Vol. I · No. 1Edition: MorningEst. 2026AboutSearchRSS

The Sand Paper

Finding grains of sand with grains of sand.
A Journal of Intelligence Transfer
Lead Story · Models & Hardware

Inception’s Mercury 3 Brings a Diffusion Model to the Fast Tier

More than 40x the size of Mercury 1, over 1,000 tokens a second and a 1M-token context window.

Inception has launched Mercury 3, which it calls “the most capable diffusion LLM released to date.” The company says it outperforms GPT-6 Luna and Claude Haiku 5.5 across a range of benchmarks while running at over 1,000 tokens per second. Mercury 3 is more than 40x the size of Mercury 1 and, by Inception’s count, 3x more intelligent across standard benchmarks.

From posts by @TheRundownAIRead the story

Agents & Coding

Mollick Finds a Multi-Agent Interface in the New Claude Projects

A user-facing coordinator and independent agents passing messages; he wants multiplayer AI past the group chat.

Ethan Mollick calls the new Claude Projects a nice interface for multi-agent work: a user-facing coordinator model and independent agents running threads that pass messages around. It “takes some fiddling but quite powerful,” he says, and has no relation to the old Projects.

From posts by @emollickRead the story

Inside xpress agent: One Binary, 14 MB of RAM

@sudoingX runs his Rust harness with offrail 27b on a laptop; it rewrote its own image skill.

@sudoingX says he is “falling for” his own agent harness. xpress agent is written in Rust, ships as one binary under 10 mb, uses 14 mb of RAM for the whole loop and finds his local model by itself. offrail 27b is the model behind it, running on his laptop. It writes its own skills as it works, and on one run it rewrote its image skill without being asked.

From posts by @sudoingXRead the story

Abliterated DeepSeek Finds a Bug a Frontier Model Missed

In @cybersec’s VulnHunter eval, DS4.1-1017 turned up one new vulnerability in a production Go repo.

@MiaAI_lab shares results from @cybersec: an abliterated DeepSeek V4.1 Flash 1017 found one new vulnerability that a frontier model did not discover. @cybersec runs an operational pass against a pinned Go repo for a production app with known vulnerabilities, with Grok as the frontier baseline for all open-weight evals.

From posts by @MiaAI_labRead the story

Meta’s Muse Glimmer Trains Agents Inside Simulated Lives

A 30B open-weight model for agentic tasks on a single consumer GPU at 4-bit precision.

@kimmonismus flags Meta’s technical report on Muse Glimmer, a 30B open-weight model built for agentic tasks on consumer hardware. Meta says it runs at practical speeds on a Mac or PC with a single consumer GPU at 4-bit precision.

From posts by @kimmonismusRead the story

Models & Hardware

DeepSeek Open-Sources DeepInfer, Its Production Inference Engine

The stack behind DeepSeek V4.1 Flash is public; for now it runs on NVIDIA SM100 and Huawei Ascend 950.

DeepSeek open-sourced DeepInfer, the inference engine behind its own production services. @MiaAI_lab lists draft tokens for faster output, custom kernels, skipping repeated work on long prompts, and the same output for the same input every time.

From posts by @MiaAI_lab, @kimmonismusRead the story

Local Builders Race to Squeeze DeepSeek’s 1017 Weights

@sudoingX’s 2.70-bit v1.2 hits 141.3 tok/s on structured output; @MiaAI_lab says EAQ v1 is 11% to 38% closer.

@sudoingX rebuilt his DeepSeek V4.1 Flash weights on the 1017 update. His v1.2 runs on 2x DGX Sparks at 141.3 tok/s on structured output, 100.7 on code and 59.2 on prose.

From posts by @sudoingX, @MiaAI_labRead the story

HyperFlow Cuts MiniMax H3 Video From 49 Steps to 8

Video Rebirth’s open-source add-on runs about 3x faster; a 175-second clip now takes about 60.

Video Rebirth open-sourced HyperFlow, a speed-up for the MiniMax H3 video model, @kimmonismus reports. The add-on keeps the same workflows and replaces the 49-step schedule with a trained 8-step one, running about 3x faster with sound generated alongside the video.

From posts by @kimmonismusRead the story

AI in Accounting & Tax

Accounting Weighs AI Governance and the Shape of the Firm

A CAQ survey finds adoption ahead of governance; Ascend’s David Wurtzbacher says firm structure may need rethinking.

Accounting Today says AI adoption “is in the driver’s seat” while governance “is still riding in the back seat,” and looks at what the CAQ’s latest survey means for the rest of 2026. On an Accounting Today podcast, Ascend founder and CEO David Wurtzbacher suggests that getting the full capabilities of artificial intelligence may require rethinking the entire structure of the accounting firm.

From posts by @AccountingTodayRead the story

Industry

Washington Orders DeepSeek Out of Federal Agencies

DHS tells civilian agencies to remove DeepSeek and products built on it; DeepSeek reportedly helps design Huawei chips.

The US Department of Homeland Security is ordering civilian federal agencies to remove DeepSeek and third-party products built on it, and to stop buying them, @kimmonismus reports. He reads it as a response to China’s proposed export controls on certain AI technologies, part of a broader push toward AI sovereignty.

From posts by @kimmonismus, @MiaAI_labRead the story

Jack Clark Tells the IMF the Window to Act Is Short

Anthropic’s co-founder points to limits on “the ceiling of intelligence” and “a small number of years.”

Anthropic co-founder Jack Clark went on record at the IMF about putting a ceiling on AI intelligence, The Rundown AI reports. Moderator Raghuram Rajan asked when humans hand AI the reins.

From posts by @TheRundownAIRead the story

Nadella Brings Sovereign Cloud Upgrades and Discovery to Paris

New Microsoft Sovereign Cloud capabilities; Saint-Gobain uses Microsoft Discovery on construction materials.

Satya Nadella says Microsoft announced new capabilities across Microsoft Sovereign Cloud in Paris, expanding choice and control for organizations running their most sensitive workloads across public and private cloud. He also met the Saint-Gobain team, which is using Microsoft Discovery to help accelerate the development of new, more efficient construction materials.

From posts by @satyanadellaRead the story