Challenging Transformers: European AI Startups Race for Next-Gen LLM Engines

nordicinst · x · 2026-08-10

MIT Technology Review points out that while the Transformer architecture underpins the entire AI industry, it is showing its age, relying on workarounds for long context and reasoning. The article explores the emerging generation of LLM technologies (dubbed LLM+).

AI startups in Europe, particularly in Sweden and the EU, are racing to develop alternatives that outpace Transformers. These new directions include sparse attention, liquid AI, diffusion LLMs, and state-space models, aiming to build smarter, cheaper, and greener LLM engines.

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