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Railway secures $100 million to challenge AWS with AI-native cloud infrastructure
Railway, a San Francisco-based cloud platform that has quietly amassed two million developers without spending a dollar on marketing, announced Thursday that it raised $100 million in a Series B funding round, as surging demand for artificial intelligence applications exposes the limitations of legacy cloud infrastructure. TQ Ventures led the round, with participation from FPV Ventures, Redpoint, and Unusual Ventures. The investment values Railway as one of the most significant infrastructure startups to emerge during the AI boom, capitalizing on developer frustration with the complexity and cost of traditional platforms like Amazon Web Services and Google Cloud. "As AI models get better at writing code, more and more people are asking the age-old question: where, and how, do I run my applications?" said Jake Cooper, Railway's 28-year-old founder and chief executive, in an exclusive interview with VentureBeat. "The last generation of cloud primitives were slow and outdated, and now with AI moving everything faster, teams simply can't keep up." The funding is a dramatic acceleration for a company that has charted an unconventional path through the cloud computing industry. Railway raised just $24 million in total before this round, including a $20 million Series A from Redpoint in 2022. The company now processes more than 10 million deployments monthly and handles over one trillion requests through its edge network — metrics that rival far larger and better-funded competitors. Why three-minute deploy times have become unacceptable in the age of AI coding assistants Railway's pitch rests on a simple observation: the tools developers use to deploy and manage software were designed for a slower era. A standard build-and-deploy cycle using Terraform, the industry-standard infrastructure tool, takes two to three minutes. That delay, once tolerable, has become a critical bottleneck as AI coding assistants like Claude, ChatGPT, and Cursor can generate working code in seconds. "When godly intelligence is on tap and can solve any problem in three seconds, those amalgamations of systems become bottlenecks," Cooper told VentureBeat. "What was really cool for humans to deploy in 10 seconds or less is now table stakes for agents." The company claims its platform delivers deployments in under one second — fast enough to keep pace with AI-generated code. Customers report a tenfold increase in developer velocity and up to 65 percent cost savings compared to traditional cloud providers. These numbers come directly from enterprise clients, not internal benchmarks. Daniel Lobaton, chief technology officer at G2X, a platform serving 100,000 federal contractors, measured deployment speed improvements of seven times faster and an 87 percent cost reduction after migrating to Railway. His infrastructure bill dropped from $15,000 per month to approximately $1,000. "The work that used to take me a week on our previous infrastructure, I can do in Railway in like a day," Lobaton said. "If I want to spin up a new service and test different architectures, it would take so long on our old setup. In Railway I can launch six services in two minutes." Inside the controversial decision to abandon Google Cloud and build data centers from scratch What distinguishes Railway from competitors like Render and Fly.io is the depth of its vertical integration. In 2024, the company made the unusual decision to abandon Google Cloud entirely and build its own data centers, a move that echoes the famous Alan Kay maxim: "People who are really serious about software should make their own hardware." "We wanted to design hardware in a way where we could build a differentiated experience," Cooper said. "Having full control over the network, compute, and storage layers lets us do really fast build and deploy loops, the kind that allows us to move at 'agentic speed' while staying 100 percent the smoothest ride in town." The approach paid dividends during recent widespread outages that affected major cloud providers — Railway remained online throughout. This soup-to-nuts control enables pricing that undercuts the hyperscalers by roughly 50 percent and newer cloud startups by three to four times. Railway charges by the second for actual compute usage: $0.00000386 per gigabyte-second of memory, $0.00000772 per vCPU-second, and $0.00000006 per gigabyte-second of storage. There are no charges for idle virtual machines — a stark contrast to the traditional cloud model where customers pay for provisioned capacity whether they use it or not. "The conventional wisdom is that the big guys have economies of scale to offer better pricing," Cooper noted. "But when they're charging for VMs that usually sit idle in the cloud, and we've purpose-built everything to fit much more density on these machines, you have a big opportunity." How 30 employees built a platform generating tens of millions in annual revenue Railway has achieved its scale with a team of just 30 employees generating tens of millions in annual revenue — a ratio of revenue per employee that would be exceptional even for established software companies. The company grew revenue 3.5 times last year and continues to expand at 15 percent