructure can handle anything from a simple tool call to a software-engineering task that needs an entire OS. It’s a similar challenge to the one the rest of the industry is bumping into as agents move from demos to production. OpenAI, for instance, recently designed custom silicon specifically to address the compute pressure that agent workloads create, and DeepSeek open sourced its own agent harness in August.

Lazy loading agent environments

Every sandbox needs its own environment, but copying complete container or VM images onto every host would consume enormous amounts of storage and network bandwidth while adding to startup time. DeepSeek gets around that by tying DSec into 3FS, the distributed filesystem it originally built for its AI infrastructure, and keeping container base images and filesystem commits as read-only layers backed by 3FS.

The metadata stays local, but the underlying data blocks are fetched only when they’re actually needed. MicroVMs use a similar setup, sharing their read-only base layer through 3FS while writes from individual sandboxes are kept in local copy-on-write layers.

DeepSeek says DSec reduces duplicate page-cache usage across virtualized environments and reclaims memory to allow safe overcommitment, while changes to the container runtime cut the CPU overhead of each sandbox.

The team also had to deal with spinlock contention inside the container runtime. At small scale, the CPU time spent there barely registers. At scale, it limits how densely those environments can be packed onto each host.

DeepSeek says DSec reduces duplicate page-cache usage across virtualized environments and reclaims memory to allow safe overcommitment, while changes to the container runtime cut the CPU overhead of each sandbox.

When replay breaks training

During reinforcement learning and other post-training workloads, large numbers of agent rollouts can be running at once, and jobs may be interrupted as compute gets reassigned. Starting over wastes everything the agent has already done, but picking up where it left off isn’t as simple as replaying its previous commands.

Some of those commands may have changed a file or otherwise altered the environment, so running them again could produce a different result or leave the training trajectory in the wrong state. DSec avoids that with a globally ordered trajectory log that records commands along with their results.

When a rollout resumes, DSec can fast-forward through the completed work using those recorded results rather than executing the commands a second time. That reduces the cost of interruptions across thousands of training and evaluation runs, while the same logs preserve a history of how each sandbox changed and allow earlier sessions to be replayed.

Engineers, not researchers, wanted

The roughly 150 openings reach across DeepSeek’s backend, including the lower-level systems work behind Agent Elastic Compute as well as the services that support its models and agents.

DeepSeek said in June that it planned to at least double the size of every department, but this round of hiring leans heavily toward the systems underneath its models rather than the models themselves. DSec is part of that work, with hundreds of thousands of sandboxes running concurrently and putting pressure on everything from how jobs are scheduled to how they recover after an interruption.

The roughly 150 openings reach across DeepSeek’s backend, including the lower-level systems work behind Agent Elastic Compute as well as the services that support its models and agents.

The post DeepSeek is hiring 150 engineers, and none of them will touch a model appeared first on The New Stack.

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After nine years as HashiCorp CEO, Dave McJannet now wants to “unblock” enterprise AI agents

Retro 3D-rendered computer with a two-icon logo on screen, keyboard, and mouse on a purple background

Ask a traditional enterprise application for a customer address or today’s revenue figures and, broadly speaking, it follows a predictable route its developers have already mapped out: authenticate the user, query the right system, return the result. Given the same underlying data, you’ll get the same answer each time.

Ask an AI agent the same question, and the journey is much harder to forecast. It might consult one system, decide it needs more context from another, make a dozen tool calls, pass information through a language model and only then produce an answer. Run the same request again, and it may take a different route altogether.

And in an enterprise, what happens along that route can matter just as much as the answer: which systems the agent accesses, what data it sees, what actions it takes and how much it spends.

That distinction — between predetermined software, and applications that make probabilistic decisions on the fly — sits at the heart of a new company from a founder who knows a thing or two about bringing order to a new generation of infrastructure.

