IBM Shares Plunge 23% After Warning of a Quarterly Earnings Miss
IBM shares sank about 23% after it warned that preliminary second-quarter results fell short, as clients diverted spending toward memory and servers ahead of price increases.
A KV cache, or key-value cache, speeds up autoregressive transformer inference by storing attention information calculated for tokens that have already been processed. Without the cache, the model would recompute those keys and values each time it generates another token. Reusing them reduces repeated work and improves response latency, especially for long prompts and outputs. The tradeoff is memory: cache size grows with sequence length, batch size, layer count, and model dimensions. Production systems manage this cost with paging, quantization, eviction, prompt caching, and request scheduling. KV caching changes inference efficiency, not the model’s learned knowledge, and cached data must be protected when prompts contain sensitive information.
IBM shares sank about 23% after it warned that preliminary second-quarter results fell short, as clients diverted spending toward memory and servers ahead of price increases.
Google DeepMind CEO Demis Hassabis proposed a US-led standards body to test the most powerful AI models before release and coordinate an industry slowdown if risks mount.
Google unveiled SensorFM, a health AI trained on over a trillion minutes of smartwatch data from 5 million people, that predicts 35 health measures from cardiovascular risk to depression.
Cloudflare launched Precursor, a bot-detection system that watches how visitors move, click and type across a whole session to tell humans from increasingly capable AI agents.
Tencent is in talks to become Manus’s largest shareholder as investors race to reverse Meta’s $2 billion purchase of the AI agent startup, after Beijing ordered the deal undone.
SpaceXAI’s Grok 4.5 tied GPT-5.6 Sol for first on the SWE-Atlas-QnA coding benchmark, a narrow win that highlights the model’s real edge: efficiency and low cost.
A South Korean developer says Anthropic’s billing system tried to charge him $16.6 million despite being on the free plan with zero API usage, one of several billing complaints.
Anthropic extended free Claude Fable 5 access to July 19, its second extension in a week, as OpenAI removed usage caps and made GPT-5.6 Sol cheaper to run.
Apple sued OpenAI for trade secret theft, alleging former employees now at OpenAI stole confidential hardware information to build its first AI device. OpenAI denies it.
SK Hynix raised $26.5 billion in its Nasdaq debut, the largest US listing ever by a foreign company, as investors rushed to buy into the AI memory chip boom.