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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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Texas Governor Issues Disaster Declaration for 134 Counties

A release posted on the website of the Office of the Texas Governor on Thursday announced that Texas Governor Greg Abbott has issued a disaster declaration for 134 counties “to ensure that every necessary resource is made available to Texans”. A letter of transmittal, which accompanied the release, noted that Abbott issued “a proclamation declaring a disaster due to severe winter weather in a number of Texas counties”. “I, Greg Abbott, Governor of the State of Texas, do hereby certify that severe winter weather poses an imminent threat of widespread and severe property damage, injury, and loss of life due to prolonged freezing temperatures, heavy snow, icy conditions, and freezing rain in several counties,” Abbott stated in the original proclamation, which was attached to the letter. In a statement sent to Rigzone late Thursday by the AccuWeather team, AccuWeather said “a massive winter storm is forecast to unleash extreme freezing rain, damaging ice and heavy snow impacts across much of the southern, central, and eastern United States beginning Friday, followed by repeated waves of bitter cold”.   “More than 200 million people could be affected, with impacts expected to cascade nationwide through widespread power outages, travel shutdowns, and business operations grinding to a halt,” the statement warned. In that AccuWeather statement, the company’s Chief Meteorologist Jonathan Porter said, “this winter storm will shut it all down”. “This storm will have a variety of dangerous and life-threatening hazards. The combination of freezing rain, ice and heavy snow, followed by a deep freeze, increases the risk of widespread travel shutdowns, extended business and commerce disruptions, and interruptions to daily life,” he warned. The AccuWeather statement noted that significant to severe freezing rain and ice impacts are forecast to begin in Texas on Friday, then extend across the South into the Carolinas over the weekend. In a “winter weather outlook” notice to oil and gas and pipeline operators posted on its website on January 20, the Texas Railroad

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Kinder Morgan Reports Record Year

Kinder Morgan Inc (KMI) has reported $996 million in net profit for the fourth quarter of 2025 and $3.06 billion for the year, the company’s highest Q4 and annual results. The increase was driven by its natural gas pipelines business, which rode on rising demand for liquefied natural gas (LNG), according to a statement on the Houston, Texas-based company’s website. Executive chair Richard D. Kinder said KMI has delivered over 40 percent of feed gas to United States liquefaction facilities amid the Russia-Ukraine war, noting the U.S. has become a vital energy exporter to Europe. “Led by record-setting performance in our natural gas pipelines business segment, the company delivered its highest ever fourth-quarter and full-year net income attributable to KMI and adjusted EBITDA”, Dang said. KMI carried 48,353 billion British thermal units a day (BBtud) of gas in October-December 2025, up from 44,507 BBtud from the same quarter in 2024. Over the last 12 months, gas transport volumes averaged 46,603 BBtud, up from 44,252 BBtud in 2024, KMI said. KMI’s gas sales volumes averaged 4,045 BBtud in Q4 2025 and 3,302 BBtud in the full year. Gas gathering volumes averaged 4,513 BBtud in Q4 2025 and 3,792 BBtud in 2025, KMI said. “Growth in the fourth quarter of 2025 relative to the fourth quarter of 2024 was due primarily to higher contributions from our Texas Intrastate system, KinderHawk and Outrigger Energy assets”, said KMI president Tom Martin. “Natural gas transport volumes were up nine percent compared to the fourth quarter of 2024 primarily due to LNG deliveries on Tennessee Gas Pipeline. “Natural gas gathering volumes were up 19 percent from the fourth quarter of 2024 across all assets, with our KinderHawk system making the largest contribution”. Earnings before depreciation, depletion and amortization (EBDA) from the gas pipelines segment came at

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Shell Announces Executive Committee Changes