AI agents are hard to govern

Dome Systems co-founder David McJannet left HashiCop in August 2025
Dome Systems co-founder David McJannet left HashiCop in August 2025

Dome Systems was co-founded at the turn of the year by David McJannet, who spent close to a decade leading Terraform-creator HashiCorp through the cloud era, culminating in its blockbuster 2021 IPO and subsequent $6.4 billion sale to IBM in 2025. McJannet is joined at the helm by Marc Holmes, who spent more than six years at HashiCorp as chief marketing officer.

In an interview with The New Stack, McJannet lays out his company’s thesis on AI agent governance, arguing that enterprises are now running into the same kind of problem that they did with cloud infrastructure: adoption comes first, then the real spadework begins of putting the right controls in place across security, operations and finance.

“It’s actually a very different architecture, and that is what unlocks the power of these new [agentic] applications.”

Part of the challenge, he says, is that agents are built very differently from the enterprise applications of yore, which companies spent years learning how to control.

“It’s actually a very different architecture, and that is what unlocks the power of these new [agentic] applications,” McJannet explains.

He points to self-driving cars as an example: a model takes in live inputs and interacts with the vehicle’s systems as conditions change, because no developer can reasonably pre-program every possible situation a car might encounter on the road.

“It’s making judgments along the way, as opposed to trying to look up the historical maps of the world and make a real-time decision,” McJannet continues.

An enterprise agent can behave in much the same way: call one tool, assess the result, decide it needs another, and keep going until the task is complete. That flexibility lets agents tackle work that would be difficult to script exhaustively in advance — but it also makes their behaviour harder for enterprises to govern.

And this gets to the heart of what McJannet is striving for with Dome.

Table stakes for the agent era

The company launched out of stealth back in April with $14 million in seed funding, with McJannet having departed HashiCorp the previous August after the IBM transition concluded.

Dome’s starting point is that an agent combines three things: code, a model, and the backend systems or tools it interacts with. Bringing those pieces together under one platform, McJannet says, is “table stakes” for applying meaningful constraints to what the agent can do.

“If you don’t have an integrated platform, you can’t enforce controls across everything that the agent is doing,” McJannet says.

“If you don’t have an integrated platform, you can’t enforce controls across everything that the agent is doing.”

And so Dome’s platform is built around those three elements. An agent registry keeps track of the agents themselves; an MCP gateway controls the tools they can call; and a model broker/router governs which models they can use and how requests are routed.

The setup starts by registering the agent and giving it an identity, establishing who is allowed to call it, and connecting the backend tools it can reach — Zendesk, in this example.

Dome registers an agent, verifies its caller and connects the tools it can use.
Dome registers an agent, verifies its caller and connects the tools it can use.

Next, Dome connects a model provider, groups available models into a pool with routing and failover rules, then combines the agent, its tools and its models behind a single gateway. That gateway becomes the point through which Dome can apply the policies governing what the agent is allowed to do.

Dome connects a model provider, creates a model pool and brings the agent behind a gateway.
Dome connects a model provider, creates a model pool and brings the agent behind a gateway.

Once those pieces are connected, teams can set permissions on each call, use guards to inspect responses, apply quotas to cap spending, and keep a common audit trail across the agent’s activity.

Today, McJannet says, enterprises are often piecing all of this together themselves. A standalone model broker might be brought in to control spending, while a separate tool gateway handles security and operational concerns. Some are then building their own agent registry to tie those systems together.

Moreover, buying those capabilities separately leaves enterprises with another integration problem to solve. A model router might govern one part of an agent’s activity and a tool gateway another, while the agent itself continues moving between them.

“If you just provide the tool gateway or just the model router, it doesn’t allow you to have this kind of system of control,” he says.

That is also where Dome’s latest move enters the fray. After spending its first months in early access, the company is now opening the platform to self-service users for the first time, allowing teams to sign up with little more than a credit card, bypassing the typically arduous enterprise sales process.

Dome goes self-serve

Self-serve is relatively unusual route for this kind of enterprise infrastructure product. Dome is publishing its prices, offering a free tier and letting practitioners get started without first going through a sales process, while keeping the traditional enterprise route open for larger customers.

The thinking is partly about who McJannet expects to use the product. Rather than limiting access to buyers who are already deep into a procurement process, for example, self-serve enables individual practitioners to be able to discover, try and use the platform themselves.

