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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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Eni makes Calao South discovery offshore Ivory Coast

@import url(‘https://fonts.googleapis.com/css2?family=Inter:[email protected]&display=swap’); a { color: var(–color-primary-main); } .ebm-page__main h1, .ebm-page__main h2, .ebm-page__main h3, .ebm-page__main h4, .ebm-page__main h5, .ebm-page__main h6 { font-family: Inter; } body { line-height: 150%; letter-spacing: 0.025em; font-family: Inter; } button, .ebm-button-wrapper { font-family: Inter; } .label-style { text-transform: uppercase; color: var(–color-grey); font-weight: 600; font-size: 0.75rem; } .caption-style { font-size: 0.75rem; opacity: .6; } #onetrust-pc-sdk [id*=btn-handler], #onetrust-pc-sdk [class*=btn-handler] { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-policy a, #onetrust-pc-sdk a, #ot-pc-content a { color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-pc-sdk .ot-active-menu { border-color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-accept-btn-handler, #onetrust-banner-sdk #onetrust-reject-all-handler, #onetrust-consent-sdk #onetrust-pc-btn-handler.cookie-setting-link { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-consent-sdk .onetrust-pc-btn-handler { color: #c19a06 !important; border-color: #c19a06 !important; } Eni SPA discovered gas and condensate in the Murene South-1X exploration well in Block CI-501, Ivory Coast. The well is the first exploration in the block and was drilled by the Saipem Santorini drilling ship about 8 km southwest of the Murene-1X discovery well in adjacent CI-205 block. The well was drilled to about 5,000 m TD in 2,200 m of water. Extensive data acquisition confirmed a main hydrocarbon bearing interval in high-quality Cenomanian sands with a gross thickness of about 50 m with excellent petrophysical properties, the operator said. Murene South-1X will undergo a full conventional drill stem test (DST) to assess the production capacity of this discovery, named Calao South. Calao South confirms the potential of the Calao channel complex that also includes the Calao discovery. It is the second largest discovery in the country after Baleine, with estimated volumes of up to 5.0 tcf of gas and 450 million bbl of condensate (about 1.4 billion bbl of oil). Eni is operator of Block CI-501 (90%) with partner Petroci Holding (10%).

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CFEnergía to supply natural gas to low-carbon methanol plant in Mexico

CFEnergía, a subsidiary of Mexico’s Federal Electricity Commission (CFE), has agreed to supply natural gas to Transition Industries LLC for its Pacifico Mexinol project near Topolobampo, Sinaloa, Mexico. Under the signed agreement, which enables the start of Pacifico Mexinol’s construction phase, CFEnergía will supply about 160 MMcfd of natural gas for an unspecified timeframe noted as “long term,” Transition Industries said in a release Feb. 16. The natural gas—to be sourced from the US and supplied at market prices via existing infrastructure—will be used as “critical input for Mexinol’s production of ultra-low carbon methanol,” the company said. Pacifico Mexinol The $3.3-billion Mexinol project, when it begins operations in late 2029 to early 2030, is expected to be the world’s largest ultra-low carbon chemicals plant with production of about 1.8 million tonnes of blue methanol and 350,000 tonnes of green methanol annually. Supply is aimed at markets in Asia, including Japan, while also boosting the development of the domestic market and the Mexican chemical industry. Mitsubishi Gas Chemical has committed to purchasing about 1 million tonnes/year of methanol from the project, about 50% of the project’s planned production. Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corporation (IFC), a member of the World Bank Group. Last year, the company signed a contingent engineering, procurement, and construction (EPC) contract with the consortium of Samsung E&A Co., Ltd., Grupo Samsung E&A Mexico SA de CV, and Techint Engineering and Construction for the project. MAIRE group’s technology division NextChem, through its subsidiary KT TECH SpA, also signed a basic engineering, critical and proprietary equipment supply agreement with Samsung E&A in connection with its proprietary NX AdWinMethanol®Zero technology supply to the project.

