Miami-based AI startup Subquadratic came out of stealth mode last month with a huge claim. It announced that it had solved a mathematical bottleneck that had been holding back large language models for almost a decade.

The details were thin, and many people were unconvinced. But Subquadratic has started to bring the receipts, sharing the results of an independent evaluation of its new tech. The results suggest that the company’s claims might be worth paying attention to.

According to Subquadratic, it has developed a new kind of LLM, called SubQ, that is faster and cheaper and uses a lot less energy than any other model on the market. The company also claims that SubQ is able to process up to 12 times as much text at once than most other models, allowing it to carry out a range of data-heavy tasks, such as analyzing hundreds of documents or entire code bases.

What’s more, Subquadratic says, SubQ does this while more or less matching the performance of the best models put out by Google DeepMind, OpenAI, and Anthropic on key tasks like coding.

The problem was that the company at first provided little evidence for its claims beyond a handful of self-published test scores. And it has yet to make SubQ widely available for people to try out themselves.

So it’s no surprise that Subquadratic’s claims were met with skepticism. Dan McAteer, an artificial intelligence engineer, captured the overall response on X: “SubQ is either the biggest breakthrough since the Transformer … or it’s AI Theranos.”

A month on, the company has published more information about its model, including the results of additional independent tests run by third-party firm Appen.

“We expected healthy skepticism,” says Subquadratic cofounder and chief technology officer Alex Whedon. “In hindsight, releasing the third-party benchmarks alongside the initial announcement would have preempted much of the skepticism, which is why we’re taking the time to make sure any future results are fully verified before putting them out.”

Subquadratic asked Appen, which evaluates other companies’ models, to run its tests on SubQ. The results seem to back up a lot of Subquadratic’s claims. “That was really exciting to me, it validated their architecture,” says Jeanine Sinanan-Singh, Appen’s director of generative AI research.

“I was like, ‘Wow, this could be a game changer,’ because models struggle with speed and inefficiency,” she adds. “But when you have kind of shocking results, it’s really not as credible when you say it yourself.”

SubQ won’t replace existing top models across the board, but it could offer huge increases in speed at a fraction of the typical cost for certain tasks. Subquadratic insists that in the long run, though, its breakthrough could change how LLMs are built. “We hope we’re kicking off a new age of efficiency,” says Justin Dangel, the firm’s cofounder and CEO. “We don’t think anybody will be building on transformers in a few years.”

Attention!

To understand why Subquadratic’s claims are a big deal, let’s dig into how most LLMs work. The key mechanism inside an LLM is a type of neural network called a transformer, which runs a process known as dense attention. Today’s LLMs typically chain together multiple transformers. (The foundational paper of the LLM era, published by researchers at Google in 2017, was titled “Attention Is All You Need.”)

Dense attention works like this: When a transformer processes a chunk of text, it first encodes each word (or part of a word, known as a token) with a number. To capture the meaning of the full text, it then multiplies each of those numbers with every other number for that text. For example, a piece of text 10,000 words long would kick off almost 50 million individual multiplications. That’s a lot of computation and the main reason that LLMs are notorious power hogs.

“If you want to summarize The Great Gatsby, you have to look at the first word and the last word together, and then you have to look at every other combination,” says Dangel.

As the length of the text increases, the number of computations skyrockets. That’s because each additional number must be multiplied by all other previous numbers. Double the number of words, and you roughly quadruple the number of computations, a rate of increase known as a quadratic expansion.

(You can picture this yourself: Draw a circle and mark dots around its edge. Each dot is a token. Then draw lines between pairs of dots to represent the multiplication of those two tokens. A circle with five dots will have 10 lines crossing it. Make it 10 dots and you will have 45 lines, 20 dots and you will have 190 lines, and so on.)

Slashing costs

Subquadratic’s solution is to ditch dense attention, the core operation of a transformer, in favor of what’s known as sparse attention, which slashes the number of computations needed. Instead of multiplying the number assigned to each token by every other number, sparse attention selects just some of the numbers to multiply. The idea is that not all relationships between words in a piece of text matter.

“Sparse attention says not all of those relationships are important, because they’re not,” says Whedon. “If you’re reading a book, you’re not going to look at the first and second words, first and third—that’s insane.”

