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    Technology

    Latent Space: The AI Engineer Podcast

    The podcast by and for AI Engineers! In 2025, over 10 million readers and listeners came to Latent Space to hear about news, papers and interviews in Software 3.0.

    We cover Foundation Models changing every domain in Code Generation, Multimodality, AI Agents, GPU Infra and more, directly from the founders, builders, and thinkers involved in pushing the cutting edge. Striving to give you both the definitive take on the Current Thing down to the first introduction to the tech you’ll be using in the next 3 months! We break news and exclusive interviews from OpenAI, Anthropic, Gemini, Meta (Soumith Chintala), Sierra (Bret Taylor), tiny (George Hotz), Databricks/MosaicML (Jon Frankle), Modular (Chris Lattner), Answer.ai (Jeremy Howard), et al.

    Full show notes always on https://latent.space

    Sponsorship and business inquiries: business@latent.space

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    Copyright: © Latent.Space

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    Latest Episodes:
    SF Compute: Commoditizing Compute to solve the GPU Bubble forever Apr 11, 2025
    Show notes

    We are calling for the world’s best AI Engineer talks for AI Architects, /r/localLlama, Model Context Protocol (MCP), GraphRAG, AI in Action, Evals, Agent Reliability, Reasoning and RL, Retrieval/Search/RecSys , Security, Infrastructure, Generative Media, AI Design & Novel AI UX, AI Product Management, Autonomy, Robotics, and Embodied Agents, Computer-Using Agents (CUA), SWE Agents, Vibe Coding, Voice, Sales/Support Agents at AIEWF 2025! Fill out the 2025 State of AI Eng survey for $250 in Amazon cards and see you from Jun 3-5 in SF!Coreweave’s now-successful IPO has led to a lot of questions about the GPU Neocloud market, which Dylan Patel has written extensively about on SemiAnalysis. Understanding markets requires an interesting mix of technical and financial expertise, so this will be a different kind of episode than our usual LS domain.When we first published $2 H100s: How the GPU Rental Bubble Burst, we got 2 kinds of reactions on Hacker News:* “Ah, now the AI bubble is imploding!”* “Duh, this is how it works in every GPU cycle, are you new here?”We don’t think either reaction is quite right. Specifically, it is not normal for the prices of one of the world’s most important resources right now to swing from $1 to $8 per hour based on drastically inelastic demand AND supply curves - from 3 year lock-in contracts to stupendously competitive over-ordering dynamics for NVIDIA allocations — especially with increasing baseline compute needed for even the simplest academic ML research and for new AI startups getting off the ground.We’re fortunate today to have Evan Conrad, CEO of SFCompute, one of the most exciting GPU marketplace startups, talk us through his theory of the economics of GPU markets, and why he thinks CoreWeave and Modal are well positioned, but Digital Ocean and Together are not.However, more broadly, the entire point of SFC is creating liquidity between GPU owners and consumers and making it broadly tradable, even programmable:As we explore, these are the primitives that you can then use to create your own, high quality, custom GPU availability for your time and money budget, similar to how Amazon Spot Instances automated the selective buying of unused compute.The ultimate end state of where all this is going is GPU that trade like other perishable, staple commodities of the world - oil, soybeans, milk. Because the contracts and markets are so well established, the price swings also are not nearly as drastic, and people can also start hedging and managing the risk of one of the biggest costs of their business, just like we have risk-managed commodities risks of all other sorts for centuries. As a former derivatives trader, you can bet that swyx doubleclicked on that…Show Notes* SF Compute* Evan Conrad* Ethan Anderson* John Phamous* The Curve talk* CoreWeave* Andromeda ClusterFull Video PodLike and subscribe!Timestamps* [00:00:05] Introductions* [00:00:12] Introduction of guest Evan Conrad from SF Compute* [00:00:12] CoreWeave Business Model Discussion* [00:05:37] CoreWeave as a Real Estate Business* [00:08:59] Interest Rate Risk and GPU Market Strategy Framework* [00:16:33] Why Together and DigitalOcean will lose money on their clusters* [00:20:37] SF Compute's AI Lab Origins* [00:25:49] Utilization Rates and Benefits of SF Compute Market Model* [00:30:00] H100 GPU Glut, Supply Chain Issues, and Future Demand Forecast* [00:34:00] P2P GPU networks* [00:36:50] Customer stories* [00:38:23] VC-Provided GPU Clusters and Credit Risk Arbitrage* [00:41:58] Market Pricing Dynamics and Preemptible GPU Pricing Model* [00:48:00] Future Plans for Financialization?* [00:52:59] Cluster auditing and quality control* [00:58:00] Futures Contracts for GPUs* [01:01:20] Branding and Aesthetic Choices Behind SF Compute* [01:06:30] Lessons from Previous Startups* [01:09:07] Hiring at SF ComputeTranscriptAlessio [00:00:05]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel, and I'm joined by my co-host Swyx, founder of Smol AI.Swyx [00:00:12]: Hey, and today we're so excited to be finally in the studio with Evan Conrad from SF Compute. Welcome. I've been fortunate enough to be your friend before you were famous, and also we've hung out at various social things. So it's really cool to see that SF Compute is coming into its own thing, and it's a significant presence, at least in the San Francisco community, which of course, it's in the name, so you couldn't help but be. Evan: Indeed, indeed. I think we have a long way to go, but yeah, thanks. Swyx: Of course, yeah. One way I was thinking about kicking on this conversation is we will likely release this right after CoreWeave IPO. And I was watching, I was looking, doing some research on you. You did a talk at The Curve. I think I may have been viewer number 70. It was a great talk. More people should go see it, Evan Conrad at The Curve. But we have like three orders of magnitude more people. And I just wanted to, to highlight, like, what is your analysis of what CoreWeave did that went so right for them? Evan: Sell locked-in long-term contracts and don't really do much short-term at all. I think like a lot of people had this assumption that GPUs would work a lot like CPUs and the like standard business model of any sort of CPU cloud is you buy commodity hardware, then you lay on services that are mostly software, and that gives you high margins and pretty much all your value comes from those services. Not really the underlying. Compute in any capacity and because it's commodity hardware and it's not actually that expensive, most of that can be sort of on-demand compute. And while you do want locked-in contracts for folks, it's mostly just a sort of de-risk situation. It helps you plan revenue because you don't know if people are going to scale up or down. But fundamentally, people are like buying hourly and that's how your business is structured and you make 50 percent margins or higher. This like doesn't really work in GPUs. And the reason why it doesn't work is because you end up with like super price sensitive customers. And that isn't because necessarily it's just way more expensive, though that's totally the case. So in a CPU cloud, you might have like, you know, let's say if you had a million dollars of hardware in GPUs, you have a billion dollars of hardware. And so your customers are buying at much higher volumes than you otherwise expect. And it's also smaller customers who are buying at higher amounts of volume. So relative to what they're spending in general. But in GPUs in particular, your customer cares about the scaling law. So if you take like Gusto, for example, or Rippling or an HR service like this, when they're buying from an AWS or a GCP, they're buying CPUs and they're running web servers, those web servers, they kind of buy up to the capacity that they need, they buy enough, like CPUs, and then they don't buy any more, like, they don't buy any more at all. Yeah, you have a chart that goes like this and then flat. Correct. And it's like a complete flat. It's not even like an incremental tiny amount. It's not like you could just like turn on some more nodes. Yeah. And then suddenly, you know, they would make an incremental amount of money more, like Gusto isn't going to make like, you know, 5% more money, they're gonna make zero, like literally zero money from every incremental GPU or CPU after a certain point. This is not the case for anyone who is training models. And it's not the case for anyone who's doing test time inference or like inference that has scales at test time. Because like you, your scaling laws mean that you may have some diminishing returns, but there's always returns. Adding GPUs always means your model does actually get. And that actually does translate into revenue for you. And then for test time inference, you actually can just like run the inference longer and get a better performance. Or maybe you can run more customers faster and then charge for that. It actually does translate into revenue. Every incremental GPU translates to revenue. And what that means from the customer's perspective is you've got like a flat budget and you're trying to max the amount of GPUs you have for that budget. And it's very distinctly different than like where Augusto or Rippling might think, where they think, oh, we need this amount of CPUs. How do we, you know, reduce that? How do we reduce our amount of money that we're spending on this to get the same amount of CPUs? What that translates to is customers who are spending in really high volume, but also customers who are super price sensitive, who don't give a s**t. Can I swear on this? Can I swear? Yeah. Who don't give a s**t at all about your software. Because a 10% difference in a billion dollars of hardware is like $100 million of value for you. So if you have a 10% margin increase because you have great software, on your billion, the customers are that price sensitive. They will immediately switch off if they can. Because why wouldn't you? You would just take that $100 million. You'd spend $50 million on hiring a software engineering team to replicate anything that you possibly did. So that means that the best way to make money in GPUs was to do basically exactly what CoreWeave did, which is go out and sign only long-term contracts, pretty much ignore the bottom end of the market completely, and then maximize your long-term contracts. With customers who don't have credit risk, who won't sue you, or are unlikely to sue you for frivolous reasons. And then because they don't have credit risk and they won't sue you for frivolous reasons, you can go back to your lender and you can say, look, this is a really low risk situation for us to do. You should give me prime, prime interest rate. You should give me the lowest cost of capital you possibly can. And when you do that, you just make tons of money. The problem that I think lots of people are going to talk about with CoreWeave is it doesn't really look like a cloud platform. It doesn't really look like a cloud provider financially. It also doesn't really look like a software company financially.Swyx [00:05:37]: It's a bank.Evan [00:05:38]: It's a bank. It's a real estate company. And it's very hard to not be that. The problem of that that people have tricked themselves into is thinking that CoreWeave is a bad business. I don't think CoreWeave is explicitly a bad business. There's a bunch of people, there's kind of like two versions of the CoreWeave take at the moment. There's, oh my God, CoreWeave, amazing. CoreWeave is this great new cloud provider competitive with the hyperscalers. And to some extent, this is true from a structural perspective. Like, they are indeed a real sort of thing against the cloud providers in this particular category. And the other take is, oh my gosh, CoreWeave is this horrible business and so on and blah, blah, blah. And I think it's just like a set of perception or perspective. If you think CoreWeave's business is supposed to look like the traditional cloud providers, you're going to be really upset to learn that GPUs don't look like that at all. And in fact, for the hyperscalers, it doesn't look like this either. My intuition is that the hyperscalers are probably going to lose a lot of money, and they know they're going to lose a lot of money on reselling NVIDIA GPUs, at least. Hyperscalers, but I want to, Microsoft, AWS, Google. Correct, yeah. The Microsoft, AWS, and Google. Does Google resell? I mean, Google has TPUs. Google has TPUs, but I think you can also get H100s and so on. But there are like two ways they can make money. One is by selling to small customers who aren't actually buying in any serious volume. They're testing around, they're playing around. And if they get big, they're immediately going to do one of two things. They're going to ask you for a discount. Because they're not going to pay your crazy sort of margin that you have locked into your business. Because for CPUs, you need that. They're going to pay your massive per hour price. And so they want you to sign a long-term contract. And so that's your other way that you can make money, is you can basically do exactly what CoreWeave does, which is have them pay as much as possible upfront and lock in the contract for a long time. Or you can have small customers. But the problem is that for a hyperscaler, the GPUs to... To sell on the low margins relative to what your other business, your CPUs are, is a worse business than what you are currently doing. Because you could have spent the same money on those GPUs. And you could have trained model and you could have made a model on top of it and then turn that into a product and had high margins from your product. Or you could have taken that same money and you could have competed with NVIDIA. And you could have cut into their margin instead. But just simply reselling NVIDIA GPUs doesn't work like your CPU business. Where you're able to capture high margins from big customers and so on. And then they never leave you because your customers aren't actually price sensitive. And so they won't switch off if your prices are a little higher. You actually had a really nice chart, again, on that talk of this two by two. Sure. Of like where you want to be. And you also had some hot takes on who's making money and who isn't. Swyx: So CoreUv locked up long-term contracts. Get that. Yes. Maybe share your mental framework. Just verbally describe it because we're trying to help the audio listeners as well. Sure. People can look up the chart if they want to. Evan: Sure. Okay. So this is a graph of interest rates. And on the y-axis, it's a probability you're able to sell your GPUs from zero to one. And on the x-axis, it's how much they'll depreciate in cost from zero to one. And then you had ISO cost curves or ISO interest rate curves. Yeah. So they kind of shape in a sort of concave fashion. Yeah. The lowest interest rates enable the most aggressive. form of this cost curve. And the higher interest rates go, the more you have to push out to the top right. Yeah. And then you had some analysis of where every player sits in this, including CoreUv, but also Together and Modal and all these other guys. I thought that was super insightful. So I just wanted to elaborate. Basically, it's like a graph of risk and the genres of places where you can be and what the risk is associated with that. The optimal thing for you to do, if you can, is to lock in long-term contracts that are paid all up front or in with a situation in which you trust the other party to pay you over time. So if you're, you know, selling to Microsoft or something or OpenAI. Which are together 77% of the revenue of CoreUv. Yeah. So if you're doing that, that's a great business to be in because your interest rate that you can pitch for is really low because no one thinks Microsoft is going to default. And like maybe OpenAI will default, but the backing by Microsoft kind of doesn't. And I think there's enough, like, generally, it looks like OpenAI is winning that you can make it's just a much better case than if you're selling to the pre-seed startup that just raised $30 million or something pre-revenue. It's like way easier to make the case that the OpenAI is not going to default than the pre-seed startup. And so the optimal place to be is selling to the maximally low risk customer for as long as possible. And then you never have to…

