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Multimodal Search Engine Agents Powered by BLIP-2 and Gemini

This post was co-authored with Rafael Guedes. Introduction Traditional models can only process a single type of data, such as text, images, or tabular data. Multimodality is a trending concept in the AI research community, referring to a model’s ability to learn from multiple types of data simultaneously. This new technology (not really new, but […]

This post was co-authored with Rafael Guedes.

Introduction

Traditional models can only process a single type of data, such as text, images, or tabular data. Multimodality is a trending concept in the AI research community, referring to a model’s ability to learn from multiple types of data simultaneously. This new technology (not really new, but significantly improved in the last few months) has numerous potential applications that will transform the user experience of many products.

One good example would be the new way search engines will work in the future, where users can input queries using a combination of modalities, such as text, images, audio, etc. Another example could be improving AI-powered customer support systems for voice and text inputs. In e-commerce, they are enhancing product discovery by allowing users to search using images and text. We will use the latter as our case study in this article.

The frontier AI research labs are shipping several models that support multiple modalities every month. CLIP and DALL-E by OpenAI and BLIP-2 by Salesforce combine image and text. ImageBind by Meta expanded the multiple modality concept to six modalities (text, audio, depth, thermal, image, and inertial measurement units).

In this article, we will explore BLIP-2 by explaining its architecture, the way its loss function works, and its training process. We also present a practical use case that combines BLIP-2 and Gemini to create a multimodal fashion search agent that can assist customers in finding the best outfit based on either text or text and image prompts.

Figure 1: Multimodal Search Agent (image by author with Gemini)

As always, the code is available on our GitHub.

BLIP-2: a multimodal model

BLIP-2 (Bootstrapped Language-Image Pre-Training) [1] is a vision-language model designed to solve tasks such as visual question answering or multimodal reasoning based on inputs of both modalities: image and text. As we will see below, this model was developed to address two main challenges in the vision-language domain:

  1. Reduce computational cost using frozen pre-trained visual encoders and LLMs, drastically reducing the training resources needed compared to a joint training of vision and language networks.
  2. Improving visual-language alignment by introducing Q-Former. Q-Former brings the visual and textual embeddings closer, leading to improved reasoning task performance and the ability to perform multimodal retrieval.

Architecture

The architecture of BLIP-2 follows a modular design that integrates three modules:

  1. Visual Encoder is a frozen visual model, such as ViT, that extracts visual embeddings from the input images (which are then used in downstream tasks).
  2. Querying Transformer (Q-Former) is the key to this architecture. It consists of a trainable lightweight transformer that acts as an intermediate layer between the visual and language models. It is responsible for generating contextualized queries from the visual embeddings so that they can be processed effectively by the language model.
  3. LLM is a frozen pre-trained LLM that processes refined visual embeddings to generate textual descriptions or answers.
Figure 2: BLIP-2 architecture (image by author)

Loss Functions

BLIP-2 has three loss functions to train the Q-Former module:

  • Image-text contrastive loss [2] enforces the alignment between visual and text embeddings by maximizing the similarity of paired image-text representations while pushing apart dissimilar pairs.
  • Image-text matching loss [3] is a binary classification loss that aims to make the model learn fine-grained alignments by predicting whether a text description matches the image (positive, i.e., target=1) or not (negative, i.e., target=0).
  • Image-grounded text generation loss [4] is a cross-entropy loss used in LLMs to predict the probability of the next token in the sequence. The Q-Former architecture does not allow interactions between the image embeddings and the text tokens; therefore, the text must be generated based solely on the visual information, forcing the model to extract relevant visual features.

For both image-text contrastive loss and image-text matching loss, the authors used in-batch negative sampling, which means that if we have a batch size of 512, each image-text pair has one positive sample and 511 negative samples. This approach increases efficiency since negative samples are taken from the batch, and there is no need to search the entire dataset. It also provides a more diverse set of comparisons, leading to a better gradient estimation and faster convergence.

