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Nvidia Slashes LLM Costs 8x, Revolutionizing AI Reasoning

Nvidia announced a breakthrough in large language model (LLM) technology on February 12, 2026, revealing a new technique that drastically reduces the memory costs of LLM reasoning by up to eight times. The innovation, called dynamic memory sparsification (DMS), compresses the key-value (KV) cache, the temporary memory LLMs use, without sacrificing, and in some cases even improving, the model's accuracy, according to VentureBeat.

The DMS technique addresses a significant challenge in the AI field. While previous methods attempted to compress the KV cache, they often led to a decline in the model's performance. Nvidia's approach, however, allows for substantial memory reduction while maintaining or enhancing the model's reasoning capabilities. Experiments demonstrated that DMS enables LLMs to "think" longer and explore more solutions without being constrained by memory limitations, VentureBeat reported.

In other news, the data center and power sectors are experiencing a boom, fueled by the global AI race. This surge has also benefited the electrical distribution equipment industry, which connects electricity to major tech campuses. Forgent Power Solutions, a company formed from four legacy companies and recently went public in February, has seen its market cap grow to nearly $8 billion, according to Fortune. "I made a joke in one of the investor sessions that we're bringing sexy back in the electrical distribution space," said Forgent CEO Gary Niederpruem, as reported by Fortune. Forgent serves data centers, power grids, and industrial markets, all of which are expanding, with data centers currently experiencing the fastest growth.

The increasing integration of AI into daily work is prompting leaders to address critical issues, including performance measurement, employee support during change, and the preservation of company values. Some organizations are prioritizing efficiency, while others are focusing on defining their core values as AI becomes more embedded, according to Fortune. This shift requires senior executives to consider the social contract between the company and its employees.

Meanwhile, in Venezuela, a debate is underway regarding a sweeping amnesty for political prisoners. Relatives of political prisoners demonstrated outside the National Assembly in Caracas on February 10, 2026, advocating for democracy, as reported by NPR Politics.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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