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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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EnBW Gives Up 2 Irish Sea Wind Projects with BP-JERA JV

JERA Nex BP Ltd is acquiring co-venturer EnBW Energie Baden-Württemberg AG’s (EnBW) stake in the Mona wind project in United Kingdom waters, while the partners dropped the Morgan offshore wind project. Planned to rise in the Irish Sea, the two projects had a potential combined capacity of three gigawatts (GW). Only up to half of that would be pursued under the joint venture between Japanese utility JERA Co Inc and British energy giant BP PLC through Mona, according to separate online statements by JERA Nex BP and German utility EnBW. EnBW said it no longer wanted to proceed with Mona and Morgan after the projects failed to win government support through contracts for difference in the recently completed allocation round held by the UK’s Energy Security and Net Zero Department. “At the same time, offshore wind energy remains an important business field for EnBW as it expands renewable energy capacity”, EnBW said. “By 2030, the installed output from renewable energies is set to be further expanded from the current figure of approximately seven GW to at least 10-11.5 GW. “The current focus is on completing the construction and commissioning of the 960-MW He Dreiht offshore wind farm in the German North Sea this summer. Furthermore, EnBW is developing its 1,000-MW Dreekant project in the German North Sea”. An earlier EnBW statement said that besides the failed bids for contracts for difference, other factors that rendered the projects “no longer economically viable as per EnBW’s standards” included “significant cost increases across the supply chain, higher interest rates and ongoing project implementation risks”. “EnBW is in the midst of the largest investment program in its corporate history”, EnBW said in the earlier statement. “The company plans to invest up to EUR 50 billion [$58.62 billion] by 2030. Due to the wide range of investment

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Horizontal vs vertical AI solutions: ROI requires going deep, not wide

In 2025, the Massachusetts Institute of Technology (MIT) released a report that jarred many in the business and investment world. This much-discussed report states that, despite investments of between $30 billion and $40 billion in generative artificial intelligence (AI), 95% of organizations receive “zero return.”  While debate has surrounded the methodology and conclusions, the report itself focuses on the two broad typologies of generative AI applications: horizontal and vertical. “Horizontal” AI includes Chatbots, co-pilots that are meant to make me, as an individual contributor, quicker, better, and faster,” said Doug Croy, Data Advisory Lead for 1898 & Co. “The value driven by horizontal AI is going to reflect on only me and how I do my work.”  They are not integrated with work processes, nor are the processes changed or optimized to take advantage of generative AI. The transformative value and measurable ROI of AI, however, come from the implementation of vertical AI, process-aligned and industry-aware solutions that apply AI to workflows and patterns across an organization. Whereas horizontal AI has broad knowledge that can help you write recipes, vertical AI solutions are focused on specific industries, domains, with knowledge of terminology, relationships, processes, logic and accuracy. For example, generative AI can identify text in technical drawings, photos and scanned documents, as well as identify objects such as pumps, valves and other equipment found in a power plant. But reading text or identifying an object is not the same as understanding context, the business process and industry-specific language and challenges.  That’s what distinguishes vertical AI; it not only identifies the object with a name or type but also understands the object’s function, behavior and purpose in relation to other objects or assets in a diagram that represents a system, including equipment hierarchies, asset relationships, and safety considerations.  “What you need

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North America Adds 28 Rigs Week on Week

North America added 28 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on January 16. Although the total U.S. rig count dropped by one week on week, the total Canada rig count increased by 29 during the same period, pushing the total North America rig count up to 769, comprising 543 rigs from the U.S. and 226 rigs from Canada, the count outlined. Of the total U.S. rig count of 543, 524 rigs are categorized as land rigs, 16 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 410 oil rigs, 122 gas rigs, and 11 miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 475 horizontal rigs, 56 directional rigs, and 12 vertical rigs. Week on week, the U.S. land rig count dropped by one, and its offshore and inland water rig counts remained unchanged, Baker Hughes highlighted. The U.S. gas rig count dropped by two week on week, its oil rig count rose by one week on week, and its miscellaneous rig count remained unchanged week on week, the count showed. The U.S. directional rig count dropped by one, and its horizontal and vertical rig counts remained unchanged, week on week, the count revealed. A major state variances subcategory included in the rig count showed that, week on week, Texas dropped two rigs, Louisiana dropped one rig, and New Mexico added two rigs. A major basin variances subcategory included in the rig count showed that, week on week, the Haynesville basin added one rig. Canada’s total rig count of 226 is made up of 150 oil rigs and 76 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil

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TotalEnergies Secures New Deal to Sell Niger Delta Stake

