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CONTEXT ENGINEERING > PROMPT ENGINEERING Everyone is obsessed with writing better prompts. The next generation of AI builders is focused on context engineering instead. • Prompt engineering shapes the question. Context engineering shapes everything the AI sees. • Great prompts can't save an agent missing critical context, memory, or...

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Anthropic just changed how they think about Claude 5. Not with a new model. Not with a benchmark. With a completely different philosophy for building AI systems. Most people will miss it. They're still trying to write better prompts. Anthropic is optimizing something else entirely: Context. Here's what every AI builder should learn from it: 1. Stop telling AI exactly what to do. Start telling it what success looks like. Older models needed rigid instructions. Newer models perform better when you define the objective and let them make the decisions. The goal is no longer more control. It's more clarity. 2. Context is a budget, not a storage unit. Every extra sentence competes for the model's attention. A massive context file doesn't make AI smarter. It often makes reasoning worse. The best systems don't load everything. They load only what's relevant. 3. Great tools beat great prompts. Most people spend hours tweaking prompt wording. Anthropic is investing in better interfaces instead. Clear parameters. Structured inputs. Well-designed tools. If the interface removes ambiguity, the model makes better decisions before it even starts reasoning. 4. Show reality instead of describing it. Want a specific coding style? Provide the codebase. Want a certain design language? Share the mockup. Want consistent outputs? Give it tests to satisfy. Concrete references consistently outperform long written instructions. 5. Deliver information when it's needed. Not everything belongs in the initial context. Documentation. Style guides. Verification. Reviews. Load them only when they're relevant. Think of context like RAM, not a hard drive. 6. The real advantage is system design. Prompt engineering isn't disappearing. It's becoming one small part of a much bigger stack. Memory. Retrieval. Context architecture. Tool design. Evaluation. Every improvement compounds. The biggest takeaway from Anthropic's update? The next generation of AI won't be won by the people writing the longest prompts. It'll be won by the people building the smartest systems. Same models. Completely different results.

Evan Luthra

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Happy to properly launch Anna, the proactive AI agent for parents! Uncovering a bit of the technology behind the scenes! Building Anna is where I learned: 💾 Memory as plain text sucks. You need structured memory. Like a full-blown PostgreSQL DB that stores your tasks and calendar in a structured manner. Most harnesses are good at coding-related stuff. Let it do the query. Don't let it vibe-search the memory. Let it vibe your SQL query 💭 Dreaming is a useful concept for enhancing memory to feed the LLM context. But DO NOT vibe your dream. Asking your agent to "hey, just dream and keep the relevant memory around" is a recipe for deleting a bunch of important information and keeping trash around. Your dream needs to have some Taxonomy (or better, Ontology). What information is important? For who? With what object? What can they do? And again, these are impossible to describe and act well without a proper schema 🔄 Loop Engineering is important for smoothing out rough edges in the system we build. But even expensive loop engineering with a state-of-the-art model can't out-engineer bad system design. The highest leverage an AI Engineer can do is actually building the right system design, and having an eye on both product delight and engineering scalability There are several more insights that I plan to cover in a dedicated video about Agentic AI Engineering. But it's actually a huge relief that the future of software engineering... is still software engineering

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Everyone wants agent swarms. Very few people are talking seriously enough about the context layer that makes swarms useful. Even with one agent, context is fragile. Too little context and the agent guesses. Too much context and it wastes tokens, loses focus, or reasons over irrelevant noise. The sweet spot is precise context: the right knowledge, in the right structure, at the right moment. With many agents, that challenge explodes. Each agent produces decisions, assumptions, findings, summaries, risks, and partial conclusions. Unless that knowledge becomes shared, structured, and reusable, every new agent is forced to rediscover what another agent already learned. That is not a swarm. That is a crowd. Shared context graphs are what turn agent activity into agent collaboration, and OriginTrail DKG V10 brings them to life. Was just playing with some final polishing for the V10 release, and it is really powerful to see shared context graphs where multiple agents contribute knowledge into the same connected memory, with attribution visible directly in the graph ui. That matters for three reasons. First, agents can access and build on one shared memory instead of staying trapped in isolated sessions. Second, the graph structure helps them retrieve the exact context they need, instead of stuffing everything into a prompt and hoping the model sorts it out. Third, verifiability of provenance. You can see which agent contributed each piece of knowledge, trace the source, and decide what to trust. Tokenmaxxing starts with fewer tokens, but the deeper story is coordination - agents stop reloading the world and start building on shared, verifiable context. That is the foundation for serious multi-agent work across software engineering, research, finance, operations, project management, and far beyond. The future is not more agents, it is agents working from shared, verifiable context. But the more the merrier, of course.