Figure 3: Training losses explained (image by author)

Training Process

The training of BLIP-2 consists of two stages:

Stage 1 – Bootstrapping visual-language representation:

  1. The model receives images as input that are converted to an embedding using the frozen visual encoder.
  2. Together with these images, the model receives their text descriptions, which are also converted into embedding.
  3. The Q-Former is trained using image-text contrastive loss, ensuring that the visual embeddings align closely with their corresponding textual embeddings and get further away from the non-matching text descriptions. At the same time, the image-text matching loss helps the model develop fine-grained representations by learning to classify whether a given text correctly describes the image or not.
Figure 4: Stage 1 training process (image by author)

Stage 2 – Bootstrapping vision-to-language generation:

  1. The pre-trained language model is integrated into the architecture to generate text based on the previously learned representations.
  2. The focus shifts from alignment to text generation by using the image-grounded text generation loss which improves the model capabilities of reasoning and text generation.
Figure 5: Stage 2 training process (image by the author)

Creating a Multimodal Fashion Search Agent using BLIP-2 and Gemini

In this section, we will leverage the multimodal capabilities of BLIP-2 to build a fashion assistant search agent that can receive input text and/or images and return recommendations. For the conversation capabilities of the agent, we will use Gemini 1.5 Pro hosted in Vertex AI, and for the interface, we will build a Streamlit app.

The fashion dataset used in this use case is licensed under the MIT license and can be accessed through the following link: Fashion Product Images Dataset. It consists of more than 44k images of fashion products.

The first step to make this possible is to set up a Vector DB. This enables the agent to perform a vectorized search based on the image embeddings of the items available in the store and the text or image embeddings from the input. We use docker and docker-compose to help us set up the environment:

  • Docker-Compose with Postgres (the database) and the PGVector extension that allows vectorized search.
services:
  postgres:
    container_name: container-pg
    image: ankane/pgvector
    hostname: localhost
    ports:
      - "5432:5432"
    env_file:
      - ./env/postgres.env
    volumes:
      - postgres-data:/var/lib/postgresql/data
    restart: unless-stopped

  pgadmin:
    container_name: container-pgadmin
    image: dpage/pgadmin4
    depends_on:
      - postgres
    ports:
      - "5050:80"
    env_file:
      - ./env/pgadmin.env
    restart: unless-stopped

volumes:
  postgres-data:
  • Postgres env file with the variables to log into the database.
POSTGRES_DB=postgres
POSTGRES_USER=admin
POSTGRES_PASSWORD=root
  • Pgadmin env file with the variables to log into the UI for manual querying the database (optional).
[email protected] 
PGADMIN_DEFAULT_PASSWORD=root
  • Connection env file with all the components to use to connect to PGVector using Langchain.
DRIVER=psycopg
HOST=localhost
PORT=5432
DATABASE=postgres
USERNAME=admin
PASSWORD=root

Once the Vector DB is set up and running (docker-compose up -d), it is time to create the agents and tools to perform a multimodal search. We build two agents to solve this use case: one to understand what the user is requesting and another one to provide the recommendation:

  • The classifier is responsible for receiving the input message from the customer and extracting which category of clothes the user is looking for, for example, t-shirts, pants, shoes, jerseys, or shirts. It will also return the number of items the customer wants so that we can retrieve the exact number from the Vector DB.
from langchain_core.output_parsers import PydanticOutputParser
from langchain_core.prompts import PromptTemplate
from langchain_google_vertexai import ChatVertexAI
from pydantic import BaseModel, Field

class ClassifierOutput(BaseModel):
    """
    Data structure for the model's output.
    """

    category: list = Field(
        description="A list of clothes category to search for ('t-shirt', 'pants', 'shoes', 'jersey', 'shirt')."
    )
    number_of_items: int = Field(description="The number of items we should retrieve.")

class Classifier:
    """
    Classifier class for classification of input text.
    """

    def __init__(self, model: ChatVertexAI) -> None:
        """
        Initialize the Chain class by creating the chain.
        Args:
            model (ChatVertexAI): The LLM model.
        """
        super().__init__()

        parser = PydanticOutputParser(pydantic_object=ClassifierOutput)

        text_prompt = """
        You are a fashion assistant expert on understanding what a customer needs and on extracting the category or categories of clothes a customer wants from the given text.
        Text:
        {text}

        Instructions:
        1. Read carefully the text.
        2. Extract the category or categories of clothes the customer is looking for, it can be:
            - t-shirt if the custimer is looking for a t-shirt.
            - pants if the customer is looking for pants.
            - jacket if the customer is looking for a jacket.
            - shoes if the customer is looking for shoes.
            - jersey if the customer is looking for a jersey.
            - shirt if the customer is looking for a shirt.
        3. If the customer is looking for multiple items of the same category, return the number of items we should retrieve. If not specfied but the user asked for more than 1, return 2.
        4. If the customer is looking for multiple category, the number of items should be 1.
        5. Return a valid JSON with the categories found, the key must be 'category' and the value must be a list with the categories found and 'number_of_items' with the number of items we should retrieve.