    Full show notes at the publisher

    The Creators of Model Context Protocol Apr 03, 2025
    Show notes

    We are happy to announce that there will be a dedicated MCP track at the 2025 AI Engineer World's Fair, taking place Jun 3rd to 5th in San Francisco, where the MCP core team and major contributors and builders will be meeting. Join us and apply to speak or sponsor!When we first wrote Why MCP Won, we had no idea how quickly it was about to win.In the past 4 weeks, OpenAI and now Google have now announced the MCP support, effectively confirming our prediction that MCP was the presumptive winner of the agent standard wars. MCP has now overtaken OpenAPI, the incumbent option and most direct alternative, in GitHub stars (3 months ahead of conservative trendline):We have explored the state of MCP at AIE (now the first ever >100k views workshop):And since then, we’ve added a 7th reason why MCP won - this team acts very quickly on feedback, with the 2025-03-26 spec update adding support for stateless/resumable/streamable HTTP transports, and comprehensive authz capabilities based on OAuth 2.1.This bodes very well for the future of the community and project. For protocol and history nerds, we also asked David and Justin to tell the origin story of MCP, which we leave to the reader to enjoy (you can also skim the transcripts, or, the changelogs of a certain favored IDE). It’s incredible the impact that individual engineers solving their own problems can have on an entire industry.Full video episodeLike and subscribe on YouTube!Show Links* David* Justin* MCP* Why MCP WonTimestamps* 00:00 Introduction and Guest Welcome* 00:37 What is MCP?* 02:00 The Origin Story of MCP* 05:18 Development Challenges and Solutions* 08:06 Technical Details and Inspirations* 29:45 MCP vs Open API* 32:48 Building MCP Servers* 40:39 Exploring Model Independence in LLMs* 41:36 Building Richer Systems with MCP* 43:13 Understanding Agents in MCP* 45:45 Nesting and Tool Confusion in MCP* 49:11 Client Control and Tool Invocation* 52:08 Authorization and Trust in MCP Servers* 01:01:34 Future Roadmap and Stateless Servers* 01:10:07 Open Source Governance and Community Involvement* 01:18:12 Wishlist and Closing RemarksTranscriptAlessio [00:00:02]: Hey, everyone. Welcome back to Latent Space. This is Alessio, partner and CTO at Decibel, and I'm joined by my co-host Swyx, founder of Small AI.swyx [00:00:10]: Hey, morning. And today we have a remote recording, I guess, with David and Justin from Anthropic over in London. Welcome. Hey, good You guys have created a storm of hype because of MCP, and I'm really glad to have you on. Thanks for making the time. What is MCP? Let's start with a crisp what definition from the horse's mouth, and then we'll go into the origin story. But let's start off right off the bat. What is MCP?Justin/David [00:00:43]: Yeah, sure. So Model Context Protocol, or MCP for short, is basically something we've designed to help AI applications extend themselves or integrate with an ecosystem of plugins, basically. The terminology is a bit different. We use this client-server terminology, and we can talk about why that is and where that came from. But at the end of the day, it really is that. It's like extending and enhancing the functionality of AI application.swyx [00:01:05]: David, would you add anything?Justin/David [00:01:07]: Yeah, I think that's actually a good description. I think there's like a lot of different ways for how people are trying to explain it. But at the core, I think what Justin said is like extending AI applications is really what this is about. And I think the interesting bit here that I want to highlight, it's AI applications and not models themselves that this is focused on. That's a common misconception that we can talk about a bit later. But yeah. Another version that we've used and gotten to like is like MCP is kind of like the USB-C port of AI applications and that it's meant to be this universal connector to a whole ecosystem of things.swyx [00:01:44]: Yeah. Specifically, an interesting feature is, like you said, the client and server. And it's a sort of two-way, right? Like in the same way that said a USB-C is two-way, which could be super interesting. Yeah, let's go into a little bit of the origin story. There's many people who've tried to make statistics. There's many people who've tried to build open source. I think there's an overall, also, my sense is that Anthropic is going hard after developers in the way that other labs are not. And so I'm also curious if there was any external influence or was it just you two guys just in a room somewhere riffing?Justin/David [00:02:18]: It is actually mostly like us two guys in a room riffing. So this is not part of a big strategy. You know, if you roll back time a little bit and go into like July 2024. I was like, started. I started at Anthropic like three months earlier or two months earlier. And I was mostly working on internal developer tooling, which is what I've been doing for like years and years before. And as part of that, I think there was an effort of like, how do I empower more like employees at Anthropic to use, you know, to integrate really deeply with the models we have? Because we've seen these, like, how good it is, how amazing it will become even in the future. And of course, you know, just dogfoot your own model as much as you can. And as part of that. From my development tooling background, I quickly got frustrated by the idea that, you know, on one hand side, I have Cloud Desktop, which is this amazing tool with artifacts, which I really enjoyed. But it was very limited to exactly that feature set. And it was there was no way to extend it. And on the other hand side, I like work in IDEs, which could greatly like act on like the file system and a bunch of other things. But then they don't have artifacts or something like that. And so what I constantly did was just copy. Things back and forth on between Cloud Desktop and the IDE, and that quickly got me, honestly, just very frustrated. And part of that frustration wasn't like, how do I go and fix this? What, what do we need? And back to like this development developer, like focus that I have, I really thought about like, well, I know how to build all these integrations, but what do I need to do to let these applications let me do this? And so it's very quickly that you see that this is clearly like an M times N problem. Like you have multiple like applications. And multiple integrations you want to build and like, what that is better there to fix this than using a protocol. And at the same time, I was actually working on an LSP related thing internally that didn't go anywhere. But you put these things together in someone's brain and let them wait for like a few weeks. And out of that comes like the idea of like, let's build some, some protocol. And so back to like this little room, like it was literally just me going to a room with Justin and go like, I think we should build something like this. Uh, this is a good idea. And Justin. Lucky for me, just really took an interest in the idea, um, and, and took it from there to like, to, to build something, together with me, that's really the inception story is like, it's us to, from then on, just going and building it over, over the course of like, like a month and a half of like building the protocol, building the first integration, like Justin did a lot of the, like the heavy lifting of the first integrations in cloud desktop. I did a lot of the first, um, proof of concept of how this can look like in an IDE. And if you, we could talk about like some of. All the tidbits you can find way before the inception of like before the official release, if you were looking at the right repositories at the right time, but there you go. That's like some of the, the rough story.Alessio [00:05:12]: Uh, what was the timeline when, I know November 25th was like the official announcement date. When did you guys start working on it?Justin/David [00:05:19]: Justin, when did we start working on that? I think it, I think it was around July. I think, yeah, I, as soon as David pitched this initial idea, I got excited pretty quickly and we started working on it, I think. I think almost immediately after that conversation and then, I don't know, it was a couple, maybe a few months of, uh, building the really unrewarding bits, if we're being honest, because for, for establishing something that's like this communication protocol has clients and servers and like SDKs everywhere, there's just like a lot of like laying the groundwork that you have to do. So it was a pretty, uh, that was a pretty slow couple of months. But then afterward, once you get some things talking over that wire, it really starts to get exciting and you can start building. All sorts of crazy things. And I think this really came to a head. And I don't remember exactly when it was, maybe like approximately a month before release, there was an internal hackathon where some folks really got excited about MCP and started building all sorts of crazy applications. I think the coolest one of which was like an MCP server that can control a 3d printer or something. And so like, suddenly people are feeling this power of like cloud connecting to the outside world in a really tangible way. And that, that really added some, uh, some juice to us and to the release.Alessio [00:06:32]: Yeah. And we'll go into the technical details, but I just want to wrap up here. You mentioned you could have seen some things coming if you were looking in the right places. We always want to know what are the places to get alpha, how, how, how to find MCP early.Justin/David [00:06:44]: I'm a big Zed user. I liked the Zed editor. The first MCP implementation on an IDE was in Zed. It was written by me and it was there like a month and a half before the official release. Just because we needed to do it in the open because it's an open source project. Um, and so it was, it was not, it was named slightly differently because we. We were not set on the name yet, but it was there.swyx [00:07:05]: I'm happy to go a little bit. Anthropic also had some preview of a model with Zed, right? Some kind of fast editing, uh, model. Um, uh, I, I'm con I confess, you know, I'm a cursor windsurf user. Haven't tried Zed. Uh, what's, what's your, you know, unrelated or, you know, unsolicited two second pitch for, for Zed. That's a good question.Justin/David [00:07:28]: I, it really depends what you value in editors. For me. I, I wouldn't even say I like, I love Zed more than others. I like them all like complimentary in, in a way or another, like I do use windsurf. I do use Zed. Um, but I think my, my main pitch for Zed is low latency, super smooth experience editor with a decent enough AI integration.swyx [00:07:51]: I mean, and maybe, you know, I think that's, that's all it is for a lot of people. Uh, I think a lot of people obviously very tied to the VS code paradigm and the extensions that come along with it. Okay. So I wanted to go back a little bit. You know, on, on, on some of the things that you mentioned, Justin, uh, which was building MCP on paper, you know, obviously we only see the end result. It just seems inspired by LSP. And I, I think both of you have acknowledged that. So how much is there to build? And when you say build, is it a lot of code or a lot of design? Cause I felt like it's a lot of design, right? Like you're picking JSON RPC, like how much did you base off of LSP and, and, you know, what, what, what was the sort of hard, hard parts?Justin/David [00:08:29]: Yeah, absolutely. I mean, uh, we, we definitely did take heavy inspiration from LSP. David had much more prior experience with it than I did working on developer tools. So, you know, I've mostly worked on products or, or sort of infrastructural things. LSP was new to me. But as a, as a, like, or from design principles, it really makes a ton of sense because it does solve this M times N problem that David referred to where, you know, in the world before LSP, you had all these different IDEs and editors, and then all these different languages that each wants to support or that their users want them to support. And then everyone's just building like one. And so, like, you use Vim and you might have really great support for, like, honestly, I don't know, C or something, and then, like, you switch over to JetBrains and you have the Java support, but then, like, you don't get to use the great JetBrains Java support in Vim and you don't get to use the great C support in JetBrains or something like that. So LSP largely, I think, solved this problem by creating this common language that they could all speak and that, you know, you can have some people focus on really robust language server implementations, and then the IDE developers can really focus on that side. And they both benefit. So that was, like, our key takeaway for MCP is, like, that same principle and that same problem in the space of AI applications and extensions to AI applications. But in terms of, like, concrete particulars, I mean, we did take JSON RPC and we took this idea of bidirectionality, but I think we quickly took it down a different route after that. I guess there is one other principle from LSP that we try to stick to today, which is, like, this focus on how features manifest. More than. The semantics of things, if that makes sense. David refers to it as being presentation focused, where, like, basically thinking and, like, offering different primitives, not because necessarily the semantics of them are very different, but because you want them to show up in the application differently. Like, that was a key sort of insight about how LSP was developed. And that's also something we try to apply to MCP. But like I said, then from there, like, yeah, we spent a lot of time, really a lot of time, and we could go into this more separately, like, thinking about each of the primitives that we want to offer in MCP. And why they should be different, like, why we want to have all these different concepts. That was a significant amount of work. That was the design work, as you allude to. But then also already out of the gate, we had three different languages that we wanted to at least support to some degree. That was TypeScript, Python, and then for the Z integration, it was Rust. So there was some SDK building work in those languages, a mixture of clients and servers to build out to try to create this, like, internal ecosystem that we could start playing with. And then, yeah, I guess just trying to make everything, like, robust over, like, I don't know, this whole, like, concept that we have for local MCP, where you, like, launch subprocesses and stuff and making that robust took some time as well. Yeah, maybe adding to that, I think the LSP inference goes even a little bit further. Like, we did take actually quite a look at criticisms on LSP, like, things that LSP didn't do right and things that people felt they would love to have different and really took that to heart to, like, see, you know, what are some of the things. that we wish, you know, we should do better. We took a, you know, like, a lengthy, like, look at, like, their very unique approach to JSON RPC, I may say, and then we decided that this is not what we do. And so there's, like, these differences, but it's clearly very, very inspired. Because I think when you're trying to build and focus, if you're trying to build something like MCP, you kind of want to pick the areas you want to innovate in, but you kind of want to be boring about the other parts in pattern matching LSP. So the problem allows you to be boring i…

    Full show notes at the publisher

    Unsupervised Learning x Latent Space Crossover Special Mar 29, 2025
    Show notes

