Issue 01

Raschka and Willison close out 2025 with competing LLM retrospectives as NIH signals DEI grants will lapse

Sebastian Raschka published a comprehensive 2025 LLM review covering DeepSeek R1, RLVR, inference-time scaling, and 2026 predictions, while Simon Willison released his annual year-in-LLMs retrospective. On the pharma front, NIH Director Jay Bhattacharya confirmed that DEI-related grants restored under a court order will not be renewed in 2026, even as NIH began reviewing thousands of delayed proposals and funded 135 on the first day. Novo Nordisk priced its newly approved Wegovy pill below Eli Lilly's competing obesity drug in a direct-to-consumer push. On the economy side, researchers across 16 countries found that the post-1980 labor share decline is driven by the composition of capital, not its quantity, and building more structures may reverse it.

24 min read process

ai LLM year in review and what 2026 may bring

The State Of LLMs 2025: Progress, Problems, and Predictions

Sebastian Raschka published his 2025 LLM state-of-the-field review, covering the arc from DeepSeek R1 and RLVR to inference-time scaling, benchmark evolution, and architectural changes. He traces falling per-token costs and identifies where the research community reached genuine consensus versus where it is still working through competing hypotheses. The review closes with 2026 predictions on which directions are most likely to produce the next round of capability gains.

Sebastian Raschka
Claude Sonnet 4.6

LLM Research Papers: The 2025 List (July to December)

Raschka also released the second half of his 2025 curated LLM research paper list, covering July through December. The list is a structured bibliography of the papers he found most worth tracking across the second half of the year, organized by theme rather than chronology. For anyone trying to build a reading list from the year's output, this is a practical starting point given the volume of preprints that shipped in 2025.

Sebastian Raschka
Claude Sonnet 4.6

2025: The year in LLMs

Simon Willison published his third annual year-in-LLMs retrospective, covering what actually changed in 2025 versus what was expected to change. Willison's frame is empirical rather than predictive: he focuses on what the community learned, what assumptions got falsified, and what questions remain genuinely open heading into 2026. The series has become a reliable benchmark for what practitioners actually think happened, as distinct from what was announced.

Simon Willison
Claude Sonnet 4.6

Adam Marblestone; AI is missing something fundamental about the brain

Adam Marblestone told Dwarkesh Patel that AI is missing something fundamental about how the brain works, and his argument centers on reward functions rather than architecture. Marblestone's claim is that the brain's secret sauce is not how neurons are wired but how reward signals are structured and propagated. Current LLM training relies on relatively shallow reward signals, and Marblestone argues that closing the gap with biological intelligence requires rethinking that layer rather than scaling the transformer architecture further.

Dwarkesh Patel
Claude Sonnet 4.6

Sora 2 - It will only get more realistic from here

AI Explained covered Sora 2, OpenAI's updated video generation model, noting that realism has improved substantially from the original Sora release. The framing is that the current output quality, while still imperfect, represents a trajectory rather than a ceiling: each generation has closed a meaningful fraction of the gap to photorealism, and the rate of improvement shows no sign of leveling off. The video covers specific failure modes that remain and where the model still struggles with physics and object consistency.

AI Explained
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Quoting Armin Ronacher

Armin Ronacher, quoted by Simon Willison, described how AI tools have changed his relationship to programming work. Ronacher's observation is that what AI removed is the labor he never found valuable: minimal repro cases, debug log triage, deciphering AWS IAM errors. The puzzle itself, his phrase for the interesting cognitive work, remains. The quote circulated widely because it names something practitioners feel but rarely articulate with precision.

Simon Willison
Claude Sonnet 4.6

Quoting Liz Fong-Jones

Liz Fong-Jones, quoted by Simon Willison, described how working with language models changes the programmer's role: from writing lines of code to managing context, pruning irrelevant information, adding useful material, and writing detailed specifications. The framing matters because it shifts the skill emphasis from syntax to clarity of thought. Fong-Jones argues the core programming competency does not disappear but its expression changes substantially.

Simon Willison
Claude Sonnet 4.6

2025: The year in LLMs

Simon Willison's annual LLM year review covers open-weight model releases, reasoning advances, and shifts in how practitioners are using language models in production. Willison synthesized developments across inference optimization, reasoning via self-play, and the growing use of models as context managers rather than direct code generators.

Simon Willison
Claude Haiku 4.5

Codex cloud is now called Codex web

OpenAI rebranded Codex cloud to Codex web, signaling a shift toward web-based deployment of its code agent rather than cloud infrastructure positioning. The rebrand occurred quietly in late December.

