The company said its ambitious effort to link disparate data centers with the largest-ever deployment of AI chips to support Anthropic’s Claude LLM models is now finished.

Binary “up” or “down” metrics miss the real story. Here’s how to measure actual business impact when data centers fail.

In an industry where model size is often seen as a proxy for intelligence, IBM is charting a different course — one that values efficiency over enormity, and accessibility over abstraction.

The 114-year-old tech giant's four new Granite 4.0 Nano models, released today, range from just 350 million to 1.5 billion parameters, a fraction of the size of their server-bound cousins from the likes of OpenAI, Anthropic, and Google.

These models are designed to be highly accessible: the 350M variants can run comfortably on a modern laptop CPU with 8–16GB of RAM, while the 1.5B models typically require a GPU with at least 6–8GB of VRAM for smooth performance — or sufficient system RAM and swap for CPU-only inference. This makes them well-suited for developers building applications on consumer hardware or at the edge, without relying on cloud compute.

In fact, the smallest ones can even run locally on your own web browser, as Joshua Lochner aka Xenova, creator of Transformer.js and a machine learning engineer at Hugging Face, wrote on the social network X.

All the Granite 4.0 Nano models are released under the Apache 2.0 license — perfect for use by researchers and enterprise or indie developers, even for commercial usage.

They are natively compatible with llama.cpp, vLLM, and MLX and are certified under ISO 42001 for responsible AI development — a standard IBM helped pioneer.

But in this case, small doesn't mean less capable — it might just mean smarter design.

These compact models are built not for data centers, but for edge devices, laptops, and local inference, where compute is scarce and latency matters.

And despite their small size, the Nano models are showing benchmark results that rival or even exceed the performance of larger models in the same category.

The release is a signal that a new AI frontier is rapidly forming — one not dominated by sheer scale, but by strategic scaling.

What Exactly Did IBM Release?

The Granite 4.0 Nano family includes four open-source models now available on Hugging Face:

• Granite-4.0-H-1B (~1.5B parameters) – Hybrid-SSM architecture

• Granite-4.0-H-350M (~350M parameters) – Hybrid-SSM architecture

• Granite-4.0-1B – Transformer-based variant, parameter count closer to 2B

• Granite-4.0-350M – Transformer-based variant

The H-series models — Granite-4.0-H-1B and H-350M — use a hybrid state space architecture (SSM) that combines efficiency with strong performance, ideal for low-latency edge environments.

Meanwhile, the standard transformer variants — Granite-4.0-1B and 350M — offer broader compatibility with tools like llama.cpp, designed for use cases where hybrid architecture isn’t yet supported.

In practice, the transformer 1B model is closer to 2B parameters, but aligns performance-wise with its hybrid sibling, offering developers flexibility based on their runtime constraints.

“The hybrid variant is a true 1B model. However, the non-hybrid variant is closer to 2B, but we opted to keep the naming aligned to the hybrid variant to make the connection easily visible,” explained Emma, Product Marketing lead for Granite, during a Reddit "Ask Me Anything" (AMA) session on r/LocalLLaMA.

A Competitive Class of Small Models

IBM is entering a crowded and rapidly evolving market of small language models (SLMs), competing with offerings like Qwen3, Google's Gemma, LiquidAI’s LFM2, and even Mistral’s dense models in the sub-2B parameter space.

While OpenAI and Anthropic focus on models that require clusters of GPUs and sophisticated inference optimization, IBM’s Nano family is aimed squarely at developers who want to run performant LLMs on local or constrained hardware.

In benchmark testing, IBM’s new models consistently top the charts in their class. According to data shared on X by David Cox, VP of AI Models at IBM Research:

• On IFEval (instruction following), Granite-4.0-H-1B scored 78.5, outperforming Qwen3-1.7B (73.1) and other 1–2B models.

• On BFCLv3 (function/tool calling), Granite-4.0-1B led with a score of 54.8, the highest in its size class.

• On safety benchmarks (SALAD and AttaQ), the Granite models scored over 90%, surpassing similarly sized competitors.

Overall, the Granite-4.0-1B achieved a leading average benchmark score of 68.3% across general knowledge, math, code, and safety domains.

This performance is especially significant given the hardware constraints these models are designed for.

They require less memory, run faster on CPUs or mobile devices, and don’t need cloud infrastructure or GPU acceleration to deliver usable results.

Why Model Size Still Matters — But Not Like It Used To

In the early wave of LLMs, bigger meant better — more parameters translated to better generalization, deeper reasoning, and richer output.

But as transformer research matured, it became clear that architecture, training quality, and task-specific tuning could allow smaller models to punch well above their weight class.

IBM is banking on this evolution. By releasing open, small models that are competitive in real-world tasks, the company is offering an alternative to the monolithic AI APIs that dominate today’s application stack.

In fact, the Nano models address three increasingly important needs:

1. Deployment flexibility — they run anywhere, from mobile to microservers.

2. Inference privacy — users can keep data local with no need to call out to cloud APIs.

3. Openness and auditability — source code and model weights are publicly available under an open license.

Community Response and Roadmap Signals

IBM’s Granite team didn’t just launch the models and walk away — they took to Reddit’s open source community r/LocalLLaMA to engage directly with developers.

In an AMA-style thread, Emma (Product Marketing, Granite) answered technical questions, addressed concerns about naming conventions, and dropped hints about what’s next.

Notable confirmations from the thread:

• A larger Granite 4.0 model is currently in training

• Reasoning-focused models ("thinking counterparts") are in the pipeline

• IBM will release fine-tuning recipes and a full training paper soon

• More tooling and platform compatibility is on the roadmap

Users responded enthusiastically to the models’ capabilities, especially in instruction-following and structured response tasks. One commenter summed it up:

“This is big if true for a 1B model — if quality is nice and it gives consistent outputs. Function-calling tasks, multilingual dialog, FIM completions… this could be a real workhorse.”

Another user remarked:

“The Granite Tiny is already my go-to for web search in LM Studio — better than some Qwen models. Tempted to give Nano a shot.”