It’s a simple approach, and Subquadratic is not the first to try it. “Pretty much everything under the sun has been attempted,” says Will Depue, an independent AI researcher who previously worked at OpenAI. “It’s not impossible, but it’s akin to running a four-minute mile.”

Previous techniques for selecting which numbers to multiply and which to ignore have not produced a mechanism that can capture the meaning of a document as well as dense attention can.

Subquadratic claims to have cracked the problem at last. It pitches SubQ as the first sparse-attention LLM that rivals mainstream dense-attention models in performance.

“Historically, most mechanisms have used fixed patterns, like always comparing the first word to the fifth,” says Whedon. “That’s pretty limiting. Language is too sophisticated for that. And so, one of the things that makes our mechanism unique is that we dynamically select which ones are important.”

The firm won’t say exactly how SubQ chooses which words to focus on, but the selection is calculated on the fly and differs for each piece of text the model is given. “That’s kind of where the secret sauce is,” says Whedon.

Testing, testing

The upshot is that for certain tasks, SubQ may be faster and cheaper to run than most other models. Appen evaluated SubQ on a handful of standard tests. In a straight-up speed test, which sets a baseline for how fast a model can operate in theory rather than assess what a model can actually do, Appen found that SubQ was 56 times faster than models using FlashAttention, a previous sparse-attention technique. 

On LiveCodeBench, a test that looks at how well models perform on competitive coding problems taken from real contests, SubQ scored 89.7%, putting it in the same ballpark as other top coding models. “This model continues to provide frontier-level performance in coding,” says Appen’s Sinanan-Singh.

Subquadratic’s claims about cost are harder to verify because SubQ is not yet widely available. According to Dangel, it costs $2600 to run Anthropic’s LLM Opus 4.6 through RULER 128, a test developed by Nvidia to assess a model’s ability to retrieve information from large data sets. And SubQ? “It cost us eight dollars,” he says.

SubQ does seem to be able to handle very large data sets. The model has a context window (roughly akin to a working memory) up to 12 million tokens long. Most top models today have context windows one million tokens long. In a demo that Whedon ran for me, he asked SubQ to perform a task that required it to reason about information contained in 400 documents. It responded in seconds. When he gave Perplexity—a popular LLM-powered search engine—the same task, it failed to load all 400 documents. 

Appen also ran the needle-in-a-haystack test, which assesses how well a model can retrieve specific information buried in a large amount of data. In its report, Appen states that SubQ scored 98% with context windows six million and 12 million tokens long, “sustaining near-perfect long-context retrieval at scales few models are tested at.”

Too good to be true?

Despite the high scores, benchmarks paint an incomplete picture of what a model can and cannot do. Testing under very specific conditions is not a substitute for running a model on a wide range of real tasks.

Subquadratic is offering SubQ as a model tailored to coding and to searching very large data sets. It says that tens of thousands of potential users have already signed up for early access, including more than 500 enterprise customers. But there’s a long waitlist, and the firm has given very few people access so far. Subquadratic’s response is that it is a new, small company with limited resources and cannot serve too many people at once.

Until more people get their hands on the model and try it out for themselves, some skepticism is justified. One nagging issue is that Subquadratic reused the weights (values set within a model during training that determine how it will behave) from a version of the Chinese open-source model Qwen to bootstrap SubQ, rather than training it from scratch. That’s a common thing for model makers to do, but it cuts across Subquadratic’s claim that it has fully reinvented how LLMs work.  

“They may have built something real and useful,” says Depue. “But the public evidence does not yet justify the stronger claim that they have solved the quadratic attention bottleneck.”

In the meantime, Subquadratic cofounder Whedon insists that making something different was his only option. If you want to build a competitive model, you have to have new ideas, he says: “We’re more up against it than OpenAI is.”

Google DeepMind is funding research into the potential dangers of situations where millions of different AI agents interact with each other online.

According to Rohin Shah, who directs the company’s AGI safety and alignment research, the mass-market arrival of agents that can carry out tasks without human oversight and follow instructions given to them by other agents creates a whole new class of risk.

In an effort to address this, Google DeepMind—which made agent-based tools a centerpiece of Google I/O last month—has teamed up with several other organizations to announce a $10 million funding pot for researchers to study the behavior of multi-agent systems and come up with ways to prevent unsafe scenarios. Joining Google DeepMind are Schmidt Sciences, a philanthropic foundation set up by Eric and Wendy Schmidt; ARIA, the UK government’s moonshot agency; the Cooperative AI foundation, a UK-based nonprofit research outfit; and Google’s charitable arm, Google.org.

