Latent.Space: All Model Labs Are Now Agent Labs — Industry-Wide Pivot from Model to Product

Summary

Latent Space's AINews documented a structural shift across the major AI labs in May 2026: model labs are reorganizing as agent labs. OpenAI leadership has publicly stated "the model alone is no longer the product," and the week's releases bore that out — OpenAI shipped substantial Codex updates (app screenshots, improved goal-setting, analytics), Google introduced Gemini Spark as a persistent personal AI agent for recurring tasks, AI21 shut down its model team entirely to focus on agents, and De