Background: IBM Granite and the Enterprise AI Race

IBM’s push into large language models began in earnest in late 2023 with the debut of the Granite foundation model family, starting with models like Granite.13b.instruct and Granite.13b.chat. Released for use within its Watsonx platform, these initial decoder-only models signaled IBM’s ambition to build enterprise-grade AI systems that prioritize transparency, efficiency, and performance. The company open-sourced select Granite code models under the Apache 2.0 license in mid-2024, laying the groundwork for broader adoption and developer experimentation.

The real inflection point came with Granite 3.0 in October 2024 — a fully open-source suite of general-purpose and domain-specialized models ranging from 1B to 8B parameters. These models emphasized efficiency over brute scale, offering capabilities like longer context windows, instruction tuning, and integrated guardrails. IBM positioned Granite 3.0 as a direct competitor to Meta’s Llama, Alibaba’s Qwen, and Google's Gemma — but with a uniquely enterprise-first lens. Later versions, including Granite 3.1 and Granite 3.2, introduced even more enterprise-friendly innovations: embedded hallucination detection, time-series forecasting, document vision models, and conditional reasoning toggles.

The Granite 4.0 family, launched in October 2025, represents IBM’s most technically ambitious release yet. It introduces a hybrid architecture that blends transformer and Mamba-2 layers — aiming to combine the contextual precision of attention mechanisms with the memory efficiency of state-space models. This design allows IBM to significantly reduce memory and latency costs for inference, making Granite models viable on smaller hardware while still outperforming peers in instruction-following and function-calling tasks. The launch also includes ISO 42001 certification, cryptographic model signing, and distribution across platforms like Hugging Face, Docker, LM Studio, Ollama, and watsonx.ai.

Across all iterations, IBM’s focus has been clear: build trustworthy, efficient, and legally unambiguous AI models for enterprise use cases. With a permissive Apache 2.0 license, public benchmarks, and an emphasis on governance, the Granite initiative not only responds to rising concerns over proprietary black-box models but also offers a Western-aligned open alternative to the rapid progress from teams like Alibaba’s Qwen. In doing so, Granite positions IBM as a leading voice in what may be the next phase of open-weight, production-ready AI.

A Shift Toward Scalable Efficiency

In the end, IBM’s release of Granite 4.0 Nano models reflects a strategic shift in LLM development: from chasing parameter count records to optimizing usability, openness, and deployment reach.

By combining competitive performance, responsible development practices, and deep engagement with the open-source community, IBM is positioning Granite as not just a family of models — but a platform for building the next generation of lightweight, trustworthy AI systems.

For developers and researchers looking for performance without overhead, the Nano release offers a compelling signal: you don’t need 70 billion parameters to build something powerful — just the right ones.

Microsoft is launching a significant expansion of its Copilot AI assistant on Tuesday, introducing tools that let employees build applications, automate workflows, and create specialized AI agents using only conversational prompts — no coding required.

The new capabilities, called App Builder and Workflows, mark Microsoft's most aggressive attempt yet to merge artificial intelligence with software development, enabling the estimated 100 million Microsoft 365 users to create business tools as easily as they currently draft emails or build spreadsheets.

"We really believe that a main part of an AI-forward employee, not just developers, will be to create agents, workflows and apps," Charles Lamanna, Microsoft's president of business and industry Copilot, said in an interview with VentureBeat. "Part of the job will be to build and create these things."

The announcement comes as Microsoft deepens its commitment to AI-powered productivity tools while navigating a complex partnership with OpenAI, the creator of the underlying technology that powers Copilot. On the same day, OpenAI completed its restructuring into a for-profit entity, with Microsoft receiving a 27% ownership stake valued at approximately $135 billion.

How natural language prompts now create fully functional business applications

The new features transform Copilot from a conversational assistant into what Microsoft envisions as a comprehensive development environment accessible to non-technical workers. Users can now describe an application they need — such as a project tracker with dashboards and task assignments — and Copilot will generate a working app complete with a database backend, user interface, and security controls.

"If you're right inside of Copilot, you can now have a conversation to build an application complete with a backing database and a security model," Lamanna explained. "You can make edit requests and update requests and change requests so you can tune the app to get exactly the experience you want before you share it with other users."

The App Builder stores data in Microsoft Lists, the company's lightweight database system, and allows users to share finished applications via a simple link—similar to sharing a document. The Workflows agent, meanwhile, automates routine tasks across Microsoft's ecosystem of products, including Outlook, Teams, SharePoint, and Planner, by converting natural language descriptions into automated processes.

A third component, a simplified version of Microsoft's Copilot Studio agent-building platform, lets users create specialized AI assistants tailored to specific tasks or knowledge domains, drawing from SharePoint documents, meeting transcripts, emails, and external systems.

All three capabilities are included in the existing $30-per-month Microsoft 365 Copilot subscription at no additional cost — a pricing decision Lamanna characterized as consistent with Microsoft's historical approach of bundling significant value into its productivity suite.

"That's what Microsoft always does. We try to do a huge amount of value at a low price," he said. "If you go look at Office, you think about Excel, Word, PowerPoint, Exchange, all that for like eight bucks a month. That's a pretty good deal."

Why Microsoft's nine-year bet on low-code development is finally paying off

The new tools represent the culmination of a nine-year effort by Microsoft to democratize software development through its Power Platform — a collection of low-code and no-code development tools that has grown to 56 million monthly active users, according to figures the company disclosed in recent earnings reports.

Lamanna, who has led the Power Platform initiative since its inception, said the integration into Copilot marks a fundamental shift in how these capabilities reach users. Rather than requiring workers to visit a separate website or learn a specialized interface, the development tools now exist within the same conversational window they already use for AI-assisted tasks.

"One of the big things that we're excited about is Copilot — that's a tool for literally every office worker," Lamanna said. "Every office worker, just like they research data, they analyze data, they reason over topics, they also will be creating apps, agents and workflows."

The integration offers significant technical advantages, he argued. Because Copilot already indexes a user's Microsoft 365 content — emails, documents, meetings, and organizational data — it can incorporate that context into the applications and workflows it builds. If a user asks for "an app for Project Spartan," Copilot can draw from existing communications to understand what that project entails and suggest relevant features.