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North Atlantic’s Gravenchon refinery scheduled for major turnaround

Canada-based North Atlantic Refining Ltd. France-based subsidiary North Atlantic France SAS is undertaking planned maintenance in March at its North Atlantic Energies-operated 230,000-b/d Notre-Dame-de-Gravenchon refinery in Port-Jérôme-sur-Seine, Normandy. Scheduled to begin on Mar. 3 with the phased shutdown of unidentified units at the refinery, the upcoming turnaround will involve thorough inspections of associated equipment designed for continuous operation, as well as unspecified works to improve energy efficiency, environmental performance, and overall competitiveness of the site, North Atlantic Energies said on Feb. 16. Part of the operator’s routine maintenance program aimed at meeting regulatory requirements to ensure the safety, compliance, and long-term performance of the refinery, North Atlantic Energies said the scheduled turnaround will not interrupt product supplies to customers during the shutdown period. While the company confirmed the phased shutdown of units slated for work during the maintenance event would last for several days, the operator did not reveal a definitive timeline for the entire duration of the turnaround. Further details regarding specific works to be carried out during the major maintenance event were not revealed. The upcoming turnaround will be the first to be executed under North Atlantic Group’s ownership, which completed its purchase of the formerly majority-owned ExxonMobil Corp. refinery and associated petrochemical assets at the site in November 2025.

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Azule Energy starts Ndungu full field production offshore Angola

Azule Energy has started full field production from Ndungu, part of the Agogo Integrated West Hub Project (IWH) in the western area of Block 15/06, offshore Angola. Ndungo full field lies about 10 km from the NGOMA FPSO in a water depth of around 1,100 m and comprises seven production wells and four injection wells, with an expected production peak of 60,000 b/d of oil. The National Agency for Petroleum, Gas and Biofuels (ANPG) and Azule Energy noted the full field start-up with first oil of three production wells. The phased integration of IWH, with Ndungu full field producing first via N’goma FPSO and later via Agogo FPSO, is expected to reach a peak output of about 175,000 b/d across the two fields. The fields have combined estimated reserves of about 450 million bbl. The Agogo IWH project is operated by Azule Energy with a 36.84% stake alongside partners Sonangol E&P (36.84%) and Sinopec International (26.32%).   

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Ovintiv to divest Anadarko assets for $3 billion

In a release Feb. 17, Brendan McCracken, Ovintiv president and chief executive officer, said the company has “built one of the deepest premium inventory positions in our industry in the two most valuable plays in North America, the Permian and the Montney,” and that the Anadarko assets sale “positions [Ovintiv] to deliver superior returns for our shareholders for many years to come.” Ovintiv in 2025 had noted plans to sell the asset to help offset the cost of its acquisition of NuVista Energy Ltd. That $2.7-billion cash and stock deal, which closed earlier this month, added about 930 net 10,000-ft equivalent well locations and about 140,000 net acres (70% undeveloped) in the core of the oil-rich Alberta Montney.  Proceeds from the Anadarko assets sale are earmarked for accelerated debt reduction, the company said.  Ovintiv’s sale of its Anadarko assets is expected to close early in this year’s second quarter, subject to customary conditions, with an effective date of Jan. 1, 2026.

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Vertiv’s AI Infrastructure Surge: Record Orders, Liquid Cooling Expansion, and Grid-Scale Power Reflect Data Center Growth

2) “Units of compute”: OneCore and SmartRun On the earnings call, Albertazzi highlighted Vertiv OneCore, an end-to-end data center solution designed to accelerate “time to token,” scaling in 12.5 MW building blocks; and Vertiv SmartRun, a prefabricated white space infrastructure solution aimed at rapidly accelerating fit-out and readiness. He pointed to collaborations (including Hut 8 and Compass Data Centers) as proof points of adoption, emphasizing that SmartRun can stand alone or plug into OneCore. 3) Cooling evolution: hybrid thermal chains and the “trim cooler” Asked how cooling architectures may change (amid industry chatter about warmer-temperature operations and shifting mixes of chillers, CDUs, and other components) Albertazzi leaned into complexity as a feature, not a bug. He argued heat rejection doesn’t disappear, even if some GPU loads can run at higher temperatures. Instead, the future looks hybrid, with mixed loads and resiliency requirements forcing more nuanced thermal chains. Vertiv’s strategic product anchor here is its “trim cooler” concept: a chiller optimized for higher-temperature operation while retaining flexibility for lower-temperature requirements in the same facility, maximizing free cooling where climate and design allow. And importantly, Albertazzi dismissed the idea that CDUs are going away: “We are pretty sure that CDUs in various shapes and forms are a long-term element of the thermal chain.” 4) Edge densification: CoolPhase Ceiling + CoolPhase Row (Feb. 3) Vertiv also expanded its thermal portfolio for edge and small IT environments with the: Vertiv CoolPhase Ceiling (launching Q2 2026): ceiling-mounted, 3.5 kW to 28 kW, designed to preserve floor space. Vertiv CoolPhase Row (available now in North America) for row-based cooling up to 30 kW (300 mm width) or 40 kW (600 mm width). Vertiv Director of Edge Thermal Michal Podmaka tied the products directly to AI-driven edge densification and management consistency, saying the new systems “integrate seamlessly