    If you’re in SF: Join us for the Claude Plays Pokemon hackathon this Sunday!If you’re not: Fill out the 2025 State of AI Eng survey for $250 in Amazon cards!Unsupervised Learning is a podcast that interviews the sharpest minds in AI about what’s real today, what will be real in the future and what it means for businesses and the world - helping builders, researchers and founders deconstruct and understand the biggest breakthroughs. Top guests: Noam Shazeer, Bob McGrew, Noam Brown, Dylan Patel, Percy Liang, David LuanFull Episode on Their YouTubeTimestamps* 00:00 Introduction and Excitement for Collaboration* 00:27 Reflecting on Surprises in AI Over the Past Year* 01:44 Open Source Models and Their Adoption* 06:01 The Rise of GPT Wrappers* 06:55 AI Builders and Low-Code Platforms* 09:35 Overhyped and Underhyped AI Trends* 22:17 Product Market Fit in AI* 28:23 Google's Current Momentum* 28:33 Customer Support and AI* 29:54 AI's Impact on Cost and Growth* 31:05 Voice AI and Scheduling* 32:59 Emerging AI Applications* 34:12 Education and AI* 36:34 Defensibility in AI Applications* 40:10 Infrastructure and AI* 47:08 Challenges and Future of AI* 52:15 Quick Fire Round and Closing RemarksTranscript[00:00:00] Introduction and Podcast Overview[00:00:00] Jacob: well, thanks so much for doing this, guys. I feel like we've we've been excited to do a collab for a while. I[00:00:13] swyx: love crossovers. Yeah. Yeah. This, this is great. Like the ultimate meta about just podcasters talking to other podcasters. Yeah. It's a lot. Podcasts all the way up.[00:00:21] Jacob: I figured we'd have a pretty free ranging conversation today but brought a few conversation starters to, to, to kick us off.[00:00:27] Reflecting on AI Surprises and Trends[00:00:27] Jacob: And so I figured one interesting place to start is you know, obviously it feels that this world is changing like every few months. Wondering as you guys reflect path on the past year, like what surprised you the most?[00:00:36] Alessio: I think definitely recently models we kinda on the, on the right here. Like, oh, that, well, I, I I think there's, there's like the, what surprised us in a good way.[00:00:44] May maybe in a, in a bad way. I would say in a good way. Recently models and I think the release of them right after the new reps scaling instead talked by Ilia. I think there was maybe like a, a little. It's so over and then we're so back. I'm like such a short, short period. It was really [00:01:00] fortuitous[00:01:00] Jacob: timing though, like right.[00:01:01] As pre-training died, I mean, obviously I'm sure within the labs they knew pre-training was dying and had to find something. But you know, from the outside it was it, it felt like one right into the other.[00:01:09] Alessio: Yeah. Yeah, exactly. So that, that was a good surprise,[00:01:12] swyx: I would say, if you wanna make that comment about timing, I think it's suspiciously neat that like, because we know that Strawberry was being worked on for like two years-ish.[00:01:20] Like, and we know exactly when Nome joined OpenAI, and that was obviously a big strategic bet by OpenAI. So like, for it to transition, so transition so nicely when like, pre-training is kind of tapped out to, into like, oh, now inference time is, is the new scaling law is like conv very convenient. I, I, I like if there were an Illuminati, this would be what they planned.[00:01:41] Or if we're living in a simulation or something. Yeah.[00:01:44] Open Source Models and Their Impact[00:01:44] swyx: Then you said open source[00:01:45] Alessio: as well? Yeah. Well, no, I, I think like open source. Yeah. We're discussing this on the negative. I would say the relevance of open source. I would specifically open models. Yeah, I was surprised the lack, like the llamas of the world by the lack of adoption.[00:01:56] And I mean, people use it obviously, but I would say nobody's [00:02:00] really like a huge fanboy, you know, I think the local llama community and some of the more obvious use cases really like it. But when we talk to like enterprise folks, it's like, it's cool, you know? And I think people love to argue about licenses and all of that, but the reality is that it doesn't really change the adoption path of, of ai.[00:02:18] So[00:02:19] swyx: yeah, the specific stat that I got from on anchor from Braintrust mm-hmm. In one of the episodes that we did was I think he estimated that open source model usage in work in enterprises is that like 5% and going down.[00:02:31] Jacob: And it feels like you're basically all these enterprises are in like use case discovery mode, where it's like, let's just take what we think is the most powerful model and figure out if we can find anything that works.[00:02:39] And, you know, so much of, of, of it feels like discovery of that. And then, right, as you've discovered something, a new generation of models are out and so you have to go do discovery with those. And you know, I think obviously we're probably optimistic that the that the open source models increase in uptake.[00:02:50] It's funny, I was gonna say my biggest surprise in the last year was open source related, but it was just how Fast Open Source caught up on the reasoning models. It was kind of unclear to me, like over time whether there would be, you know, [00:03:00] a compounding advantage for some of the closed source models where in the, okay, in the early days of, of scaling you know, there was a, a tight time loop, but over time, you know, would would the gap increase?[00:03:08] And if anything it feels like a trunk. You know, and I think deep seek specifically was just really surprising in how, you know, in many ways if the value of these model companies is like you have a model for a period of time and you're the only one that can build products on top of that model while you have it.[00:03:21] Like, God, that time period is a lot shorter than a, than I thought it was gonna be a year ago.[00:03:25] swyx: Yeah. I mean, again, I I, I don't like this label of how Fast Open Source caught up because it's really how Fast Deepsea caught up. Right. And now we have, like, I think some of it is that Deepsea is basically gonna stop open sourcing models.[00:03:36] Yeah. So like there, there's no team open source, there's just different companies and they choose to open source or not. And we got lucky with deep seek releasing something and then everyone else is basically distilling from deep seek and those are distillations. Catching up is such an easier lower bar than like actually catching up, which is like you, you are like from scratch.[00:03:56] You're training something that like is competitive on that front. I don't know if [00:04:00] that's happening. Like basically the only player right now is we're waiting for LA four.[00:04:03] Jordan: I mean, it's always an order of magnitude cheaper to replicate what's already been done than to create something fundamentally new.[00:04:09] And so that's why I think deep seek overall was overhyped. Right? I mean obviously it's a good open source, new entrant, but at the same time there's nothing new fundamentally there other than sort of doing it executing what's already been done really well.[00:04:21] Alessio: Yeah,[00:04:21] Jordan: right.[00:04:21] Alessio: So Well, but I think the traces is like maybe the biggest thing, I think most previous open models is like the same model, just a little worse and cheaper.[00:04:30] Yeah. Like R one is like the first model that had the full traces. So I think that's like a net unique thing in fair, open source. But yeah, I, I think like we talked about deep seek in the our n of year 2023 recap, and we're mostly focused on cheaper inference. Like we didn't really have deep, see, deep CV three[00:04:47] swyx: was out then, and we were like, that was already like talking about fine green mixture of experts and all that.[00:04:51] Like that's a great receipt to[00:04:52] Jacob: have[00:04:52] swyx: to be like, yeah.[00:04:52] Jacob: End[00:04:53] swyx: of year 20. Yeah. That's a,[00:04:54] Jacob: that's a, that's, that's an[00:04:55] swyx: impressive one. You follow the right whale believers in Twitter. It's, it's like [00:05:00] pretty obvious. I actually had like so, you know, I used to be in finance and, and a lot, a lot of my hedge fund and PE friends called me up.[00:05:06] They were like, why didn't you tip us off on deep seek? And I'm like, well, I mean, it's been there. It's, it's actually like kind of surprising that like, Nvidia like fell like what, 15% in one day? Yeah. Because deep seek and I, I think it's just like whatever the market, public market narrative decides is a story, becomes the story, but really like the technical movements are usually.[00:05:26] One to two years in the making. Before that,[00:05:27] Jacob: basically these people were telling on themselves that they didn't listen to your podcast. They've been on the end of year 22, 3. No, no,[00:05:32] swyx: no. Like yeah, we weren't, we weren't like banging the drum. So like it's also on us to be like, no, like this. This is an actual tipping point.[00:05:38] And I think I like as people who are like, our function as podcasters and industry analysts is to raise the bar or focus attention on things that you think matter. And sometimes we're too passive about it. And I think I was too passive there. I'd be, I'd be happy to own up on that.[00:05:52] Jacob: No, I feel like over time you guys have moved into this margin general role of like taking stances of things that are or aren't important and, you know I feel like you've done that with MCP of [00:06:00] late and a bunch of[00:06:00] swyx: things.[00:06:00] Yeah.[00:06:01] Challenges and Opportunities in AI Engineering[00:06:01] swyx: So like the, the general pushes is AI engineering, you know, like it's gotta, gotta wrap the shirt. And MCP is part of that, but like the, the general movement is what can engineers do above the model layer to augment model capabilities. And it turns out it's a lot. And turns out we went from like, making fun of GPT rappers to now I think the overwhelming consensus GPT wrappers is the only thing that's interesting.[00:06:20] Yeah.[00:06:21] Jacob: I remember like, Arvin from Perplexity came on our podcast and he was like, I'm proudly a rapper. Like, you know, it's like anyone that's like talking about like, you know, differentiation, like pre-product market fit is like a ridiculous thing to, to say, like, build something people want and then yeah.[00:06:33] Over time you can kind of worry about that.[00:06:35] swyx: Yeah. I, I interviewed him in 2023 and I think he may have been the first person on our podcast to like, probably be a GBT rapper. Yeah. And yeah, and obviously he's built a huge business on that. Totally. Now, now we now we all can't get enough of it. I have another one for, Oh, nice.[00:06:47] That was Alessia's one and we, we perhaps individual answers just to be interesting in the same Uber on the way up. Yeah. You just like in the, in different Oh, I was driving too. Oh, you were driving. So I actually, I mean, it was a Tesla mostly drove mine was [00:07:00] actually, it is interesting that low-code builders did not capture the AI builder market.[00:07:04] Right. AI builders being bought lovable, low-code builders being Zapier, Airtable, retool notion. Any of those, like you're not technical. You can build software.[00:07:14] misc: Yeah.[00:07:14] swyx: Somehow not all them missed it. Why? It's bizarre. Like they should have the DNA, I don't know. They should have. They already have the reach, they already have the, the distribution.[00:07:25] Like why? I I have no idea. The ability to[00:07:27] Jacob: fast follow too. Like I'm surprised there's Yeah. There's just[00:07:29] swyx: nothing. Yeah. What do you make of that? I, it seems and you know, not to come back to the AI engineering future, like it takes a, a certain kind of. Founder mindset or AI engineer mindset to be like, we will build this from whole cloth and not be tied to existing paradigms.[00:07:45] I think, 'cause I like, if I was, if I'm to, you know, you know, Wade or who's, who's, who's the Zapier person than, you know, Mike. Mike who has left the Zapier. Yeah. What's the, yeah. Like you know, Zapier, when they decided to do Zapier ai, they [00:08:00] were like, oh, you can use natural language to make Zap actions, right?[00:08:03] When Notion decided to do Notion ai, they were like, oh, you can like, you know write documents or, you know, fill in tables with, with ai. Like, they didn't do the, the, the, the next step because they already had their base and they were like, let's improve our baseline. And the other people who actually tried for to, to create a phone cloth were like, we, we got no prior preconceptions.[00:08:24] Like, let's see what we can, what kinda software people can build with like from scratch, basically. I don't know that, that's my explanation. I dunno if you guys have any retros on the AI builders?[00:08:33] Jacob: Yeah. Or, or, or did they kind of get lucky getting, you know starting that product journey? Like right as the models were reaching the inflection point?[00:08:39] There's the timing[00:08:40] swyx: issue. Yeah. Yeah, yeah. Yeah. Yeah, I don't know. Like I, I, to some extent, I think the only reason you and I are talking about it is that they, both of them have reported like ridiculous numbers. Like zero to 20 million in three months, basically, both of them. Jordan, did you have a, a big surprise?[00:08:55] Jordan: Yeah, I mean, some of what's already been discussed. I guess the only other thing would be on the Apple side in particular, I [00:09:00] think, I think you know, for the last text message summary, like, but they're[00:09:04] Jacob: funny. They're funny at how bad they had, how off they're, they're viral. Yeah.[00:09:08] Jordan: I mean, so like for the last couple years we've seen so many companies that are trying to do personal assistance, like all these various consumer things, and one of the things we've always asked is, well, apple is in prime position to do all this.[00:09:18] And then with Apple Intelligence, they just. Totally messed up in so many different ways. And then the whole BBC thing saying that the guy shot himself when he didn't. And just like, there's just so many things at this point that I would've thought that they would've ironed up their, their AI products better, but just didn't really catch on,[00:09:35] Jacob: you know, second on this list of, of generally overly broad opening questions would be anything that you guys think is kind of like overhyped or under hyped in the AI world right now?[00:09:43] Alessio: Overhyped agents framework. Sorry. Not naming any particular ones. I'm sorry. Not, not not, yeah, exactly. It's not, I, I would say they're just overall a chase to try and be the framework when the workloads are like in such flux. Yeah. That I just think is like so [00:10:00] hard to reconcile the two. I think what Harrison and Link Chain has done so amazingly, it's like product velocity.[00:10:05] Like, you know, the initial obstructions were maybe not the ending obstruction, but like they were just releasing stuff every day trying to be on top of it. But I think now we're like past that, like what people are looking for now. It's like something that they can actually build on mm…

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    The Agent Network — Dharmesh Shah Mar 28, 2025
    Show notes