"If you go to those other tools, they have no idea what the heck Project Spartan is," Lamanna said, referencing competing low-code platforms from companies like Google, Salesforce, and ServiceNow. "But if you do it inside of Copilot and inside of the App Builder, it's able to draw from all that information and context."

Microsoft claims the apps created through these tools are "full-stack applications" with proper databases secured through the same identity systems used across its enterprise products — distinguishing them from simpler front-end tools offered by competitors. The company also emphasized that its existing governance, security, and data loss prevention policies automatically apply to apps and workflows created through Copilot.

Where professional developers still matter in an AI-powered workplace

While Microsoft positions the new capabilities as accessible to all office workers, Lamanna was careful to delineate where professional developers remain essential. His dividing line centers on whether a system interacts with parties outside the organization.

"Anything that leaves the boundaries of your company warrants developer involvement," he said. "If you want to build an agent and put it on your website, you should have developers involved. Or if you want to build an automation which interfaces directly with your customers, or an app or a website which interfaces directly with your customers, you want professionals involved."

The reasoning is risk-based: external-facing systems carry greater potential for data breaches, security vulnerabilities, or business errors. "You don't want people getting refunds they shouldn't," Lamanna noted.

For internal use cases — approval workflows, project tracking, team dashboards — Microsoft believes the new tools can handle the majority of needs without IT department involvement. But the company has built "no cliffs," in Lamanna's terminology, allowing users to migrate simple apps to more sophisticated platforms as needs grow.

Apps created in the conversational App Builder can be opened in Power Apps, Microsoft's full development environment, where they can be connected to Dataverse, the company's enterprise database, or extended with custom code. Similarly, simple workflows can graduate to the full Power Automate platform, and basic agents can be enhanced in the complete Copilot Studio.

"We have this mantra called no cliffs," Lamanna said. "If your app gets too complicated for the App Builder, you can always edit and open it in Power Apps. You can jump over to the richer experience, and if you're really sophisticated, you can even go from those experiences into Azure."

This architecture addresses a problem that has plagued previous generations of easy-to-use development tools: users who outgrow the simplified environment often must rebuild from scratch on professional platforms. "People really do not like easy-to-use development tools if I have to throw everything away and start over," Lamanna said.

What happens when every employee can build apps without IT approval

The democratization of software development raises questions about governance, maintenance, and organizational complexity — issues Microsoft has worked to address through administrative controls.

IT administrators can view all applications, workflows, and agents created within their organization through a centralized inventory in the Microsoft 365 admin center. They can reassign ownership, disable access at the group level, or "promote" particularly useful employee-created apps to officially supported status.

"We have a bunch of customers who have this approach where it's like, let 1,000 apps bloom, and then the best ones, I go upgrade and make them IT-governed or central," Lamanna said.

The system also includes provisions for when employees leave. Apps and workflows remain accessible for 60 days, during which managers can claim ownership — similar to how OneDrive files are handled when someone departs.

Lamanna argued that most employee-created apps don't warrant significant IT oversight. "It's just not worth inspecting an app that John, Susie, and Bob use to do their job," he said. "It should concern itself with the app that ends up being used by 2,000 people, and that will pop up in that dashboard."

Still, the proliferation of employee-created applications could create challenges. Users have expressed frustration with Microsoft's increasing emphasis on AI features across its products, with some giving the Microsoft 365 mobile app one-star ratings after a recent update prioritized Copilot over traditional file access.

The tools also arrive as enterprises grapple with "shadow IT" — unsanctioned software and systems that employees adopt without official approval. While Microsoft's governance controls aim to provide visibility, the ease of creating new applications could accelerate the pace at which these systems multiply.

The ambitious plan to turn 500 million workers into software builders

Microsoft's ambitions for the technology extend far beyond incremental productivity gains. Lamanna envisions a fundamental transformation of what it means to be an office worker — one where building software becomes as routine as creating spreadsheets.

"Just like how 20 years ago you put on your resume that you could use pivot tables in Excel, people are going to start saying that they can use App Builder and workflow agents, even if they're just in the finance department or the sales department," he said.

The numbers he's targeting are staggering. With 56 million people already using Power Platform, Lamanna believes the integration into Copilot could eventually reach 500 million builders. "Early days still, but I think it's certainly encouraging," he said.

The features are currently available only to customers in Microsoft's Frontier Program — an early access initiative for Microsoft 365 Copilot subscribers. The company has not disclosed how many organizations participate in the program or when the tools will reach general availability.

The announcement fits within Microsoft's larger strategy of embedding AI capabilities throughout its product portfolio, driven by its partnership with OpenAI. Under the restructured agreement announced Tuesday, Microsoft will have access to OpenAI's technology through 2032, including models that achieve artificial general intelligence (AGI) — though such systems do not yet exist. Microsoft has also begun integrating Copilot into its new companion apps for Windows 11, which provide quick access to contacts, files, and calendar information.

The aggressive integration of AI features across Microsoft's ecosystem has drawn mixed reactions. While enterprise customers have shown interest in productivity gains, the rapid pace of change and ubiquity of AI prompts have frustrated some users who prefer traditional workflows.

For Microsoft, however, the calculation is clear: if even a fraction of its user base begins creating applications and automations, it would represent a massive expansion of the effective software development workforce — and further entrench customers in Microsoft's ecosystem. The company is betting that the same natural language interface that made ChatGPT accessible to millions can finally unlock the decades-old promise of empowering everyday workers to build their own tools.

The App Builder and Workflows agents are available starting today through the Microsoft 365 Copilot Agent Store for Frontier Program participants.

Whether that future arrives depends not just on the technology's capabilities, but on a more fundamental question: Do millions of office workers actually want to become part-time software developers? Microsoft is about to find out if the answer is yes — or if some jobs are better left to the professionals.

GitHub is making a bold bet that enterprises don't need another proprietary coding agent: They need a way to manage all of them.

At its Universe 2025 conference, the Microsoft-owned developer platform announced Agent HQ. The new architecture transforms GitHub into a unified control plane for managing multiple AI coding agents from competitors including Anthropic, OpenAI, Google, Cognition and xAI. Rather than forcing developers into a single agent experience, the company is positioning itself as the essential orchestration layer beneath them all.

