Why Smart AI Founders Are Ditching Fine-Tuning — and Betting on Context Engineering How a painful startup lesson led one NLP veteran to redefine what “intelligence” really means in the AI age. 1. The Startup That Was Crushed by Its Own Model Meet Peak, a co-founder of Manus and a veteran with over 10 years of experience in Natural Language Processing (NLP). A few years ago, Peak launched an ambitious AI startup. Like many others at the time, his team decided to go all in on training their own model. They believed that with enough fine-tuning and computational horsepower, they …
Context Engineering: The Next Frontier in Large Language Model Optimization “Providing structured cognitive tools to GPT-4.1 increased its pass@1 performance on AIME2024 from 26.7% to 43.3%, nearly matching o1-preview capabilities.” — IBM Zurich Research, June 2025 – Prompt Engineering + Context Engineering ↓ ↓ “What you say” “Everything the model sees” (Single instruction) (Examples, memory, retrieval, tools, state, control flow) Why Context Engineering Matters While most focus on prompt optimization, IBM Zurich’s 2025 breakthrough revealed a deeper opportunity. Their experiments demonstrated that structured cognitive tools triggered quantum leaps in reasoning capabilities—marking the birth of context engineering as a distinct discipline. …