TotalEnergies SE has signed an agreement to divest its 10 percent interest in a Niger Delta joint venture previously operated by Shell PLC to Vaaris. Chappal Energies Mauritius Ltd previously entered into a deal to buy the stake but, according to an online statement by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on September 25, 2025, failed to consummate the transaction after time extensions. The Renaissance JV, previously known as the SPDC JV when it was operated by Shell Petroleum Development Company of Nigeria Ltd (SPDC), holds 15 licenses producing mainly oil, TotalEnergies noted in a statement announcing the sale to Vaaris. The licenses contributed about 16,000 barrels of oil equivalent a day to TotalEnergies’ net production last year, the company said. “TotalEnergies EP Nigeria will also transfer to Vaaris its 10 percent participating interest in the three other licenses of Renaissance JV which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses which currently account for 50 percent of Nigeria LNG gas supply”, the statement added. The completion of the transaction, the price of which has not been disclosed, is subject to regulatory approvals and other customary conditions, according to the statement. Currently Renaissance JV is owned by Nigerian National Petroleum Corp Ltd (55 percent), operator Renaissance Africa Energy Co Ltd (30 percent), TotalEnergies EP Nigeria (10 percent) and Eni SpA’s Agip Energy and Natural Resources Nigeria (five percent). Confirming the collapse of the previous sale to Chappal, the NUPRC said “the withdrawal of a ministerial consent does not in any way rule out the possibility of a future divestment by the interested parties provided such an asset sale is in line with extant laws”. “The NUPRC affirms that in line with Section 6(h) of the Petroleum

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Recent compute infrastructure investments signal Big Tech’s AI priorities for 2026

According to research by Morgan Stanley, global data center capacity will need to grow six-fold by 2035 just to meet the demands of cloud computing and AI, while McKinsey forecasts that global demand for data center capacity could almost triple as early as 2030, with about 70% of that demand coming from AI workloads.  Both rising AI adoption and the growing compute-hungry use cases drive the need for greater computing power. Governments are investing heavily in AI to ensure economic and military security and drive tech independence. At the same time, enterprises turn to solutions such as agentic AI and generative AI video to gain a competitive edge. Agentic AI infrastructure is the new must-have Deloitte picks agentic AI as one of the top trends driving AI compute needs in the next year, speculating that it could overtake SaaS tools. According to its research, up to 75% of companies may invest in agentic AI in 2026, driving demand for chips, data centers and AI infrastructure. A mass of data backs up Deloitte’s estimates. Cisco forecasts that 56% of customer service and support interactions with tech vendors will be handled by agentic AI by the end of 2026, rising to 68% by 2028. The use of agentic AI has triggered an 8% drop in demand for software development skills.  Even IoT Analytics’ negative report about AI investments acknowledges that today’s projections could be insufficient if agentic AI delivers on its promise to automate workflows at scale.  AI generative video is in high demand GenAI video is starting to appear everywhere. By May 2025, four of the top ten most popular YouTube channels had AI-generated material in every video, and it’s predicted that by 2027, more than 60% of all digital video will be AI-generated, at least in part. And that’s only

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RISC-V chip designer SiFive integrates Nvidia NVLink Fusion to power AI data centers

RISC-V pioneer SiFive has signed a deal with Nvidia to incorporate Nvidia NVLink Fusion into its data center products. The agreement means that SiFive will be able to connect its RISC-V CPUs to Nvidia GPUs and accelerators over a high bandwidth interconnect that lets multiple GPUs share compute and memory resources, offering more options to operators of AI data centers. Historically, RISC-V technology has not had access to these types of high-level interconnects and pathways. In a statement, Patrick Little, president and CEO of SiFive, said, “AI infrastructure is no longer built from generic components, it is co-designed from the ground up. By integrating NVLink Fusion with SiFive’s high-performance compute subsystems, we’re enabling customers with an open and customizable CPU platform that pairs seamlessly with Nvidia’s AI Infrastructure to deliver exceptional efficiency at data center scale.”

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NVIDIA’s Rubin Redefines the AI Factory

The Architecture Shift: From “GPU Server” to “Rack-Scale Supercomputer” NVIDIA’s Rubin architecture is built around a single design thesis: “extreme co-design.” In practice, that means GPUs, CPUs, networking, security, software, power delivery, and cooling are architected together; treating the data center as the compute unit, not the individual server. That logic shows up most clearly in the NVL72 system. NVLink 6 serves as the scale-up spine, designed to let 72 GPUs communicate all-to-all with predictable latency, something NVIDIA argues is essential for mixture-of-experts routing and synchronization-heavy inference paths. NVIDIA is not vague about what this requires. Its technical materials describe the Rubin GPU as delivering 50 PFLOPS of NVFP4 inference and 35 PFLOPS of NVFP4 training, with 22 TB/s of HBM4 bandwidth and 3.6 TB/s of NVLink bandwidth per GPU. The point of that bandwidth is not headline-chasing. It is to prevent a rack from behaving like 72 loosely connected accelerators that stall on communication. NVIDIA wants the rack to function as a single engine because that is what it will take to drive down cost per token at scale. The New Idea NVIDIA Is Elevating: Inference Context Memory as Infrastructure If there is one genuinely new concept in the Rubin announcements, it is the elevation of context memory, and the admission that GPU memory alone will not carry the next wave of inference. NVIDIA describes a new tier called NVIDIA Inference Context Memory Storage, powered by BlueField-4, designed to persist and share inference state (such as KV caches) across requests and nodes for long-context and agentic workloads. NVIDIA says this AI-native context tier can boost tokens per second by up to 5× and improve power efficiency by up to 5× compared with traditional storage approaches. The implication is clear: the path to cheaper inference is not just faster GPUs.