Agent HQ represents GitHub's attempt to apply its collaboration platform approach to AI agents. Just as the company transformed Git, pull requests and CI/CD into collaborative workflows, it's now trying to do the same with a fragmented AI coding landscape.

The announcement marks what GitHub calls the transition from "wave one" to "wave two" of AI-assisted development. According to GitHub's Octoverse report, 80% of new developers use Copilot in their first week and AI has helped to lead to a large increase overall in the use of the GitHub platform.

"Last year, the big announcements for us, and what we were saying as a company, is wave one is done, that was kind of code completion," GitHub's COO Mario Rodriguez told VentureBeat. "We're into this wave two era, [which] is going to be multimodal, it's going to be agentic and it's going to have these new experiences that will feel AI native."

What is Agent HQ?

GitHub already updated its GitHub Copilot coding tool for the agentic era with the debut of GitHub Copilot Agent in May.

Agent HQ transforms GitHub into an open ecosystem that unites multiple AI coding agents on a single platform. Over the coming months, coding agents from Anthropic, OpenAI, Google, Cognition, xAI and others will become available directly within GitHub as part of existing paid GitHub Copilot subscriptions.

The architecture maintains GitHub's core primitives. Developers still work with Git, pull requests and issues. They still use their preferred compute, whether GitHub Actions or self-hosted runners. What changes is the layer above: agents from multiple vendors can now operate within GitHub's security perimeter, using the same identity controls, branch permissions and audit logging that enterprises already trust for human developers.

This approach differs fundamentally from standalone tools. When developers use Cursor or grant repository access to Claude, those agents typically receive broad permissions across entire repositories. Agent HQ compartmentalizes access at the branch level and wraps all agent activity in enterprise-grade governance controls.

Mission Control: One interface for all agents

At the heart of Agent HQ is Mission Control. It's a unified command center that appears consistently across GitHub's web interface, VS Code, mobile apps and the command line. Through Mission Control, developers can assign work to multiple agents simultaneously. They can track progress and manage permissions, all from a single pane of glass.

The technical architecture addresses a critical enterprise concern: Security. Unlike standalone agent implementations where users must grant broad repository access, GitHub's Agent HQ implements granular controls at the platform level.

"Our coding agent has a set of security controls and capabilities that are built natively into the platform, and that's what we're providing to all of these other agents as well," Rodriguez explained. "It runs with a GitHub token that is very locked down to what it can actually do."

Agents operating through Agent HQ can only commit to designated branches. They run within sandboxed GitHub Actions environments with firewall protections. They operate under strict identity controls. Rodriguez explained that even if an agent goes rogue, the firewall prevents it from accessing external networks or exfiltrating data unless those protections are explicitly disabled.

Technical differentiation: MCP integration and custom agents

Beyond managing third-party agents, GitHub is introducing two technical capabilities that set Agent HQ apart from alternative approaches like Cursor's standalone editor or Anthropic's Claude integration.

Custom agents via AGENTS.md files: Enterprises can now create source-controlled configuration files that define specific rules, tools and guardrails for how Copilot behaves. For example, a company could specify "prefer this logger" or "use table-driven tests for all handlers." This permanently encodes organizational standards without requiring developers to re-prompt every time.

"Custom agents have an immense amount of product market fit within enterprises, because they could just codify a set of skills that the coordination can do, then standardize on those and get really high quality output," Rodriguez said.

The AGENTS.md specification allows teams to version control their agent behavior alongside their code. When a developer clones a repository, they automatically inherit the custom agent rules. This solves a persistent problem with AI coding tools: Inconsistent output quality when different team members use different prompting strategies.

Native Model Context Protocol (MCP) support: VS Code now includes a GitHub MCP Registry. Developers can discover, install and enable MCP servers with a single click. They can then create custom agents that combine these tools with specific system prompts.

This positions GitHub as the integration point between the emerging MCP ecosystem and actual developer workflows. MCP, introduced by Anthropic but rapidly gaining industry support, is becoming a de facto standard for agent-to-tool communication. By supporting the full specification, GitHub can orchestrate agents that need access to external services without each agent implementing its own integration logic.

Plan Mode and agentic code review

GitHub is also shipping new capabilities within VS Code itself. Plan Mode allows developers to collaborate with Copilot on building step-by-step project approaches. The AI asks clarifying questions before any code is written. Once approved, the plan can be executed either locally in VS Code or by cloud-based agents.

The feature addresses a common failure mode in AI coding: Beginning implementation before requirements are fully understood. By forcing an explicit planning phase, GitHub aims to reduce wasted effort and improve output quality.

More significantly, GitHub's code review feature is becoming agentic. The new implementation will use GitHub's CodeQL engine, which previously largely focused on security vulnerabilities to identify bugs and maintainability issues. The code review agent will automatically scan agent-generated pull requests before human review. This creates a two-stage quality gate.

"Our code review agent will be able to make calls into the CodeQL engine to then find a set of bugs," Rodriguez explained. "We're extending the engine and we're going to be able to tap into that engine also to find bugs."

Enterprise considerations: What to do now

For enterprises already deploying multiple AI coding tools, Agent HQ offers a path to consolidation without forcing tool elimination.

GitHub's multi-agent approach provides vendor flexibility and reduces lock-in risk. Organizations can test multiple agents within a unified security perimeter and switch providers without retraining developers. The tradeoff is potentially less optimized experiences compared to specialized tools that tightly integrate UI and agent behavior.

Rodriguez's recommendation is clear: Begin with custom agents. This allows enterprises to codify organizational standards that agents follow consistently. Once established, organizations can layer in additional third-party agents to expand capabilities.

"Go and do agent coding, custom agents and start playing with that," he said. "That is a capability available tomorrow, and it allows you to really start shaping your SDLC to be personalized to you, your organization and your people."

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Watch out, DeepSeek and Qwen! There's a new king of open source large language models (LLMs), especially when it comes to something enterprises are increasingly valuing: agentic tool use — that is, the ability to go off and use other software capabilities like web search or bespoke applications — without much human guidance.