month-over-month. Cooper emphasized that the fundraise was strategic rather than necessary. "We're default alive; there's no reason for us to raise money," he said. "We raised because we see a massive opportunity to accelerate, not because we needed to survive." The company hired its first salesperson only last year and employs just two solutions engineers. Nearly all of Railway's two million users discovered the platform through word of mouth — developers telling other developers about a tool that actually works. "We basically did the standard engineering thing: if you build it, they will come," Cooper recalled. "And to some degree, they came." From side projects to Fortune 500 deployments: Railway's unlikely corporate expansion Despite its grassroots developer community, Railway has made significant inroads into large organizations. The company claims that 31 percent of Fortune 500 companies now use its platform, though deployments range from company-wide infrastructure to individual team projects. Notable customers include Bilt, the loyalty program company; Intuit's GoCo subsidiary; TripAdvisor's Cruise Critic; and MGM Resorts. Kernel, a Y Combinator-backed startup providing AI infrastructure to over 1,000 companies, runs its entire customer-facing system on Railway for $444 per month. "At my previous company Clever, which sold for $500 million, I had six full-time engineers just managing AWS," said Rafael Garcia, Kernel's chief technology officer. "Now I have six engineers total, and they all focus on product. Railway is exactly the tool I wish I had in 2012." For enterprise customers, Railway offers security certifications including SOC 2 Type 2 compliance and HIPAA readiness, with business associate agreements available upon request. The platform provides single sign-on authentication, comprehensive audit logs, and the option to deploy within a customer's existing cloud environment through a "bring your own cloud" configuration. Enterprise pricing starts at custom levels, with specific add-ons for extended log retention ($200 monthly), HIPAA BAAs ($1,000), enterprise support with SLOs ($2,000), and dedicated virtual machines ($10,000). The startup's bold strategy to take on Amazon, Google, and a new generation of cloud rivals Railway enters a crowded market that includes not only the hyperscale cloud providers—Amazon Web Services, Microsoft Azure, and Google Cloud Platform—but also a growing cohort of developer-focused platforms like Vercel, Render, Fly.io, and Heroku. Cooper argues that Railway's competitors fall into two camps, neither of which has fully committed to the new infrastructure model that AI demands. "The hyperscalers have two competing systems, and they haven't gone all-in on the new model because their legacy revenue stream is still printing money," he observed. "They have this mammoth pool of cash coming from people who provision a VM, use maybe 10 percent of it, and still pay for the whole thing. To what end are they actually interested in going all the way in on a new experience if they don't really need to?" Against startup competitors, Railway differentiates by covering the full infrastructure stack. "We're not just containers; we've got VM primitives, stateful storage, virtual private networking, automated load balancing," Cooper said. "And we wrap all of this in an absurdly easy-to-use UI, with agentic primitives so agents can move 1,000 times faster." The platform supports databases including PostgreSQL, MySQL, MongoDB, and Redis; provides up to 256 terabytes of persistent storage with over 100,000 input/output operations per second; and enables deployment to four global regions spanning the United States, Europe, and Southeast Asia. Enterprise customers can scale to 112 vCPUs and 2 terabytes of RAM per service. Why investors are betting that AI will create a thousand times more software than exists today Railway's fundraise reflects broader investor enthusiasm for companies positioned to benefit from the AI coding revolution. As tools like GitHub Copilot, Cursor, and Claude become standard fixtures in developer workflows, the volume of code being written — and the infrastructure needed to run it — is expanding dramatically. "The amount of software that's going to come online over the next five years is unfathomable compared to what existed before — we're talking a thousand times more software," Cooper predicted. "All of that has to run somewhere." The company has already integrated directly with AI systems, building what Cooper calls "loops where Claude can hook in, call deployments, and analyze infrastructure automatically." Railway released a Model Context Protocol server in August 2025 that allows AI coding agents to deploy applications and manage infrastructure directly from code editors. "The notion of a developer is melting before our eyes," Cooper said. "You don't have to be an engineer to engineer things anymore — you just need critical thinking and the ability to analyze things in a systems capacity." What Railway plans to do with $100 million and zero marketing experience Railway plans to use the new capital to expand its global data center footprint, grow its team beyond 30 employees, and build what Cooper described as a proper go-to-market operation for the first time in the company's five-year history. "One of my mentors said you