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Execution, Power, and Public Trust: Rich Miller on 2026’s Data Center Reality and Why He Built Data Center Richness

DCF founder Rich Miller has spent much of his career explaining how the data center industry works. Now, with his latest venture, Data Center Richness, he’s also examining how the industry learns. That thread provided the opening for the latest episode of The DCF Show Podcast, where Miller joined present Data Center Frontier Editor in Chief Matt Vincent and Senior Editor David Chernicoff for a wide-ranging discussion that ultimately landed on a simple conclusion: after two years of unprecedented AI-driven announcements, 2026 will be the year reality asserts itself. Projects will either get built, or they won’t. Power will either materialize, or it won’t. Communities will either accept data center expansion – or they’ll stop it. In other words, the industry is entering its execution phase. Why Data Center Richness Matters Now Miller launched Data Center Richness as both a podcast and a Substack publication, an effort to experiment with formats and better understand how professionals now consume industry information. Podcasts have become a primary way many practitioners follow the business, while YouTube’s discovery advantages increasingly make video versions essential. At the same time, Miller remains committed to written analysis, using Substack as a venue for deeper dives and format experimentation. One example is his weekly newsletter distilling key industry developments into just a handful of essential links rather than overwhelming readers with volume. The approach reflects a broader recognition: the pace of change has accelerated so much that clarity matters more than quantity. The topic of how people learn about data centers isn’t separate from the industry’s trajectory; it’s becoming part of it. Public perception, regulatory scrutiny, and investor expectations are now shaped by how stories are told as much as by how facilities are built. That context sets the stage for the conversation’s core theme. Execution Defines 2026 After

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Utah’s 4 GW AI Campus Tests the Limits of Speed-to-Power

Back in September 2025, we examined an ambitious proposal from infrastructure developer Joule Capital Partners – often branding the effort as “Joule Power” – in partnership with Caterpillar. The concept is straightforward but consequential: acquire a vast rural tract in Millard County, Utah, and pair an AI-focused data center campus with large-scale, on-site “behind-the-meter” generation to bypass the interconnection queues, transmission constraints, and substation bottlenecks slowing projects nationwide. The appeal is clear: speed-to-power and greater control over delivery timelines. But that speed shifts the project’s risk profile. Instead of navigating traditional utility procurement, the development begins to resemble a distributed power plant subject to industrial permitting, fuel supply logistics, air emissions scrutiny, noise controls, and groundwater governance. These are issues communities typically associate with generation facilities, not hyperscale data centers. Our earlier coverage focused on the technical and strategic logic of pairing compute with on-site generation. Now the story has evolved. Community opposition is emerging as a material variable that could influence schedule and scope. Although groundbreaking was held in November 2025, final site plans and key conditional use permits remain pending at the time of publication. What Is Actually Being Proposed? Public records from Millard County show Joule pursuing a zone change for approximately 4,000 acres (about 6.25 square miles), converting agricultural land near 11000 N McCornick Road to Heavy Industrial use. At a July 2025 public meeting, residents raised familiar concerns that surface when a rural landscape is targeted for hyperscale development: labor influx and housing strain, water use, traffic, dust and wildfire risk, wildlife disruption, and the broader loss of farmland and local character. What has proven less clear is the precise scale and sequencing of the buildout. Local reporting describes an initial phase of six data center buildings, each supported by a substantial fleet of Caterpillar

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From Lab to Gigawatt: CoreWeave’s ARENA and the AI Validation Imperative