That model is none other than MiniMax-M2, the latest LLM from the Chinese startup of the same name. And in a big win for enterprises globally, the model is available under a permissive, enterprise-friendly MIT License, meaning it is made available freely for developers to take, deploy, retrain, and use how they see fit — even for commercial purposes. It can be found on Hugging Face, GitHub and ModelScope, as well as through MiniMax's API here. It supports OpenAI and Anthropic API standards, as well, making it easy for customers of said proprietary AI startups to shift out their models to MiniMax's API, if they want.

According to independent evaluations by Artificial Analysis, a third-party generative AI model benchmarking and research organization, M2 now ranks first among all open-weight systems worldwide on the Intelligence Index—a composite measure of reasoning, coding, and task-execution performance.

In agentic benchmarks that measure how well a model can plan, execute, and use external tools—skills that power coding assistants and autonomous agents—MiniMax’s own reported results, following the Artificial Analysis methodology, show τ²-Bench 77.2, BrowseComp 44.0, and FinSearchComp-global 65.5.

These scores place it at or near the level of top proprietary systems like GPT-5 (thinking) and Claude Sonnet 4.5, making MiniMax-M2 the highest-performing open model yet released for real-world agentic and tool-calling tasks.

What It Means For Enterprises and the AI Race

Built around an efficient Mixture-of-Experts (MoE) architecture, MiniMax-M2 delivers high-end capability for agentic and developer workflows while remaining practical for enterprise deployment.

For technical decision-makers, the release marks an important turning point for open models in business settings. MiniMax-M2 combines frontier-level reasoning with a manageable activation footprint—just 10 billion active parameters out of 230 billion total.

This design enables enterprises to operate advanced reasoning and automation workloads on fewer GPUs, achieving near-state-of-the-art results without the infrastructure demands or licensing costs associated with proprietary frontier systems.

Artificial Analysis’ data show that MiniMax-M2’s strengths go beyond raw intelligence scores. The model leads or closely trails top proprietary systems such as GPT-5 (thinking) and Claude Sonnet 4.5 across benchmarks for end-to-end coding, reasoning, and agentic tool use.

Its performance in τ²-Bench, SWE-Bench, and BrowseComp indicates particular advantages for organizations that depend on AI systems capable of planning, executing, and verifying complex workflows—key functions for agentic and developer tools inside enterprise environments.

As LLM engineer Pierre-Carl Langlais aka Alexander Doria posted on X: "MiniMax [is] making a case for mastering the technology end-to-end to get actual agentic automation."

Compact Design, Scalable Performance

MiniMax-M2’s technical architecture is a sparse Mixture-of-Experts model with 230 billion total parameters and 10 billion active per inference.

This configuration significantly reduces latency and compute requirements while maintaining broad general intelligence.

The design allows for responsive agent loops—compile–run–test or browse–retrieve–cite cycles—that execute faster and more predictably than denser models.

For enterprise technology teams, this means easier scaling, lower cloud costs, and reduced deployment friction. According to Artificial Analysis, the model can be served efficiently on as few as four NVIDIA H100 GPUs at FP8 precision, a setup well within reach for mid-size organizations or departmental AI clusters.

Benchmark Leadership Across Agentic and Coding Workflows

MiniMax’s benchmark suite highlights strong real-world performance across developer and agent environments. The figure below, released with the model, compares MiniMax-M2 (in red) with several leading proprietary and open models, including GPT-5 (thinking), Claude Sonnet 4.5, Gemini 2.5 Pro, and DeepSeek-V3.2.

MiniMax-M2 achieves top or near-top performance in many categories:

• SWE-bench Verified: 69.4 — close to GPT-5’s 74.9

• ArtifactsBench: 66.8 — above Claude Sonnet 4.5 and DeepSeek-V3.2

• τ²-Bench: 77.2 — approaching GPT-5’s 80.1

• GAIA (text only): 75.7 — surpassing DeepSeek-V3.2

• BrowseComp: 44.0 — notably stronger than other open models

• FinSearchComp-global: 65.5 — best among tested open-weight systems

These results show MiniMax-M2’s capability in executing complex, tool-augmented tasks across multiple languages and environments—skills increasingly relevant for automated support, R&D, and data analysis inside enterprises.

Strong Showing in Artificial Analysis’ Intelligence Index

The model’s overall intelligence profile is confirmed in the latest Artificial Analysis Intelligence Index v3.0, which aggregates performance across ten reasoning benchmarks including MMLU-Pro, GPQA Diamond, AIME 2025, IFBench, and τ²-Bench Telecom.

MiniMax-M2 scored 61 points, ranking as the highest open-weight model globally and following closely behind GPT-5 (high) and Grok 4.

Artificial Analysis highlighted the model’s balance between technical accuracy, reasoning depth, and applied intelligence across domains. For enterprise users, this consistency indicates a reliable model foundation suitable for integration into software engineering, customer support, or knowledge automation systems.

Designed for Developers and Agentic Systems

MiniMax engineered M2 for end-to-end developer workflows, enabling multi-file code edits, automated testing, and regression repair directly within integrated development environments or CI/CD pipelines.

The model also excels in agentic planning—handling tasks that combine web search, command execution, and API calls while maintaining reasoning traceability.

These capabilities make MiniMax-M2 especially valuable for enterprises exploring autonomous developer agents, data analysis assistants, or AI-augmented operational tools.

Benchmarks such as Terminal-Bench and BrowseComp demonstrate the model’s ability to adapt to incomplete data and recover gracefully from intermediate errors, improving reliability in production settings.

Interleaved Thinking and Structured Tool Use

A distinctive aspect of MiniMax-M2 is its interleaved thinking format, which maintains visible reasoning traces between <think>...</think> tags.

This enables the model to plan and verify steps across multiple exchanges, a critical feature for agentic reasoning. MiniMax advises retaining these segments when passing conversation history to preserve the model’s logic and continuity.

The company also provides a Tool Calling Guide on Hugging Face, detailing how developers can connect external tools and APIs via structured XML-style calls.

This functionality allows MiniMax-M2 to serve as the reasoning core for larger agent frameworks, executing dynamic tasks such as search, retrieval, and computation through external functions.

