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R.E.D.: Scaling Text Classification with Expert Delegation

With the new age of problem-solving augmented by Large Language Models (LLMs), only a handful of problems remain that have subpar solutions. Most classification problems (at a PoC level) can be solved by leveraging LLMs at 70–90% Precision/F1 with just good prompt engineering techniques, as well as adaptive in-context-learning (ICL) examples. What happens when you want to consistently achieve performance higher than that — when prompt engineering no longer suffices? The classification conundrum Text classification is one of the oldest and most well-understood examples of supervised learning. Given this premise, it should really not be hard to build robust, well-performing classifiers that handle a large number of input classes, right…? Welp. It is. It actually has to do a lot more with the ‘constraints’ that the algorithm is generally expected to work under: low amount of training data per class high classification accuracy (that plummets as you add more classes) possible addition of new classes to an existing subset of classes quick training/inference cost-effectiveness (potentially) really large number of training classes (potentially) endless required retraining of some classes due to data drift, etc. Ever tried building a classifier beyond a few dozen classes under these conditions? (I mean, even GPT could probably do a great job up to ~30 text classes with just a few samples…) Considering you take the GPT route — If you have more than a couple dozen classes or a sizeable amount of data to be classified, you are gonna have to reach deep into your pockets with the system prompt, user prompt, few shot example tokens that you will need to classify one sample. That is after making peace with the throughput of the API, even if you are running async queries. In applied ML, problems like these are generally tricky to solve since they don’t fully satisfy the requirements of supervised learning or aren’t cheap/fast enough to be run via an LLM. This particular pain point is what the R.E.D algorithm addresses: semi-supervised learning, when the training data per class is not enough to build (quasi)traditional classifiers. The R.E.D. algorithm R.E.D: Recursive Expert Delegation is a novel framework that changes how we approach text classification. This is an applied ML paradigm — i.e., there is no fundamentally different architecture to what exists, but its a highlight reel of ideas that work best to build something that is practical and scalable. In this post, we will be working through a specific example where we have a large number of text classes (100–1000), each class only has few samples (30–100), and there are a non-trivial number of samples to classify (10,000–100,000). We approach this as a semi-supervised learning problem via R.E.D. Let’s dive in. How it works simple representation of what R.E.D. does Instead of having a single classifier classify between a large number of classes, R.E.D. intelligently: Divides and conquers — Break the label space (large number of input labels) into multiple subsets of labels. This is a greedy label subset formation approach. Learns efficiently — Trains specialized classifiers for each subset. This step focuses on building a classifier that oversamples on noise, where noise is intelligently modeled as data from other subsets. Delegates to an expert — Employes LLMs as expert oracles for specific label validation and correction only, similar to having a team of domain experts. Using an LLM as a proxy, it empirically ‘mimics’ how a human expert validates an output. Recursive retraining — Continuously retrains with fresh samples added back from the expert until there are no more samples to be added/a saturation from information gain is achieved The intuition behind it is not very hard to grasp: Active Learning employs humans as domain experts to consistently ‘correct’ or ‘validate’ the outputs from an ML model, with continuous training. This stops when the model achieves acceptable performance. We intuit and rebrand the same, with a few clever innovations that will be detailed in a research pre-print later. Let’s take a deeper look… Greedy subset selection with least similar elements When the number of input labels (classes) is high, the complexity of learning a linear decision boundary between classes increases. As such, the quality of the classifier deteriorates as the number of classes increases. This is especially true when the classifier does not have enough samples to learn from — i.e. each of the training classes has only a few samples. This is very reflective of a real-world scenario, and the primary motivation behind the creation of R.E.D. Some ways of improving a classifier’s performance under these constraints: Restrict the number of classes a classifier needs to classify between Make the decision boundary between classes clearer, i.e., train the classifier on highly dissimilar classes Greedy Subset Selection does exactly this — since the scope of the problem is Text Classification, we form embeddings of the training labels, reduce their dimensionality via UMAP, then form S subsets from them. Each of the S subsets has elements as n training labels. We pick training labels greedily, ensuring that every label we pick for the subset is the most dissimilar label w.r.t. the other labels that exist in the subset: import numpy as np from sklearn.metrics.pairwise import cosine_similarity def avg_embedding(candidate_embeddings): return np.mean(candidate_embeddings, axis=0) def get_least_similar_embedding(target_embedding, candidate_embeddings): similarities = cosine_similarity(target_embedding, candidate_embeddings) least_similar_index = np.argmin(similarities) # Use argmin to find the index of the minimum least_similar_element = candidate_embeddings[least_similar_index] return least_similar_element def get_embedding_class(embedding, embedding_map): reverse_embedding_map = {value: key for key, value in embedding_map.items()} return reverse_embedding_map.get(embedding) # Use .get() to handle missing keys gracefully def select_subsets(embeddings, n): visited = {cls: False for cls in embeddings.keys()} subsets = [] current_subset = [] while any(not visited[cls] for cls in visited): for cls, average_embedding in embeddings.items(): if not current_subset: current_subset.append(average_embedding) visited[cls] = True elif len(current_subset) >= n: subsets.append(current_subset.copy()) current_subset = [] else: subset_average = avg_embedding(current_subset) remaining_embeddings = [emb for cls_, emb in embeddings.items() if not visited[cls_]] if not remaining_embeddings: break # handle edge case least_similar = get_least_similar_embedding(target_embedding=subset_average, candidate_embeddings=remaining_embeddings) visited_class = get_embedding_class(least_similar, embeddings) if visited_class is not None: visited[visited_class] = True current_subset.append(least_similar) if current_subset: # Add any remaining elements in current_subset subsets.append(current_subset) return subsets the result of this greedy subset sampling is all the training labels clearly boxed into subsets, where each subset has at most only n classes. This inherently makes the job of a classifier easier, compared to the original S classes it would have to classify between otherwise! Semi-supervised classification with noise oversampling Cascade this after the initial label subset formation — i.e., this classifier is only classifying between a given subset of classes. Picture this: when you have low amounts of training data, you absolutely cannot create a hold-out set that is meaningful for evaluation. Should you do it at all? How do you know if your classifier is working well? We approached this problem slightly differently — we defined the fundamental job of a semi-supervised classifier to be pre-emptive classification of a sample. This means that regardless of what a sample gets classified as it will be ‘verified’ and ‘corrected’ at a later stage: this classifier only needs to identify what needs to be verified. As such, we created a design for how it would treat its data: n+1 classes, where the last class is noise noise: data from classes that are NOT in the current classifier’s purview. The noise class is oversampled to be 2x the average size of the data for the classifier’s labels Oversampling on noise is a faux-safety measure, to ensure that adjacent data that belongs to another class is most likely predicted as noise instead of slipping through for verification. How do you check if this classifier is working well — in our experiments, we define this as the number of ‘uncertain’ samples in a classifier’s prediction. Using uncertainty sampling and information gain principles, we were effectively able to gauge if a classifier is ‘learning’ or not, which acts as a pointer towards classification performance. This classifier is consistently retrained unless there is an inflection point in the number of uncertain samples predicted, or there is only a delta of information being added iteratively by new samples. Proxy active learning via an LLM agent This is the heart of the approach — using an LLM as a proxy for a human validator. The human validator approach we are talking about is Active Labelling Let’s get an intuitive understanding of Active Labelling: Use an ML model to learn on a sample input dataset, predict on a large set of datapoints For the predictions given on the datapoints, a subject-matter expert (SME) evaluates ‘validity’ of predictions Recursively, new ‘corrected’ samples are added as training data to the ML model The ML model consistently learns/retrains, and makes predictions until the SME is satisfied by the quality of predictions For Active Labelling to work, there are expectations involved for an SME: when we expect a human expert to ‘validate’ an output sample, the expert understands what the task is a human expert will use judgement to evaluate ‘what else’ definitely belongs to a label L when deciding if a new sample should belong to L Given these expectations and intuitions, we can ‘mimic’ these using an LLM: give the LLM an ‘understanding’ of what each label means. This can be done by using a larger model to critically evaluate the relationship between {label: data mapped to label} for all labels. In our experiments, this was done using a 32B variant of DeepSeek that was self-hosted. Giving an LLM the capability to understand ‘why, what, and how’ Instead of predicting what is the correct label, leverage the LLM to identify if a prediction is ‘valid’ or ‘invalid’ only (i.e., LLM only has to answer a binary query). Reinforce the idea of what other valid samples for the label look like, i.e., for every pre-emptively predicted label for a sample, dynamically source c closest samples in its training (guaranteed valid) set when prompting for validation. The result? A cost-effective framework that relies on a fast, cheap classifier to make pre-emptive classifications, and an LLM that verifies these using (meaning of the label + dynamically sourced training samples that are similar to the current classification): import math def calculate_uncertainty(clf, sample): predicted_probabilities = clf.predict_proba(sample.reshape(1, -1))[0] # Reshape sample for predict_proba uncertainty = -sum(p * math.log(p, 2) for p in predicted_probabilities) return uncertainty def select_informative_samples(clf, data, k): informative_samples = [] uncertainties = [calculate_uncertainty(clf, sample) for sample in data] # Sort data by descending order of uncertainty sorted_data = sorted(zip(data, uncertainties), key=lambda x: x[1], reverse=True) # Get top k samples with highest uncertainty for sample, uncertainty in sorted_data[:k]: informative_samples.append(sample) return informative_samples def proxy_label(clf, llm_judge, k, testing_data): #llm_judge – any LLM with a system prompt tuned for verifying if a sample belongs to a class. Expected output is a bool : True or False. True verifies the original classification, False refutes it predicted_classes = clf.predict(testing_data) # Select k most informative samples using uncertainty sampling informative_samples = select_informative_samples(clf, testing_data, k) # List to store correct samples voted_data = [] # Evaluate informative samples with the LLM judge for sample in informative_samples: sample_index = testing_data.tolist().index(sample.tolist()) # changed from testing_data.index(sample) because of numpy array type issue predicted_class = predicted_classes[sample_index] # Check if LLM judge agrees with the prediction if llm_judge(sample, predicted_class): # If correct, add the sample to voted data voted_data.append(sample) # Return the list of correct samples with proxy labels return voted_data By feeding the valid samples (voted_data) to our classifier under controlled parameters, we achieve the ‘recursive’ part of our algorithm: Recursive Expert Delegation: R.E.D. By doing this, we were able to achieve close-to-human-expert validation numbers on controlled multi-class datasets. Experimentally, R.E.D. scales up to 1,000 classes while maintaining a competent degree of accuracy almost on par with human experts (90%+ agreement). I believe this is a significant achievement in applied ML, and has real-world uses for production-grade expectations of cost, speed, scale, and adaptability. The technical report, publishing later this year, highlights relevant code samples as well as experimental setups used to achieve given results. All images, unless otherwise noted, are by the author Interested in more details? Reach out to me over Medium or email for a chat!

