Chain of News 03/07/2026

**Top Story** The emergence of AI agents as a new kind of software is revolutionizing the way developers build and interact with applications. According to Vercel's Andrew Qu, agents are poised to become a fundamental component of software development, enabling the creation of more intelligent, autonomous, and adaptive systems. Qu's comments come as Vercel introduces its agent framework, eve, which provides a foundation for building agent-based applications. The implications of this shift are significant, as agents have the potential to transform the way developers design, test, and deploy software. With agents, developers can create applications that can learn, reason, and interact with their environment in more sophisticated ways, opening up new possibilities for innovation and growth. As the industry continues to evolve, it's clear that agents will play an increasingly important role in shaping the future of software development. **AI Models & Research** The development of AI coding tools is a rapidly evolving field, with several notable advancements in recent weeks. Z.ai's launch of ZCode, an AI coding environment, is a significant development, as it undercuts US pricing and competes with established players like GitHub Copilot and Cursor. ZCode's capabilities and competitive pricing make it an attractive option for developers looking to leverage AI in their coding workflows. Additionally, internal documents from Meta reveal that the company is putting limits on its AI models, Claude and Codex, due to concerns about distillation, highlighting the ongoing challenges and complexities of developing and deploying AI models. Furthermore, the Chinese AI startup that rattled Big Tech is back with an AI coding tool that undercuts US pricing, demonstrating the growing competition and innovation in the AI coding tool market. **Developer Tools & Frameworks** Several notable releases and updates have been announced in the developer tools and frameworks space. Vercel's introduction of its agent framework, eve, provides developers with a foundation for building agent-based applications, enabling the creation of more intelligent and adaptive systems. The launch of ZCode by Z.ai offers developers a new AI coding environment that can compete with established players, providing a more affordable and capable alternative. Additionally, the upcoming deprecation of Gemini 2.5 Pro and Gemini 3 Flash by GitHub Copilot will require developers to adapt to new versions and capabilities, ensuring they can continue to leverage the latest advancements in AI-powered coding tools. These updates and releases demonstrate the rapid evolution of developer tools and frameworks, providing developers with new capabilities and opportunities for innovation. **Industry & Business** The AI industry has seen significant developments in recent weeks, with several notable announcements and partnerships. Mark Zuckerberg's comments on the slower-than-expected progress of AI development efforts at Meta highlight the challenges and complexities of developing and deploying AI models. The launch of ZCode by Z.ai demonstrates the growing competition and innovation in the AI coding tool market, with Chinese startups increasingly challenging established players. The fact that the Chinese AI startup is back with an AI coding tool that undercuts US pricing also highlights the growing importance of global competition in the AI industry. These developments demonstrate the ongoing evolution and growth of the AI industry, with new players and innovations emerging to challenge established leaders. **Worth Watching** Several interesting items deserve attention in the AI and developer space. The fact that Chinese AI is surpassing Anthropic and OpenAI, and costs only a sixth of the price, is a significant development that highlights the growing capabilities and competitiveness of Chinese AI startups. The launch of ZCode by Z.ai is also worth watching, as it demonstrates the growing competition and innovation in the AI coding tool market. Additionally, the internal documents from Meta revealing limits on Claude and Codex due to concerns about distillation provide valuable insights into the ongoing challenges and complexities of developing and deploying AI models. These items demonstrate the rapid evolution and growth of the AI industry, with new developments and innovations emerging regularly.