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New 1.5B router model achieves 93% accuracy without costly retraining

Want smarter insights in your inbox? Sign up for our weekly newsletters to get only what matters to enterprise AI, data, and security leaders. Subscribe Now Researchers at Katanemo Labs have introduced Arch-Router, a new routing model and framework designed to intelligently map user queries to the most suitable large language model (LLM).  For enterprises […]

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Researchers at Katanemo Labs have introduced Arch-Router, a new routing model and framework designed to intelligently map user queries to the most suitable large language model (LLM). 

For enterprises building products that rely on multiple LLMs, Arch-Router aims to solve a key challenge: how to direct queries to the best model for the job without relying on rigid logic or costly retraining every time something changes.

The challenges of LLM routing

As the number of LLMs grows, developers are moving from single-model setups to multi-model systems that use the unique strengths of each model for specific tasks (e.g., code generation, text summarization, or image editing). 

LLM routing has emerged as a key technique for building and deploying these systems, acting as a traffic controller that directs each user query to the most appropriate model.

Existing routing methods generally fall into two categories: “task-based routing,” where queries are routed based on predefined tasks, and “performance-based routing,” which seeks an optimal balance between cost and performance.

However, task-based routing struggles with unclear or shifting user intentions, particularly in multi-turn conversations. Performance-based routing, on the other hand, rigidly prioritizes benchmark scores, often neglects real-world user preferences and adapts poorly to new models unless it undergoes costly fine-tuning.

More fundamentally, as the Katanemo Labs researchers note in their paper, “existing routing approaches have limitations in real-world use. They typically optimize for benchmark performance while neglecting human preferences driven by subjective evaluation criteria.” 

The researchers highlight the need for routing systems that “align with subjective human preferences, offer more transparency, and remain easily adaptable as models and use cases evolve.”

A new framework for preference-aligned routing

To address these limitations, the researchers propose a “preference-aligned routing” framework that matches queries to routing policies based on user-defined preferences.

In this framework, users define their routing policies in natural language using a “Domain-Action Taxonomy.” This is a two-level hierarchy that reflects how people naturally describe tasks, starting with a general topic (the Domain, such as “legal” or “finance”) and narrowing to a specific task (the Action, such as “summarization” or “code generation”). 

Each of these policies is then linked to a preferred model, allowing developers to make routing decisions based on real-world needs rather than just benchmark scores. As the paper states, “This taxonomy serves as a mental model to help users define clear and structured routing policies.”

The routing process happens in two stages. First, a preference-aligned router model takes the user query and the full set of policies and selects the most appropriate policy. Second, a mapping function connects that selected policy to its designated LLM. 

Because the model selection logic is separated from the policy, models can be added, removed, or swapped simply by editing the routing policies, without any need to retrain or modify the router itself. This decoupling provides the flexibility required for practical deployments, where models and use cases are constantly evolving.

Preference-aligned routing framework (source: arXiv)
Preference-aligned routing framework Source: arXiv

The policy selection is powered by Arch-Router, a compact 1.5B parameter language model fine-tuned for preference-aligned routing. Arch-Router receives the user query and the complete set of policy descriptions within its prompt. It then generates the identifier of the best-matching policy. 

Since the policies are part of the input, the system can adapt to new or modified routes at inference time through in-context learning and without retraining. This generative approach allows Arch-Router to use its pre-trained knowledge to understand the semantics of both the query and the policies, and to process the entire conversation history at once.

A common concern with including extensive policies in a prompt is the potential for increased latency. However, the researchers designed Arch-Router to be highly efficient. “While the length of routing policies can get long, we can easily increase the context window of Arch-Router with minimal impact on latency,” explains Salman Paracha, co-author of the paper and Founder/CEO of Katanemo Labs. He notes that latency is primarily driven by the length of the output, and for Arch-Router, the output is simply the short name of a routing policy, like “image_editing” or “document_creation.”

Arch-Router in action

To build Arch-Router, the researchers fine-tuned a 1.5B parameter version of the Qwen 2.5 model on a curated dataset of 43,000 examples. They then tested its performance against state-of-the-art proprietary models from OpenAI, Anthropic and Google on four public datasets designed to evaluate conversational AI systems.

The results show that Arch-Router achieves the highest overall routing score of 93.17%, surpassing all other models, including top proprietary ones, by an average of 7.71%. The model’s advantage grew with longer conversations, demonstrating its strong ability to track context over multiple turns. 