With the new age of problem-solving augmented by Large Language Models (LLMs), only a handful of problems remain that have subpar solutions. Most classification problems (at a PoC level) can be solved by leveraging LLMs at 70–90% Precision/F1 with just good prompt engineering techniques, as well as adaptive in-context-learning (ICL) examples.

What happens when you want to consistently achieve performance higher than that — when prompt engineering no longer suffices?

The classification conundrum

Text classification is one of the oldest and most well-understood examples of supervised learning. Given this premise, it should really not be hard to build robust, well-performing classifiers that handle a large number of input classes, right…?

Welp. It is.

It actually has to do a lot more with the ‘constraints’ that the algorithm is generally expected to work under:

  • low amount of training data per class
  • high classification accuracy (that plummets as you add more classes)
  • possible addition of new classes to an existing subset of classes
  • quick training/inference
  • cost-effectiveness
  • (potentially) really large number of training classes
  • (potentially) endless required retraining of some classes due to data drift, etc.

Ever tried building a classifier beyond a few dozen classes under these conditions? (I mean, even GPT could probably do a great job up to ~30 text classes with just a few samples…)

Considering you take the GPT route — If you have more than a couple dozen classes or a sizeable amount of data to be classified, you are gonna have to reach deep into your pockets with the system prompt, user prompt, few shot example tokens that you will need to classify one sample. That is after making peace with the throughput of the API, even if you are running async queries.

In applied ML, problems like these are generally tricky to solve since they don’t fully satisfy the requirements of supervised learning or aren’t cheap/fast enough to be run via an LLM. This particular pain point is what the R.E.D algorithm addresses: semi-supervised learning, when the training data per class is not enough to build (quasi)traditional classifiers.

The R.E.D. algorithm

R.E.D: Recursive Expert Delegation is a novel framework that changes how we approach text classification. This is an applied ML paradigm — i.e., there is no fundamentally different architecture to what exists, but its a highlight reel of ideas that work best to build something that is practical and scalable.

In this post, we will be working through a specific example where we have a large number of text classes (100–1000), each class only has few samples (30–100), and there are a non-trivial number of samples to classify (10,000–100,000). We approach this as a semi-supervised learning problem via R.E.D.

Let’s dive in.

