Last updated: June 2026. Reviewed by Report AI editorial. Every term links to its full definition, with primary-source examples in 2025–2026.
Plain-language definitions of the AI concepts that show up across the Library. Every entry has the canonical meaning, how it works, and why it matters in 2026 — cross-linked so you can navigate from one idea to the next without losing context.
Core concepts
Generative AI
AI that creates text, images, code, or audio rather than just classifying or ranking.
Large Language Model (LLM)
A transformer trained on vast text corpora to predict the next token and generate language.
Foundation Model
A large model pre-trained on broad data, then adapted to many downstream tasks.
Frontier Model
The most capable general-purpose models at any given time — OpenAI, Anthropic, Google, DeepSeek.
Agents & the next paradigm
AI Agent
An autonomous AI that plans, uses tools, and executes multi-step tasks on a user’s behalf.
Multiagent System
Multiple specialized agents that coordinate — Gartner’s named successor to single-agent AI.
World Model
A model that learns environment dynamics — the lab-language successor to text-only LLMs.
Embodied AI
AI that perceives and acts in the physical world — humanoid robots, drones, autonomous vehicles.
Infrastructure & economics
AI Inference
Running a trained model to produce a response — the cost dropped ~280-fold from 2022 to 2024.
Tokens
The basic units of text an LLM processes — the unit in which AI usage is priced.
GPU
Graphics processing unit — the dominant hardware for training and serving modern AI.
Hyperscaler
AWS, Azure, Google Cloud, Meta, Oracle — the cloud giants that host most large-scale AI.
Capex
Capital expenditure — hyperscaler AI capex is projected to top $600B in 2026.
Performance & policy
Benchmark
A standardized test — SWE-bench, MMLU, GPQA, HLE — used to compare AI models head to head.
Sovereign AI
A nation’s own compute, models, and capital — the organizing idea behind every 2026 national AI strategy.
EU AI Act
The EU’s comprehensive AI law — most obligations apply from August 2026.
All terms (A–Z)
- AI Agent
- AI Inference
- Benchmark
- Capex
- Embodied AI
- EU AI Act
- Foundation Model
- Frontier Model
- Generative AI
- GPU
- Hyperscaler
- Large Language Model (LLM)
- Multiagent System
- Sovereign AI
- Tokens
- World Model
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