Shell announced changes to its executive committee in a statement posted on its website this week. “We have made significant progress against our previously announced plan to integrate the technical divisions, that today make up our Projects and Technology organization, into our business lines,” the company said in the statement. “This simplification will empower our businesses by bringing these technical capabilities closer to where we generate value and progress our journey to improve cost competitiveness of the organization,” it added. Shell noted in its statement that, “as a result of the progress” it has made, Robin Mooldijk, President, Projects and Technology, “will step down after 35 years of distinguished service with Shell, effective 28 February 2026”. The company stated that, following Mooldijk’s departure, Shell’s Executive Committee “will reduce in size from nine to eight members”. Shell highlighted that the changes announced in its statement do not affect its financial reporting segments, which it pointed out remain Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. “I am grateful to Robin for his significant contribution to Shell throughout his career,” Shell CEO Wael Sawan said in the statement. “Before joining the Executive Committee, he led the transformation of Shell’s refining strategy, combining our Refining and Chemicals businesses into a single Chemicals and Products organization, bringing our customers and assets closer together and strengthening our already successful integration with Shell Trading,” he added. “Most recently, Robin has successfully led the integration of our technical divisions into our Integrated Gas, Upstream and Downstream and Renewables businesses, to strongly position Shell for the future. I wish him well in his future endeavors,” he continued. In a statement posted on its site in March 2025, Sawan noted that, “in the first half of 2026”, the company would “integrate the technical divisions, that today

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New Equinor Gas Discovery in Norway Eyed to Supply Poland

Equinor ASA and ORLEN SA have announced a natural gas discovery on Norway’s side of the North Sea, with plans to connect it to the Baltic Pipe to supply Poland. The Sissel discovery in production license (PL) 1137 is estimated to hold 6.3-28.3 million oil-equivalent barrels, mainly gas with condensate admixture, Poland’s majority state-owned ORLEN said in a statement on its website. Sissel, or well 15/8-3 S, is the first exploration well drilled in PL1137, awarded 2022, according to a separate press release by the Norwegian Offshore Directorate. “The Sissel discovery, from which we expect to obtain approximately one billion cubic meters [35.31 billion cubic feet] of gas, strengthens our asset portfolio in Norway and represents another step toward achieving the ORLEN Group’s strategic objectives”, said ORLEN president Ireneusz Fafara. “Norwegian gas plays a crucial role in ensuring stable supplies for our customers. This was clearly demonstrated earlier this year, when we recorded record‑high demand from the energy sector, businesses and households – reaching as much as 100 million cubic meters in a single day. “In response, we increased gas imports, including via the Baltic Pipe, which transports gas from the Norwegian continental shelf to Poland. “As a company fundamental to Poland’s energy security, we remain firmly committed to further developing cooperation with our Norwegian partners based on our own production on the Shelf”. The partners are considering tying back Sissel to the Utgard field, itself a tieback to the Sleipner complex. PL1137, in the central part of the North Sea, sits 250 kilometers (155.34 miles) from Stavanger city in southwestern Norway, according to ORLEN. Norway’s majority state-owned Equinor is operator with a 50 percent stake, the other half held by ORLEN. The discovery, with a total depth of 4,359 meters (14,301.18 feet), is five kilometers north of Utgard, ORLEN noted. Utgard, operated

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DCN becoming the new WAN for AI-era applications

“DCN is increasingly treated as an end-to-end operating model that standardizes connectivity, security policy enforcement, and telemetry across users, the middle mile, and cloud/application edges,” Sanchez said. Dell’Oro defines DCN as platforms and services that deliver consistent connectivity, policy enforcement, and telemetry from users, across the WAN, to distributed cloud and application edges spanning branch sites, data centers and public clouds. The category is gaining relevance as hybrid architectures and AI-era traffic patterns increase the operational penalty for fragmented control planes. DCN buyers are moving beyond isolated upgrades and are prioritizing architectures that reduce operational seams across connectivity, security and telemetry so that incident response and change control can follow a single thread, according to Dell’Oro’s research. What makes DCN distinct is that it links user-to-application experience with where policy and visibility are enforced. This matters as application delivery paths become more dynamic and workloads shift between on-premises data centers, public cloud, and edge locations. The architectural requirement is eliminating handoffs between networking and security teams rather than optimizing individual network segments. Where DCN is growing the fastest Cloud/application edge is the fastest-growing DCN pillar. This segment deploys policy enforcement and telemetry collection points adjacent to workloads rather than backhauling traffic to centralized security stacks. “Multi-cloud remains a reality, but it is no longer the durable driver by itself,” Sanchez said. “Cloud/application edge is accelerating because enterprises are trying to make application paths predictable and secure across hybrid environments, and that requires pushing application-aware steering, policy enforcement, and unified telemetry closer to workloads.”

