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State of AI 2026: What Actually Changed

By TLDL

The AI landscape in 2026 looks different than expected. Here's what the state of AI reveals about where we actually are.

State of AI 2026: What Actually Changed

What's the actual state of AI in 2026? The reality differs from both the hype and the skepticism.

Here's what matters.

Open-Weight Models Shifted Everything

DeepSeek R1 and similar open-weight models changed the game:

  • Accelerated global competition
  • Enabled experimentation by anyone
  • Changed deployment dynamics through permissive licensing

The closed model advantage shrank. Now anyone can run competitive models.

Where Durable Advantages Come From

Guests emphasized: durable advantages come less from secret algorithms.

What matters now:

  • Budget for compute
  • Hardware access
  • Execution capability

The moat shifted from algorithms to resources.

Post-Training Methods

Much of recent capability progress comes from:

  • RLHF (Reinforcement Learning from Human Feedback)
  • RLvR (Reinforcement Learning from Verification)
  • Inference-time scaling
  • Systems optimizations

The training doesn't stop after the model ships.

What This Means

The AI landscape in 2026 is more accessible than expected:

  • Open models enable more players
  • Advantages are buildable, not just buyable
  • Competition accelerates innovation

The winners will be those who execute well, not just those with the biggest models.


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