Simon Willison
Claude Haiku 4.5

Quoting Armin Ronacher

Armin Ronacher observed that language models have eliminated the labor of debugging and minimal reproducible cases without removing the actual problem-solving work. The shift reframes programming from implementation toward specification and design.

Simon Willison
Claude Haiku 4.5

Quoting Liz Fong-Jones

Liz Fong-Jones described the role shift as language models become standard: programmers move from writing lines of code to managing the context models have access to, pruning irrelevant material, and writing detailed specifications for model behavior.

Simon Willison
Claude Haiku 4.5

shot-scraper 1.9

Simon Willison released shot-scraper 1.9, adding an -x/,extract option to the HAR command that pulls all resources loaded by a page into a structured format, useful for web scraping and automation workflows.

Simon Willison
Claude Haiku 4.5

Quoting Jason Gorman

Jason Gorman observed that the hard part of programming is not expressing ideas in code but turning human thinking, with all its ambiguity and contradictions, into logically precise computation. This framing positions language models as tools for bridging that gap.

Simon Willison
Claude Haiku 4.5

D. Richard Hipp, SQLite creator, clarified that SQLite does not refuse outside contributions but is highly selective about what gets merged. The discussion highlights how open-source maintenance at scale requires careful governance of dependencies and change control.

Simon Willison
Claude Haiku 4.5

software Software tools, SQLite, and archiving the web

shot-scraper 1.9

Simon Willison released shot-scraper 1.9, adding a new -x/,extract option to the har command that pulls all resources loaded by a page during a recorded session. The tool takes screenshots and scrapes web content from the terminal using JavaScript. The extraction feature is useful for auditing what third-party assets a page loads, debugging content security policies, and archiving dynamic web content that does not persist in static HTML.

Simon Willison
Claude Sonnet 4.6

TIL: Downloading archived Git repositories from archive.softwareheritage.org

Simon Willison documented how to download archived Git repositories from archive.softwareheritage.org, the nonprofit that systematically archives public source code. The immediate trigger was a Python library he had previously written about, sqlite-s3vfs, whose original repository disappeared. Software Heritage had a copy. The practical lesson is that public code archiving infrastructure exists and is retrievable, but most developers do not know the retrieval workflow.

Simon Willison
Claude Sonnet 4.6

D. Richard Hipp, SQLite's creator, corrected Simon Willison on Hacker News after Willison wrote that SQLite refuses outside contributions. Hipp clarified that SQLite does accept contributions but requires a formal copyright release and is highly selective about what it accepts. The correction prompted Willison to publish the exchange. Hipp also noted that SQLite's aviation-grade testing regime, once fully in place, dropped bugs to a trickle and is what allows the project to move fast without accumulating regressions.

Simon Willison
Claude Sonnet 4.6

Quoting D. Richard Hipp

D. Richard Hipp, quoted by Simon Willison, described how SQLite's aviation-grade testing framework changed the project's defect rate. Before the framework was fully in place, bugs were a persistent problem. After it, bugs dropped to a trickle. Hipp's point is that rigorous testing and speed of development are not in tension at the infrastructure level: the discipline of the test suite is what makes moving fast safe, not what prevents it.

Simon Willison
Claude Sonnet 4.6

pharma NIH grants in limbo and obesity drug pricing wars

NIH Director Jay Bhattacharya told a podcaster that DEI-related grants restored under a court order will not be renewed when they expire in 2026. The grants had been frozen by the Trump administration and restored through litigation, but Bhattacharya's statement signals that the administration views the court-ordered restoration as temporary rather than a permanent reversal. Researchers whose grants fall into this category now face expiration without a clear pathway to renewal.

STAT News
Claude Sonnet 4.6

NIH begins review of thousands of delayed research proposals, funding 135 on first day

NIH began reviewing thousands of research grant proposals that had been stuck in bureaucratic limbo under the Trump administration's DEI-related funding freeze, funding 135 on the first day of reviews. The review process began after a legal settlement with groups that sued over the delays. Funding on the first day does not guarantee broad approval; STAT News notes the settlement guarantees review but not approval, and the pace of subsequent decisions will determine how much of the backlog is actually resolved.

STAT News
Claude Sonnet 4.6

STAT+: With the Wegovy pill, Novo Nordisk undercuts Eli Lilly in direct-to-consumer market

Novo Nordisk priced its newly approved Wegovy pill below Eli Lilly's competing oral obesity drug in the direct-to-consumer market. The move is a pricing strategy decision as much as a clinical one: Novo is betting that underpricing Lilly on list price will accelerate patient uptake and market share gains, particularly among patients who prefer an oral formulation. The injectable Wegovy has faced supply constraints; the pill form opens a different patient segment.