raise money when you can change the trajectory of the business," Cooper explained. "We've built all the required substrate to scale indefinitely; what's been holding us back is simply talking about it. 2026 is the year we play on the world stage." The company's investor roster reads like a who's who of developer infrastructure. Angel investors include Tom Preston-Werner, co-founder of GitHub; Guillermo Rauch, chief executive of Vercel; Spencer Kimball, chief executive of Cockroach Labs; Olivier Pomel, chief executive of Datadog; and Jori Lallo, co-founder of Linear. The timing of Railway's expansion coincides with what many in Silicon Valley view as a fundamental shift in how software gets made. Coding assistants are no longer experimental curiosities — they have become essential tools that millions of developers rely on daily. Each line of AI-generated code needs somewhere to run, and the incumbents, by Cooper's telling, are too wedded to their existing business models to fully capitalize on the moment. Whether Railway can translate developer enthusiasm into sustained enterprise adoption remains an open question. The cloud infrastructure market is littered with promising startups that failed to break the grip of Amazon, Microsoft, and Google. But Cooper, who previously worked as a software engineer at Wolfram Alpha, Bloomberg, and Uber before founding Railway in 2020, seems unfazed by the scale of his ambition. "In five years, Railway [will be] the place where software gets created and evolved, period," he said. "Deploy instantly, scale infinitely, with zero friction. That's the prize worth playing for, and there's no bigger one on offer." For a company that built a $100 million business by doing the opposite of what conventional startup wisdom dictates — no marketing, no sales team, no venture hype—the real test begins now. Railway spent five years proving that developers would find a better mousetrap on their own. The next five will determine whether the rest of the world is ready to get on board.
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Murder Victim Speaks from the Grave in Courtroom Through AI
Chris Pelkey was shot and killed in a road rage incident. At his killer’s sentencing, he forgave the man via AI. In a historic first for Arizona, and possibly the U.S., artificial intelligence was used in court to let a murder victim deliver his own victim impact statement. What happened Pelkey, a 37-year-old Army veteran, was gunned down at a red light in 2021. This month, a realistic AI version of him appeared in court to address his killer, Gabriel Horcasitas. “In another life, we probably could’ve been friends,” said AI Pelkey in the video. “I believe in forgiveness, and The post Murder Victim Speaks from the Grave in Courtroom Through AI appeared first on DailyAI.
Google just redesigned the search box for the first time in 25 years — here’s why it matters more than you think.
For a quarter century, the Google search box has been one of the most recognizable interfaces in computing: a thin white rectangle, a blinking cursor, a few typed words, and a list of blue links. On Tuesday, Google will formally retire that paradigm. At its annual I/O developer conference, Google announced a sweeping redesign of the search box itself — the literal text field where billions of queries begin every day — transforming it from a simple keyword input into a dynamic, AI-driven conversation starter that can accept text, images, PDFs, videos, and even open Chrome tabs as inputs. The company is also merging its AI Overviews and AI Mode features into a single, seamless search flow, eliminating the friction that previously forced users to choose between a traditional results page and an AI-forward experience. Liz Reid, Google's vice president and head of Search, called it "the biggest upgrade to our iconic search box since its debut over 25 years ago" during a press briefing on Monday. The announcement arrived alongside a blizzard of other news — new Gemini models, a personal AI agent called Spark, an intelligent shopping cart, a reimagined developer platform — but the search box redesign may prove to be the most consequential. It is the clearest signal yet that Google views the future of its flagship product not as a place where users type fragmented keywords, but as an interface where they hold open-ended, multimodal conversations with an AI system backed by the entire web. The new search box expands, accepts files, and coaches you on what to ask The changes show a fundamental shift in how Google expects people to interact with the product that generates the vast majority of Alphabet's revenue. The box itself now dynamically expands to accommodate longer, more conversational queries. Where the old interface subtly encouraged brevity — a narrow field suited to two- or three-word keyword strings — the new design invites users to fully articulate complex questions in granular detail. It also now supports multimodal inputs directly. Users can upload images, PDFs, files, and videos, or drag in content from Chrome tabs, right from the main search interface. Previously, some of these capabilities existed in AI Mode, but reaching them required extra steps. Now they sit at the primary entry point. Google is also deploying what it describes as an AI-powered query suggestion system that "goes beyond autocomplete." Rather than simply predicting the next word a user might type based on popular searches, the system helps users formulate complex, nuanced queries — essentially coaching them toward the kind of detailed questions that AI Mode handles best. The new search box is starting to roll out immediately in all countries and languages where AI Mode is available. Google is merging AI overviews and AI mode into one seamless experience Perhaps more significant than the box itself is the architectural change happening behind it. Google is unifying AI Overviews — the AI-generated summary panels that appear atop traditional search results — with AI Mode, the more immersive conversational search experience the company launched at I/O one year ago. Starting Tuesday, this merged experience will be live across mobile and desktop worldwide. A user can type a question, receive an AI Overview alongside traditional results, and then continue directly into a back-and-forth AI Mode conversation to ask follow-up questions — all without navigating to a separate interface. Reid explained the logic during the press briefing: the new AI search box is "an upgrade of our traditional search box, and so the results take you directly to main search rather than AI mode." She noted that while some power users actively sought out AI Mode, "for most users, they don't actually want to have to think about, do they want more of a traditional page or an AI-forward search experience." The goal, she said, was to ensure that "for most users, they don't have to think about where to go, they can just go to the search box they're familiar with, and it feels like they get the best experience afterwards." One billion users and doubling queries reveal how fast search behavior is shifting Google's decision to redesign the foundational interface of its most important product did not happen in a vacuum. The company shared a set of usage statistics during the briefing that reveal just how rapidly user behavior is already changing. AI Mode, which launched in the United States at I/O 2025, has surpassed one billion monthly users in its first year. AI Mode queries have been doubling every quarter since launch. AI Overviews, the lighter-weight AI summaries, now reach more than 2.5 billion monthly users. And overall search query volume hit an all-time high last quarter — a data point the company had previously disclosed on its earnings call. Sundar Pichai, Google's CEO, framed these figures as evidence that AI features are additive, not cannibalistic, to search usage. "When people use our AI-powered features in search, they use search more," he said. He added that he loves "how search has become less about individual queries and feels more like an ongoing conversation, giving users deeper insights and connecting you with the vastness of the web." Reid reinforced the point: "It's not just that people are searching more, it's that they're searching differently. They're fully expressing their questions in granular detail, asking those follow-up questions and searching across modalities." Gemini 3.5 Flash gives Google's AI search the speed it needs to work at scale Under the hood, the new search experience runs on Gemini 3.5 Flash, Google's newest AI model, which the company also introduced at I/O. Google upgraded AI Mode's underlying model to 3.5 Flash to deliver what Reid described as "an even more powerful AI search experience." Gemini 3.5 Flash is the workhorse of this year's announcements. Google claims it outperforms its previous frontier model, Gemini 3.1 Pro, on nearly all benchmarks while running four times faster in output tokens per second than comparable frontier models. Pichai described it as being "in a league of its own in the top right quadrant" of the Artificial Analysis index, which plots intelligence against speed — meaning it delivers near-frontier quality at dramatically lower latency. That speed matters enormously for search. A conversational AI search experience that feels sluggish would be dead on arrival for a product that serves billions of queries daily. By coupling the redesigned interface with a model optimized for both quality and throughput, Google is attempting to make AI-powered search feel as instantaneous as the old keyword experience — while being dramatically more capable. Search can now build interactive visuals and custom mini apps on the fly The redesigned search box is also the gateway to a set of new capabilities that push search far beyond text-based answers. Google announced what it calls "generative UI" — the ability for search to dynamically build custom widgets, interactive visualizations, and even mini applications in real time, tailored to a user's specific question. Reid offered a concrete example during the briefing: a user could ask "How do black holes affect space time?" and receive an interactive visual in an AI Overview that brings the concept to life. Follow-up questions would trigger the system to dynamically generate entirely new visuals in real time. This is possible, she explained, because of "a novel real-time code generation system we built in partnership with the Google DeepMind team" that runs on Gemini 3.5 Flash. Generative UI capabilities will roll out to everyone this summer, free of charge. But Google is going further still. For ongoing