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Edged US Builds Waterless, High-Density AI Data Center Campuses at Scale

Edged US is targeting a narrow but increasingly valuable lane of the hyperscale AI infrastructure market: high-density compute delivered at speed, paired with a sustainability posture centered on waterless, closed-loop cooling and a portfolio-wide design PUE target of roughly 1.15. Two recent announcements illustrate the model. In Aurora, Illinois, Edged is developing a 72-MW facility purpose-built for AI training and inference, with liquid-to-chip cooling designed to support rack densities exceeding 200 kW. In Irving, Texas, a 24-MW campus expansion combines air-cooled densities above 120 kW per rack with liquid-to-chip capability reaching 400 kW. Taken together, the projects point to a consistent strategy: standardized, multi-building campuses in major markets; a vertically integrated technical stack with cooling at its core; and an operating model built around repeatable designs, modular systems, and readiness for rapidly escalating AI densities. A Campus-First Platform Strategy Edged US’s platform strategy is built around campus-scale expansion rather than one-off facilities. The company positions itself as a gigawatt-scale, AI-ready portfolio expanding across major U.S. metros through repeatable design targets and multi-building campuses: an emphasis that is deliberate and increasingly consequential. In Chicago/Aurora, Edged is developing a multi-building campus with an initial facility already online and a second 72-MW building under construction. Dallas/Irving follows the same playbook: the first facility opened in January 2025, with a second 24-MW building approved unanimously by the city. Taken together with developments in Atlanta, Chicago, Columbus, Dallas, Des Moines, Kansas City, and Phoenix, the footprint reflects a portfolio-first mindset rather than a collection of bespoke sites. This focus on campus-based expansion matters because the AI factory era increasingly rewards developers that can execute three things at once: Lock down power and land at scale. Standardize delivery across markets. Operate efficiently while staying aligned with community and regulatory expectations. Edged is explicitly selling the second

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CBRE’s 2026 Data Center Outlook: Demand Surges as Delivery Becomes the Constraint

The U.S. data center market is entering 2026 with fundamentals that remain unmatched across commercial real estate, but the nature of the dominant constraint has shifted. Demand is no longer gated by capital, connectivity, or even land. It is gated by the ability to deliver very large blocks of power, on aggressive timelines, at a predictable cost. According to the CBRE 2026 U.S. Real Estate Market Outlook as overseen by Gordon Dolven and Pat Lynch, the sector is on track to post another record year for leasing activity, even as vacancy remains at historic lows and pricing reaches all-time highs. What has changed is the scale at which demand now presents itself, and the difficulty of meeting it. Large-Block Leasing Rewrites the Economics AI-driven workloads are reshaping leasing dynamics in ways that break from prior hyperscale norms. Where 10-MW-plus deployments once commanded pricing concessions, CBRE now observes the opposite behavior: large, contiguous blocks of capacity are commanding premiums. Neocloud providers, GPU-as-a-service platforms and AI startups, many backed by aggressive capital deployment strategies, are actively competing for full-building and campus-scale capacity.  For operators, this is altering development and merchandising strategies. Rather than subdividing shells for flexibility, owners increasingly face a strategic choice: hold buildings intact to preserve optionality for single-tenant, high-density users who are willing to pay for scale. In effect, scale itself has become the scarce asset. Behind-the-Meter Power Moves to the Foreground For data centers, power availability meaning not just access, but certainty of delivery, is now the defining variable in the market.  CBRE notes accelerating adoption of behind-the-meter strategies as operators seek to bypass increasingly constrained utility timelines. On-site generation using natural gas, solar, wind, and battery storage is gaining traction, particularly in deregulated electricity markets where operators have more latitude to structure BYOP (bring your own power) solutions. 