        Provide the output as a valid JSON object without any additional formatting, such as backticks or extra text. Ensure the JSON is correctly structured according to the schema provided below.
        {format_instructions}

        Answer:
        """

        prompt = PromptTemplate.from_template(
            text_prompt, partial_variables={"format_instructions": parser.get_format_instructions()}
        )
        self.chain = prompt | model | parser

    def classify(self, text: str) -> ClassifierOutput:
        """
        Get the category from the model based on the text context.
        Args:
            text (str): user message.
        Returns:
            ClassifierOutput: The model's answer.
        """
        try:
            return self.chain.invoke({"text": text})
        except Exception as e:
            raise RuntimeError(f"Error invoking the chain: {e}")
  • The assistant is responsible for answering with a personalized recommendation retrieved from the Vector DB. In this case, we are also leveraging the multimodal capabilities of Gemini to analyze the images retrieved and produce a better answer.
from langchain_core.output_parsers import PydanticOutputParser
from langchain_core.prompts import PromptTemplate
from langchain_google_vertexai import ChatVertexAI
from pydantic import BaseModel, Field

class AssistantOutput(BaseModel):
    """
    Data structure for the model's output.
    """

    answer: str = Field(description="A string with the fashion advice for the customer.")

class Assistant:
    """
    Assitant class for providing fashion advice.
    """

    def __init__(self, model: ChatVertexAI) -> None:
        """
        Initialize the Chain class by creating the chain.
        Args:
            model (ChatVertexAI): The LLM model.
        """
        super().__init__()

        parser = PydanticOutputParser(pydantic_object=AssistantOutput)

        text_prompt = """
        You work for a fashion store and you are a fashion assistant expert on understanding what a customer needs.
        Based on the items that are available in the store and the customer message below, provide a fashion advice for the customer.
        Number of items: {number_of_items}
        
        Images of items:
        {items}

        Customer message:
        {customer_message}

        Instructions:
        1. Check carefully the images provided.
        2. Read carefully the customer needs.
        3. Provide a fashion advice for the customer based on the items and customer message.
        4. Return a valid JSON with the advice, the key must be 'answer' and the value must be a string with your advice.

        Provide the output as a valid JSON object without any additional formatting, such as backticks or extra text. Ensure the JSON is correctly structured according to the schema provided below.
        {format_instructions}

        Answer:
        """

        prompt = PromptTemplate.from_template(
            text_prompt, partial_variables={"format_instructions": parser.get_format_instructions()}
        )
        self.chain = prompt | model | parser

    def get_advice(self, text: str, items: list, number_of_items: int) -> AssistantOutput:
        """
        Get advice from the model based on the text and items context.
        Args:
            text (str): user message.
            items (list): items found for the customer.
            number_of_items (int): number of items to be retrieved.
        Returns:
            AssistantOutput: The model's answer.
        """
        try:
            return self.chain.invoke({"customer_message": text, "items": items, "number_of_items": number_of_items})
        except Exception as e:
            raise RuntimeError(f"Error invoking the chain: {e}")

In terms of tools, we define one based on BLIP-2. It consists of a function that receives a text or image as input and returns normalized embeddings. Depending on the input, the embeddings are produced using the text embedding model or the image embedding model of BLIP-2.

from typing import Optional

import numpy as np
import torch
import torch.nn.functional as F
from PIL import Image
from PIL.JpegImagePlugin import JpegImageFile
from transformers import AutoProcessor, Blip2TextModelWithProjection, Blip2VisionModelWithProjection