    If you’re in SF: Join us for the Claude Plays Pokemon hackathon this Sunday!If you’re not: Fill out the 2025 State of AI Eng survey for $250 in Amazon cards!For this episode: Thanks to Matija and Dan and Meng Shao for sharing on socials.We are SO excited to share our conversation with Dharmesh Shah, co-founder of HubSpot and creator of Agent.ai.A particularly compelling concept we discussed is the idea of "hybrid teams" - the next evolution in workplace organization where human workers collaborate with AI agents as team members. Just as we previously saw hybrid teams emerge in terms of full-time vs. contract workers, or in-office vs. remote workers, Dharmesh predicts that the next frontier will be teams composed of both human and AI members. This raises interesting questions about team dynamics, trust, and how to effectively delegate tasks between human and AI team members.The discussion of business models in AI reveals an important distinction between Work as a Service (WaaS) and Results as a Service (RaaS), something Dharmesh has written extensively about. While RaaS has gained popularity, particularly in customer support applications where outcomes are easily measurable, Dharmesh argues that this model may be over-indexed. Not all AI applications have clearly definable outcomes or consistent economic value per transaction, making WaaS more appropriate in many cases. This insight is particularly relevant for businesses considering how to monetize AI capabilities.The technical challenges of implementing effective agent systems are also explored, particularly around memory and authentication. Shah emphasizes the importance of cross-agent memory sharing and the need for more granular control over data access. He envisions a future where users can selectively share parts of their data with different agents, similar to how OAuth works but with much finer control. This points to significant opportunities in developing infrastructure for secure and efficient agent-to-agent communication and data sharing.Other highlights from our conversation* The Evolution of AI-Powered Agents – Exploring how AI agents have evolved from simple chatbots to sophisticated multi-agent systems, and the role of MCPs in enabling that.* Hybrid Digital Teams and the Future of Work – How AI agents are becoming teammates rather than just tools, and what this means for business operations and knowledge work.* Memory in AI Agents – The importance of persistent memory in AI systems and how shared memory across agents could enhance collaboration and efficiency.* Business Models for AI Agents – Exploring the shift from software as a service (SaaS) to work as a service (WaaS) and results as a service (RaaS), and what this means for monetization.* The Role of Standards Like MCP – Why MCP has been widely adopted and how it enables agent collaboration, tool use, and discovery.* The Future of AI Code Generation and Software Engineering – How AI-assisted coding is changing the role of software engineers and what skills will matter most in the future.* Domain Investing and Efficient Markets – Dharmesh’s approach to domain investing and how inefficiencies in digital asset markets create business opportunities.* The Philosophy of Saying No – Lessons from "Sorry, Must Pass" and how prioritization leads to greater productivity and focus.Full Video Episodeon youtube!Timestamps* 00:00 Introduction and Guest Welcome* 02:29 Dharmesh Shah's Journey into AI* 05:22 Defining AI Agents* 06:45 The Evolution and Future of AI Agents* 13:53 Graph Theory and Knowledge Representation* 20:02 Engineering Practices and Overengineering* 25:57 The Role of Junior Engineers in the AI Era* 28:20 Multi-Agent Systems and MCP Standards* 35:55 LinkedIn's Legal Battles and Data Scraping* 37:32 The Future of AI and Hybrid Teams* 39:19 Building Agent AI: A Professional Network for Agents* 40:43 Challenges and Innovations in Agent AI* 45:02 The Evolution of UI in AI Systems* 01:00:25 Business Models: Work as a Service vs. Results as a Service* 01:09:17 The Future Value of Engineers* 01:09:51 Exploring the Role of Agents* 01:10:28 The Importance of Memory in AI* 01:11:02 Challenges and Opportunities in AI Memory* 01:12:41 Selective Memory and Privacy Concerns* 01:13:27 The Evolution of AI Tools and Platforms* 01:18:23 Domain Names and AI Projects* 01:32:08 Balancing Work and Personal Life* 01:35:52 Final Thoughts and ReflectionsTranscriptAlessio [00:00:04]: Hey everyone, welcome back to the Latent Space podcast. This is Alessio, partner and CTO at Decibel Partners, and I'm joined by my co-host Swyx, founder of Small AI.swyx [00:00:12]: Hello, and today we're super excited to have Dharmesh Shah to join us. I guess your relevant title here is founder of Agent AI.Dharmesh [00:00:20]: Yeah, that's true for this. Yeah, creator of Agent.ai and co-founder of HubSpot.swyx [00:00:25]: Co-founder of HubSpot, which I followed for many years, I think 18 years now, gonna be 19 soon. And you caught, you know, people can catch up on your HubSpot story elsewhere. I should also thank Sean Puri, who I've chatted with back and forth, who's been, I guess, getting me in touch with your people. But also, I think like, just giving us a lot of context, because obviously, My First Million joined you guys, and they've been chatting with you guys a lot. So for the business side, we can talk about that, but I kind of wanted to engage your CTO, agent, engineer side of things. So how did you get agent religion?Dharmesh [00:01:00]: Let's see. So I've been working, I'll take like a half step back, a decade or so ago, even though actually more than that. So even before HubSpot, the company I was contemplating that I had named for was called Ingenisoft. And the idea behind Ingenisoft was a natural language interface to business software. Now realize this is 20 years ago, so that was a hard thing to do. But the actual use case that I had in mind was, you know, we had data sitting in business systems like a CRM or something like that. And my kind of what I thought clever at the time. Oh, what if we used email as the kind of interface to get to business software? And the motivation for using email is that it automatically works when you're offline. So imagine I'm getting on a plane or I'm on a plane. There was no internet on planes back then. It's like, oh, I'm going through business cards from an event I went to. I can just type things into an email just to have them all in the backlog. When it reconnects, it sends those emails to a processor that basically kind of parses effectively the commands and updates the software, sends you the file, whatever it is. And there was a handful of commands. I was a little bit ahead of the times in terms of what was actually possible. And I reattempted this natural language thing with a product called ChatSpot that I did back 20...swyx [00:02:12]: Yeah, this is your first post-ChatGPT project.Dharmesh [00:02:14]: I saw it come out. Yeah. And so I've always been kind of fascinated by this natural language interface to software. Because, you know, as software developers, myself included, we've always said, oh, we build intuitive, easy-to-use applications. And it's not intuitive at all, right? Because what we're doing is... We're taking the mental model that's in our head of what we're trying to accomplish with said piece of software and translating that into a series of touches and swipes and clicks and things like that. And there's nothing natural or intuitive about it. And so natural language interfaces, for the first time, you know, whatever the thought is you have in your head and expressed in whatever language that you normally use to talk to yourself in your head, you can just sort of emit that and have software do something. And I thought that was kind of a breakthrough, which it has been. And it's gone. So that's where I first started getting into the journey. I started because now it actually works, right? So once we got ChatGPT and you can take, even with a few-shot example, convert something into structured, even back in the ChatGP 3.5 days, it did a decent job in a few-shot example, convert something to structured text if you knew what kinds of intents you were going to have. And so that happened. And that ultimately became a HubSpot project. But then agents intrigued me because I'm like, okay, well, that's the next step here. So chat's great. Love Chat UX. But if we want to do something even more meaningful, it felt like the next kind of advancement is not this kind of, I'm chatting with some software in a kind of a synchronous back and forth model, is that software is going to do things for me in kind of a multi-step way to try and accomplish some goals. So, yeah, that's when I first got started. It's like, okay, what would that look like? Yeah. And I've been obsessed ever since, by the way.Alessio [00:03:55]: Which goes back to your first experience with it, which is like you're offline. Yeah. And you want to do a task. You don't need to do it right now. You just want to queue it up for somebody to do it for you. Yes. As you think about agents, like, let's start at the easy question, which is like, how do you define an agent? Maybe. You mean the hardest question in the universe? Is that what you mean?Dharmesh [00:04:12]: You said you have an irritating take. I do have an irritating take. I think, well, some number of people have been irritated, including within my own team. So I have a very broad definition for agents, which is it's AI-powered software that accomplishes a goal. Period. That's it. And what irritates people about it is like, well, that's so broad as to be completely non-useful. And I understand that. I understand the criticism. But in my mind, if you kind of fast forward months, I guess, in AI years, the implementation of it, and we're already starting to see this, and we'll talk about this, different kinds of agents, right? So I think in addition to having a usable definition, and I like yours, by the way, and we should talk more about that, that you just came out with, the classification of agents actually is also useful, which is, is it autonomous or non-autonomous? Does it have a deterministic workflow? Does it have a non-deterministic workflow? Is it working synchronously? Is it working asynchronously? Then you have the different kind of interaction modes. Is it a chat agent, kind of like a customer support agent would be? You're having this kind of back and forth. Is it a workflow agent that just does a discrete number of steps? So there's all these different flavors of agents. So if I were to draw it in a Venn diagram, I would draw a big circle that says, this is agents, and then I have a bunch of circles, some overlapping, because they're not mutually exclusive. And so I think that's what's interesting, and we're seeing development along a bunch of different paths, right? So if you look at the first implementation of agent frameworks, you look at Baby AGI and AutoGBT, I think it was, not Autogen, that's the Microsoft one. They were way ahead of their time because they assumed this level of reasoning and execution and planning capability that just did not exist, right? So it was an interesting thought experiment, which is what it was. Even the guy that, I'm an investor in Yohei's fund that did Baby AGI. It wasn't ready, but it was a sign of what was to come. And so the question then is, when is it ready? And so lots of people talk about the state of the art when it comes to agents. I'm a pragmatist, so I think of the state of the practical. It's like, okay, well, what can I actually build that has commercial value or solves actually some discrete problem with some baseline of repeatability or verifiability?swyx [00:06:22]: There was a lot, and very, very interesting. I'm not irritated by it at all. Okay. As you know, I take a... There's a lot of anthropological view or linguistics view. And in linguistics, you don't want to be prescriptive. You want to be descriptive. Yeah. So you're a goals guy. That's the key word in your thing. And other people have other definitions that might involve like delegated trust or non-deterministic work, LLM in the loop, all that stuff. The other thing I was thinking about, just the comment on Baby AGI, LGBT. Yeah. In that piece that you just read, I was able to go through our backlog and just kind of track the winter of agents and then the summer now. Yeah. And it's... We can tell the whole story as an oral history, just following that thread. And it's really just like, I think, I tried to explain the why now, right? Like I had, there's better models, of course. There's better tool use with like, they're just more reliable. Yep. Better tools with MCP and all that stuff. And I'm sure you have opinions on that too. Business model shift, which you like a lot. I just heard you talk about RAS with MFM guys. Yep. Cost is dropping a lot. Yep. Inference is getting faster. There's more model diversity. Yep. Yep. I think it's a subtle point. It means that like, you have different models with different perspectives. You don't get stuck in the basin of performance of a single model. Sure. You can just get out of it by just switching models. Yep. Multi-agent research and RL fine tuning. So I just wanted to let you respond to like any of that.Dharmesh [00:07:44]: Yeah. A couple of things. Connecting the dots on the kind of the definition side of it. So we'll get the irritation out of the way completely. I have one more, even more irritating leap on the agent definition thing. So here's the way I think about it. By the way, the kind of word agent, I looked it up, like the English dictionary definition. The old school agent, yeah. Is when you have someone or something that does something on your behalf, like a travel agent or a real estate agent acts on your behalf. It's like proxy, which is a nice kind of general definition. So the other direction I'm sort of headed, and it's going to tie back to tool calling and MCP and things like that, is if you, and I'm not a biologist by any stretch of the imagination, but we have these single-celled organisms, right? Like the simplest possible form of what one would call life. But it's still life. It just happens to be single-celled. And then you can combine cells and then cells become specialized over time. And you have much more sophisticated organisms, you know, kind of further down the spectrum. In my mind, at the most fundamental level, you can almost think of having atomic agents. What is the simplest possible thing that's an agent that can still be called an agent? What is the equivalent of a kind of single-celled organism? And the reason I think that's useful is right now we're headed down the road, which I think is very exciting around tool use, right? That says, okay, the LLMs now can be provided a set of tools that it calls to accomplish whatever it needs to accomplish in the kind of furtherance of whatever goal it's trying to get done. And I'm not overly bothered by it, but if you think about it, if you just squint a little bit and say, well, what if everything was an agent? And what if tools were actually just atomic agents? Because then it's turtles all the way down, right? Then it's like, oh, well, all that's really happening with tool use is that we have a network of agents that know about each other through something like an MMCP and can kind of decompose a particular problem and say, oh, I'm going to delegate this to this set of agents…

