A study of more than 700 software firms found that AI coding agents significantly increase the amount of code developers produce, but not the amount of software companies actually ship. Ars Technica reports: A recent study (PDF) of actual coding practices across hundreds of firms finds that human code review forms a significant "bottleneck" for the overall efficiency of AI coding tools, resulting in "little evidence that firms increase software output or reduce employment" by using them. Any efficiency increased during the actual coding phase, the study authors find, is "absorbed by downstream constraints in the production process"; as "the code review process significantly increases in length, pull requests are more likely to require revisions, and reviewers leave more comments." [...] In terms of raw code being produced, the results are clear and stark. The introduction of AI coding agents at a firm leads to a 30 percent increase in total lines of code generated, a 20 percent rise in the number of total commits, and a 23 percent increase in pull requests on average, the researchers write. But all that extra code doesn't translate directly into improved software output on the firm level. On the contrary, the resolution rate for Issues and Epics (i.e. wholesale software features) tracked by tools like Jira did not change in a statistically significant way after AI tools were introduced (the researchers also found no "compositional shift" in the size or complexity of those Jira-tracked issues across the AI introduction). The reason for that discrepancy can be found directly in the code review process, which takes markedly longer on average after the introduction of AI coding agents. Overall, the average "review process" time between a pull request getting submitted and it being merged into the codebase balloons 49 percent on average after AI agents are introduced. That effect can be seen in more granular data, too, with "the share of pull requests with changes requested nearly doubl[ing], and the number of comments per pull request increas[ing] by 35%" following the AI agent shift, the researchers write. In response to this change, the researchers found a 14 percent increase in the share of workers performing code reviews after AI agents' introduction. They also write that they "cannot attribute significant employment changes to AI" after looking at total active workers across Jellyfish and cross-referencing with LinkedIn data at those firms. While AI could also theoretically help with this review process, the researchers found that, so far, that impact has been marginal. Although 80 percent of measured firms used some form of AI code review by March 2026, AI agents were only responsible for 23.3 percent of all review comments and 10.8 percent of all pull requests, suggesting humans were still responsible for the vast majority of this work.

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Amazon is reportedly in talks to acquire AI startup Decart in a deal that could value the company at up to $7 billion. Decart's DOS software helps developers optimize AI models for different processors in weeks rather than months, a capability that could be particularly useful to AWS as it pushes its own Trainium chips. SiliconANGLE reports: The company has developed software called DOS, which can help developers to speed up AI training and inference workloads by optimizing their neural networks to run on a specific processor. In most AI workloads, developers must optimize a neural network for the chip they plan to run it on. This process used to take months, but with DOS, the workflow necessary to do this can be compressed into just a couple of weeks. As a result, companies can use Decart's software to shift AI workloads to different processors if their requirements change, or if chip availability becomes an issue. In addition to DOS, Decart is also a model developer, responsible for creating the Lucy and Oasis world models, which are designed to generate and simulate realistic three-dimensional environments for video games, robotic training and other use cases. It's still possible another suitor could emerge and outbid Amazon. Last month, Anthropic PBC was reportedly engaged in talks to buy Decart, according to a report by Bloomberg. However, it ultimately pulled out of a reported $6 billion deal after conducting due diligence on the startup. It's not clear what ultimately dissuaded Anthropic from pursuing a deal. The Wall Street Journal first reported (paywalled) the news.

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PC shipments fell 20.1% year over year to 62.7 million units in the third quarter of 2026, the worst Q3 decline IDC has recorded. "The top three PC makers -- Lenovo, Dell, and HP -- also saw their shipments fall by over 20% year over year," reports PCMag. From the report: "If looking at all quarters, then we have seen other quarters in recent years with larger declines, such as 2022Q4, which was -28.2%, and 2023Q1, which was -28.7%. Both were coming off pandemic highs," IDC Director Jitesh Ubrani told PCMag in an email. The numbers aren't a great sign, since third-quarter PC shipments usually outpace those in the second quarter as vendors introduce new products ahead of the holiday shopping season. Instead, PC shipments were at 62.7 million units, down 9.1% from the previous quarter. [...] Of course, the downturn isn't a surprise. IDC and other research firms have warned that the ongoing AI-driven memory shortage threatens to sap demand for PCs and phones due to soaring memory and storage costs. "What we're seeing is the result of the strong first half pull-in. Vendors and channels loaded up on inventory early in the year to get ahead of [memory-related] price hikes, and that has thrown off the usual seasonality, where Q3 is typically larger than Q2," Ubrani said in a report covering IDC's preliminary estimates for the quarter. In one bright spot, Ubrani said vendors and retailers might cut prices to generate interest and clear out products they have in stock. "Channels are now worried about carrying too much inventory into a market where high prices are suppressing demand. That could translate into promotions and some short-term relief for consumers, but we don't expect pricing anywhere near what it was a year ago. Prices will remain elevated," he added.

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