I asked Shah and James Fox, who leads the Science of Trustworthy AI program at Schmidt Sciences, what they hope to achieve with that $10 million. It’s no small sum, but it’s dwarfed by the budgets commanded by Google DeepMind’s own research teams.

The aim is to kick-start research outside tech companies, says Shah: “The strength of academia is that it can look really quite far into the future and do the kind of work that isn’t top of mind at industry labs.”

“The main issue is that there just isn’t really a field of research for multi-agent safety yet,” he adds. “And we would like there to be.”

The concern is that as more and more AI agents get deployed and begin working together, we could hit a tipping point where imagined scenarios become real. “We see this with humanity, too,” says Shah. “Our institutions can accomplish things that no individual human can.”

Shah thinks we have a few more months to go before agents are deployed throughout the economy in numbers that make potential risks a real concern. He wants to get ahead of that moment.

Risky business

What risks are we talking about, exactly? The possibilities that Shah and Fox have in mind mostly boil down to supercharged versions of bad things that happen on the internet already: scams, prompt injections (where an AI agent is fed malicious instructions, turning it into a self-guiding piece of malware), other forms of cyberattack. We look at what humans do now and ask what the agent version of that would be, says Shah.  

“We’ve got this digital commons that is integral to how society works, and you really want to ensure that this doesn’t descend into just absolute anarchy,” says Fox.

(I asked Shah if they were considering any worst-case scenarios more on the doomer end of the spectrum, such as widespread economic collapse. “Certainly not if we’re talking by the end of the year,” he said. That’s only six months away! He laughed. “Okay, a while after that.”)

Shah and Fox both think that the only way to understand what might happen when large numbers of multi-agent systems interact with each other is to run realistic simulations. They want researchers to drop AI agents into sandboxes and study what they do.

You can’t predict what’s going to happen by studying single agents, or even small groups of agents, in isolation. You can’t assume that AI agents underpinned by LLMs will always act rationally, says Fox. And the complexity comes from having huge numbers of interactions at once.

Some researchers, including a team at Google DeepMind, have argued that artificial general intelligence (if possible at all) could come not from a single super-smart model but from a kind of agent hive mind, where the capabilities of the whole add up to more than the sum of its parts.  

Lack of trust

Google DeepMind is not the only top AI firm warning about the risks of the technology it is building. A couple of weeks ago, Anthropic published guidelines for deploying AI agents based on an approach to cybersecurity known as zero trust, which starts with the assumption that a computer system is vulnerable, an agent is an attacker, and a breach will happen.

Refael Angel, cofounder and CTO of Akeyless, a cybersecurity firm based in Tel Aviv, agrees that understanding the new risks introduced by agent-based systems is crucial.  

Every approach to security in the past has assumed that the machine in question was software written by a human, doing fixed things on fixed paths, says Angel: “An agent breaks all of those assumptions. It reasons, it improvises, and it can be hijacked by a single sentence buried in a document it was asked to read.”

Angel welcomes this new funding. “No single lab should author the safety standards everyone else has to trust,” he says. But he cautions that safety researchers can overlook boring problems that are already here in favor of more exotic hypothetical ones.

And yet, Fox notes, risks that were hypothetical a few years ago are now very real: “The future’s come more quickly than perhaps expected.”

At SXSW London last week I gave a talk called “Five things you need to know about AI,” in which I shared what I think are the biggest themes in AI right now.

I pulled a few things from our first AI10 list, an annual guide to the most important trends in this buzzy world, but I also veered off on a number of tangents. In my half-hour slot, I tried to cover the key talking points that I think help to make sense of what’s going on in tech—and thus the economy—today.  

(I gave a talk with the same title at SXSW London last year with five different things you needed to know. A lot has happened since then!)

So: This is how I’m thinking about AI midway through 2026. Let me know if you would pick different points!

1. Strictly speaking, I didn’t need to show up to give this talk.

Tongue in cheek? Maybe. But generative AI tools have already become mundane, used by millions to automate everyday office tasks (including producing and delivering talks). It’s no surprise that one of the biggest questions out there right now is what this all means for jobs. People are confused and scared.