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Power shortages, carbon capture, and AI automation: What’s ahead for data centers in 2026

“Despite a broader use of AI tools in enterprises and by consumers, that does not mean that AI compute, AI infrastructure in general, will be more evenly spread out,” said Daniel Bizo, research director at Uptime Institute, during the webinar. “The concentration of AI compute infrastructure is only increasing in the coming years.” For enterprises, the infrastructure investment remains relatively modest, Uptime Institute found. Enterprises will limit investment to inference and only some training, and inference workloads don’t require dramatic capacity increases. “Our prediction, our observation, was that the concentration of AI compute infrastructure is only increasing in the coming years by a couple of points. By the end of this year, 2026, we are projecting that around 10 gigawatts of new IT load will have been added to the global data center world, specifically to run generative AI workloads and adjacent workloads, but definitely centered on generative AI,” Bizo said. “This means these 10 gigawatts or so load, we are talking about anywhere between 13 to 15 million GPUs and accelerators deployed globally. We are anticipating that a majority of these are and will be deployed in supercomputing style.” 2. Developers will not outrun the power shortage The most pressing challenge facing the industry, according to Uptime, is that data centers can be built in less than three years, but power generation takes much longer. “It takes three to six years to deploy a solar or wind farm, around six years for a combined-cycle gas turbine plant, and even optimistically, it probably takes more than 10 years to deploy a conventional nuclear power plant,” said Max Smolaks, research analyst at Uptime Institute. This mismatch was manageable when data centers were smaller and growth was predictable, the report notes. But with projects now measured in tens and sometimes hundreds of

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Google warns transmission delays are now the biggest threat to data center expansion

The delays stem from aging transmission infrastructure unable to handle concentrated power demands. Building regional transmission lines currently takes seven to eleven years just for permitting, Hanna told the gathering. Southwest Power Pool has projected 115 days of potential loss of load if transmission infrastructure isn’t built to match demand growth, he added. These systemic delays are forcing enterprises to reconsider fundamental assumptions about cloud capacity. Regions including Northern Virginia and Santa Clara that were prime locations for hyperscale builds are running out of power capacity. The infrastructure constraints are also reshaping cloud competition around power access rather than technical capabilities. “This is no longer about who gets to market with the most GPU instances,” Gogia said. “It’s about who gets to the grid first.” Co-location emerges as a faster alternative to grid delays Unable to wait years for traditional grid connections, hyperscalers are pursuing co-location arrangements that place data centers directly adjacent to power plants, bypassing the transmission system entirely. Pricing for these arrangements has jumped 20% in power-constrained markets as demand outstrips availability, with costs flowing through to cloud customers via regional pricing differences, Gogia said. Google is exploring such arrangements, though Hanna said the company’s “strong preference is grid-connected load.” “This is a speed to power play for us,” he said, noting Google wants facilities to remain “front of the meter” to serve the broader grid rather than operating as isolated power sources. Other hyperscalers are negotiating directly with utilities, acquiring land near power plants, and exploring ownership stakes in power infrastructure from batteries to small modular nuclear reactors, Hanna said.

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OpenAI turns to Cerebras in a mega deal to scale AI inference infrastructure

Analysts expect AI workloads to grow more varied and more demanding in the coming years, driving the need for architectures tuned for inference performance and putting added pressure on data center networks. “This is prompting hyperscalers to diversify their computing systems, using Nvidia GPUs for general-purpose AI workloads, in-house AI accelerators for highly optimized tasks, and systems such as Cerebras for specialized low-latency workloads,” said Neil Shah, vice president for research at Counterpoint Research. As a result, AI platforms operating at hyperscale are pushing infrastructure providers away from monolithic, general-purpose clusters toward more tiered and heterogeneous infrastructure strategies. “OpenAI’s move toward Cerebras inference capacity reflects a broader shift in how AI data centers are being designed,” said Prabhu Ram, VP of the industry research group at Cybermedia Research. “This move is less about replacing Nvidia and more about diversification as inference scales.” At this level, infrastructure begins to resemble an AI factory, where city-scale power delivery, dense east–west networking, and low-latency interconnects matter more than peak FLOPS, Ram added. “At this magnitude, conventional rack density, cooling models, and hierarchical networks become impractical,” said Manish Rawat, semiconductor analyst at TechInsights. “Inference workloads generate continuous, latency-sensitive traffic rather than episodic training bursts, pushing architectures toward flatter network topologies, higher-radix switching, and tighter integration of compute, memory, and interconnect.”

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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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