A startup claims it broke through a bottleneck that’s holding back LLMs

Miami-based AI startup Subquadratic came out of stealth mode last month with a huge claim. It announced that it had solved a mathematical bottleneck that had been holding back large language models for almost a decade. The details were thin, and many people were unconvinced. But Subquadratic has started to bring the receipts, sharing the results of an independent evaluation of its new tech. The results suggest that the company’s claims might be worth paying attention to. According to Subquadratic, it has developed a new kind of LLM, called SubQ, that is faster and cheaper and uses a lot less energy than any other model on the market. The company also claims that SubQ is able to process up to 12 times as much text at once than most other models, allowing it to carry out a range of data-heavy tasks, such as analyzing hundreds of documents or entire code bases. What’s more, Subquadratic says, SubQ does this while more or less matching the performance of the best models put out by Google DeepMind, OpenAI, and Anthropic on key tasks like coding. The problem was that the company at first provided little evidence for its claims beyond a handful of self-published test scores. And it has yet to make SubQ widely available for people to try out themselves. So it’s no surprise that Subquadratic’s claims were met with skepticism. Dan McAteer, an artificial intelligence engineer, captured the overall response on X: “SubQ is either the biggest breakthrough since the Transformer … or it’s AI Theranos.” A month on, the company has published more information about its model, including the results of additional independent tests run by third-party firm Appen. “We expected healthy skepticism,” says Subquadratic cofounder and chief technology officer Alex Whedon. “In hindsight, releasing the third-party benchmarks alongside the initial announcement would have preempted much of the skepticism, which is why we’re taking the time to make sure any future results are fully verified bef