Jurij Skornik

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New short course: LLMs as Operating Systems: Agent Memory, created with Letta, and taught by its founders Charles Packer and Sarah Wooders. An LLM's input context window has limited space. Using a longer input context also costs more and results in slower processing. So, managing what's stored in this context window is important. In the innovative paper MemGPT: Towards LLMs as Operating Systems, its authors (which include the instructors) proposed using an LLM agent to manage this context window. Their system uses a large persistent memory that stores everything that could be included in the input context, and an agent decides what is actually included. Take the example of building a chatbot that needs to remember what's been said earlier in a conversation (perhaps over many days of interaction with a user). As the conversation's length grows, the memory management agent will move information from the input context to a persistent searchable database; summarize information to keep relevant facts in the input context; and restore relevant conversation elements from further back in time. This allows a chatbot to keep what's currently most relevant in its input context memory to generate the next response. When I read the original MemGPT paper, I thought it was an innovative technique for handling memory for LLMs. The open-source Letta framework, which we'll use in this course, makes MemGPT easy to implement. It adds memory to your LLM agents and gives them transparent long-term memory. In detail, you’ll learn: - How to build an agent that can edit its own limited input context memory, using tools and multi-step reasoning - What is a memory hierarchy (an idea from computer operating systems, which use a cache to speed up memory access), and how these ideas apply to managing the LLM input context (where the input context window is a "cache" storing the most relevant information; and an agent decides what to move in and out of this to/from a larger persistent storage system) - How to implement multi-agent collaboration by letting different agents share blocks of memory This course will give you a sophisticated understanding of memory management for LLMs, which is important for chatbots having long conversations, and for complex agentic workflows. Please sign up here!

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Knowing how LLM contexts work and how to work around context limitations – aka “context engineering” – is becoming so important. No better person to explain than dex Timestamps: 00:00 Intro 01:33 Dex’s path into tech 03:34 Early work in platform engineering 05:28 Replicated 11:24 Metalytics 12:36 12-factor agents 18:27 Context engineering 23:38 Harness engineering 26:11 Context overload 30:45 Loop engineering 44:34 Software factories before and after AI 50:33 Automation limits 55:18 Three options for automating 59:00 RPI framework 1:04:16 Intentional compaction 1:11:48 Token harder vs. token smarter 1:16:44 AI slop 1:19:15 HumanLayer 1:29:09 Book recommendation Brought to you by: • Antithesis — with Antithesis, you can use AI agents to work on critical systems without worrying about correctness. Teams like Jane Street, and the etcd community use Antithesis to ship better code, faster. • Buildkite — the CI orchestration platform built for reliable scale. Used by OpenAI, Anthropic, Cursor, Meta, Uber, Ramp, Nvidia, Airbnb and many more. • Sentry — application monitoring software built by developers, for developers. Check out their AI agent, Seer AI, and Sentry MCP. Three interesting learnings from this episode: 1. Lesson learned: Shipping unread code spells disaster within months. Dex experimented with having the model write the code and humans not reviewing anything in July 2025. Four months later, they shut things down and threw the whole system out. Production broke, and no matter how much the team prompted Opus 4.1, the model could not find the root cause. Once fixed, it took three weeks (!!) to re-onboard to a codebase no human had ever read 2. Context engineering 101: figure out where the “dumb zone” begins. As a rule of thumb, the less of the context window that is used, the better the outcomes are. This is because the attention mechanism is quadratic: the more that goes into the context window, the more compute is required to process it all. 3. “You’re completely right!” or “you’re right to push back on that” are phrases that mean it’s time to start a new session. These responses mean the LLM session is trajectory-poisoned, and you’re wasting time and tokens to continue. This is because models are autoregressive.

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We are announcing potpie AI $2.2M pre-seed fundraise to advance Spec-Driven Development for large enterprise codebases. The round is led by Emergent Ventures , with participation from All In Capital , DeVC , and PointOne Capital , along with the support of some amazing angel investors from companies including Atlassian, OpenAI, Meta, Razorpay and Flobiz. As AI accelerates code generation, the constraint inside large enterprises has shifted from coding to maintenance and assurance. The limiting factor is no longer writing code, but understanding complex systems, aligning teams around intent, and safely evolving large, interdependent codebases. In most organizations, specifications exist as static documents, while production systems evolve independently. Context is fragmented across repositories, tickets, logs, reviews, and floating documents making reliable AI adoption difficult. We are building the foundational layer that makes Spec-Driven Development executable at scale. By unifying engineering context and operationalizing the spec as a structured source of truth, we enable AI systems to reason with architectural awareness rather than surface-level code completion. We are already working with large enterprise customers, including Fortune 500 organizations. This milestone allows us to deepen those partnerships and support more teams transitioning from experimental AI usage to structured, production-grade AI-first engineering workflows. If you are leading engineering at scale and evaluating how AI should integrate into mission-critical systems, we would love to chat with you!

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