tasks — planning a wedding, organizing a move, tracking a fitness routine — users will be able to build what the company describes as customizable, stateful experiences within search, powered by its Antigravity development platform. These require no coding expertise. Users simply describe what they want in natural language, and search builds it. Those experiences will be available in coming months, starting with Google AI Pro and Ultra subscribers in the United States. AI agents that monitor the web around the clock are coming to search results The redesign also opens the door to what Google calls "information agents" — AI agents that users can configure directly within search to monitor the web 24/7 for specific conditions and deliver synthesized updates when those conditions are met. A user could, for example, set up an agent to track market movements in a particular sector with specific parameters. The agent would create a monitoring plan, tap into real-time finance data, and proactively notify the user when conditions are met — complete with links and context for further research. Other use cases include apartment hunting, tracking sneaker drops, or monitoring any topic a user cares about. Information agents will launch first for Google AI Pro and Ultra subscribers this summer. These agents sit within a much larger strategic pivot that Google articulated throughout the briefing: the company is going all-in on AI systems that don't just answer questions but proactively take actions on users' behalf. Beyond search, Google introduced Gemini Spark, a 24/7 personal AI agent that runs on dedicated virtual machines in Google Cloud. It unveiled the Universal Cart, an intelligent cross-merchant shopping cart. It announced the Agent Payments Protocol for agents to make secure purchases. And it expanded its Antigravity developer platform into a full ecosystem for building autonomous AI agents. Publishers, advertisers, and SEO professionals face a new reality The redesign raises profound questions for the sprawling ecosystem — publishers, advertisers, SEO professionals — that has been built around the old model of keyword search and blue links. If users increasingly express their needs as full, conversational sentences rather than fragmented keywords, the entire discipline of search engine optimization will need to evolve. Keyword-density strategies become less relevant when the AI is parsing natural language intent rather than matching strings. Content that answers deep, nuanced questions in authoritative ways becomes more valuable; content engineered to rank for two-word keyword fragments becomes less so. For publishers, the stakes are existential. AI Overviews already synthesize information from across the web and present it directly in search results, reducing the need for users to click through to source material. The new seamless AI Mode integration deepens that dynamic: users can now get an AI-generated answer and ask multiple follow-up questions without ever leaving the search page. Google has consistently maintained that its AI features drive more traffic to publishers, but the redesign puts that claim under renewed scrutiny as the search results page becomes more self-contained. For advertisers — who fund the vast majority of Google's revenue — the shift from keywords to conversations changes the calculus of ad targeting. Conversational queries contain richer intent signals, which could make ad targeting more precise and valuable. But they also create new ambiguities: when a user is in the middle of a multi-turn conversation with AI Mode, where does an ad naturally fit? Google did not detail changes to its advertising model during the briefing, but the structural shift in the interface will inevitably reshape how ads are surfaced and measured. The search box was always more than a product — it was a habit for billions of people There is a reason Google chose to redesign the search box rather than simply adding new features behind it. The search box is not just a product element at this point; it is a cultural artifact — one of the few pieces of digital infrastructure used by essentially the entire internet-connected world. Changing it sends an unmistakable message about where the company believes computing is headed. For 25 years, the search box trained billions of people to think in keywords — to compress their curiosity into the shortest possible string of words. The new box invites them to do the opposite: to think out loud, to upload what they're looking at, to ask follow-up questions, to let an AI system handle the compression. Pichai tied the company's broader ambitions to a striking statistic: Google's surfaces now process over 3.2 quadrillion tokens per month, up seven-fold from a year ago. The company expects capital expenditures of approximately $180 to $190 billion in 2026 — roughly six times the $31 billion it spent four years ago — largely to support the infrastructure required for this AI transformation. When asked about the future of traditional search, he was direct. "Search is the most used AI product in the world," he said. The blinking cursor in Google's search box still invites you to type. But after 25 years of teaching the world to speak in keywords, Google is now asking it to speak in sentences — and betting roughly $190 billion that it will.