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    Building Snipd: The AI Podcast App for Learning Mar 14, 2025
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    We are working with Amplify on the 2025 State of AI Engineering Survey to be presented at the AIE World’s Fair in SF! Join the survey to shape the future of AI Eng!We first met Snipd (affiliate link! we get a free month, you get a free month. but this is not a sponsored pod, we’ve never done one) over a year ago, and were immediately impressed by the design, but were doubtful about the behavior of snipping as the title behavior:Podcast apps are enormously sticky - Spotify spent almost $1b in podcast acquisitions and exclusive content just to get an 8% bump in market share among normies.However, after a disappointing Overcast 2.0 rewrite with no AI features in the last 3 years, I finally bit the bullet and switched to Snipd. It’s 2025, your podcast app should be able to let you search transcripts of your podcasts. Snipd is the best implementation of this so far.And yet they keep shipping:What impressed us wasn’t just how this tiny team of 4 was able to bootstrap a consumer AI app against massive titans and do so well; but also how seriously they think about learning through podcasts and improving retention of knowledge over time, aka “Duolingo for podcasts”. As an educational AI podcast, that’s a mission we can get behind.Full Video PodFind us on YouTube! This was the first pod we’ve ever shot outdoors!Show Notes* How does Shazam work?* Flutter/FlutterFlow* wav2vec paper* Perplexity Online LLM* Google Search Grounding* Comparing Snipd transcription with our Bee episode* NIPS 2017 Flo Rida* Gustav Söderström - Background AudioTimestamps* [00:00:03] Takeaways from AI Engineer NYC* [00:00:17] Weather in New York.* [00:00:26] Swyx and Snipd.* [00:01:01] Kevin's AI summit experience.* [00:01:31] Zurich and AI.* [00:03:25] SigLIP authors join OpenAI.* [00:03:39] Zurich is very costly.* [00:04:06] The Snipd origin story.* [00:05:24] Introduction to machine learning.* [00:09:28] Snipd and user knowledge extraction.* [00:13:48] App's tech stack, Flutter, Python.* [00:15:11] How speakers are identified.* [00:18:29] The concept of "backgroundable" video.* [00:29:05] Voice cloning technology.* [00:31:03] Using AI agents.* [00:34:32] Snipd's future is multi-modal AI.* [00:36:37] Snipd and existing user behaviour.* [00:42:10] The app, summary, and timestamps.* [00:55:25] The future of AI and podcasting.* [1:14:55] Voice AITranscriptswyx [00:00:03]: Hey, I'm here in New York with Kevin Ben-Smith of Snipd. Welcome.Kevin [00:00:07]: Hi. Hi. Amazing to be here.swyx [00:00:09]: Yeah. This is our first ever, I think, outdoors podcast recording.Kevin [00:00:14]: It's quite a location for the first time, I have to say.swyx [00:00:18]: I was actually unsure because, you know, it's cold. It's like, I checked the temperature. It's like kind of one degree Celsius, but it's not that bad with the sun. No, it's quite nice. Yeah. Especially with our beautiful tea. With the tea. Yeah. Perfect. We're going to talk about Snips. I'm a Snips user. I'm a Snips user. I had to basically, you know, apart from Twitter, it's like the number one use app on my phone. Nice. When I wake up in the morning, I open Snips and I, you know, see what's new. And I think in terms of time spent or usage on my phone, I think it's number one or number two. Nice. Nice. So I really had to talk about it also because I think people interested in AI want to think about like, how can we, we're an AI podcast, we have to talk about the AI podcast app. But before we get there, we just finished. We just finished the AI Engineer Summit and you came for the two days. How was it?Kevin [00:01:07]: It was quite incredible. I mean, for me, the most valuable was just being in the same room with like-minded people who are building the future and who are seeing the future. You know, especially when it comes to AI agents, it's so often I have conversations with friends who are not in the AI world. And it's like so quickly it happens that you, it sounds like you're talking in science fiction. And it's just crazy talk. It was, you know, it's so refreshing to talk with so many other people who already see these things and yeah, be inspired then by them and not always feel like, like, okay, I think I'm just crazy. And like, this will never happen. It really is happening. And for me, it was very valuable. So day two, more relevant, more relevant for you than day one. Yeah. Day two. So day two was the engineering track. Yeah. That was definitely the most valuable for me. Like also as a producer. Practitioner myself, especially there were one or two talks that had to do with voice AI and AI agents with voice. Okay. So that was quite fascinating. Also spoke with the speakers afterwards. Yeah. And yeah, they were also very open and, and, you know, this, this sharing attitudes that's, I think in general, quite prevalent in the AI community. I also learned a lot, like really practical things that I can now take away with me. Yeah.swyx [00:02:25]: I mean, on my side, I, I think I watched only like half of the talks. Cause I was running around and I think people saw me like towards the end, I was kind of collapsing. I was on the floor, like, uh, towards the end because I, I needed to get, to get a rest, but yeah, I'm excited to watch the voice AI talks myself.Kevin [00:02:43]: Yeah. Yeah. Do that. And I mean, from my side, thanks a lot for organizing this conference for bringing everyone together. Do you have anything like this in Switzerland? The short answer is no. Um, I mean, I have to say the AI community in, especially Zurich, where. Yeah. Where we're, where we're based. Yeah. It is quite good. And it's growing, uh, especially driven by ETH, the, the technical university there and all of the big companies, they have AI teams there. Google, like Google has the biggest tech hub outside of the U S in Zurich. Yeah. Facebook is doing a lot in reality labs. Uh, Apple has a secret AI team, open AI and then SwapBit just announced that they're coming to Zurich. Yeah. Um, so there's a lot happening. Yeah.swyx [00:03:23]: So, yeah, uh, I think the most recent notable move, I think the entire vision team from Google. Uh, Lucas buyer, um, and, and all the other authors of Siglip left Google to join open AI, which I thought was like, it's like a big move for a whole team to move all at once at the same time. So I've been to Zurich and it just feels expensive. Like it's a great city. Yeah. It's great university, but I don't see it as like a business hub. Is it a business hub? I guess it is. Right.Kevin [00:03:51]: Like it's kind of, well, historically it's, uh, it's a finance hub, finance hub. Yeah. I mean, there are some, some large banks there, right? Especially UBS, uh, the, the largest wealth manager in the world, but it's really becoming more of a tech hub now with all of the big, uh, tech companies there.swyx [00:04:08]: I guess. Yeah. Yeah. And, but we, and research wise, it's all ETH. Yeah. There's some other things. Yeah. Yeah. Yeah.Kevin [00:04:13]: It's all driven by ETH. And then, uh, it's sister university EPFL, which is in Lausanne. Okay. Um, which they're also doing a lot, but, uh, it's, it's, it's really ETH. Uh, and otherwise, no, I mean, it's a beautiful, really beautiful city. I can recommend. To anyone. To come, uh, visit Zurich, uh, uh, let me know, happy to show you around and of course, you know, you, you have the nature so close, you have the mountains so close, you have so, so beautiful lakes. Yeah. Um, I think that's what makes it such a livable city. Yeah.swyx [00:04:42]: Um, and the cost is not, it's not cheap, but I mean, we're in New York city right now and, uh, I don't know, I paid $8 for a coffee this morning, so, uh, the coffee is cheaper in Zurich than the New York city. Okay. Okay. Let's talk about Snipt. What is Snipt and, you know, then we'll talk about your origin story, but I just, let's, let's get a crisp, what is Snipt? Yeah.Kevin [00:05:03]: I always see two definitions of Snipt, so I'll give you one really simple, straightforward one, and then a second more nuanced, um, which I think will be valuable for the rest of our conversation. So the most simple one is just to say, look, we're an AI powered podcast app. So if you listen to podcasts, we're now providing this AI enhanced experience. But if you look at the more nuanced, uh, podcast. Uh, perspective, it's actually, we, we've have a very big focus on people who like your audience who listened to podcasts to learn something new. Like your audience, you want, they want to learn about AI, what's happening, what's, what's, what's the latest research, what's going on. And we want to provide a, a spoken audio platform where you can do that most effectively. And AI is basically the way that we can achieve that. Yeah.swyx [00:05:53]: Means to an end. Yeah, exactly. When you started. Was it always meant to be AI or is it, was it more about the social sharing?Kevin [00:05:59]: So the first version that we ever released was like three and a half years ago. Okay. Yeah. So this was before ChatGPT. Before Whisper. Yeah. Before Whisper. Yeah. So I think a lot of the features that we now have in the app, they weren't really possible yet back then. But we already from the beginning, we always had the focus on knowledge. That's the reason why, you know, we in our team, why we listen to podcasts, but we did have a bit of a different approach. Like the idea in the very beginning was, so the name is Snips and you can create these, what we call Snips, which is basically a small snippet, like a clip from a, from a podcast. And we did envision sort of like a, like a social TikTok platform where some people would listen to full episodes and they would snip certain, like the best parts of it. And they would post that in a feed and other users would consume this feed of Snips. And use that as a discovery tool or just as a means to an end. And yeah, so you would have both people who create Snips and people who listen to Snips. So our big hypothesis in the beginning was, you know, it will be easy to get people to listen to these Snips, but super difficult to actually get them to create them. So we focused a lot of, a lot of our effort on making it as seamless and easy as possible to create a Snip. Yeah.swyx [00:07:17]: It's similar to TikTok. You need CapCut for there to be videos on TikTok. Exactly.Kevin [00:07:23]: And so for, for Snips, basically whenever you hear an amazing insight, a great moment, you can just triple tap your headphones. And our AI actually then saves the moment that you just listened to and summarizes it to create a note. And this is then basically a Snip. So yeah, we built, we built all of this, launched it. And what we found out was basically the exact opposite. So we saw that people use the Snips to discover podcasts, but they really, you know, they don't. You know, really love listening to long form podcasts, but they were creating Snips like crazy. And this was, this was definitely one of these aha moments when we realized like, hey, we should be really doubling down on the knowledge of learning of, yeah, helping you learn most effectively and helping you capture the knowledge that you listen to and actually do something with it. Because this is in general, you know, we, we live in this world where there's so much content and we consume and consume and consume. And it's so easy to just at the end of the podcast. You just start listening to the next podcast. And five minutes later, you've forgotten everything. 90%, 99% of what you've actually just learned. Yeah.swyx [00:08:31]: You don't know this, but, and most people don't know this, but this is my fourth podcast. My third podcast was a personal mixtape podcast where I Snipped manually sections of podcasts that I liked and added my own commentary on top of them and published them as small episodes. Nice. So those would be maybe five to 10 minute Snips. Yeah. And then I added something that I thought was a good story or like a good insight. And then I added my own commentary and published it as a separate podcast. It's cool. Is that still live? It's still live, but it's not active, but you can go back and find it. If you're, if, if you're curious enough, you'll see it. Nice. Yeah. You have to show me later. It was so manual because basically what my process would be, I hear something interesting. I note down the timestamp and I note down the URL of the podcast. I used to use Overcast. So it would just link to the Overcast page. And then. Put in my note taking app, go home. Whenever I feel like publishing, I will take one of those things and then download the MP3, clip out the MP3 and record my intro, outro and then publish it as a, as a podcast. But now Snips, I mean, I can just kind of double click or triple tap.Kevin [00:09:39]: I mean, those are very similar stories to what we hear from our users. You know, it's, it's normal that you're doing, you're doing something else while you're listening to a podcast. Yeah. A lot of our users, they're driving, they're working out, walking their dog. So in those moments when you hear something amazing, it's difficult to just write them down or, you know, you have to take out your phone. Some people take a screenshot, write down a timestamp, and then later on you have to go back and try to find it again. Of course you can't find it anymore because there's no search. There's no command F. And, um, these, these were all of the issues that, that, that we encountered also ourselves as users. And given that our background was in AI, we realized like, wait, hey, this is. This should not be the case. Like podcast apps today, they're still, they're basically repurposed music players, but we actually look at podcasts as one of the largest sources of knowledge in the world. And once you have that different angle of looking at it together with everything that AI is now enabling, you realize like, hey, this is not the way that we, that podcast apps should be. Yeah.swyx [00:10:41]: Yeah. I agree. You mentioned something that you said your background is in AI. Well, first of all, who's the team and what do you mean your background is in AI?Kevin [00:10:48]: Those are two very different things. I'm going to ask some questions. Yeah. Um, maybe starting with, with my backstory. Yeah. My backstory actually goes back, like, let's say 12 years ago or something like that. I moved to Zurich to study at ETH and actually I studied something completely different. I studied mathematics and economics basically with this specialization for quant finance. Same. Okay. Wow. All right. So yeah. And then as you know, all of these mathematical models for, um, asset pricing, derivative pricing, quantitative trading. And for me, the thing that, that fascinates me the most was the mathematical modeling behind it. Uh, mathematics, uh, statistics, but I was never really that passionate about the finance side of things.swyx [00:11:32]: Oh really? Oh, okay. Yeah. I mean, we're different there.Kevin [00:11:36]: I mean, one just, let's say symptom that I noticed now, like, like looking back during that time. Yeah. I think I never read an academic paper about the subject in my free time. And then it was towards the end of my studies. I was already working for a big bank. One of my best friends, he comes to me and says, Hey, I just took this course. You have to, you have to do this. You have to take this lecture. Okay. And I'm like, what, what, w…

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    ⚡️The new OpenAI Agents Platform Mar 11, 2025
    Show notes