STAT News
Claude Sonnet 4.6

STAT+: A new drug allowed them to go in the sun for the first time. They're terrified they may have to give it up

A rare blood disorder called erythropoietic protoporphyria, or EPP, makes sunlight feel like an internal burning sensation for people who have it. Bitopertin, a newly approved drug, allowed EPP patients to tolerate sun exposure for the first time. STAT News reports that patients are now terrified they may have to give it up, reflecting access and insurance coverage uncertainty that frequently follows rare disease drug approvals, particularly for high-cost treatments with small patient populations.

STAT News
Claude Sonnet 4.6

The top medical advances of 2025

STAT News published its roundup of the top medical advances of 2025, covering a year that included meaningful progress despite sustained political pressure on research institutions. The list spans multiple disease areas and treatment modalities. The framing is deliberately counter to the narrative that scientific progress stalled under funding uncertainty; the piece argues that the pipeline of work initiated in earlier years continued to produce results regardless of the policy environment.

STAT News
Claude Sonnet 4.6

Opinion: Patients are consulting AI. Doctors should, too

A Harvard and Dartmouth medical school opinion published in STAT News argues that doctors should use AI tools to stay current with medical literature, noting that the volume of new studies is too large for individual physicians to absorb. The piece draws on evidence that patients are already consulting AI and argues that physicians who refuse to engage with these tools are ceding interpretive authority to patients using them without clinical training. The case for physician AI adoption is framed as patient safety rather than convenience.

STAT News
Claude Sonnet 4.6

The top medical advances of 2025

STAT News curated 2025's major medical advances, including new drugs for rare diseases, improvements in cancer survival rates, and vaccines that moved closer to clinical use. The survey acknowledges a difficult year for healthcare policy while documenting genuine scientific progress.

STAT News
Claude Haiku 4.5

Opinion: The most-read First Opinion essays of 2025

STAT News reported on its most-read opinion essays from 2025, offering a window into what healthcare and policy topics most engaged its audience. The collections signal emerging concerns about drug pricing, AI in medicine, and regulatory reform.

STAT News
Claude Haiku 4.5

STAT's most memorable photos of 2025

STAT News published its most memorable photos from 2025, capturing stories of loss, hope, and medical bravery from clinics and hospitals worldwide. Photography serves as a different form of evidence in healthcare reporting.

STAT News
Claude Haiku 4.5

Opinion: Patients are consulting AI. Doctors should, too

Medical literature output now exceeds what individual doctors can absorb, making AI tools essential for staying current. Doctors at top medical schools are increasingly using ChatGPT and similar tools to synthesize the evidence, mirroring how their patients are already using AI for health information.

STAT News
Claude Haiku 4.5

healthtech ACA subsidies, rural health funds, and health policy in 2026

STAT+: Three major health care policy issues to watch in 2026

STAT News identified three health care policy issues with the most consequence in 2026: the future of ACA premium subsidies set to expire, drug pricing changes stemming from the Inflation Reduction Act, and pharmacy benefit manager reforms working through Congress. Each of these affects different parts of the system but all three have significant stakes for patients, insurers, and manufacturers. The piece maps out the congressional and regulatory calendar on which the outcomes depend.

STAT News
Claude Sonnet 4.6

STAT+: CMS divvies up first payments from $50B rural health fund, with an eye toward MAHA goals

The Trump administration distributed the first payments from a new $50 billion rural health fund, with allocations weighted toward states aligned with MAHA goals rather than purely by population or need. CMS disclosed the payment methodology, which drew attention because states that have pursued MAHA-aligned health priorities received proportionally larger early payments. The structure of the fund gives the administration discretion over how subsequent tranches are allocated, which creates leverage over state health policy decisions.

STAT News
Claude Sonnet 4.6

Opinion: Why I'm skipping Dry January

Robert M. Kaplan, a public health scientist, published an opinion in STAT News arguing that Dry January's underlying evidence base is weaker than its mainstream uptake suggests and that firm prescriptions about alcohol abstinence rarely account for individual variation. The piece is not a defense of heavy drinking but an argument that population-level recommendations applied uniformly to individuals with different risk profiles produce worse outcomes than personalized guidance. Kaplan's broader point is about how public health communicates uncertainty.

STAT News
Claude Sonnet 4.6

economy Labor share, housing, and what economists expect in 2026

Building more will boost labor's share

A new paper covering 16 advanced economies over two centuries found that since 1980, the decline in labor's share of income is driven by changes in the composition of capital, not by the total quantity of capital. The key shift is the relative rise of equipment and intellectual property at the expense of structures. Because structures are more complementary to labor than equipment, the substitution away from building has depressed labor's share. The implication is that policies that encourage construction of physical structures would boost labor income relative to capital income.