How it works

simple representation of what R.E.D. does

Instead of having a single classifier classify between a large number of classes, R.E.D. intelligently:

  1. Divides and conquers — Break the label space (large number of input labels) into multiple subsets of labels. This is a greedy label subset formation approach.
  2. Learns efficiently — Trains specialized classifiers for each subset. This step focuses on building a classifier that oversamples on noise, where noise is intelligently modeled as data from other subsets.
  3. Delegates to an expert — Employes LLMs as expert oracles for specific label validation and correction only, similar to having a team of domain experts. Using an LLM as a proxy, it empirically ‘mimics’ how a human expert validates an output.
  4. Recursive retraining — Continuously retrains with fresh samples added back from the expert until there are no more samples to be added/a saturation from information gain is achieved

The intuition behind it is not very hard to grasp: Active Learning employs humans as domain experts to consistently ‘correct’ or ‘validate’ the outputs from an ML model, with continuous training. This stops when the model achieves acceptable performance. We intuit and rebrand the same, with a few clever innovations that will be detailed in a research pre-print later.

Let’s take a deeper look…

Greedy subset selection with least similar elements

When the number of input labels (classes) is high, the complexity of learning a linear decision boundary between classes increases. As such, the quality of the classifier deteriorates as the number of classes increases. This is especially true when the classifier does not have enough samples to learn from — i.e. each of the training classes has only a few samples.

This is very reflective of a real-world scenario, and the primary motivation behind the creation of R.E.D.

Some ways of improving a classifier’s performance under these constraints:

  • Restrict the number of classes a classifier needs to classify between
  • Make the decision boundary between classes clearer, i.e., train the classifier on highly dissimilar classes

Greedy Subset Selection does exactly this — since the scope of the problem is Text Classification, we form embeddings of the training labels, reduce their dimensionality via UMAP, then form S subsets from them. Each of the subsets has elements as training labels. We pick training labels greedily, ensuring that every label we pick for the subset is the most dissimilar label w.r.t. the other labels that exist in the subset:

import numpy as np
from sklearn.metrics.pairwise import cosine_similarity


def avg_embedding(candidate_embeddings):
    return np.mean(candidate_embeddings, axis=0)

def get_least_similar_embedding(target_embedding, candidate_embeddings):
    similarities = cosine_similarity(target_embedding, candidate_embeddings)
    least_similar_index = np.argmin(similarities)  # Use argmin to find the index of the minimum
    least_similar_element = candidate_embeddings[least_similar_index]
    return least_similar_element


def get_embedding_class(embedding, embedding_map):
    reverse_embedding_map = {value: key for key, value in embedding_map.items()}
    return reverse_embedding_map.get(embedding)  # Use .get() to handle missing keys gracefully


def select_subsets(embeddings, n):
    visited = {cls: False for cls in embeddings.keys()}
    subsets = []
    current_subset = []

    while any(not visited[cls] for cls in visited):
        for cls, average_embedding in embeddings.items():
            if not current_subset:
                current_subset.append(average_embedding)
                visited[cls] = True
            elif len(current_subset) >= n:
                subsets.append(current_subset.copy())
                current_subset = []
            else:
                subset_average = avg_embedding(current_subset)
                remaining_embeddings = [emb for cls_, emb in embeddings.items() if not visited[cls_]]
                if not remaining_embeddings:
                    break # handle edge case
                
                least_similar = get_least_similar_embedding(target_embedding=subset_average, candidate_embeddings=remaining_embeddings)

                visited_class = get_embedding_class(least_similar, embeddings)

                
                if visited_class is not None:
                  visited[visited_class] = True


                current_subset.append(least_similar)
    
    if current_subset:  # Add any remaining elements in current_subset
        subsets.append(current_subset)
        

    return subsets

the result of this greedy subset sampling is all the training labels clearly boxed into subsets, where each subset has at most only classes. This inherently makes the job of a classifier easier, compared to the original classes it would have to classify between otherwise!

Semi-supervised classification with noise oversampling

Cascade this after the initial label subset formation — i.e., this classifier is only classifying between a given subset of classes.

Picture this: when you have low amounts of training data, you absolutely cannot create a hold-out set that is meaningful for evaluation. Should you do it at all? How do you know if your classifier is working well?

We approached this problem slightly differently — we defined the fundamental job of a semi-supervised classifier to be pre-emptive classification of a sample. This means that regardless of what a sample gets classified as it will be ‘verified’ and ‘corrected’ at a later stage: this classifier only needs to identify what needs to be verified.

As such, we created a design for how it would treat its data:

  • n+1 classes, where the last class is noise
  • noise: data from classes that are NOT in the current classifier’s purview. The noise class is oversampled to be 2x the average size of the data for the classifier’s labels

Oversampling on noise is a faux-safety measure, to ensure that adjacent data that belongs to another class is most likely predicted as noise instead of slipping through for verification.

