Daily Edition · Page 3

THE DAILY INDEX

Technology, AI, software, security, crypto and business

HEADLINES & LAUNCHES

TLDR AI

WHY STACKING SLIDING WINDOWS CAN'T SEE VERY FAR

Modern language models use a building block called sliding window attention to handle long texts efficiently. The effective memory of these models has fundamental limitations. They struggle to use information from more than about 1,500 words ago, far less than the theoretical 100,000. This is because information gets diluted as it spreads through the network, and residual connections create an exponential barrier that blocks distant information.

RAG IS DEAD, CONTEXT ENGINEERING IS KING

In this interview, Jeff Huber from Chroma talks about what matters in vector databases, why modern search for AI is different, and how to ship systems that don't rot as context grows. Context engineering is the job of figuring out what should be in the context window at any given LLM generation step. It involves an inner loop, setting up the context window 'this time', and an outer loop that involves getting better at filling the context window with only relevant information.

PERPLEXITY IS LAUNCHING A NEW REVENUE-SHARE MODEL FOR PUBLISHERS

Perplexity will start paying publishers for news articles from a $42.5 million revenue pool. The money will be distributed when Perplexity's AI assistant or search engine uses a news article to fulfill a task or answer a search request. The payments come out of the subscription revenue generated by Perplexity's new news service, Comet Plus, which will roll out widely in the fall. Publishers will get 80% of Comet Plus revenue.

TLDR IndexPage 3