PROCESSOR = AutoProcessor.from_pretrained("Salesforce/blip2-itm-vit-g")
TEXT_MODEL = Blip2TextModelWithProjection.from_pretrained("Salesforce/blip2-itm-vit-g", torch_dtype=torch.float32).to(
    "cpu"
)
IMAGE_MODEL = Blip2VisionModelWithProjection.from_pretrained(
    "Salesforce/blip2-itm-vit-g", torch_dtype=torch.float32
).to("cpu")

def generate_embeddings(text: Optional[str] = None, image: Optional[JpegImageFile] = None) -> np.ndarray:
    """
    Generate embeddings from text or image using the Blip2 model.
    Args:
        text (Optional[str]): customer input text
        image (Optional[Image]): customer input image
    Returns:
        np.ndarray: embedding vector
    """
    if text:
        inputs = PROCESSOR(text=text, return_tensors="pt").to("cpu")
        outputs = TEXT_MODEL(**inputs)
        embedding = F.normalize(outputs.text_embeds, p=2, dim=1)[:, 0, :].detach().numpy().flatten()
    else:
        inputs = PROCESSOR(images=image, return_tensors="pt").to("cpu", torch.float16)
        outputs = IMAGE_MODEL(**inputs)
        embedding = F.normalize(outputs.image_embeds, p=2, dim=1).mean(dim=1).detach().numpy().flatten()

    return embedding

Note that we create the connection to PGVector with a different embedding model because it is mandatory, although it will not be used since we will store the embeddings produced by BLIP-2 directly.

In the loop below, we iterate over all categories of clothes, load the images, and create and append the embeddings to be stored in the vector db into a list. Also, we store the path to the image as text so that we can render it in our Streamlit app. Finally, we store the category to filter the results based on the category predicted by the classifier agent.

import glob
import os

from dotenv import load_dotenv
from langchain_huggingface.embeddings import HuggingFaceEmbeddings
from langchain_postgres.vectorstores import PGVector
from PIL import Image

from blip2 import generate_embeddings

load_dotenv("env/connection.env")

CONNECTION_STRING = PGVector.connection_string_from_db_params(
    driver=os.getenv("DRIVER"),
    host=os.getenv("HOST"),
    port=os.getenv("PORT"),
    database=os.getenv("DATABASE"),
    user=os.getenv("USERNAME"),
    password=os.getenv("PASSWORD"),
)

vector_db = PGVector(
    embeddings=HuggingFaceEmbeddings(model_name="nomic-ai/modernbert-embed-base"),  # does not matter for our use case
    collection_name="fashion",
    connection=CONNECTION_STRING,
    use_jsonb=True,
)

if __name__ == "__main__":

    # generate image embeddings
    # save path to image in text
    # save category in metadata
    texts = []
    embeddings = []
    metadatas = []

    for category in glob.glob("images/*"):
        cat = category.split("/")[-1]
        for img in glob.glob(f"{category}/*"):
            texts.append(img)
            embeddings.append(generate_embeddings(image=Image.open(img)).tolist())
            metadatas.append({"category": cat})

    vector_db.add_embeddings(texts, embeddings, metadatas)

We can now build our Streamlit app to chat with our assistant and ask for recommendations. The chat starts with the agent asking how it can help and providing a box for the customer to write a message and/or to upload a file.

Once the customer replies, the workflow is the following:

  • The classifier agent identifies which categories of clothes the customer is looking for and how many units they want.
  • If the customer uploads a file, this file is going to be converted into an embedding, and we will look for similar items in the vector db, conditioned by the category of clothes the customer wants and the number of units.
  • The items retrieved and the customer’s input message are then sent to the assistant agent to produce the recommendation message that is rendered together with the images retrieved.
  • If the customer did not upload a file, the process is the same, but instead of generating image embeddings for retrieval, we create text embeddings.
import os

import streamlit as st
from dotenv import load_dotenv
from langchain_google_vertexai import ChatVertexAI
from langchain_huggingface.embeddings import HuggingFaceEmbeddings
from langchain_postgres.vectorstores import PGVector
from PIL import Image

import utils
from assistant import Assistant
from blip2 import generate_embeddings
from classifier import Classifier

load_dotenv("env/connection.env")
load_dotenv("env/llm.env")