    While everyone is now repeating that 2025 is the “Year of the Agent”, OpenAI is heads down building towards it. In the first 2 months of the year they released Operator and Deep Research (arguably the most successful agent archetype so far), and today they are bringing a lot of those capabilities to the API:* Responses API* Web Search Tool* Computer Use Tool* File Search Tool* A new open source Agents SDK with integrated Observability ToolsWe cover all this and more in today’s lightning pod on YouTube!More details here:Responses APIIn our Michelle Pokrass episode we talked about the Assistants API needing a redesign. Today OpenAI is launching the Responses API, “a more flexible foundation for developers building agentic applications”. It’s a superset of the chat completion API, and the suggested starting point for developers working with OpenAI models. One of the big upgrades is the new set of built-in tools for the responses API: Web Search, Computer Use, and Files. Web Search ToolWe previously had Exa AI on the podcast to talk about web search for AI. OpenAI is also now joining the race; the Web Search API is actually a new “model” that exposes two 4o fine-tunes: gpt-4o-search-preview and gpt-4o-mini-search-preview. These are the same models that power ChatGPT Search, and are priced at $30/1000 queries and $25/1000 queries respectively. The killer feature is inline citations: you do not only get a link to a page, but also a deep link to exactly where your query was answered in the result page. Computer Use ToolThe model that powers Operator, called Computer-Using-Agent (CUA), is also now available in the API. The computer-use-preview model is SOTA on most benchmarks, achieving 38.1% success on OSWorld for full computer use tasks, 58.1% on WebArena, and 87% on WebVoyager for web-based interactions.As you will notice in the docs, `computer-use-preview` is both a model and a tool through which you can specify the environment. Usage is priced at $3/1M input tokens and $12/1M output tokens, and it’s currently only available to users in tiers 3-5.File Search ToolFile Search was also available in the Assistants API, and it’s now coming to Responses too. OpenAI is bringing search + RAG all under one umbrella, and we’ll definitely see more people trying to find new ways to build all-in-one apps on OpenAI. Usage is priced at $2.50 per thousand queries and file storage at $0.10/GB/day, with the first GB free.Agent SDK: Swarms++!https://github.com/openai/openai-agents-pythonTo bring it all together, after the viral reception to Swarm, OpenAI is releasing an officially supported agents framework (which was previewed at our AI Engineer Summit) with 4 core pieces:* Agents: Easily configurable LLMs with clear instructions and built-in tools.* Handoffs: Intelligently transfer control between agents.* Guardrails: Configurable safety checks for input and output validation.* Tracing & Observability: Visualize agent execution traces to debug and optimize performance.Multi-agent workflows are here to stay!OpenAI is now explicitly designs for a set of common agentic patterns: Workflows, Handoffs, Agents-as-Tools, LLM-as-a-Judge, Parallelization, and Guardrails. OpenAI previewed this in part 2 of their talk at NYC:Further coverage of the launch from Kevin Weil, WSJ, and OpenAIDevs, AMA here.Show Notes* Assistants API* Swarm (OpenAI)* Fine-Tuning in AI* 2024 OpenAI DevDay Recap with Romain* Michelle Pokrass episode (API lead)Timestamps* 00:00 Intros* 02:31 Responses API * 08:34 Web Search API * 17:14 Files Search API * 18:46 Files API vs RAG * 20:06 Computer Use / Operator API * 22:30 Agents SDKAnd of course you can catch up with the full livestream here:TranscriptAlessio [00:00:03]: Hey, everyone. Welcome back to another Latent Space Lightning episode. This is Alessio, partner and CTO at Decibel, and I'm joined by Swyx, founder of Small AI.swyx [00:00:11]: Hi, and today we have a super special episode because we're talking with our old friend Roman. Hi, welcome.Romain [00:00:19]: Thank you. Thank you for having me.swyx [00:00:20]: And Nikunj, who is most famously, if anyone has ever tried to get any access to anything on the API, Nikunj is the guy. So I know your emails because I look forward to them.Nikunj [00:00:30]: Yeah, nice to meet all of you.swyx [00:00:32]: I think that we're basically convening today to talk about the new API. So perhaps you guys want to just kick off. What is OpenAI launching today?Nikunj [00:00:40]: Yeah, so I can kick it off. We're launching a bunch of new things today. We're going to do three new built-in tools. So we're launching the web search tool. This is basically chat GPD for search, but available in the API. We're launching an improved file search tool. So this is you bringing your data to OpenAI. You upload it. We, you know, take care of parsing it, chunking it. We're embedding it, making it searchable, give you this like ready vector store that you can use. So that's the file search tool. And then we're also launching our computer use tool. So this is the tool behind the operator product in chat GPD. So that's coming to developers today. And to support all of these tools, we're going to have a new API. So, you know, we launched chat completions, like I think March 2023 or so. It's been a while. So we're looking for an update over here to support all the new things that the models can do. And so we're launching this new API. It is, you know, it works with tools. We think it'll be like a great option for all the future agentic products that we build. And so that is also launching today. Actually, the last thing we're launching is the agents SDK. We launched this thing called Swarm last year where, you know, it was an experimental SDK for people to do multi-agent orchestration and stuff like that. It was supposed to be like educational experimental, but like people, people really loved it. They like ate it up. And so we are like, all right, let's, let's upgrade this thing. Let's give it a new name. And so we're calling it the agents SDK. It's going to have built-in tracing in the OpenAI dashboard. So lots of cool stuff going out. So, yeah.Romain [00:02:14]: That's a lot, but we said 2025 was the year of agents. So there you have it, like a lot of new tools to build these agents for developers.swyx [00:02:20]: Okay. I guess, I guess we'll just kind of go one by one and we'll leave the agents SDK towards the end. So responses API, I think the sort of primary concern that people have and something I think I've voiced to you guys when, when, when I was talking with you in the, in the planning process was, is chat completions going away? So I just wanted to let it, let you guys respond to the concerns that people might have.Romain [00:02:41]: Chat completion is definitely like here to stay, you know, it's a bare metal API we've had for quite some time. Lots of tools built around it. So we want to make sure that it's maintained and people can confidently keep on building on it. At the same time, it was kind of optimized for a different world, right? It was optimized for a pre-multi-modality world. We also optimized for kind of single turn. It takes two problems. It takes prompt in, it takes response out. And now with these agentic workflows, we, we noticed that like developers and companies want to build longer horizon tasks, you know, like things that require multiple returns to get the task accomplished. And computer use is one of those, for instance. And so that's why the responses API came to life to kind of support these new agentic workflows. But chat completion is definitely here to stay.swyx [00:03:27]: And assistance API, we've, uh, has a target sunset date of first half of 2020. So this is kind of like, in my mind, there was a kind of very poetic mirroring of the API with the models. This, I kind of view this as like kind of the merging of assistance API and chat completions, right. Into one unified responses. So it's kind of like how GPT and the old series models are also unifying.Romain [00:03:48]: Yeah, that's exactly the right, uh, that's the right framing, right? Like, I think we took the best of what we learned from the assistance API, especially like being able to access tools very, uh, very like conveniently, but at the same time, like simplifying the way you have to integrate, like, you no longer have to think about six different objects to kind of get access to these tools with the responses API. You just get one API request and suddenly you can weave in those tools, right?Nikunj [00:04:12]: Yeah, absolutely. And I think we're going to make it really easy and straightforward for assistance API users to migrate over to responsive. Right. To the API without any loss of functionality or data. So our plan is absolutely to add, you know, assistant like objects and thread light objects to that, that work really well with the responses API. We'll also add like the code interpreter tool, which is not launching today, but it'll come soon. And, uh, we'll add async mode to responses API, because that's another difference with, with, uh, assistance. I will have web hooks and stuff like that, but I think it's going to be like a pretty smooth transition. Uh, once we have all of that in place. And we'll be. Like a full year to migrate and, and help them through any issues they, they, they face. So overall, I feel like assistance users are really going to benefit from this longer term, uh, with this more flexible, primitive.Alessio [00:05:01]: How should people think about when to use each type of API? So I know that in the past, the assistance was maybe more stateful, kind of like long running, many tool use kind of like file based things. And the chat completions is more stateless, you know, kind of like traditional completion API. Is that still the mental model that people should have? Or like, should you buy the.Nikunj [00:05:20]: So the responses API is going to support everything that it's at launch, going to support everything that chat completion supports, and then over time, it's going to support everything that assistance supports. So it's going to be a pretty good fit for anyone starting out with open AI. Uh, they should be able to like go to responses responses, by the way, also has a stateless mode, so you can pass in store false and they'll make the whole API stateless, just like chat completions. You're really trying to like get this unification. A story in so that people don't have to juggle multiple endpoints. That being said, like chat completions, just like the most widely adopted API, it's it's so popular. So we're still going to like support it for years with like new models and features. But if you're a new user, you want to or if you want to like existing, you want to tap into some of these like built in tools or something, you should feel feel totally fine migrating to responses and you'll have more capabilities and performance than the tech completions.swyx [00:06:16]: I think the messaging that I agree that I think resonated the most. When I talked to you was that it is a strict superset, right? Like you should be able to do everything that you could do in chat completions and with assistants. And the thing that I just assumed that because you're you're now, you know, by default is stateful, you're actually storing the chat logs or the chat state. I thought you'd be charging me for it. So, you know, to me, it was very surprising that you figured out how to make it free.Nikunj [00:06:43]: Yeah, it's free. We store your state for 30 days. You can turn it off. But yeah, it's it's free. And the interesting thing on state is that it just like makes particularly for me, it makes like debugging things and building things so much simpler, where I can like create a responses object that's like pretty complicated and part of this more complex application that I've built, I can just go into my dashboard and see exactly what happened that mess up my prompt that is like not called one of these tools that misconfigure one of the tools like the visual observability of everything that you're doing is so, so helpful. So I'm excited, like about people trying that out and getting benefits from it, too.swyx [00:07:19]: Yeah, it's a it's really, I think, a really nice to have. But all I'll say is that my friend Corey Quinn says that anything that can be used as a database will be used as a database. So be prepared for some abuse.Romain [00:07:34]: All right. Yeah, that's a good one. Some of that I've tried with the metadata. That's some people are very, very creative at stuffing data into an object. Yeah.Nikunj [00:07:44]: And we do have metadata with responses. Exactly. Yeah.Alessio [00:07:48]: Let's get through it. All of these. So web search. I think the when I first said web search, I thought you were going to just expose a API that then return kind of like a nice list of thing. But the way it's name is like GPD for all search preview. So I'm guessing you have you're using basically the same model that is in the chat GPD search, which is fine tune for search. I'm guessing it's a different model than the base one. And it's impressive the jump in performance. So just to give an example, in simple QA, GPD for all is 38% accuracy for all search is 90%. But we always talk about. How tools are like models is not everything you need, like tools around it are just as important. So, yeah, maybe give people a quick review on like the work that went into making this special.Nikunj [00:08:29]: Should I take that?Alessio [00:08:29]: Yeah, go for it.Nikunj [00:08:30]: So firstly, we're launching web search in two ways. One in responses API, which is our API for tools. It's going to be available as a web search tool itself. So you'll be able to go tools, turn on web search and you're ready to go. We still wanted to give chat completions people access to real time information. So in that. Chat completions API, which does not support built in tools. We're launching the direct access to the fine tuned model that chat GPD for search uses, and we call it GPD for search preview. And how is this model built? Basically, we have our search research team has been working on this for a while. Their main goal is to, like, get information, like get a bunch of information from all of our data sources that we use to gather information for search and then pick the right things and then cite them. As accurately as possible. And that's what the search team has really focused on. They've done some pretty cool stuff. They use like synthetic data techniques. They've done like all series model distillation to, like, make these four or fine tunes really good. But yeah, the main thing is, like, can it remain factual? Can it answer questions based on what it retrieves and get cited accurately? And that's what this like fine tune model really excels at. And so, yeah, so we're excited that, like, it's going to be directly available in chat completions along with being available as a tool. Yeah.Alessio [00:09:49]: Just to clarify, if I'm using the responses API, this is a tool. But if I'm using chat completions, I have to switch model. I cannot use 01 and call search as a tool. Yeah, that's right. Exactly.Romain [00:09:58]: I think what's really compelling, at least for me and my own uses of it so far, is that when you use, like, web search as a tool, it combines nicely with every other tool and every other feature of the platform. So think about this for a second…

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    ⚡️How Claude 3.7 Plays Pokémon Mar 04, 2025
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    Special lightning pod with David Hershey from Anthropic, the person behind Claude Plays Pokémon. Sonnet 3.7 is currently trying to complete Pokémon Red live on Twitch thanks to a special harness that David built so that it can see the screen, navigate through it, remember facts about the game, and more. (Since recording, it has successfully escaped Mt Moon! You can follow along on Twitch: https://www.twitch.tv/claudeplayspokemon)