How do you check if this classifier is working well — in our experiments, we define this as the number of ‘uncertain’ samples in a classifier’s prediction. Using uncertainty sampling and information gain principles, we were effectively able to gauge if a classifier is ‘learning’ or not, which acts as a pointer towards classification performance. This classifier is consistently retrained unless there is an inflection point in the number of uncertain samples predicted, or there is only a delta of information being added iteratively by new samples.

Proxy active learning via an LLM agent

This is the heart of the approach — using an LLM as a proxy for a human validator. The human validator approach we are talking about is Active Labelling

Let’s get an intuitive understanding of Active Labelling:

  • Use an ML model to learn on a sample input dataset, predict on a large set of datapoints
  • For the predictions given on the datapoints, a subject-matter expert (SME) evaluates ‘validity’ of predictions
  • Recursively, new ‘corrected’ samples are added as training data to the ML model
  • The ML model consistently learns/retrains, and makes predictions until the SME is satisfied by the quality of predictions

For Active Labelling to work, there are expectations involved for an SME:

  • when we expect a human expert to ‘validate’ an output sample, the expert understands what the task is
  • a human expert will use judgement to evaluate ‘what else’ definitely belongs to a label L when deciding if a new sample should belong to L

Given these expectations and intuitions, we can ‘mimic’ these using an LLM:

  • give the LLM an ‘understanding’ of what each label means. This can be done by using a larger model to critically evaluate the relationship between {label: data mapped to label} for all labels. In our experiments, this was done using a 32B variant of DeepSeek that was self-hosted.
Giving an LLM the capability to understand ‘why, what, and how’
  • Instead of predicting what is the correct label, leverage the LLM to identify if a prediction is ‘valid’ or ‘invalid’ only (i.e., LLM only has to answer a binary query).
  • Reinforce the idea of what other valid samples for the label look like, i.e., for every pre-emptively predicted label for a sample, dynamically source c closest samples in its training (guaranteed valid) set when prompting for validation.

The result? A cost-effective framework that relies on a fast, cheap classifier to make pre-emptive classifications, and an LLM that verifies these using (meaning of the label + dynamically sourced training samples that are similar to the current classification):

import math

def calculate_uncertainty(clf, sample):
    predicted_probabilities = clf.predict_proba(sample.reshape(1, -1))[0]  # Reshape sample for predict_proba
    uncertainty = -sum(p * math.log(p, 2) for p in predicted_probabilities)
    return uncertainty


def select_informative_samples(clf, data, k):
    informative_samples = []
    uncertainties = [calculate_uncertainty(clf, sample) for sample in data]

    # Sort data by descending order of uncertainty
    sorted_data = sorted(zip(data, uncertainties), key=lambda x: x[1], reverse=True)

    # Get top k samples with highest uncertainty
    for sample, uncertainty in sorted_data[:k]:
        informative_samples.append(sample)

    return informative_samples


def proxy_label(clf, llm_judge, k, testing_data):
    #llm_judge - any LLM with a system prompt tuned for verifying if a sample belongs to a class. Expected output is a bool : True or False. True verifies the original classification, False refutes it
    predicted_classes = clf.predict(testing_data)

    # Select k most informative samples using uncertainty sampling
    informative_samples = select_informative_samples(clf, testing_data, k)

    # List to store correct samples
    voted_data = []

    # Evaluate informative samples with the LLM judge
    for sample in informative_samples:
        sample_index = testing_data.tolist().index(sample.tolist()) # changed from testing_data.index(sample) because of numpy array type issue
        predicted_class = predicted_classes[sample_index]

        # Check if LLM judge agrees with the prediction
        if llm_judge(sample, predicted_class):
            # If correct, add the sample to voted data
            voted_data.append(sample)

    # Return the list of correct samples with proxy labels
    return voted_data

By feeding the valid samples (voted_data) to our classifier under controlled parameters, we achieve the ‘recursive’ part of our algorithm:

Recursive Expert Delegation: R.E.D.

By doing this, we were able to achieve close-to-human-expert validation numbers on controlled multi-class datasets. Experimentally, R.E.D. scales up to 1,000 classes while maintaining a competent degree of accuracy almost on par with human experts (90%+ agreement).

I believe this is a significant achievement in applied ML, and has real-world uses for production-grade expectations of cost, speed, scale, and adaptability. The technical report, publishing later this year, highlights relevant code samples as well as experimental setups used to achieve given results.

All images, unless otherwise noted, are by the author

Interested in more details? Reach out to me over Medium or email for a chat!