CONNECTION_STRING = PGVector.connection_string_from_db_params(
    driver=os.getenv("DRIVER"),
    host=os.getenv("HOST"),
    port=os.getenv("PORT"),
    database=os.getenv("DATABASE"),
    user=os.getenv("USERNAME"),
    password=os.getenv("PASSWORD"),
)

vector_db = PGVector(
    embeddings=HuggingFaceEmbeddings(model_name="nomic-ai/modernbert-embed-base"),  # does not matter for our use case
    collection_name="fashion",
    connection=CONNECTION_STRING,
    use_jsonb=True,
)

model = ChatVertexAI(model_name=os.getenv("MODEL_NAME"), project=os.getenv("PROJECT_ID"), temperarture=0.0)
classifier = Classifier(model)
assistant = Assistant(model)

st.title("Welcome to ZAAI's Fashion Assistant")

user_input = st.text_input("Hi, I'm ZAAI's Fashion Assistant. How can I help you today?")

uploaded_file = st.file_uploader("Upload an image", type=["jpg", "jpeg", "png"])

if st.button("Submit"):

    # understand what the user is asking for
    classification = classifier.classify(user_input)

    if uploaded_file:

        image = Image.open(uploaded_file)
        image.save("input_image.jpg")
        embedding = generate_embeddings(image=image)

    else:

        # create text embeddings in case the user does not upload an image
        embedding = generate_embeddings(text=user_input)

    # create a list of items to be retrieved and the path
    retrieved_items = []
    retrieved_items_path = []
    for item in classification.category:
        clothes = vector_db.similarity_search_by_vector(
            embedding, k=classification.number_of_items, filter={"category": {"$in": [item]}}
        )
        for clothe in clothes:
            retrieved_items.append({"bytesBase64Encoded": utils.encode_image_to_base64(clothe.page_content)})
            retrieved_items_path.append(clothe.page_content)

    # get assistant's recommendation
    assistant_output = assistant.get_advice(user_input, retrieved_items, len(retrieved_items))
    st.write(assistant_output.answer)

    cols = st.columns(len(retrieved_items)+1)
    for col, retrieved_item in zip(cols, ["input_image.jpg"]+retrieved_items_path):
        col.image(retrieved_item)

    user_input = st.text_input("")

else:
    st.warning("Please provide text.")

Both examples can be seen below:

Figure 6 shows an example where the customer uploaded an image of a red t-shirt and asked the agent to complete the outfit.

Figure 6: Example of text and image input (image by author)

Figure 7 shows a more straightforward example where the customer asked the agent to show them black t-shirts.

Figure 7: Example of text input (image by author)

Conclusion

Multimodal AI is no longer just a research topic. It is being used in the industry to reshape the way customers interact with company catalogs. In this article, we explored how multimodal models like BLIP-2 and Gemini can be combined to address real-world problems and provide a more personalized experience to customers in a scalable way.

We explored the architecture of BLIP-2 in depth, demonstrating how it bridges the gap between text and image modalities. To extend its capabilities, we developed a system of agents, each specializing in different tasks. This system integrates an LLM (Gemini) and a vector database, enabling retrieval of the product catalog using text and image embeddings. We also leveraged Gemini’s multimodal reasoning to improve the sales assistant agent’s responses to be more human-like.

With tools like BLIP-2, Gemini, and PG Vector, the future of multimodal search and retrieval is already happening, and the search engines of the future will look very different from the ones we use today.

About me

Serial entrepreneur and leader in the AI space. I develop AI products for businesses and invest in AI-focused startups.

Founder @ ZAAI | LinkedIn | X/Twitter

References

[1] Junnan Li, Dongxu Li, Silvio Savarese, Steven Hoi. 2023. BLIP-2: Bootstrapping Language-Image Pre-training with Frozen Image Encoders and Large Language Models. arXiv:2301.12597

[2] Prannay Khosla, Piotr Teterwak, Chen Wang, Aaron Sarna, Yonglong Tian, Phillip Isola, Aaron Maschinot, Ce Liu, Dilip Krishnan. 2020. Supervised Contrastive Learning. arXiv:2004.11362

[3] Junnan Li, Ramprasaath R. Selvaraju, Akhilesh Deepak Gotmare, Shafiq Joty, Caiming Xiong, Steven Hoi. 2021. Align before Fuse: Vision and Language Representation Learning with Momentum Distillation. arXiv:2107.07651

[4] Li Dong, Nan Yang, Wenhui Wang, Furu Wei, Xiaodong Liu, Yu Wang, Jianfeng Gao, Ming Zhou, Hsiao-Wuen Hon. 2019. Unified Language Model Pre-training for Natural Language Understanding and Generation. arXiv:1905.03197