Open Source Access and Enterprise Deployment Options

Enterprises can access the model through the MiniMax Open Platform API and MiniMax Agent interface (a web chat similar to ChatGPT), both currently free for a limited time.

MiniMax recommends SGLang and vLLM for efficient serving, each offering day-one support for the model’s unique interleaved reasoning and tool-calling structure.

Deployment guides and parameter configurations are available through MiniMax’s documentation.

Cost Efficiency and Token Economics

As Artificial Analysis noted, MiniMax’s API pricing is set at $0.30 per million input tokens and $1.20 per million output tokens, among the most competitive in the open-model ecosystem.

Provider	Model (doc link)	Input $/1M	Output $/1M	Notes
MiniMax	MiniMax-M2	$0.30	$1.20	Listed under “Chat Completion v2” for M2.
OpenAI	GPT-5	$1.25	$10.00	Flagship model pricing on OpenAI’s API pricing page.
OpenAI	GPT-5 mini	$0.25	$2.00	Cheaper tier for well-defined tasks.
Anthropic	Claude Sonnet 4.5	$3.00	$15.00	Anthropic’s current per-MTok list; long-context (>200K input) uses a premium tier.
Google	Gemini 2.5 Flash (Preview)	$0.30	$2.50	Prices include “thinking tokens”; page also lists cheaper Flash-Lite and 2.0 tiers.
xAI	Grok-4 Fast (reasoning)	$0.20	$0.50	“Fast” tier; xAI also lists Grok-4 at $3 / $15.
DeepSeek	DeepSeek-V3.2 (chat)	$0.28	$0.42	Cache-hit input is $0.028; table shows per-model details.
Qwen (Alibaba)	qwen-flash (Model Studio)	from $0.022	from $0.216	Tiered by input size (≤128K, ≤256K, ≤1M tokens); listed “Input price / Output price per 1M”.
Cohere	Command R+ (Aug 2024)	$2.50	$10.00	First-party pricing page also lists Command R ($0.50 / $1.50) and others.

Notes & caveats (for readers):

• Prices are USD per million tokens and can change; check linked pages for updates and region/endpoint nuances (e.g., Anthropic long-context >200K input, Google Live API variants, cache discounts).

• Vendors may bill extra for server-side tools (web search, code execution) or offer batch/context-cache discounts.

While the model produces longer, more explicit reasoning traces, its sparse activation and optimized compute design help maintain a favorable cost-performance balance—an advantage for teams deploying interactive agents or high-volume automation systems.

Background on MiniMax — an Emerging Chinese Powerhouse

MiniMax has quickly become one of the most closely watched names in China’s fast-rising AI sector.

Backed by Alibaba and Tencent, the company moved from relative obscurity to international recognition within a year—first through breakthroughs in AI video generation, then through a series of open-weight large language models (LLMs) aimed squarely at developers and enterprises.

The company first captured global attention in late 2024 with its AI video generation tool, “video-01,” which demonstrated the ability to create dynamic, cinematic scenes in seconds. VentureBeat described how the model’s launch sparked widespread interest after online creators began sharing lifelike, AI-generated footage—most memorably, a viral clip of a Star Wars lightsaber duel that drew millions of views in under two days.

CEO Yan Junjie emphasized that the system outperformed leading Western tools in generating human movement and expression, an area where video AIs often struggle. The product, later commercialized through MiniMax’s Hailuo platform, showcased the startup’s technical confidence and creative reach, helping to establish China as a serious contender in generative video technology.

By early 2025, MiniMax had turned its attention to long-context language modeling, unveiling the MiniMax-01 series, including MiniMax-Text-01 and MiniMax-VL-01. These open-weight models introduced an unprecedented 4-million-token context window, doubling the reach of Google’s Gemini 1.5 Pro and dwarfing OpenAI’s GPT-4o by more than twentyfold.

The company continued its rapid cadence with the MiniMax-M1 release in June 2025, a model focused on long-context reasoning and reinforcement learning efficiency. M1 extended context capacity to 1 million tokens and introduced a hybrid Mixture-of-Experts design trained using a custom reinforcement-learning algorithm known as CISPO. Remarkably, VentureBeat reported that MiniMax trained M1 at a total cost of about $534,700, roughly one-tenth of DeepSeek’s R1 and far below the multimillion-dollar budgets typical for frontier-scale models.

For enterprises and technical teams, MiniMax’s trajectory signals the arrival of a new generation of cost-efficient, open-weight models designed for real-world deployment. Its open licensing—ranging from Apache 2.0 to MIT—gives businesses freedom to customize, self-host, and fine-tune without vendor lock-in or compliance restrictions.

Features such as structured function calling, long-context retention, and high-efficiency attention architectures directly address the needs of engineering groups managing multi-step reasoning systems and data-intensive pipelines.

As MiniMax continues to expand its lineup, the company has emerged as a key global innovator in open-weight AI, combining ambitious research with pragmatic engineering.

Open-Weight Leadership and Industry Context

The release of MiniMax-M2 reinforces the growing leadership of Chinese AI research groups in open-weight model development.

Following earlier contributions from DeepSeek, Alibaba’s Qwen series, and Moonshot AI, MiniMax’s entry continues the trend toward open, efficient systems designed for real-world use.

Artificial Analysis observed that MiniMax-M2 exemplifies a broader shift in focus toward agentic capability and reinforcement-learning refinement, prioritizing controllable reasoning and real utility over raw model size.

For enterprises, this means access to a state-of-the-art open model that can be audited, fine-tuned, and deployed internally with full transparency.

By pairing strong benchmark performance with open licensing and efficient scaling, MiniMaxAI positions MiniMax-M2 as a practical foundation for intelligent systems that think, act, and assist with traceable logic—making it one of the most enterprise-ready open AI models available today.

Anthropic is making its most aggressive push yet into the trillion-dollar financial services industry, unveiling a suite of tools that embed its Claude AI assistant directly into Microsoft Excel and connect it to real-time market data from some of the world's most influential financial information providers.

