Vercel AI Updates: July 1, 2026

1. Claude Sonnet 5 Now Available on Vercel AI Gateway

Vercel. Vercel added Anthropic’s Claude Sonnet 5 to its AI Gateway, accessible as anthropic/claude-sonnet-5 in the AI SDK or through the model playground. Vercel says the model improves on Sonnet 4.6 across coding and agentic work, reaching outcomes on many tasks that previously required an Opus model while staying at Sonnet pricing, with better instruction-following, document parsing, and long-context memory. Launch pricing runs through August 31, 2026 at $2 per million input tokens and $10 per million output tokens, rising to $3 and $15 afterward. Source

2. Vercel Agent Expands with Dashboard Chat, Investigations, and Approved Actions

Vercel. Vercel moved an expanded Vercel Agent into public beta, adding dashboard chat that answers project questions using live deployment data, production investigations that trace root causes of failed deployments, runtime errors, and cost spikes, and approved actions that can open pull requests, roll back deployments, or change configuration with user authorization. The agent runs under its own identity, stays bounded by the requesting user’s permissions, and is read-only by default, with elevated operations requiring explicit approval and logged attribution. The beta is available to Pro and Enterprise teams, with investigation and code-generation tasks billed at provider rates plus Vercel’s $0.25 per million tokens fee. Source

3. Nano Banana 2 Lite Arrives on AI Gateway for Low-Cost Image Generation

Vercel. Vercel made Google’s Nano Banana 2 Lite, also known as Gemini 3.1 Flash Lite Image, available on its AI Gateway as google/gemini-3.1-flash-lite-image. The model generates images alongside text in under four seconds and can edit existing images across multiple turns, targeting fast, affordable multimodal workloads. Vercel prices 1K images at $0.034 each, about half the cost of Nano Banana 2 and roughly a quarter of the cost of Nano Banana Pro at the same resolution. Source

4. AI SDK xAI Provider Adds First-Class Video Frame and Reference Options

Vercel. Vercel shipped @ai-sdk/xai@4.0.3, adding first-class frameImages and inputReferences call options for video generation through the xAI provider. The change lets developers pass frame images and input references directly as parameters when generating video, streamlining multimodal video workflows in the AI SDK. The patch also bumps internal provider dependencies. Source