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Blue Origin targets enterprise networks with a multi-terabit satellite connectivity plan

“It’s ideal for remote, sparse, or sensitive regions,” said Manish Rawat, analyst at TechInsights. “Key use cases include cloud-to-cloud links, data center replication, government, defense, and disaster recovery workloads. It supports rapid or temporary deployments and prioritizes fewer customers with high capacity, strict SLAs, and deep carrier integration.” Adoption, however, is expected to largely depend on the sector. For governments and organizations operating highly critical or sensitive infrastructure, where reliability and security outweigh cost considerations, this could be attractive as a redundancy option. “Banks, national security agencies, and other mission-critical operators may consider it as an alternate routing path,” Jain said. “For most enterprises, however, it is unlikely to replace terrestrial connectivity and would instead function as a supplementary layer.” Real-world performance Although satellite connectivity offers potential advantages, analysts note that questions remain around real-world performance. “TeraWave’s 6 Tbps refers to total constellation capacity, not per-user throughput, achieved via multiple optical inter-satellite links and ground gateways,” Rawat said. “Optical crosslinks provide high aggregate bandwidth but not a single terabit-class pipe. Performance lies between fiber and GEO satellites, with lower intercontinental latency than GEO but higher than fiber.” Operational factors could also affect network stability. Jitter is generally low, but handovers, rerouting, and weather conditions can introduce intermittent performance spikes. Packet loss is expected to remain modest but episodic, Rawat added.

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CyrusOne Hones AI-Era Data Center Strategy for Power, Pace, and Reliability

In the second half of 2025, CyrusOne was racing to secure buildable power and faster time-to-market capacity for AI-era customers. At the same time, its reputation for mission-critical reliability took a very public hit when a disruption at a CyrusOne facility helped knock CME trading offline. The incident forced the company into an unusually open conversation about redundancy, cooling systems, and operational discipline: systems that are meant to disappear in normal operation, and dominate the story when they malfunction. From Projects to a Playbook Which projects, missteps, and strategic moves from 2025 are now shaping how CyrusOne enters 2026? Nowhere is that view clearer than in Texas. There, CyrusOne has been leaning hard into a “power + land + interconnect” model: treating deliverable power and grid position as part of the product, not just a prerequisite. If you map the company’s announcements since late July, Texas reveals the playbook. Secure power, secure substations and grid position, then build multi-phase campuses designed to scale quickly as demand materializes. The Calpine “Powered Land” Deal: From 190 MW to 400 MW in Three Months On July 30, 2025, CyrusOne and Calpine announced a 190-MW agreement tied to a hyperscale campus (DFW10) adjacent to Calpine’s Thad Hill Energy Center in Bosque County, Texas. The structure bundled power, grid connection, and land into a single development package, with CyrusOne saying the site was already under construction and targeting operation by Q4 2026. Just three months later, on November 3–4, the partners announced a second phase, adding 210 MW and taking the campus to 400 MW. The update emphasized coordination to support grid reliability during scarcity; such curtailment and operational-coordination concepts are becoming table stakes for ERCOT-scale megaprojects. Together, the two announcements show CyrusOne placing a large bet on an emerging model: power-ready campuses, or “powered

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Forrester study quantifies benefits of Cisco Intersight

If IT groups are to be the strategic business partners their companies need, they require solutions that can improve infrastructure life cycle management in the age of artificial intelligence (AI) and heightened security threats. To quantify the value of such solutions, Cisco recently commissioned Forrester Consulting to conduct a Total Economic Impact™ analysis of Cisco Intersight. The comprehensive study found that for a composite organization, Intersight delivered 192% return on investment (ROI) and a payback period of less than six months, along with significant tangible benefits to IT and businesses. Cisco Intersight overview Cisco Intersight is a cloud-native IT operations platform for infrastructure life cycle management. It provides IT teams with comprehensive visibility, control, and automation capabilities for Cisco’s portfolio of compute solutions for data centers, colocation facilities, and edge environments based on the Cisco Unified Computing System (Cisco UCS). Intersight also integrates with leading operating systems, storage providers, hypervisors, and third-party IT service management and security tools. Intersight’s unified, policy-driven approach to infrastructure management helps IT groups automate numerous tasks and, as Forrester found, free up time to dedicate to strategic projects. Forrester study quantifies the benefits of Cisco Intersight  A composite organization using Cisco Intersight achieved:192% ROI and payback in less than six months$3.3M net present value over three years$2.7M from improved uptime and resilience 50% reduction in mean time to resolution $1.7M from increased IT productivity$267K benefit from decreased time to value due to faster project execution and earlier return on infrastructure investments Forrester Total Economic Impact study findings The analyst firm conducted detailed interviews with IT decision-makers and Intersight users at six organizations, from which it created one composite organization: a multinational technology-driven company with $10 billion in annual revenue, 120 branch locations, and a team of six engineers managing its 1,000 servers deployed in several

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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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