The frustrating answer is that despite the hype coming from the top about the potential for AI to join the workforce soon—and viral social media posts yelling that something big is happening—there is almost no data to say either way what kind of effect this technology will have on employment and the economy overall. That’s not to say it won’t have an impact, even a huge one, but it’s just too soon to tell.

In theory, teams of agents working together toward common goals could become assembly lines for white-collar work, doing to offices this century what Henry Ford’s innovations did to factories in the 20th century.

In theory. Because in order to know what will happen to jobs, we need to know what will happen inside the companies that create those jobs. But most companies are still figuring that out.

 2. AI is getting scary (for real this time).

There have been scary stories about AI for years—claims that it will kill us all or bring about the end of civilization. There’s still a loud crowd of doomers, but those scenarios remain dystopian science fiction.

What’s happened instead is that many of the worst near-term, real-world fears have come true.

Take deepfakes, AI-generated images or videos of people doing things they didn’t actually do. Deepfakes have been used to incite violence, swing votes, and sow distrust. Trump’s White House is among those creating and publishing fake images.

Many deepfakes are also used to abuse women and girls. One study found that 98% of deepfakes are pornographic and 99% involve women.

Another concern is the rise of dangerous and delusional relationships with chatbots. Many people turn to chatbots to seek private advice and to feel heard. But there are now multiple lawsuits against AI companies alleging that the technology encouraged or aided suicides and other forms of self-harm.

AI is also being used in warfare in new and worrying ways. LLMs are now giving advice, not just being used for analysis. One US defense official told my colleague James O’Donnell that you could now give a military chatbot a list of targets and ask which one to hit first. Anyone who uses AI knows that its output needs to be reviewed carefully. In fact-paced, high-stress active conflict, the risk that corners get cut is high.

3. A lot of people really hate AI.

I checked out an anti-AI protest in London earlier this year and found a very broad mix of complaints. Banners proclaiming the end times bounced along to chants of “Stop the slop! Stop the slop!” Protests are getting more organized and drawing larger crowds.

There’s pushback from fans of films and video games, who object to the use of generative AI in their favorite titles. In one notable case, the acclaimed 2025 game Clair Obscur was stripped of an award when the developers admitted to using AI in just one small, specific part of its production.

And there’s the data center backlash. The US has more than 5,400 data centers and counting. With the energy demands of AI growing, people are unhappy about the environmental impact and their rising electricity bills. Activists are managing to stall development in a number of places.

Regulation is becoming politically popular. Grassroots movements like QuitGPT have gained momentum. A small number have turned to violence; a few weeks ago somebody threw a Molotov cocktail at Sam Altman’s house. It’s not clear where all this leads. But the apocalyptic hype from tech leaders is not helping people stay calm.

4. AI for science is a very big deal.

It’s early days yet, but the potential for AI to help make a genuine and important scientific discovery is greater than ever.

Google DeepMind has developed Co-Scientist, a multipurpose tool that can help researchers dig up and compare previous results, generate hypotheses, and devise experiments to test them. OpenAI told me this year that its North Star is the goal of building a fully automated researcher by 2028.

Mathematicians are excited too. Fundamental math underpins many everyday technologies, from internet security to video streaming. The last few months have seen a string of claims that AI has cracked unsolved math problems. And software that can solve really hard math problems will be able—so the argument goes—to solve more general-purpose real-world problems too.

What are the downsides? Some scientists are warning that an overreliance on AI tools could narrow the scope of research because scientists may choose problems that are most suited to AI assistance. There are also concerns that AI-assisted research will lead to a flood of inaccurate or fake results: science slop.

5. AI is everywhere all at once.

So where does that leave us? There are a lot of exciting things, a lot of worrying things, and a lot of hot air. It can be exhausting to keep up, and yet it all feels inescapable. Some people will tell you we’re in a race to the top; some will tell you we’re in a race to the bottom. But it’s really not clear where we’re headed.

AI companies want us to march to their tune and buy into the propaganda about artificial general intelligence, whatever that means. They are selling a vision that feels inevitable, but it isn’t.

We’ve built a technology that can do humanlike things, and I think that makes it hard to get our heads around the fact that it is still just a technology.

Something is happening. Maybe even something comparable to the invention of electricity or the internet. But technologies like that take time to settle and bring lasting change.

Get ready for a marathon, not a sprint.

This story originally appeared in The Algorithm, our weekly newsletter on AI. To get stories like this in your inbox first, sign up here.