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Qatar began supplying natural gas to Syria through Jordan, the latest boost to the war-torn country’s interim government following the fall of former president Bashar al-Assad. About 2 million cubic meters a day will be sent via the Arab Gas Pipeline, eventually contributing a total of 400 megawatts to the power grid, Syrian state-run news agency Sana said. The supplies were approved by Washington, Reuters reported earlier, without providing numbers.  The contract signals further recognition for the government of Ahmed Al-Sharaa, who led the battle to overthrow Assad. It should help increase average power supply for Syrians to four hours a day, up from two, helping ease severe energy shortages. The UK removed the Syrian central bank and 23 other entities, mainly lenders and energy companies, from a list of sanctioned institutions earlier this month, following similar moves by several Western countries. Natural gas supplies through the Arab Gas Pipeline to Syria, and by extension to Lebanon, have been disrupted since 2011 due to the war and have been largely inactive since then.  The exact mechanism by which Qatar will transport the gas to Syria and reactivate that section of the pipeline is unclear, as years of conflict have damaged vital energy infrastructure. Plus, the only LNG storage facility in Jordan, a vessel off the Red Sea port city of Aqaba, will be leased to Egypt for 10 years starting mid-2025. The power supply hinges on raising the production capacity of Syria’s Deir Ali power station, state-run Qatar News Agency said. This supply level is the “first phase” of a deal signed between Qatar Fund for Development and the Jordanian Ministry of Energy, in cooperation with the United Nations Development Program, which will oversee the “executive aspects of the project”. Syria’s interim government is seeking to replace oil imports from

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Energy Bosses Shrug Off DeepSeek to Focus on Powering AI Boom

While tariffs and macroeconomic concerns weighed on the outlook for oil at a major energy conference in Houston this week, the mood around artificial intelligence and its sky-high power needs could scarcely be different. For a second year, energy executives at the CERAWeek by S&P Global gathering hailed the looming data center requirements for AI as both a huge challenge and a once-in-a-generation opportunity.  “The only way we win the AI arms race with China is if we have electricity,” US Interior Secretary Doug Burgum said in his address. “They are moving at a speed that would suggest we are in a serious cyberwar with them.” The energy world appears to have shrugged off investor doubts that emerged over the AI-power narrative in January, when Chinese startup DeepSeek released a chat bot purported to use just a fraction of the electricity required by established US rivals. Despite that wobble, many forecasts for US power demand are still unprecedented — and come after more than two decades of stable consumption. Jenny Yang, head of power and renewables research at S&P, told conference delegates Thursday that US utilities’ estimates for additional power demand coming just from data centers by 2030 are equivalent to the entire Ercot power market in Texas. “We’re seeing load forecasts that, in my experience as a state regulator, are mind-boggling,” said Mark Christie, a former energy regulator in Virginia, the data-center capital of the US, and who now chairs the Federal Energy Regulatory Commission. The so-called hyperscalers continue to race ahead with their build-out of AI infrastructure. Google parent Alphabet Inc. reported last month it plans capital expenditures of $75 billion this year.  The power demand related to that spending “is coming so fast and from so many different directions,” Alan Armstrong, chief executive officer of US pipeline operator Williams

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IBM laying foundation for mainframe as ultimate AI server

“It will truly change what customers are able to do with AI,” Stowell said. IBM’s mainframe processors The next generation of processors is expected to continue a long history of generation-to-generation improvements, IBM stated in a new white paper on AI and the mainframe. “They are projected to clock in at 5.5 GHz. and include ten 36 MB level 2 caches. They’ll feature built-in low-latency data processing for accelerated I/O as well as a completely redesigned cache and chip-interconnection infrastructure for more on-chip cache and compute capacity,” IBM wrote.  Today’s mainframes also have extensions and accelerators that integrate with the core systems. These specialized add-ons are designed to enable the adoption of technologies such as Java, cloud and AI by accelerating computing paradigms that are essential for high-volume, low-latency transaction processing, IBM wrote.  “The next crop of AI accelerators are expected to be significantly enhanced—with each accelerator designed to deliver 4 times more compute power, reaching 24 trillion operations per second (TOPS),” IBM wrote. “The I/O and cache improvements will enable even faster processing and analysis of large amounts of data and consolidation of workloads running across multiple servers, for savings in data center space and power costs. And the new accelerators will provide increased capacity to enable additional transaction clock time to perform enhanced in-transaction AI inferencing.” In addition, the next generation of the accelerator architecture is expected to be more efficient for AI tasks. “Unlike standard CPUs, the chip architecture will have a simpler layout, designed to send data directly from one compute engine, and use a range of lower- precision numeric formats. These enhancements are expected to make running AI models more energy efficient and far less memory intensive. As a result, mainframe users can leverage much more complex AI models and perform AI inferencing at a greater scale