“”We want to make the barrier as low as possible to have people come on board,” McJannet says, adding that Dome had already seen a number of self-service sign-ups ahead of the launch.

Separately, its pricing reflects a belief about where value will ultimately sit in this market. McJannet regards model routing and tool connectivity as baseline capabilities, with the more valuable piece being the controls that sit across the agent as a whole — think permissions, data redaction and spending quotas.

It’s also worth noting that while Dome’s main target user will be platform engineering teams inside large enterprises, typically working alongside operations and security, self-serve also creates an opening for another kind of user: the small company, perhaps even only one or two people, building an agent and trying to sell into an enterprise. The sort of scenario that aligns with the fabled one-person unicorn promised by many in the AI realm.

Indeed, McJannet says developers can get far building the application itself, only to hit a wall when a prospective enterprise customer begins its security and operations review. How is identity enforced? Who can see the data the agent reaches? What happens when it calls other agents? Can its activity be reconstructed afterwards?

Some builders, he says, have asked whether they can “certify” their agents on Dome because “my agent won’t get deployed until I can satisfy these infrastructure elements.” McJannet is careful to add that Dome doesn’t currently run such a certification program, but it’s clearly one route the company could venture down.

“If you register that agent on Dome, all the infrastructure elements are taken care of,” McJannet says.

‘Unblocking AI agents’: Lessons from the cloud era

That division between developers eager to ship, and enterprise teams worried about what happens after, is also where McJannet sees the strongest parallel with his years at HashiCorp.

During McJannet’s tenure, HashiCorp increasingly positioned itself around helping large organizations standardize how cloud infrastructure was provisioned, secured and connected. That included the 2020 launch of HashiCorp Cloud Platform (HCP), which offered its infrastructure tools as managed cloud services.

More broadly, McJannet’s account of early cloud adoption begins with developers swiping a credit card and deploying directly to Amazon because cloud infrastructure allowed them to build applications that had previously been impractical. The applications were compelling enough that enterprises adopted cloud despite resistance from operations and security teams, and what followed was a second phase: companies needed common services for provisioning, credentials, networking and other controls before cloud could become routine across the organization.

Platform engineering teams became the people responsible for reconciling those two demands: allowing developers to build while giving security, operations and finance enough control to permit those applications into production. McJannet believes agents are now creating the same tension.

“You’ve got this queue of cool apps that developers build that the ops and security teams are just not comfortable letting flourish in their environments.”

“You’ve got this queue of cool apps that developers build that the ops and security teams are just not comfortable letting flourish in their environments,” he says. “And so, inevitably, it has to go that same direction where the platform engineering team has to figure out [a way] to get to say ‘yes’.”

Dome’s bet is that enterprises will eventually prefer one system spanning the entire agent to a patchwork of gateways, routers and security products. In McJannet’s telling, that common control layer is what gives enterprises a way to limit how far an agent can roam while still letting it act autonomously.

“You have to have this control layer that provides this corridor where we can constrain the behavior of that new type of application architecture,” he says. “Because without that, you cannot unblock the deployment of AI applications.”

“That’s the part that we’re trying to answer — how do we unblock agents at scale?”

There is still plenty for Dome to prove. The company isn’t naming customers at this stage; McJannet says none of the enterprises it has worked with are yet willing to be identified publicly, though he says Dome has spent the past eight months talking to dozens of them.

Ultimately, McJannet believes the cloud era showed that new applications only become commonplace once enterprises have the controls to let them through. Dome is his attempt to solve that problem for agents.

“I think that’s the part that we’re trying to answer — how do we unblock agents at scale?”

The post After nine years as HashiCorp CEO, Dave McJannet now wants to “unblock” enterprise AI agents appeared first on The New Stack.

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Context Windows Don’t Know What’s Still True — I Built a Validity Layer That Does

A context window can be technically complete and still describe a world that no longer exists. I built a deterministic benchmark to measure the cost of acting on stale context.

The post Context Windows Don’t Know What’s Still True — I Built a Validity Layer That Does appeared first on Towards Data Science.