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Nous Research's NousCoder-14B is an open-source coding model landing right in the Claude Code moment
Nous Research, the open-source artificial intelligence startup backed by crypto venture firm Paradigm, released a new competitive programming model on Monday that it says matches or exceeds several larger proprietary systems — trained in just four days using 48 of Nvidia's latest B200 graphics processors. The model, called NousCoder-14B, is another entry in a crowded field of AI coding assistants, but arrives at a particularly charged moment: Claude Code, the agentic programming tool from rival Anthropic, has dominated social media discussion since New Year's Day, with developers posting breathless testimonials about its capabilities. The simultaneous developments underscore how quickly AI-assisted software development is evolving — and how fiercely companies large and small are competing to capture what many believe will become a foundational technology for how software gets written. type: embedded-entry-inline id: 74cSyrq6OUrp9SEQ5zOUSl NousCoder-14B achieves a 67.87 percent accuracy rate on LiveCodeBench v6, a standardized evaluation that tests models on competitive programming problems published between August 2024 and May 2025. That figure represents a 7.08 percentage point improvement over the base model it was trained from, Alibaba's Qwen3-14B, according to Nous Research's technical report published alongside the release. "I gave Claude Code a description of the problem, it generated what we built last year in an hour," wrote Jaana Dogan, a principal engineer at Google responsible for the Gemini API, in a viral post on X last week that captured the prevailing mood around AI coding tools. Dogan was describing a distributed agent orchestration system her team had spent a year developing — a system Claude Code approximated from a three-paragraph prompt. The juxtaposition is instructive: while Anthropic's Claude Code has captured imaginations with demonstrations of end-to-end software development, Nous Research is betting that open-source alternatives trained on verifiable problems can close the gap — and that transparency in how these models are built matters as much as raw capability. How Nous Research built an AI coding model that anyone can replicate What distinguishes the NousCoder-14B release from many competitor announcements is its radical openness. Nous Research published not just the model weights but the complete reinforcement learning environment, benchmark suite, and training harness — built on the company's Atropos framework — enabling any researcher with sufficient compute to reproduce or extend the work. "Open-sourcing the Atropos stack provides the necessary infrastructure for reproducible olympiad-level reasoning research," noted one observer on X, summarizing the significance for the academic and open-source communities. The model was trained by Joe Li, a researcher in residence at Nous Research and a former competitive programmer himself. Li's technical report reveals an unexpectedly personal dimension: he compared the model's improvement trajectory to his own journey on Codeforces, the competitive programming platform where participants earn ratings based on contest performance. Based on rough estimates mapping LiveCodeBench scores to Codeforces ratings, Li calculated that NousCoder-14B's improvemen t— from approximately the 1600-1750 rating range to 2100-2200 — mirrors a leap that took him nearly two years of sustained practice between ages 14 and 16. The model accomplished the equivalent in four days. "Watching that final training run unfold was quite a surreal experience," Li wrote in the technical report. But Li was quick to note an important caveat that speaks to broader questions about AI efficiency: he solved roughly 1,000 problems during those two years, while the model required 24,000. Humans, at least for now, remain dramatically more sample-efficient learners. Inside the reinforcement learning system that trains on 24,000 competitive programming problems NousCoder-14B's training process offers a window into the increasingly sophisticated techniques researchers use to improve AI reasoning capabilities through reinforcement learning. The approach relies on what researchers call "verifiable rewards" — a system where the model generates code solutions, those solutions are executed against test cases, and the model receives a simple binary signal: correct or incorrect. This feedback loop, while conceptually straightforward, requires significant infrastructure to execute at scale. Nous Research used Modal, a cloud computing platform, to run sandboxed code execution in parallel. Each of the 24,000 training problems contains hundreds of test cases on average, and the system must verify that generated code produces correct outputs within time and memory constraints — 15 seconds and 4 gigabytes, respectively. The training employed a technique called DAPO (Dynamic Sampling Policy Optimization), which the researchers found performed slightly better than alternatives in their experiments. A key innovation involves "dynamic sampling" — discarding training examples where the model either solves all attempts or fails all attempts, since these provide no useful gradient signal for learning. The researchers also adopted "iterative context extension," first training the model with a 32,000-token context window before expanding to 40,000 tokens. During evaluation, extending the context further to approximately 80,000 tokens produced the best results, with accuracy reaching 67.87 percent. Perhaps most significantly, the training pipeline overlaps inference and verification — as soon as the model generates a solution, it begins work on the next problem