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Editorial: Let’s make a deal

The Trump administration announced Aug. 28, 2026, that the US and Venezuela had agreed to give the US majority control over development of more than 65 billion bbl of Venezuelan proven oil reserves. The agreement presents an extraordinary opportunity to the US oil industry, but also a great deal of risk, at least some of which should seem familiar. Before private capital follows Washington into Venezuela, the industry needs answers to some fundamental questions about the deal’s legal durability, political risk, commercial structure, and ultimate purpose. The agreement covers 17 fields and roughly 20% of Venezuela’s proved reserves. Development would be led by Barbados-based North American Blue Energy Partners (NABEP)—controlled by Venezuelan businessman Alejandro Betancourt López—under what the White House described as a 100-year concession. It’s a huge deal. But its timeline alone stretches credulity. A typical international concession agreement would last for 20-30 years, a term consistent with both in-country media reports and outside analysis. As noted by the Center for Strategic & International Studies, Venezuela’s Organic Hydrocarbon Law, passed in January 2026 after Nicolás Maduro’s ouster, only allows “production participation contracts” to private companies, not concessions of any duration.1 Venezuela’s constitution also creates questions about the agreement. Article 150 requires National Assembly approval of “public interest” contracts to entities based outside Venezuela while Article 302 reserves the petroleum industry to the State. Beyond the deal itself Looking beyond legal and structural technicalities, large questions remain regarding both stable governance in Venezuela and the viability of any agreements struck in its absence. There has been no meaningful progress toward establishing a functional democracy in Venezuela since the US captured Maduro. Both Acting President (and former VP) Delcy Rodríguez and Betancourt owe much of their political and personal fortunes to Maduro and his predecessor, Hugo Chávez. Rodríguez has done a

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US sanctions bill targets Russian energy but gives Trump broad discretion

US President Donald Trump is poised to sign legislation aimed at increasing economic pressure on Russia over its war in Ukraine by targeting Russian oil and gas revenues and countries that continue to buy Russian energy. While the measure mandates broad sanctions, it gives Trump wide discretion over implementation, including which countries face tariffs, the tariff rates imposed, and whether sanctions provisions are waived. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, named for the late South Carolina senator who championed the legislation, passed the House Sept. 16 by a vote of 262-159 after clearing the Senate 86-11 in August. The measure now awaits Trump’s signature. The White House has said the administration supports the legislation and would recommend that Trump sign it into law. The legislation directs the president to impose broad sanctions and tariff measures targeting Russian energy exports and countries that facilitate sanctions evasion. However, Trump “may waive the application” of sanctions provisions, restrictions, or duties if he certifies to Congress that doing so is “in the national interest of the United States” and explains the basis for the decision. While the law mandates sanctions, it leaves key implementation decisions to the administration. Tariff provisions Within 30 days of enactment, the act requires the president to impose duties of up to 100% on goods imported from countries that fall within specified categories involving Russian oil and gas purchases or sanctions evasion. The covered countries include those among the five largest importers of Russian-origin crude oil or natural gas by total volume during the 12 months preceding enactment, as well as countries that meet separate criteria for facilitating Russian sanctions evasion. The administration must reassess those countries every 180 days. A country is exempt from the gas-related duties if its Russian gas imports accounted for

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California Resources unloads Uinta assets

The leaders of California Resources Corp., Long Beach, have sold the company’s Uinta basin assets for about $90 million to an undisclosed buyer. The deal has an effective date of July 1 and is expected to close by yearend. “Today’s transaction strengthens our business,” said Francisco Leon, CRC president and chief executive officer. “This transaction enhances our capital allocation flexibility, allowing us to invest in higher-return opportunities within the Golden State, and supports our shareholder return strategy.” CRC had come to own the Uinta assets, which span about 100,000 net acres, after it acquired Berry Corp. in December of last year for $709 million. But the operation accounts for a small part of CRC’s business–2.5% of oil production and 8% of natural gas production in the second quarter–and Leon last month told analysts “it’s hard to see allocating a lot of dollars back into the Uinta” as his team focuses on building out its California network of assets. “It requires a pretty significant amount of capital to develop the scale that we need for a second asset,” Leon said Aug. 10 after CRC reported its second-quarter results. “So as we do a side-by-side and we compare the Uinta assets with California, Uinta has higher capital intensity, higher break-evens, lower crude quality [and] higher transportation and operating costs and steeper declines.” In the deal announcement, Leon said the Uinta sale also offsets the price CRC will pay for a set of midstream assets in California it plans to buy from CorEnergy Infrastructure Trust. The purchase of those pipelines and other operations is expected to close later this month. Shares of CRC (Ticker: CRC) were down slightly to $54.24 in late-morning trading Sept. 17. They have lost about 15% of their value over the past 6 months, trimming the company’s market capitalization