Arch-Router vs other models (source: arXiv)
Arch-Router vs other models Source: arXiv

In practice, this approach is already being applied in several scenarios, according to Paracha. For example, in open-source coding tools, developers use Arch-Router to direct different stages of their workflow, such as “code design,” “code understanding,” and “code generation,” to the LLMs best suited for each task. Similarly, enterprises can route document creation requests to a model like Claude 3.7 Sonnet while sending image editing tasks to Gemini 2.5 Pro

The system is also ideal “for personal assistants in various domains, where users have a diversity of tasks from text summarization to factoid queries,” Paracha said, adding that “in those cases, Arch-Router can help developers unify and improve the overall user experience.”

This framework is integrated with Arch, Katanemo Labs’ AI-native proxy server for agents, which allows developers to implement sophisticated traffic-shaping rules. For instance, when integrating a new LLM, a team can send a small portion of traffic for a specific routing policy to the new model, verify its performance with internal metrics, and then fully transition traffic with confidence. The company is also working to integrate its tools with evaluation platforms to streamline this process for enterprise developers further.

Ultimately, the goal is to move beyond siloed AI implementations. “Arch-Router—and Arch more broadly—helps developers and enterprises move from fragmented LLM implementations to a unified, policy-driven system,” says Paracha. “In scenarios where user tasks are diverse, our framework helps turn that task and LLM fragmentation into a unified experience, making the final product feel seamless to the end user.”

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CoreWeave acquires Core Scientific for $9B to power AI infrastructure push

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Oracle to power OpenAI’s AGI ambitions with 4.5GW expansion

“For CIOs, this shift means more competition for AI infrastructure. Over the next 12–24 months, securing capacity for AI workloads will likely get harder, not easier. Though cost is coming down but demand is increasing as well, due to which CIOs must plan earlier and build stronger partnerships to ensure availability,” said Pareekh Jain, CEO at EIIRTrend & Pareekh Consulting. He added that CIOs should expect longer wait times for AI infrastructure. To mitigate this, they should lock in capacity through reserved instances, diversify across regions and cloud providers, and work with vendors to align on long-term demand forecasts.  “Enterprises stand to benefit from more efficient and cost-effective AI infrastructure tailored to specialized AI workloads, significantly lower their overall future AI-related investments and expenses. Consequently, CIOs face a critical task: to analyze and predict the diverse AI workloads that will prevail across their organizations, business units, functions, and employee personas in the future. This foresight will be crucial in prioritizing and optimizing AI workloads for either in-house deployment or outsourced infrastructure, ensuring strategic and efficient resource allocation,” said Neil Shah, vice president at Counterpoint Research. Strategic pivot toward AI data centers The OpenAI-Oracle deal comes in stark contrast to developments earlier this year. In April, AWS was reported to be scaling back its plans for leasing new colocation capacity — a move that AWS Vice President for global data centers Kevin Miller described as routine capacity management, not a shift in long-term expansion plans. Still, these announcements raised questions around whether the hyperscale data center boom was beginning to plateau. “This isn’t a slowdown, it’s a strategic pivot. The era of building generic data center capacity is over. The new global imperative is a race for specialized, high-density, AI-ready compute. Hyperscalers are not slowing down; they are reallocating their capital to

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Oracle inks $30 billion cloud deal, continuing its strong push into AI infrastructure.

He pointed out that, in addition to its continued growth, OCI has a remaining performance obligation (RPO) — total future revenue expected from contracts not yet reported as revenue — of $138 billion, a 41% increase, year over year. The company is benefiting from the immense demand for cloud computing largely driven by AI models. While traditionally an enterprise resource planning (ERP) company, Oracle launched OCI in 2016 and has been strategically investing in AI and data center infrastructure that can support gigawatts of capacity. Notably, it is a partner in the $500 billion SoftBank-backed Stargate project, along with OpenAI, Arm, Microsoft, and Nvidia, that will build out data center infrastructure in the US. Along with that, the company is reportedly spending about $40 billion on Nvidia chips for a massive new data center in Abilene, Texas, that will serve as Stargate’s first location in the country. Further, the company has signaled its plans to significantly increase its investment in Abu Dhabi to grow out its cloud and AI offerings in the UAE; has partnered with IBM to advance agentic AI; has launched more than 50 genAI use cases with Cohere; and is a key provider for ByteDance, which has said it plans to invest $20 billion in global cloud infrastructure this year, notably in Johor, Malaysia. Ellison’s plan: dominate the cloud world CTO and co-founder Larry Ellison announced in a recent earnings call Oracle’s intent to become No. 1 in cloud databases, cloud applications, and the construction and operation of cloud data centers. He said Oracle is uniquely positioned because it has so much enterprise data stored in its databases. He also highlighted the company’s flexible multi-cloud strategy and said that the latest version of its database, Oracle 23ai, is specifically tailored to the needs of AI workloads. Oracle

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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

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2025 playbook for enterprise AI success, from agents to evals

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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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