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VergeIO enhances VergeFabric network virtualization offering

VergeIO is not, however, using an off-the-shelf version of KVM. Rather, it is using what Crump referred to as a heavily modified KVM hypervisor base, with significant proprietary enhancements while still maintaining connections to the open-source community. VergeIO’s deployment profile is currently 70% on premises and about 30% via bare-metal service providers, with a particularly strong following among cloud service providers that host applications for their customers. The software requires direct hardware access due to its low-level integration with physical resources. “Since November of 2023, the normal number one customer we’re attracting right now is guys that have had a heart attack when they got their VMware renewal license,” Crump said. “The more of the stack you own, the better our story becomes.” A 2024 report from Data Center Intelligence Group (DCIG) identified VergeOS as one of the top 5 alternatives to VMware. “VergeIO starts by installing VergeOS on bare metal servers,” the report stated. “It then brings the servers’ hardware resources under its management, catalogs these resources, and makes them available to VMs. By directly accessing and managing the server’s hardware resources, it optimizes them in ways other hypervisors often cannot.” Advanced networking features in VergeFabric VergeFabric is the networking component within the VergeOS ecosystem, providing software-defined networking capabilities as an integrated service rather than as a separate virtual machine or application.

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Podcast: On the Frontier of Modular Edge AI Data Centers with Flexnode’s Andrew Lindsey

The modular data center industry is undergoing a seismic shift in the age of AI, and few are as deeply embedded in this transformation as Andrew Lindsey, Co-Founder and CEO of Flexnode. In a recent episode of the Data Center Frontier Show podcast, Lindsey joined Editor-in-Chief Matt Vincent and Senior Editor David Chernicoff to discuss the evolution of modular data centers, the growing demand for high-density liquid-cooled solutions, and the industry factors driving this momentum. A Background Rooted in Innovation Lindsey’s career has been defined by the intersection of technology and the built environment. Prior to launching Flexnode, he worked at Alpha Corporation, a top 100 engineering and construction management firm founded by his father in 1979. His early career involved spearheading technology adoption within the firm, with a focus on high-security infrastructure for both government and private clients. Recognizing a massive opportunity in the data center space, Lindsey saw a need for an innovative approach to infrastructure deployment. “The construction industry is relatively uninnovative,” he explained, citing a McKinsey study that ranked construction as the second least-digitized industry—just above fishing and wildlife, which remains deliberately undigitized. Given the billions of square feet of data center infrastructure required in a relatively short timeframe, Lindsey set out to streamline and modernize the process. Founded four years ago, Flexnode delivers modular data centers with a fully integrated approach, handling everything from site selection to design, engineering, manufacturing, deployment, operations, and even end-of-life decommissioning. Their core mission is to provide an “easy button” for high-density computing solutions, including cloud and dedicated GPU infrastructure, allowing faster and more efficient deployment of modular data centers. The Rising Momentum for Modular Data Centers As Vincent noted, Data Center Frontier has closely tracked the increasing traction of modular infrastructure. Lindsey has been at the forefront of this

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Last Energy to Deploy 30 Microreactors in Texas for Data Centers