The Production Readiness Gap AI teams continue to confront a familiar challenge: moving from experimentation to predictable production performance. Models that train successfully on small clusters or sandbox environments often behave very differently when deployed at scale. Performance characteristics shift. Data pipelines strain under sustained load. Cost assumptions unravel. Synthetic benchmarks and reduced test sets rarely capture the complex interactions between compute, storage, networking, and orchestration that define real-world AI systems. The result can be an expensive “Day One” surprise:  unexpected infrastructure costs, bottlenecks across distributed components, and delays that ripple across product timelines. CoreWeave’s view is that benchmarking and production launch can no longer be treated as separate phases. Instead, validation must occur in environments that replicate the architectural, operational, and economic realities of live deployment. ARENA is designed around that premise. The platform allows customers to run full workloads on CoreWeave’s production-grade GPU infrastructure, using standardized compute stacks, network configurations, data paths, and service integrations that mirror actual deployment environments. Rather than approximating production behavior, the goal is to observe it directly. Key capabilities include: Running real workloads on GPU clusters that match production configurations. Benchmarking both performance and cost under realistic operational conditions. Diagnosing bottlenecks and scaling behavior across compute, storage, and networking layers. Leveraging standardized observability tools and guided engineering support. CoreWeave positions ARENA as an alternative to traditional demo or sandbox environments; one informed by its own experience operating large-scale AI infrastructure. By validating workloads under production conditions early in the lifecycle, teams gain empirical insight into performance dynamics and cost curves before committing capital and operational resources. Why Production-Scale Validation Has Become Strategic The demand for environments like ARENA reflects how fundamentally AI workloads have changed. Several structural shifts are driving the need for production-scale validation: Continuous, Multi-Layered Workloads AI systems are no longer

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GenAI Pushes Cloud to $119B Quarter as AI Networking Race Intensifies

Cisco Targets the AI Fabric Bottleneck Cisco introduced its Silicon One G300, a new switching ASIC delivering 102.4 Tbps of throughput and designed specifically for large-scale AI cluster deployments. The chip will power next-generation Cisco Nexus 9000 and 8000 systems aimed at hyperscalers, neocloud providers, sovereign cloud operators, and enterprises building AI infrastructure. The company is positioning the platform around a simple premise: at AI-factory scale, the network becomes part of the compute plane. According to Cisco, the G300 architecture enables: 33% higher network utilization 28% reduction in AI job completion time Support for emerging 1.6T Ethernet environments Integrated telemetry and path-based load balancing Martin Lund, EVP of Cisco’s Common Hardware Group, emphasized the growing centrality of data movement. “As AI training and inference continues to scale, data movement is the key to efficient AI compute; the network becomes part of the compute itself,” Lund said. The new systems also reflect another emerging trend in AI infrastructure: the spread of liquid cooling beyond servers and into the networking layer. Cisco says its fully liquid-cooled switch designs can deliver nearly 70% energy efficiency improvement compared with prior approaches, while new 800G linear pluggable optics aim to reduce optical power consumption by up to 50%. Ethernet’s Next Big Test Industry analysts increasingly view AI networking as one of the most consequential battlegrounds in the current infrastructure cycle. Alan Weckel, founder of 650 Group, noted that backend AI networks are rapidly moving toward 1.6T architectures, a shift that could push the Ethernet data center switch market above $100 billion annually. SemiAnalysis founder Dylan Patel was even more direct in framing the stakes. “Networking has been the fundamental constraint to scaling AI,” Patel said. “At this scale, networking directly determines how much AI compute can actually be utilized.” That reality is driving intense innovation

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Meta scoops up more of Nvidia’s AI chip output

“No one deploys AI at Meta’s scale,” Nvidia CEO Jensen Huang said in a news release. Meta plans capital expenditure, mostly on data centers and the computing infrastructure they contain, of $115 billion-$135 billion this year — more than some hyperscalers, which rent their computing capacity to others. Meta is keeping it all for itself. This could be bad news for other enterprises, as the demands of the hyperscalers and big customers like Meta is leading to a decrease in the availability of chips to train and run AI models. IDC is predicting that the broader AI-driven chip shortage will have a significant effect on the IT market over the next two years as companies struggle to replace everything from laptops to servers. In particular, businesses looking for Nvidia processors may be forced to look elsewhere.

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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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The bird is a beautiful silver-gray, and as she dies twitching in the lasernet I’m grateful for two things: First, that she didn’t make a

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