The San Francisco-based AI startup announced Monday it is releasing Claude for Excel, allowing financial analysts to interact with the AI system directly within their spreadsheets — the quintessential tool of modern finance. Beyond Excel, select Claude models are also being made available in Microsoft Copilot Studio and Researcher agent, expanding the integration across Microsoft's enterprise AI ecosystem. The integration marks a significant escalation in Anthropic's campaign to position itself as the AI platform of choice for banks, asset managers, and insurance companies, markets where precision and regulatory compliance matter far more than creative flair.

The expansion comes just three months after Anthropic launched its Financial Analysis Solution in July, and it signals the company's determination to capture market share in an industry projected to spend $97 billion on AI by 2027, up from $35 billion in 2023.

More importantly, it positions Anthropic to compete directly with Microsoft — ironically, its partner in this Excel integration — which has its own Copilot AI assistant embedded across its Office suite, and with OpenAI, which counts Microsoft as its largest investor.

Why Excel has become the new battleground for AI in finance

The decision to build directly into Excel is hardly accidental. Excel remains the lingua franca of finance, the digital workspace where analysts spend countless hours constructing financial models, running valuations, and stress-testing assumptions. By embedding Claude into this environment, Anthropic is meeting financial professionals exactly where they work rather than asking them to toggle between applications.

Claude for Excel allows users to work with the AI in a sidebar where it can read, analyze, modify, and create new Excel workbooks while providing full transparency about the actions it takes by tracking and explaining changes and letting users navigate directly to referenced cells.

This transparency feature addresses one of the most persistent anxieties around AI in finance: the "black box" problem. When billions of dollars ride on a financial model's output, analysts need to understand not just the answer but how the AI arrived at it. By showing its work at the cell level, Anthropic is attempting to build the trust necessary for widespread adoption in an industry where careers and fortunes can turn on a misplaced decimal point.

The technical implementation is sophisticated. Claude can discuss how spreadsheets work, modify them while preserving formula dependencies — a notoriously complex task — debug cell formulas, populate templates with new data, or build entirely new spreadsheets from scratch. This isn't merely a chatbot that answers questions about your data; it's a collaborative tool that can actively manipulate the models that drive investment decisions worth trillions of dollars.

How Anthropic is building data moats around its financial AI platform

Perhaps more significant than the Excel integration is Anthropic's expansion of its connector ecosystem, which now links Claude to live market data and proprietary research from financial information giants. The company added six major new data partnerships spanning the entire spectrum of financial information that professional investors rely upon.

Aiera now provides Claude with real-time earnings call transcripts and summaries of investor events like shareholder meetings, presentations, and conferences. The Aiera connector also enables a data feed from Third Bridge, which gives Claude access to a library of insights interviews, company intelligence, and industry analysis from experts and former executives. Chronograph gives private equity investors operational and financial information for portfolio monitoring and conducting due diligence, including performance metrics, valuations, and fund-level data.

Egnyte enables Claude to securely search permitted data for internal data rooms, investment documents, and approved financial models while maintaining governed access controls. LSEG, the London Stock Exchange Group, connects Claude to live market data including fixed income pricing, equities, foreign exchange rates, macroeconomic indicators, and analysts' estimates of other important financial metrics. Moody's provides access to proprietary credit ratings, research, and company data covering ownership, financials, and news on more than 600 million public and private companies, supporting work and research in compliance, credit analysis, and business development. MT Newswires provides Claude with access to the latest global multi-asset class news on financial markets and economies.

These partnerships amount to a land grab for the informational infrastructure that powers modern finance. Previously announced in July, Anthropic had already secured integrations with S&P Capital IQ, Daloopa, Morningstar, FactSet, PitchBook, Snowflake, and Databricks. Together, these connectors give Claude access to virtually every category of financial data an analyst might need: fundamental company data, market prices, credit assessments, private company intelligence, alternative data, and breaking news.

This matters because the quality of AI outputs depends entirely on the quality of inputs. Generic large language models trained on public internet data simply cannot compete with systems that have direct pipelines to Bloomberg-quality financial information. By securing these partnerships, Anthropic is building moats around its financial services offering that competitors will find difficult to replicate.

The strategic calculus here is clear: Anthropic is betting that domain-specific AI systems with privileged access to proprietary data will outcompete general-purpose AI assistants. It's a direct challenge to the "one AI to rule them all" approach favored by some competitors.

Pre-configured workflows target the daily grind of Wall Street analysts

The third pillar of Anthropic's announcement involves six new "Agent Skills" — pre-configured workflows for common financial tasks. These skills are Anthropic's attempt to productize the workflows of entry-level and mid-level financial analysts, professionals who spend their days building models, processing due diligence documents, and writing research reports. Anthropic has designed skills specifically to automate these time-consuming tasks.

The new skills include building discounted cash flow models complete with full free cash flow projections, weighted average cost of capital calculations, scenario toggles, and sensitivity tables. There's comparable company analysis featuring valuation multiples and operating metrics that can be easily refreshed with updated data. Claude can now process data room documents into Excel spreadsheets populated with financial information, customer lists, and contract terms. It can create company teasers and profiles for pitch books and buyer lists, perform earnings analyses that use quarterly transcripts and financials to extract important metrics, guidance changes, and management commentary, and produce initiating coverage reports with industry analysis, company deep dives, and valuation frameworks.

It's worth noting that Anthropic's Sonnet 4.5 model now tops the Finance Agent benchmark from Vals AI at 55.3% accuracy, a metric designed to test AI systems on tasks expected of entry-level financial analysts. A 55% accuracy rate might sound underwhelming, but it is state-of-the-art performance and highlights both the promise and limitations of AI in finance. The technology can clearly handle sophisticated analytical tasks, but it's not yet reliable enough to operate autonomously without human oversight — a reality that may actually reassure both regulators and the analysts whose jobs might otherwise be at risk.

The Agent Skills approach is particularly clever because it packages AI capabilities in terms that financial institutions already understand. Rather than selling generic "AI assistance," Anthropic is offering solutions to specific, well-defined problems: "You need a DCF model? We have a skill for that. You need to analyze earnings calls? We have a skill for that too."