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    Open Operator, Serverless Browsers and the Future of Computer-Using Agents Feb 28, 2025
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    Today's episode is with Paul Klein, founder of Browserbase. We talked about building browser infrastructure for AI agents, the future of agent authentication, and their open source framework Stagehand.* [00:00:00] Introductions* [00:04:46] AI-specific challenges in browser infrastructure* [00:07:05] Multimodality in AI-Powered Browsing* [00:12:26] Running headless browsers at scale* [00:18:46] Geolocation when proxying* [00:21:25] CAPTCHAs and Agent Auth* [00:28:21] Building “User take over” functionality* [00:33:43] Stagehand: AI web browsing framework* [00:38:58] OpenAI's Operator and computer use agents* [00:44:44] Surprising use cases of Browserbase* [00:47:18] Future of browser automation and market competition* [00:53:11] Being a solo founderTranscriptAlessio [00:00:04]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel Partners, and I'm joined by my co-host Swyx, founder of Smol.ai.swyx [00:00:12]: Hey, and today we are very blessed to have our friends, Paul Klein, for the fourth, the fourth, CEO of Browserbase. Welcome.Paul [00:00:21]: Thanks guys. Yeah, I'm happy to be here. I've been lucky to know both of you for like a couple of years now, I think. So it's just like we're hanging out, you know, with three ginormous microphones in front of our face. It's totally normal hangout.swyx [00:00:34]: Yeah. We've actually mentioned you on the podcast, I think, more often than any other Solaris tenant. Just because like you're one of the, you know, best performing, I think, LLM tool companies that have started up in the last couple of years.Paul [00:00:50]: Yeah, I mean, it's been a whirlwind of a year, like Browserbase is actually pretty close to our first birthday. So we are one years old. And going from, you know, starting a company as a solo founder to... To, you know, having a team of 20 people, you know, a series A, but also being able to support hundreds of AI companies that are building AI applications that go out and automate the web. It's just been like, really cool. It's been happening a little too fast. I think like collectively as an AI industry, let's just take a week off together. I took my first vacation actually two weeks ago, and Operator came out on the first day, and then a week later, DeepSeat came out. And I'm like on vacation trying to chill. I'm like, we got to build with this stuff, right? So it's been a breakneck year. But I'm super happy to be here and like talk more about all the stuff we're seeing. And I'd love to hear kind of what you guys are excited about too, and share with it, you know?swyx [00:01:39]: Where to start? So people, you've done a bunch of podcasts. I think I strongly recommend Jack Bridger's Scaling DevTools, as well as Turner Novak's The Peel. And, you know, I'm sure there's others. So you covered your Twilio story in the past, talked about StreamClub, you got acquired to Mux, and then you left to start Browserbase. So maybe we just start with what is Browserbase? Yeah.Paul [00:02:02]: Browserbase is the web browser for your AI. We're building headless browser infrastructure, which are browsers that run in a server environment that's accessible to developers via APIs and SDKs. It's really hard to run a web browser in the cloud. You guys are probably running Chrome on your computers, and that's using a lot of resources, right? So if you want to run a web browser or thousands of web browsers, you can't just spin up a bunch of lambdas. You actually need to use a secure containerized environment. You have to scale it up and down. It's a stateful system. And that infrastructure is, like, super painful. And I know that firsthand, because at my last company, StreamClub, I was CTO, and I was building our own internal headless browser infrastructure. That's actually why we sold the company, is because Mux really wanted to buy our headless browser infrastructure that we'd built. And it's just a super hard problem. And I actually told my co-founders, I would never start another company unless it was a browser infrastructure company. And it turns out that's really necessary in the age of AI, when AI can actually go out and interact with websites, click on buttons, fill in forms. You need AI to do all of that work in an actual browser running somewhere on a server. And BrowserBase powers that.swyx [00:03:08]: While you're talking about it, it occurred to me, not that you're going to be acquired or anything, but it occurred to me that it would be really funny if you became the Nikita Beer of headless browser companies. You just have one trick, and you make browser companies that get acquired.Paul [00:03:23]: I truly do only have one trick. I'm screwed if it's not for headless browsers. I'm not a Go programmer. You know, I'm in AI grant. You know, browsers is an AI grant. But we were the only company in that AI grant batch that used zero dollars on AI spend. You know, we're purely an infrastructure company. So as much as people want to ask me about reinforcement learning, I might not be the best guy to talk about that. But if you want to ask about headless browser infrastructure at scale, I can talk your ear off. So that's really my area of expertise. And it's a pretty niche thing. Like, nobody has done what we're doing at scale before. So we're happy to be the experts.swyx [00:03:59]: You do have an AI thing, stagehand. We can talk about the sort of core of browser-based first, and then maybe stagehand. Yeah, stagehand is kind of the web browsing framework. Yeah.What is Browserbase? Headless Browser Infrastructure ExplainedAlessio [00:04:10]: Yeah. Yeah. And maybe how you got to browser-based and what problems you saw. So one of the first things I worked on as a software engineer was integration testing. Sauce Labs was kind of like the main thing at the time. And then we had Selenium, we had Playbrite, we had all these different browser things. But it's always been super hard to do. So obviously you've worked on this before. When you started browser-based, what were the challenges? What were the AI-specific challenges that you saw versus, there's kind of like all the usual running browser at scale in the cloud, which has been a problem for years. What are like the AI unique things that you saw that like traditional purchase just didn't cover? Yeah.AI-specific challenges in browser infrastructurePaul [00:04:46]: First and foremost, I think back to like the first thing I did as a developer, like as a kid when I was writing code, I wanted to write code that did stuff for me. You know, I wanted to write code to automate my life. And I do that probably by using curl or beautiful soup to fetch data from a web browser. And I think I still do that now that I'm in the cloud. And the other thing that I think is a huge challenge for me is that you can't just create a web site and parse that data. And we all know that now like, you know, taking HTML and plugging that into an LLM, you can extract insights, you can summarize. So it was very clear that now like dynamic web scraping became very possible with the rise of large language models or a lot easier. And that was like a clear reason why there's been more usage of headless browsers, which are necessary because a lot of modern websites don't expose all of their page content via a simple HTTP request. You know, they actually do require you to run this type of code for a specific time. JavaScript on the page to hydrate this. Airbnb is a great example. You go to airbnb.com. A lot of that content on the page isn't there until after they run the initial hydration. So you can't just scrape it with a curl. You need to have some JavaScript run. And a browser is that JavaScript engine that's going to actually run all those requests on the page. So web data retrieval was definitely one driver of starting BrowserBase and the rise of being able to summarize that within LLM. Also, I was familiar with if I wanted to automate a website, I could write one script and that would work for one website. It was very static and deterministic. But the web is non-deterministic. The web is always changing. And until we had LLMs, there was no way to write scripts that you could write once that would run on any website. That would change with the structure of the website. Click the login button. It could mean something different on many different websites. And LLMs allow us to generate code on the fly to actually control that. So I think that rise of writing the generic automation scripts that can work on many different websites, to me, made it clear that browsers are going to be a lot more useful because now you can automate a lot more things without writing. If you wanted to write a script to book a demo call on 100 websites, previously, you had to write 100 scripts. Now you write one script that uses LLMs to generate that script. That's why we built our web browsing framework, StageHand, which does a lot of that work for you. But those two things, web data collection and then enhanced automation of many different websites, it just felt like big drivers for more browser infrastructure that would be required to power these kinds of features.Alessio [00:07:05]: And was multimodality also a big thing?Paul [00:07:08]: Now you can use the LLMs to look, even though the text in the dome might not be as friendly. Maybe my hot take is I was always kind of like, I didn't think vision would be as big of a driver. For UI automation, I felt like, you know, HTML is structured text and large language models are good with structured text. But it's clear that these computer use models are often vision driven, and they've been really pushing things forward. So definitely being multimodal, like rendering the page is required to take a screenshot to give that to a computer use model to take actions on a website. And it's just another win for browser. But I'll be honest, that wasn't what I was thinking early on. I didn't even think that we'd get here so fast with multimodality. I think we're going to have to get back to multimodal and vision models.swyx [00:07:50]: This is one of those things where I forgot to mention in my intro that I'm an investor in Browserbase. And I remember that when you pitched to me, like a lot of the stuff that we have today, we like wasn't on the original conversation. But I did have my original thesis was something that we've talked about on the podcast before, which is take the GPT store, the custom GPT store, all the every single checkbox and plugin is effectively a startup. And this was the browser one. I think the main hesitation, I think I actually took a while to get back to you. The main hesitation was that there were others. Like you're not the first hit list browser startup. It's not even your first hit list browser startup. There's always a question of like, will you be the category winner in a place where there's a bunch of incumbents, to be honest, that are bigger than you? They're just not targeted at the AI space. They don't have the backing of Nat Friedman. And there's a bunch of like, you're here in Silicon Valley. They're not. I don't know.Paul [00:08:47]: I don't know if that's, that was it, but like, there was a, yeah, I mean, like, I think I tried all the other ones and I was like, really disappointed. Like my background is from working at great developer tools, companies, and nothing had like the Vercel like experience. Um, like our biggest competitor actually is partly owned by private equity and they just jacked up their prices quite a bit. And the dashboard hasn't changed in five years. And I actually used them at my last company and tried them and I was like, oh man, like there really just needs to be something that's like the experience of these great infrastructure companies, like Stripe, like clerk, like Vercel that I use in love, but oriented towards this kind of like more specific category, which is browser infrastructure, which is really technically complex. Like a lot of stuff can go wrong on the internet when you're running a browser. The internet is very vast. There's a lot of different configurations. Like there's still websites that only work with internet explorer out there. How do you handle that when you're running your own browser infrastructure? These are the problems that we have to think about and solve at BrowserBase. And it's, it's certainly a labor of love, but I built this for me, first and foremost, I know it's super cheesy and everyone says that for like their startups, but it really, truly was for me. If you look at like the talks I've done even before BrowserBase, and I'm just like really excited to try and build a category defining infrastructure company. And it's, it's rare to have a new category of infrastructure exists. We're here in the Chroma offices and like, you know, vector databases is a new category of infrastructure. Is it, is it, I mean, we can, we're in their office, so, you know, we can, we can debate that one later. That is one.Multimodality in AI-Powered Browsingswyx [00:10:16]: That's one of the industry debates.Paul [00:10:17]: I guess we go back to the LLMOS talk that Karpathy gave way long ago. And like the browser box was very clearly there and it seemed like the people who were building in this space also agreed that browsers are a core primitive of infrastructure for the LLMOS that's going to exist in the future. And nobody was building something there that I wanted to use. So I had to go build it myself.swyx [00:10:38]: Yeah. I mean, exactly that talk that, that honestly, that diagram, every box is a startup and there's the code box and then there's the. The browser box. I think at some point they will start clashing there. There's always the question of the, are you a point solution or are you the sort of all in one? And I think the point solutions tend to win quickly, but then the only ones have a very tight cohesive experience. Yeah. Let's talk about just the hard problems of browser base you have on your website, which is beautiful. Thank you. Was there an agency that you used for that? Yeah. Herb.paris.Paul [00:11:11]: They're amazing. Herb.paris. Yeah. It's H-E-R-V-E. I highly recommend for developers. Developer tools, founders to work with consumer agencies because they end up building beautiful things and the Parisians know how to build beautiful interfaces. So I got to give prep.swyx [00:11:24]: And chat apps, apparently are, they are very fast. Oh yeah. The Mistral chat. Yeah. Mistral. Yeah.Paul [00:11:31]: Late chat.swyx [00:11:31]: Late chat. And then your videos as well, it was professionally shot, right? The series A video. Yeah.Alessio [00:11:36]: Nico did the videos. He's amazing. Not the initial video that you shot at the new one. First one was Austin.Paul [00:11:41]: Another, another video pretty surprised. But yeah, I mean, like, I think when you think about how you talk about your company. You have to think about the way you present yourself. It's, you know, as a developer, you think you evaluate a company based on like the API reliability and the P 95, but a lot of developers say, is the website good? Is the message clear? Do I like trust this founder? I'm building my whole feature on. So I've tried to nail that as well as like the reliability of the infrastructure. You're right. It's very hard. And there's a lot of kind of foot guns that you run…