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Local AI is getting small enough to make every app multilingual

On-device translation used to mean a separate model for every language you wanted to support. English to French, English to German, and so on. However, that becomes unsustainable at a global scale when you’re talking about thousands of possible language pairs. Add to that the fact that most developers have to either send translation requests to the cloud to get fast, accurate results, or keep it local with restricted language support. Tether’s AI Research team has developed a family of multilingual translation models, TranslatePsy-EuroNano, that each support nine European languages, with deployment built around a pair of multilingual models rather than separate bilingual models for every language pair. What makes this possible Supporting a full European market on-device has previously meant bundling dozens of separate model files, but this is impractical for mobile apps and those building them. Tether AI’s multilingual open‑source edge translation models set the standard for efficiency, quality, and speed. For developers, the possibilities are endless. Using English as a pivot, the models remain comparable to Mozilla Firefox’s Bergamot-based translation system while dramatically reducing the size of on-device translation. At its smallest tier, Tether’s deployment is 17.6 times smaller while maintaining comparable translation quality. Tether’s deployment takes up 36MB to 89MB, depending on the tier you use. By comparison, the equivalent Firefox setup requires 18 separate bilingual models totaling 633MB to provide the same language coverage. The models are small enough to run efficiently on edge devices while supporting nine European languages from a single multilingual deployment, making multilingual experiences practical for a much wider range of software. Potential applications include travel and navigation apps, educational platforms that present lessons and resources on-device. The models are also designed for academics and researchers. Because the weights are openly available, researchers can fine-tune them for specialized domains, like customer

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AI Infrastructure Is Redrawing the Data Center Services Landscape

For gigawatt-scale AI developments, the developer may be involved with substations, transmission interconnections, generation plants, batteries or other behind-the-meter infrastructure long before servers arrive. Solaris now describes its overall portfolio as including generation, distribution, installation and commissioning, aftermarket support, and operations and maintenance. The arrival of companies with roots in energy and heavy industrial services suggests that the data center supplier base itself is changing as projects begin to resemble large industrial infrastructure developments. The Pattern Extends Across the Services Stack The transactions involving T5, Limbach, JK Technology Services and Solaris are hardly isolated. A wider wave of acquisitions and partnerships is pushing equipment manufacturers, contractors, engineering firms and specialist service providers toward broader roles across the data center lifecycle. Vertiv provided perhaps the clearest parallel in September, announcing an agreement to acquire UtilityInnovation Group for approximately $1.45 billion in cash, with additional consideration tied to performance. UIG brings microgrid controls, onsite-generation orchestration, specialized switchgear and behind-the-meter power architecture. The deal also extends a broader 2026 acquisition push by Vertiv that has added liquid-cooling specialist Strategic Thermal Labs, chiller manufacturer ThermoKey and prefabricated infrastructure provider Bmarko as the company builds out more of the AI data center infrastructure stack. Vertiv described the move as extending its portfolio upstream from the critical power and cooling systems inside the facility toward the grid interconnection and onsite generation itself — effectively creating a path from power source to chip. Days later, Flex announced a $4.4 billion agreement to acquire EPC Power, adding grid-forming and power-conversion technology designed for data centers, utility-scale energy storage and microgrids. EPC Power’s platform includes rectifiers and DC-DC conversion for emerging 800-volt data center architectures, with solid-state transformer development also planned. The company says it has more than 15 GW deployed across 62 countries and expects its annual U.S.

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From Announcements to Delivery: What Separates Real AI Data Center Projects From the Rest

The AI infrastructure market has become very good at announcing gigawatts. Delivering them is another matter. That distinction framed one of the closing sessions of Day 1 at the Data Center Frontier Trends Summit 2026 (Aug. 4-6), where Sean Farney, vice president of data center strategy at JLL and a member of the Data Center Frontier Editorial Advisory Board, moderated a discussion on why some AI data center projects advance from concept to construction while others remain little more than ambitious site plans. Farney was joined by Lawrence Vo, vice president of M&A and capex at Csquare; John Day, chief commercial officer at CleanArc Data Centers; Justin Loth, executive director of power development at Provident Data Centers; and Roshan Shah, co-founder and CEO of Decimal Digital. The question Farney put before the group was straightforward: amid a market moving at what he called “the speed of light,” what separates the developers that actually get projects done from those that do not? The answers repeatedly came back to the same point. In the current market, land, capital and an announcement are no longer enough. Developers have to prove that power is deliverable, infrastructure is ready, regulatory processes are moving, communities are receptive, talent is available and the commercial model can withstand changing conditions. A Gigawatt on Paper Is Not a Gigawatt of Capacity For Loth, who spent roughly 15 years on the utility side before joining Provident, the scale of current data center proposals alone should force the industry to think differently about what constitutes a credible project. Before the hyperscale and AI expansion, he noted, gigawatts were a measure more commonly associated with cities than individual loads. “A 3.5 gigawatt campus,” Loth said, is roughly equivalent to the native load of Austin or San Antonio. That scale makes the distinction