while the previous solution is being checked. This pipelining, combined with asynchronous training where multiple model instances work in parallel, maximizes hardware utilization on expensive GPU clusters. The looming data shortage that could slow AI coding model progress Buried in Li's technical report is a finding with significant implications for the future of AI development: the training dataset for NousCoder-14B encompasses "a significant portion of all readily available, verifiable competitive programming problems in a standardized dataset format." In other words, for this particular domain, the researchers are approaching the limits of high-quality training data. "The total number of competitive programming problems on the Internet is roughly the same order of magnitude," Li wrote, referring to the 24,000 problems used for training. "This suggests that within the competitive programming domain, we have approached the limits of high-quality data." This observation echoes growing concern across the AI industry about data constraints. While compute continues to scale according to well-understood economic and engineering principles, training data is "increasingly finite," as Li put it. "It appears that some of the most important research that needs to be done in the future will be in the areas of synthetic data generation and data efficient algorithms and architectures," he concluded. The challenge is particularly acute for competitive programming because the domain requires problems with known correct solutions that can be verified automatically. Unlike natural language tasks where human evaluation or proxy metrics suffice, code either works or it doesn't — making synthetic data generation considerably more difficult. Li identified one potential avenue: training models not just to solve problems but to generate solvable problems, enabling a form of self-play similar to techniques that proved successful in game-playing AI systems. "Once synthetic problem generation is solved, self-play becomes a very interesting direction," he wrote. A $65 million bet that open-source AI can compete with Big Tech Nous Research has carved out a distinctive position in the AI landscape: a company committed to open-source releases that compete with — and sometimes exceed — proprietary alternatives. The company raised $50 million in April 2025 in a round led by Paradigm, the cryptocurrency-focused venture firm founded by Coinbase co-founder Fred Ehrsam. Total funding reached $65 million, according to some reports. The investment reflected growing interest in decentralized approaches to AI training, an area where Nous Research has developed its Psyche platform. Previous releases include Hermes 4, a family of models that we reported "outperform ChatGPT without content restrictions," and DeepHermes-3, which the company described as the first "toggle-on reasoning model" — allowing users to activate extended thinking capabilities on demand. The company has cultivated a distinctive aesthetic and community, prompting some skepticism about whether style might overshadow substance. "Ofc i'm gonna believe an anime pfp company. stop benchmarkmaxxing ffs," wrote one critic on X, referring to Nous Research's anime-style branding and the industry practice of optimizing for benchmark performance. Others raised technical questions. "Based on the benchmark, Nemotron is better," noted one commenter, referring to Nvidia's family of language models. Another asked whether NousCoder-14B is "agentic focused or just 'one shot' coding" — a distinction that matters for practical software development, where iterating on feedback typically produces better results than single attempts. What researchers say must happen next for AI coding tools to keep improving The release includes several directions for future work that hint at where AI coding research may be heading. Multi-turn reinforcement learning tops the list. Currently, the model receives only a final binary reward — pass or fail — after generating a solution. But competitive programming problems typically include public test cases that provide intermediate feedback: compilation errors, incorrect outputs, time limit violations. Training models to incorporate this feedback across multiple attempts could significantly improve performance. Controlling response length also remains a challenge. The researchers found that incorrect solutions tended to be longer than correct ones, and response lengths quickly saturated available context windows during training — a pattern that various algorithmic modifications failed to resolve. Perhaps most ambitiously, Li proposed "problem generation and self-play" — training models to both solve and create programming problems. This would address the data scarcity problem directly by enabling models to generate their own training curricula. "Humans are great at generating interesting and useful problems for other competitive programmers, but it appears that there still exists a significant gap in LLM capabilities in creative problem generation," Li wrote. The model is available now on Hugging Face under an Apache 2.0 license. For researchers and developers who want to build on the work, Nous Research has published the complete Atropos training stack alongside it. What took Li two years of adolescent dedication to achieve—climbing from a 1600-level novice to a 2100-rated competitor on Codeforces—an AI replicated in 96 hours. He needed 1,000 problems. The model needed 24,000. But soon enough, these systems may learn to write their own problems, teach themselves, and leave human benchmarks behind entirely. The question is no longer whether machines can learn to code. It's whether they'll soon be better teachers than we ever were.
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