Way back in the summer of 2017, AI researchers at Google put out a paper called "Attention Is All You Need," in which they described a new type of neural network called a transformer. It proved to be very good at processing long sequences of data, especially text. Nine years on, transformers are the engines inside every major large language model on the market. "The entire AI industry is built on transformers," says Justin Dangel, cofounder and CEO of the AI startup Subquadratic. "They are one of the most important innovations in the history of computer science, and they've changed the world." But transformers are starting to show their age. Many of the recent advances in LLMs, such as the development of so-called reasoning models and their ability to handle large amounts of input at once, are not neat extensions of that core technology but workarounds that patch over some of its fundamental flaws. A growing number of scientists and engineers are now asking what's coming next. LLMs are not going anywhere, but the way they get built is up for grabs.

Artificial intelligence might now be solving advanced math, performing complex reasoning, and even using personal computers, but today's algorithms could still learn a thing or two from microscopic worms. Liquid AI, a startup spun out of MIT, will today reveal several new AI models based on a novel type of "liquid" neural network that has the potential to be more efficient, less power-hungry, and more transparent than the ones that underpin everything from chatbots to image generators to facial recognition systems. Liquid AI's new models include one for detecting fraud in financial transactions, another for controlling self-driving cars, and a third for analyzing genetic data. The company touted the new models, which it is licensing to outside companies, at an event held at MIT today. The company has received funding from investors that include Samsung and Shopify, both of which are also testing its technology.