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The Future of Data Centers: Biomimicry and Community-Centric Design

As a result, Microsoft has said six additional data centers planned in the region are being designed around biomimicry principles rather than treating landscaping as something added after the engineering work is finished. The change, from landscaping as decoration to ecology as a design input, is now being applied elsewhere. There is already a significant US example, set in Mecklenburg County, Virginia, where Microsoft originally announced the Chase City Conservancy in 2022, as part of a data center development south of Chase City. The completed project, which opened in April 2025, protects more than 230 acres from development. It includes more than eight acres of wetlands, over 16,300 linear feet of restored streams, 185 acres of native pollinator habitat, more than 25,000 planted trees and over three miles of publicly accessible walking trails. Local environmental organizations helped shift the design away from what the company describes as a more conventional recreational area toward biodiversity and habitat conservation illustrating the community-engagement side of Microsoft’s model, which, given the current temperature of such relationships, can’t be understated. For data center developers, that may be as important as the ecological results. Community impact is no longer being evaluated on just tax revenue and jobs. Turning portions of a site into protected wetlands, forests, trails or habitat potentially creates a visible local benefit in ways that renewable-energy contracts hundreds of miles away cannot. Microsoft’s commitment to the local community has been led by their Community First AI Infrastructure Plan announced in January 2026. Wetlands in Wisconsin, Screening in Georgia At Microsoft’s massive Mount Pleasant, Wisconsin, AI data center development, the company is working with the Root-Pike Watershed Initiative Network on restoration projects involving wetlands, native prairie and forested riparian buffers. One element involves returning previously straightened streams to more natural, winding channels, improving aquatic

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Axelera Europa targets enterprise data centers with far more efficient AI

Software is still the gatekeeper Axelera In terms of software enablement, Axelera’s Voyager SDK spans its existing Metis products and the new Europa architecture, providing a common environment across embedded, edge and server deployments, with support for a multitude of computer vision models, LLMs, VLMs, diffusion models, speech and other AI workloads. To automate setup, Axelera’s Voyager Wingman uses natural-language prompts to help developers create or port inference pipelines, while AxeleraScript, or AxScript, provides a Python-enabled domain-specific language with lower-level AIPU control for custom operators and transformer models. This could prove every bit as important as Europa’s performance and efficiency. Enterprises already have models, development environments and application stacks. Extensive rewriting or specialized expertise adds development and operational costs that can quickly undermine savings on hardware and power.

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Scott Bergs, CEO of Kirkwood IG: Fiber and the AI Data Center Buildout

For years, fiber was one of the more forgiving elements of data center site selection. Developers could secure land, line up power, begin planning the facility and then work with carriers to establish the connectivity required by tenants. In a traditional multi-tenant data center, that model generally worked. At AI scale, Scott Bergs says it increasingly does not. “The architecture of those original communications service provider networks just don’t meet the latency and/or capacity needs” of today’s high-density compute environments, said Bergs, CEO of Kirkwood Infrastructure Group, during a recent episode of the Data Center Frontier Show. The result is a significant change in the data center development stack: network infrastructure can no longer be treated as something that gets solved after the site is chosen. For hyperscalers and neo-cloud providers, fiber route diversity, latency, physical security and future capacity increasingly need to enter the conversation alongside power and land. And as data center campuses follow available power farther from established digital infrastructure hubs, the scale of the network challenge is expanding with them. A connection between data center campuses that might once have extended two or 30 miles can now stretch 250 miles or more, Bergs said. What would traditionally have been considered a long-haul fiber route is increasingly becoming another piece of inter-campus infrastructure. That change is helping drive Kirkwood’s own expansion. From DF&I to Kirkwood Bergs previously led DF&I, a dark-fiber infrastructure platform concentrated in Northern Virginia and Maryland. Kirkwood Infrastructure Group is not simply DF&I under a new name, he said. Rather, it represents what Bergs described as a second phase in a broader infrastructure investment strategy developed originally through IPI Partners. IPI, an investment platform focused on digital infrastructure, backed DF&I after identifying communications infrastructure serving dense compute environments as an area requiring greater direct

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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