Trillion-dollar clients are already seeing massive productivity gains

Anthropic's financial services strategy appears to be gaining traction with exactly the kind of marquee clients that matter in enterprise sales. The company counts among its clients AIA Labs at Bridgewater, Commonwealth Bank of Australia, American International Group, and Norges Bank Investment Management — Norway's $1.6 trillion sovereign wealth fund, one of the world's largest institutional investors.

NBIM CEO Nicolai Tangen reported achieving approximately 20% productivity gains, equivalent to 213,000 hours, with portfolio managers and risk departments now able to "seamlessly query our Snowflake data warehouse and analyze earnings calls with unprecedented efficiency."

At AIG, CEO Peter Zaffino said the partnership has "compressed the timeline to review business by more than 5x in our early rollouts while simultaneously improving our data accuracy from 75% to over 90%." If these numbers hold across broader deployments, the productivity implications for the financial services industry are staggering.

These aren't pilot programs or proof-of-concept deployments; they're production implementations at institutions managing trillions of dollars in assets and making underwriting decisions that affect millions of customers. Their public endorsements provide the social proof that typically drives enterprise adoption in conservative industries.

Regulatory uncertainty creates both opportunity and risk for AI deployment

Yet Anthropic's financial services ambitions unfold against a backdrop of heightened regulatory scrutiny and shifting enforcement priorities. In 2023, the Consumer Financial Protection Bureau released guidance requiring lenders to "use specific and accurate reasons when taking adverse actions against consumers" involving AI, and issued additional guidance requiring regulated entities to "evaluate their underwriting models for bias" and "evaluate automated collateral-valuation and appraisal processes in ways that minimize bias."

However, according to a Brookings Institution analysis, these measures have since been revoked with work stopped or eliminated at the current downsized CFPB under the current administration, creating regulatory uncertainty. The pendulum has swung from the Biden administration's cautious approach, exemplified by an executive order on safe AI development, toward the Trump administration's "America's AI Action Plan," which seeks to "cement U.S. dominance in artificial intelligence" through deregulation.

This regulatory flux creates both opportunities and risks. Financial institutions eager to deploy AI now face less prescriptive federal oversight, potentially accelerating adoption. But the absence of clear guardrails also exposes them to potential liability if AI systems produce discriminatory outcomes, particularly in lending and underwriting.

The Massachusetts Attorney General recently reached a $2.5 million settlement with student loan company Earnest Operations, alleging that its use of AI models resulted in "disparate impact in approval rates and loan terms, specifically disadvantaging Black and Hispanic applicants." Such cases will likely multiply as AI deployment grows, creating a patchwork of state-level enforcement even as federal oversight recedes.

Anthropic appears acutely aware of these risks. In an interview with Banking Dive, Jonathan Pelosi, Anthropic's global head of industry for financial services, emphasized that Claude requires a "human in the loop." The platform, he said, is not intended for autonomous financial decision-making or to provide stock recommendations that users follow blindly. During client onboarding, Pelosi told the publication, Anthropic focuses on training and understanding model limitations, putting guardrails in place so people treat Claude as a helpful technology rather than a replacement for human judgment.

Competition heats up as every major tech company targets finance AI

Anthropic's financial services push comes as AI competition intensifies across the enterprise. OpenAI, Microsoft, Google, and numerous startups are all vying for position in what may become one of AI's most lucrative verticals. Goldman Sachs introduced a generative AI assistant to its bankers, traders, and asset managers in January, signaling that major banks may build their own capabilities rather than rely exclusively on third-party providers.

The emergence of domain-specific AI models like BloombergGPT — trained specifically on financial data — suggests the market may fragment between generalized AI assistants and specialized tools. Anthropic's strategy appears to stake out a middle ground: general-purpose models, since Claude was not trained exclusively on financial data, enhanced with financial-specific tooling, data access, and workflows.

The company's partnership strategy with implementation consultancies including Deloitte, KPMG, PwC, Slalom, TribeAI, and Turing is equally critical. These firms serve as force multipliers, embedding Anthropic's technology into their own service offerings and providing the change management expertise that financial institutions need to successfully adopt AI at scale.

CFOs worry about AI hallucinations and cascading errors

The broader question is whether AI tools like Claude will genuinely transform financial services productivity or merely shift work around. The PYMNTS Intelligence report "The Agentic Trust Gap" found that chief financial officers remain hesitant about AI agents, with "nagging concern" about hallucinations where "an AI agent can go off script and expose firms to cascading payment errors and other inaccuracies."

"For finance leaders, the message is stark: Harness AI's momentum now, but build the guardrails before the next quarterly call—or risk owning the fallout," the report warned.

A 2025 KPMG report found that 70% of board members have developed responsible use policies for employees, with other popular initiatives including implementing a recognized AI risk and governance framework, developing ethical guidelines and training programs for AI developers, and conducting regular AI use audits.

The financial services industry faces a delicate balancing act: move too slowly and risk competitive disadvantage as rivals achieve productivity gains; move too quickly and risk operational failures, regulatory penalties, or reputational damage. Speaking at the Evident AI Symposium in New York last week, Ian Glasner, HSBC's group head of emerging technology, innovation and ventures, struck an optimistic tone about the sector's readiness for AI adoption. "As an industry, we are very well prepared to manage risk," he said, according to CIO Dive. "Let's not overcomplicate this. We just need to be focused on the business use case and the value associated."

Anthropic's latest moves suggest the company sees financial services as a beachhead market where AI's value proposition is clear, customers have deep pockets, and the technical requirements play to Claude's strengths in reasoning and accuracy. By building Excel integration, securing data partnerships, and pre-packaging common workflows, Anthropic is reducing the friction that typically slows enterprise AI adoption.

The $61.5 billion valuation the company commanded in its March fundraising round — up from roughly $16 billion a year earlier — suggests investors believe this strategy will work. But the real test will come as these tools move from pilot programs to production deployments across thousands of analysts and billions of dollars in transactions.

Financial services may prove to be AI's most demanding proving ground: an industry where mistakes are costly, regulation is stringent, and trust is everything. If Claude can successfully navigate the spreadsheet cells and data feeds of Wall Street without hallucinating a decimal point in the wrong direction, Anthropic will have accomplished something far more valuable than winning another benchmark test. It will have proven that AI can be trusted with the money.