As the demand for data center power surges in Texas, nuclear startup Last Energy has now announced plans to build 30 microreactors in the state’s Haskell County near the Dallas-Fort Worth Metroplex. The reactors will serve a growing customer base of data center operators in the region looking for reliable, carbon-free energy. The plan marks Last Energy’s largest project to date and a significant step in advancing modular nuclear power as a viable solution for high-density computing infrastructure. Meeting the Looming Power Demands of Texas Data Centers Texas is already home to over 340 data centers, with significant expansion underway. Google is increasing its data center footprint in Dallas, while OpenAI’s Stargate has announced plans for a new facility in Abilene, just an hour south of Last Energy’s planned site. The company notes the Dallas-Fort Worth metro area alone is projected to require an additional 43 gigawatts of power in the coming years, far surpassing current grid capacity. To help remediate, Last Energy has secured a 200+ acre site in Haskell County, approximately three and a half hours west of Dallas. The company has also filed for a grid connection with ERCOT, with plans to deliver power via a mix of private wire and grid transmission. Additionally, Last Energy has begun pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC) for an Early Site Permit, a key step in securing regulatory approval. According to Last Energy CEO Bret Kugelmass, the company’s modular approach is designed to bring nuclear energy online faster than traditional projects. “Nuclear power is the most effective way to meet Texas’ growing energy demand, but it needs to be deployed faster and at scale,” Kugelmass said. “Our microreactors are designed to be plug-and-play, enabling data center operators to bypass the constraints of an overloaded grid.” Scaling Nuclear for

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Data Center Jobs: Engineering and Technician Jobs Available in Major Markets

Each month Data Center Frontier, in partnership with Pkaza, posts some of the hottest data center career opportunities in the market. Here’s a look at some of the latest data center jobs posted on the Data Center Frontier jobs board, powered by Pkaza Critical Facilities Recruiting.  Data Center Facility Engineer (Night Shift Available) Ashburn, VAThis position is also available in: Tacoma, WA (Nights), Days/Nights: Needham, MA and New York City, NY. This opportunity is working directly with a leading mission-critical data center developer / wholesaler / colo provider. This firm provides data center solutions custom-fit to the requirements of their client’s mission-critical operational facilities. They provide reliability of mission-critical facilities for many of the world’s largest organizations facilities supporting enterprise clients and hyperscale companies. This opportunity provides a career-growth minded role with exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits. Electrical Commissioning Engineer New Albany, OHThis traveling position is also available in: Somerset, NJ; Boydton, VA; Richmond, VA; Ashburn, VA; Charlotte, NC; Atlanta, GA; Hampton, GA; Fayetteville, GA; Des Moines, IA; San Jose, CA; Portland, OR; St Louis, MO; Phoenix, AZ;  Dallas, TX;  Chicago, IL; or Toronto, ON. *** ALSO looking for a LEAD EE and ME CxA agents.*** Our client is an engineering design and commissioning company that has a national footprint and specializes in MEP critical facilities design. They provide design, commissioning, consulting and management expertise in the critical facilities space. They have a mindset to provide reliability, energy efficiency, sustainable design and LEED expertise when providing these consulting services for enterprise, colocation and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits. Switchgear Field Service Technician – Critical Facilities Nationwide TravelThis position is also available in: Charlotte, NC; Atlanta, GA; Dallas,

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Amid Shifting Regional Data Center Policies, Iron Mountain and DC Blox Both Expand in Virginia’s Henrico County

The dynamic landscape of data center developments in Maryland and Virginia exemplify the intricate balance between fostering technological growth and addressing community and environmental concerns. Data center developers in this region find themselves both in the crosshairs of groups worried about the environment and other groups looking to drive economic growth. In some cases, the groups are different components of the same organizations, such as local governments. For data center development, meeting the needs of these competing interests often means walking a none-too-stable tightrope. Rapid Government Action Encourages Growth In May 2024, Maryland demonstrated its commitment to attracting data center investments by enacting the Critical Infrastructure Streamlining Act. This legislation provides a clear framework for the use of emergency backup power generation, addressing previous regulatory challenges that a few months earlier had hindered projects like Aligned Data Centers’ proposed 264-megawatt campus in Frederick County, causing Aligned to pull out of the project. However, just days after the Act was signed by the governor, Aligned reiterated its plans to move forward with development in Maryland.  With the Quantum Loop and the related data center development making Frederick County a focal point for a balanced approach, the industry is paying careful attention to the pace of development and the relations between developers, communities and the government. In September of 2024, Frederick County Executive Jessica Fitzwater revealed draft legislation that would potentially restrict where in the county data centers could be built. The legislation was based on information found in the Frederick County Data Centers Workgroup’s final report. Those bills would update existing regulations and create a floating zone for Critical Digital Infrastructure and place specific requirements on siting data centers. Statewide, a cautious approach to environmental and community impacts statewide has been deemed important. In January 2025, legislators introduced SB116,  a bill

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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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