Marginal Revolution (Tyler Cowen)
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Conor Sen claims

Conor Sen argued, summarized by Tyler Cowen, that US housing inventory is approaching or has reached pre-pandemic levels in most of the South and West, with signs of recovery even in the supply-constrained Northeast and Midwest. By 2027, the oldest Gen Z members will hit peak household formation age, creating a demand wave that meets a recovering supply side. Sen's read is more optimistic on housing affordability over the next two to three years than the prevailing consensus.

Marginal Revolution (Tyler Cowen)
Claude Sonnet 4.6

US Growth: From Hours Worked or Productivity Gains?

Timothy Taylor at the Conversable Economist analyzed the two sources of US economic growth: more hours worked and more output per hour. The labor force grew from 107 million in 1980 to 164 million by recent counts, but that growth is slowing as demographics shift. Taylor's argument is that future US growth will depend increasingly on productivity gains rather than labor force expansion, and the policy question is what drives productivity at the margin when the hours-worked lever is weakening.

Conversable Economist (Timothy Taylor)
Claude Sonnet 4.6

At least five interesting things: Buy Local edition (#74)

Noah Smith's latest roundup covers several economic threads: the abundance framing and its limits for small businesses, whether luxury housing construction actually reduces rents for lower-income tenants, the current state of tariff effects on the US economy, and Chinese industrial robotics. On luxury housing, Smith engages directly with the filtering literature and finds the evidence that high-end construction relieves pressure on the broader market is real but slower-acting than advocates typically claim.

Noahpinion (Noah Smith)
Claude Sonnet 4.6

Marginal Revolution flagged new research on LLM economics showing price elasticity just above one, limiting Jevons Paradox effects. Additional links included Germany's persistent fax machine usage and commentary on growth drivers.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

Existential Risk and Growth

Philip Trammell and Leopold Aschenbrenner published a paper examining the tradeoff between technological growth and existential risk in dynamic settings where stagnation itself carries risk. The framework shifts away from static models that assume halting progress eliminates danger.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

"What we got wrong this year"

Tyler Cowen admitted a mistake he made in October about Trump's Argentina policy, participating in a Free Press feature asking prominent writers to confess errors from 2025. Public error acknowledgment is rare in opinion writing.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

Derek Thompson on 2025

Derek Thompson characterized 2025 as a bad year for American politics but an exceptional year for America overall, citing the largest murder rate decline ever recorded, huge traffic fatality drops, and other quality-of-life improvements despite political dysfunction.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

Marginal Revolution curated links on cello pedagogy, fiction writing quality, Duke University's economics, and music criticism from 2025. Highbrow and lowbrow culture items round out the week's assorted reading.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

The Weeb Economy

Noah Smith published an excerpt from his forthcoming book on the weeb economy, examining how anime and manga fandom has become a significant cultural and economic force, particularly in Asia and among Gen Z audiences.

Noahpinion (Noah Smith)
Claude Haiku 4.5

Dating Apps are… Job Apps?

Kyla Scanlon explored how dating apps are increasingly being used as job search tools, particularly by people looking for career opportunities through network expansion.

Kyla Scanlon
Claude Haiku 4.5

I podcast again with Kevin Gentry

Tyler Cowen recorded another podcast conversation with Kevin Gentry, continuing a recurring discussion series on economics, innovation, and policy.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

Top Posts of 2025

Marginal Revolution highlighted its most-read posts of 2025, topped by Tyler Cowen's essay on Trumpian policy as cultural policy, paired with median voter theory analysis of right-wing populism.

Marginal Revolution (Tyler Cowen)
Claude Haiku 4.5

Hume on the Jealousy of Trade

Timothy Taylor traced David Hume's 1752 essay on trade jealousy to modern protectionist sentiment, showing how nationalist concerns about trade have recurred across centuries despite economic arguments against them.

Conversable Economist (Timothy Taylor)
Claude Haiku 4.5

Keynes: Free Trade and the Nationalist Impulse

Timothy Taylor examined John Maynard Keynes's 1933 lecture on national self-sufficiency, drawing parallels to contemporary trade and nationalism debates. Keynes argued that free trade had political costs that economists often overlooked.

Conversable Economist (Timothy Taylor)
Claude Haiku 4.5

US Growth: From Hours Worked or Productivity Gains?

Timothy Taylor broke down US economic growth into components: hours worked and productivity per hour. Labor force growth has slowed, making productivity gains essential for continued growth, a shift with implications for technology adoption and wages.

Conversable Economist (Timothy Taylor)
Claude Haiku 4.5