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AI agents are creating more work, not less — and OpenAI’s own numbers back it up

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OpenAI says it hit a goal it set last fall, stating researchers are now using what the company calls an “automated research intern,” which is an agent that can handle well-defined tasks that would normally take a researcher several days.

The data shows coding-agent use climbing throughout 2026, and by mid-August its agents were logging 3.1 agent-workdays for every human workday across the research organization. The median researcher was spending more than $600 on inference per day at API prices, while those in the 90th percentile spent more than $7,000.

The median researcher was spending more than $600 on inference per day at API prices, while those in the 90th percentile spent more than $7,000.

Agent hours versus useful output

But everyone knows that an agent-workday and a human workday aren’t the same. The company converts the time agents spend working on tasks into standard eight-hour workdays. Because researchers can run several agents at once, the figure tells us how long the agents are working, but not necessarily what they’re completing.

For engineering teams, that leaves plenty of work on the human side, which means running more agents can increase the amount of work happening at once, but it can also increase the amount of work a human needs to keep track of.

OpenAI’s very specific definition of a research intern highlights that it must be able to complete well-defined research tasks that would take a skilled person several days, but a human is still in charge. The company’s next goal, an automated AI researcher, is one they hope to reach by March 2028.

The company’s next goal, an automated AI researcher, is one they hope to reach by March 2028.

Supervision becomes the constraint

Using a taxonomy from Epoch AI, OpenAI broke the agents’ work into six areas — Decide, Design, Build, Run, Analyze, and Communicate — and found activity increased across all six between January and August, although agents still did relatively little of the work involved in deciding what research to pursue.

Much of the work is practical, with agents writing research and infrastructure code, monitoring experiments, and providing enough technical support that OpenAI says attendance at debugging office hours has fallen, prompting one team to stop holding the sessions altogether.

And yet, more agent hours don’t automatically mean more useful research. OpenAI says code output and experiment counts are relatively easy to track, but neither shows how much progress those agents actually made. Compute also increased significantly as the number of experiments rose.

OpenAI used another model to judge how well agents performed on tasks of varying difficulty and found that, despite improving success rates between January and July, humans still had to step in on more than half of successful tasks that would have taken a person four to eight hours.

Security incidents limit Astra deployment

Once engineers can run several agents at once, with those agents launching subagents of their own, the challenge shifts to keeping up with what they produce — catching runs that go off track, reviewing code diffs, and deciding what is ready to ship or feed into a training run.

⁠Astra’s persistent-agent capabilities already let researchers hand off multi-day assignments⁠, which makes this supervisory strain worse, not better.

The company acknowledges that as agents take over more of the execution, the parts of research that are hardest to automate will consume more of an engineer’s time, putting a practical limit on how much agent output one person can realistically review.

On July 20, a series of outages caused by agents disrupted OpenAI’s research infrastructure badly enough that the company took its training container service offline and later brought it back with tighter restrictions.

Nearly a month later on August 7, OpenAI tightened access again after early evidence suggested Astra could reach the “Critical” cybersecurity threshold in its Preparedness Framework, restricting the model to higher-security research areas and adding safeguards that developers may already be encountering as unexpected API interruptions⁠

Workloads shift between models fast

Astra-class GPU allocation fell 59.2% the following week, but that compute didn’t sit idle for long. Researchers moved much of the work to other models, which saw GPU allocation rise 17.2% and made up for roughly 85% of the drop in Astra usage. Instead of reducing the amount of work being run, the restrictions pushed it to other models, showing how easily workloads can move when one part of the system is locked down.

OpenAI’s researchers are handing off larger jobs to agents, running more of them at once and launching more experiments, but whether that translates into faster research is harder to measure — and OpenAI is still figuring out how to price it.⁠

OpenAI’s researchers are handing off larger jobs to agents, running more of them at once and launching more experiments, but whether that translates into faster research is harder to measure — and OpenAI is still figuring out how to price it.⁠

The post AI agents are creating more work, not less — and OpenAI’s own numbers back it up appeared first on The New Stack.

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