    Full show notes at the publisher

    The Inventors of Deep Research Feb 18, 2025
    Show notes

    While “LLM-powered Search” is as old as Perplexity and SearchGPT, and open source projects like GPTResearcher and clones like OpenDeepResearch exist, the difference with “Deep Research” products is they are both “agentic” (loosely meaning that an LLM decides the next step in a workflow, usually involving tools) and bundling custom-tuned frontier models (custom tuned o3 and Gemini 1.5 Flash).The reception to OpenAI’s Deep Research agent has been nothing short of breathless:"Deep Research is the best public-facing AI product Google has ever released. It's like having a college-educated researcher in your pocket." - Jason Calacanis“I have had [Deep Research] write a number of ten-page papers for me, each of them outstanding. I think of the quality as comparable to having a good PhD-level research assistant, and sending that person away with a task for a week or two, or maybe more. Except Deep Research does the work in five or six minutes.” - Tyler Cowen“Deep Research is one of the best bargains in technology.” - Ben Thompson“my very approximate vibe is that it can do a single-digit percentage of all economically valuable tasks in the world, which is a wild milestone.” - sama“Using Deep Research over the past few weeks has been my own personal AGI moment. It takes 10 mins to generate accurate and thorough competitive and market research (with sources) that previously used to take me at least 3 hours.” - OAI employee“It's like a bazooka for the curious mind” - Dan Shipper“Deep research can be seen as a new interface for the internet, in addition to being an incredible agent… This paradigm will be so powerful that in the future, navigating the internet manually via a browser will be "old-school", like performing arithmetic calculations by hand.” - Jason Wei“One notable characteristic of Deep Research is its extreme patience. I think this is rapidly approaching “superhuman patience”. One realization working on this project was that intelligence and patience go really well together.” - HyungWon“I asked it to write a reference Interaction Calculus evaluator in Haskell. A few exchanges later, it gave me a complete file, including a parser, an evaluator, O(1) interactions and everything. The file compiled, and worked on my test inputs. There are some minor issues, but it is mostly correct. So, in about 30 minutes, o3 performed a job that would take me a day or so.” - Victor Taelin“Can confirm OpenAI Deep Research is quite strong. In a few minutes it did what used to take a dozen hours. The implications to knowledge work is going to be quite profound when you just ask an AI Agent to perform full tasks for you and come back with a finished result.” - Aaron Levie“Deep Research is genuinely useful” - Gary MarcusWith the advent of “Deep Research” agents, we are now routinely asking models to go through 100+ websites and generate in-depth reports on any topic. The Deep Research revolution has hit the AI scene in the last 2 weeks:* Dec 11th: Gemini Deep Research (today’s guest!) rolls out with Gemini Advanced* Feb 2nd: OpenAI releases Deep Research* Feb 3rd: a dozen “Open Deep Research” clones launch* Feb 5th: Gemini 2.0 Flash GA* Feb 15th: Perplexity launches Deep Research* Feb 17th: xAI launches Deep SearchIn today’s episode, we welcome Aarush Selvan and Mukund Sridhar, the lead PM and tech lead for Gemini Deep Research, the originators of the entire category. We asked detailed questions from inspiration to implementation, why they had to finetune a special model for it instead of using the standard Gemini model, how to run evals for them, and how to think about the distribution of use cases. (We also have an upcoming Gemini 2 episode with our returning first guest Logan Kilpatrick so stay tuned 👀)Two Kinds of Inference Time ComputeIn just ~2 months since NeurIPS, we’ve moved from “scaling has hit a wall, LLMs might be over” to “is this AGI already?” thanks to the releases of o1, o3, and DeepSeek R1 (see our o3 post and R1 distillation lightning pod). This new jump in capabilities is now accelerating many other applications; you might remember how “needle in a haystack” was one of the benchmarks people often referenced when looking at model’s capabilities over long context (see our 1M Llama context window ep for more). It seems that we have broken through the “wall” by scaling “inference time” in two meaningful ways — one with more time spent in the model, and the other with more tool calls.Both help build better agents which are clearly more intelligent. But as we discuss on the podcast, we are currently in a “honeymoon” period of agent products where taking more time (or tool calls, or search results) is considered good, because 1) quality is hard to evaluate and 2) we don’t know the realistic upper bound to quality. We know that they’re correlated, but we don’t know to what extent and if the correlation breaks down over extended research periods (they may not).It doesn’t take a PhD to spot the perverse incentives here.Agent UX: From Sync to Async to HybridWe also discussed the technical challenges in moving from a synchronous “chat” paradigm to the “async” world where every agent builder needs to handroll their own orchestration framework in the background.For now, most simple, first-cut implementations including Gemini and OpenAI and Bolt tend to make “locking” async experiences — while the report is generating or the plan is being executed, you can’t continue chatting with the model or editing the plan. In this case we think the OG Agent here is Devin (now GA), which has gotten it right from the beginning.Full Episode on YouTubewith demo!Show Notes* Deep Research* Aarush Selvan* Mukund Sridhar* NotebookLM episode (Raiza / Usama)* Bolt* Bret TaylorChapters* [00:00:00] Introductions* [00:00:22] Overview + Demo of Deep Research* [00:04:31] Editable chain of thought* [00:08:18] Search ranking for sources* [00:09:31] Can you DIY Deep Research?* [00:15:52] UX and research plan editing* [00:16:21] Follow-up queries and context retention* [00:21:06] Evaluating Deep Research* [00:28:06] Ontology of use cases and research patterns* [00:32:56] User perceptions of latency in Deep Research* [00:40:59] Lessons from other AI products* [00:42:12] Multimodal capabilities* [00:45:02] Technical challenges in Deep Research* [00:51:56] Can Deep Research discover new insights?* [00:54:11] Open challenges in agents* [00:57:04] Wrap upTranscriptAlessio [00:00:04]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel Partners, and I'm joined by my co-host Swyx, founder of Smol AI.Swyx [00:00:13]: Hey, and today we're very honored to have in our studio Aarush and Mukund from the Deep Research team, the OG Deep Research team. Welcome.Aarush [00:00:20]: Thanks for having us.Swyx [00:00:22]: Yeah, thanks for making the trip up. I was fortunate enough to be one of the early beta testers of Deep Research when he came out. I would say I was very keen on, I think even at the end of last year, people were already saying it was one of the most exciting agents that was coming out of Google. You know that previously we had on Ryza and Usama from the Novoca LM team. And I think this is an increasing trend that Gemini and Google are shipping interesting user-facing products that use AI. So congrats on your success so far. Yeah, it's been great. Thanks so much for having us here. Yeah. Yeah, thanks for making the trip up. And I'm also excited for your talk that is happening next week. Obviously, we have to talk about what exactly it is, but I'll ask you towards the end. So basically, okay, you know, we have the screen up. Maybe we just start at a high level for people who don't yet know. Like, what is Deep Research? Sure.Aarush [00:01:10]: So Deep Research is a feature where Gemini can act as your personal research assistant to help you learn about any topic that you want more deeply. It's really helpful for those queries. So you want to go from zero to 50 really fast on a new thing. And the way it works is it takes your query, browses the web for about five minutes, and then outputs a research report for you to review and ask follow-up questions. This is one of the first times, you know, something takes about five, six minutes trying to perform your research. So there's a few challenges that brings. Like, you want to make sure you're spending that time in the computer doing what the user wants. So there's some ways of the UX design that we can talk about. As we go through an example, and then there's also challenges in the browsers, the web is super fragmented and being able to plan iteratively and as, as you pass through this noisy information is a challenge by itself.Swyx [00:02:11]: Yeah. This is like the first time sort of Google automating yourself as searching, like you're, you know, you're supposed to be the experts at search, but now you're like meta-searching and like determining the search strategy.Aarush [00:02:22]: Yeah, I think, at least we see it as two different use cases. There are things that, you know, you know exactly what you're looking for and there's a search is still probably, you know, a very, you know, probably one of the best places to go. I think when deep research really shines is there like multiple facets to your question and you spend like a weekend, you know, just opening like 50, 60 tabs and many times I just give up and we wanted to solve that problem and, and give a great starting point for those kinds of journeys.Alessio [00:02:53]: Do we want to start a query so that it runs in the meantime and then we can chat over it?Swyx [00:02:58]: Okay, here's one query that, that we like, we love to test like super niche, random things, like things where there's like no Wikipedia page already about this topic or something like that, right? Because that's where you'll see the most lift from, from a feature like this. So for this one, I've come, I've come, come up with this query. This is actually Mokun's query that he's, he loves to test is help me understand how milk and meat regulations differ between the US and Europe. What's nice is the first step is actually where it puts together a research plan. That you can review. And so this is sort of its guide for how it's going to go about and carry out the research, right? And so this was like a pretty decently well-specified query, but like, let's say you came to Gemini and we're like, tell me about batteries, right? That query, you could mean so many different things. You might want to know about the like latest innovations in battery tech. You might want to know about like a specific type of battery chemistry. And if we're going to spend like five to even 10 minutes researching something, we want to one, understand. What exactly are you trying to accomplish here and to give you an opportunity, like to steer where the research goes, right? Because like, if you had an intern and you ask them this question, the first thing they do is ask you like a bunch of follow-up questions and be like, okay, so like, help me figure out exactly what you want me to do. And so the way we approached it is, we thought like, why don't we just have the model produce its first stab at the, at the research query at, at how it would break this down. And then invite the user to come and kind of engage with how they would want to steer this. Yeah.Editable chain of thoughtAarush [00:04:31]: And many times when you try to use a product like this, you often don't know what questions to look for or the things to look for. So we kind of made this decision very deliberately that instead of asking the users just follow-up questions directly, we kind of lay out, hey, this is what I would do. Like, these are the different facets. For example, here it could be like what additives are allowed and how that differs or labeling. Uh, restrictions and so on in products. The aim of this is to kind of tell the user about the topic a little bit more and also get steer. At the same time, we elicit for like, uh, you know, a follow-up question and so on. So we kind of did that in a joint question.Swyx [00:05:09]: It's kind of like editable chain of thought. Right. Exactly. Exactly. Yeah. I think that, you know, we were talking to you about like your top tips for using deep research. Yeah. Your number one tip is to edit the page. Just edit it. Right. So like we actually, you can actually edit conversationally. We put in a button here just to like draw users' attention to the fact that you can edit. Oh, actually you don't need to click the button. You don't even need to click the button. Yeah. Actually, like in early rounds of testing, we saw no one was editing. And so we were just like, if we just put a button here, maybe people will like. I confess I just hit start a lot. I think like we see that too. Like most people hit start. Um, like it's like the, I'm feeling lucky. Yeah. Yeah. All right. So like I, I can just add a, add a step here and what you'll see is it should like refine the plan and show you a new thing to propose. Here we go. So it's added step seven, find information and milk and meat labeling requirements in the US and the EU, or you can just go ahead and hit start. I think it's still like a nice transparency mechanism. Even if users don't want to engage, like you still kind of know, okay, here's at least an understanding of why I'm getting the report I'm going to get, um, which is kind of nice. And then while it browses the web and Morgan, you should maybe explain kind of how it, how it browses. We show kind of the, the websites it's reading in real time. Yeah. I'll preface this with, I haven't, I forgot to explain the rules. You're a PM and you're a tech lead. Yes. Okay. Yeah.Aarush [00:06:29]: Just for people who, who don't know, we maybe should have started with that. I suppose. Yeah. Yeah. We do each other's work sometimes as well, but more or less that's the boundary. Yeah. Yeah. Um, yeah. So, so what's happening behind the scenes actually is we kind of give this research plan that is a contract and that, uh, you know, has been accepted, but then if you look at the plan, there are things that are obviously parallelizable, so the model figures out which of the sub steps that it can start exploring in parallel, and then it primarily uses like two tools. It has the ability to perform searches and it has abilities to go deeper within, you know, a particular webpage of interest, right? And oftentimes it'll start exploring things in parallel, but that's not sufficient. Many times it, it has to reason based on information found. So in this case, it, one of the searches could have led the EU commission has these additives, and it wants to go and check if the FDA does the same thing, right? So, uh, this notion of being able to read outputs from the previous turn, uh, ground on that to decide what to do next, I think was, was key. Otherwise you have like incomplete information and your report becomes a little bit of a, like a high level, uh, bullet points. So we wanted to go beyond that blueprint and actually figure out, you know, what are the key aspects here. So, yeah. So the, this happens iteratively until the model thinks it's finished. All its steps. And then we kind of entered this, uh, analysis mode and here there can be inconsistencies across sources. You kind of come up with an outline for the report, start generating a draft. The model tries to revise that by self critiquing itself, uh, you know, to find out to finalize the prompt, uh, finalize the report. And that's probably what's happening behind the scenes.Search ranking for sourcesAle…

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    Bee AI: The Wearable Ambient Agent Feb 13, 2025
    Show notes

    Bundle tickets for AIE Summit NYC have now sold out. You can now sign up for the livestream — where we will be making a big announcement soon. NYC-based readers and Summit attendees should check out the meetups happening around the Summit.2024 was a very challenging year for AI Hardware. After the buzz of CES last January, 2024 was marked by the meteoric rise and even harder fall of AI Wearables companies like Rabbit and Humane, with an assist from a pre-wallpaper-app MKBHD. Even Friend.com, the first to launch in the AI pendant category, and which spurred Rewind AI to rebrand to Limitless and follow in their footsteps, ended up delaying their wearable ship date and launching an experimental website chatbot version. We have been cautiously excited about this category, keeping tabs on most of the top entrants, including Omi and Compass. However, to date the biggest winner still standing from the AI Wearable wars is Bee AI, founded by today's guests Maria and Ethan. Bee is an always on hardware device with beamforming microphones, 7 day battery life and a mute button, that can be worn as a wristwatch or a clip-on pin, backed by an incredible transcription, diarization and very long context memory processing pipeline that helps you to remember your day, your todos, and even perform actions by operating a virtual cloud phone. This is one of the most advanced, production ready, personal AI agents we've ever seen, so we were excited to be their first podcast appearance. We met Bee when we ran the world's first Personal AI meetup in April last year.As a user of Bee (and not an investor! just a friend!) it’s genuinely been a joy to use, and we were glad to take advantage of the opportunity to ask hard questions about the privacy and legal/ethical side of things as much as the AI and Hardware engineering side of Bee. We hope you enjoy the episode and tune in next Friday for Bee’s first conference talk: Building Perfect Memory.Full YouTube Video VersionWatch this for the live demo!Show Notes* Bee Website* Ethan Sutin, Maria de Lourdes Zollo* Bee @ Personal AI Meetup* Buy Bee with Listener Discount Code!Timestamps* 00:00:00 Introductions and overview of Bee Computer* 00:01:58 Personal context and use cases for Bee* 00:03:02 Origin story of Bee and the founders' background* 00:06:56 Evolution from app to hardware device* 00:09:54 Short-term value proposition for users* 00:12:17 Demo of Bee's functionality* 00:17:54 Hardware form factor considerations* 00:22:22 Privacy concerns and legal considerations* 00:30:57 User adoption and reactions to wearing Bee* 00:35:56 CES experience and hardware manufacturing challenges* 00:41:40 Software pipeline and inference costs* 00:53:38 Technical challenges in real-time processing* 00:57:46 Memory and personal context modeling* 01:02:45 Social aspects and agent-to-agent interactions* 01:04:34 Location sharing and personal data exchange* 01:05:11 Personality analysis capabilities* 01:06:29 Hiring and future of always-on AITranscriptAlessio [00:00:04]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel Partners, and I'm joined by my co-host Swyx, founder of SmallAI.swyx [00:00:12]: Hey, and today we are very honored to have in the studio Maria and Ethan from Bee.Maria [00:00:16]: Hi, thank you for having us.swyx [00:00:20]: And you are, I think, the first hardware founders we've had on the podcast. I've been looking to have had a hardware founder, like a wearable hardware, like a wearable hardware founder for a while. I think we're going to have two or three of them this year. And you're the ones that I wear every day. So thank you for making Bee. Thank you for all the feedback and the usage. Yeah, you know, I've been a big fan. You are the speaker gift for the Engineering World's Fair. And let's start from the beginning. What is Bee Computer?Ethan [00:00:52]: Bee Computer is a personal AI system. So you can think of it as AI living alongside you in first person. So it can kind of capture your in real life. So with that understanding can help you in significant ways. You know, the obvious one is memory, but that's that's really just the base kind of use case. So recalling and reflective. I know, Swyx, that you you like the idea of journaling, but you don't but still have some some kind of reflective summary of what you experienced in real life. But it's also about just having like the whole context of a human being and understanding, you know, giving the machine the ability to understand, like, what's going on in your life. Your attitudes, your desires, specifics about your preferences, so that not only can it help you with recall, but then anything that you need it to do, it already knows, like, if you think about like somebody who you've worked with or lived with for a long time, they just know kind of without having to ask you what you would want, it's clear that like, that is the future that personal AI, like, it's just going to be very, you know, the AI is just so much more valuable with personal context.Maria [00:01:58]: I will say that one of the things that we are really passionate is really understanding this. Personal context, because we'll make the AI more useful. Think about like a best friend that know you so well. That's one of the things that we are seeing from the user. They're using from a companion standpoint or professional use cases. There are many ways to use B, but companionship and professional are the ones that we are seeing now more.swyx [00:02:22]: Yeah. It feels so dry to talk about use cases. Yeah. Yeah.Maria [00:02:26]: It's like really like investor question. Like, what kind of use case?Ethan [00:02:28]: We're just like, we've been so broken and trained. But I mean, on the base case, it's just like, don't you want your AI to know everything you've said and like everywhere you've been, like, wouldn't you want that?Maria [00:02:40]: Yeah. And don't stay there and repeat every time, like, oh, this is what I like. You already know that. And you do things for me based on that. That's I think is really cool.swyx [00:02:50]: Great. Do you want to jump into a demo? Do you have any other questions?Alessio [00:02:54]: I want to maybe just cover the origin story. Just how did you two meet? What was the was this the first idea you started working on? Was there something else before?Maria [00:03:02]: I can start. So Ethan and I, we know each other from six years now. He had a company called Squad. And before that was called Olabot and was a personal AI. Yeah, I should. So maybe you should start this one. But yeah, that's how I know Ethan. Like he was pivoting from personal AI to Squad. And there was a co-watching with friends product. I had experience working with TikTok and video content. So I had the pivoting and we launched Squad and was really successful. And at the end. The founders decided to sell that to Twitter, now X. So both of us, we joined X. We launched Twitter Spaces. We launched many other products. And yeah, till then, we basically continue to work together to the start of B.Ethan [00:03:46]: The interesting thing is like this isn't the first attempt at personal AI. In 2016, when I started my first company, it started out as a personal AI company. This is before Transformers, no BERT even like just RNNs. You couldn't really do any convincing dialogue at all. I met Esther, who was my previous co-founder. We both really interested in the idea of like having a machine kind of model or understand a dynamic human. We wanted to make personal AI. This was like more geared towards because we had obviously much limited tools, more geared towards like younger people. So I don't know if you remember in 2016, there was like a brief chatbot boom. It was way premature, but it was when Zuckerberg went up on F8 and yeah, M and like. Yeah. The messenger platform, people like, oh, bots are going to replace apps. It was like for about six months. And then everybody realized, man, these things are terrible and like they're not replacing apps. But it was at that time that we got excited and we're like, we tried to make this like, oh, teach the AI about you. So it was just an app that you kind of chatted with and it would ask you questions and then like give you some feedback.Maria [00:04:53]: But Hugging Face first version was launched at the same time. Yeah, we started it.Ethan [00:04:56]: We started out the same office as Hugging Face because Betaworks was our investor. So they had to think. They had a thing called Bot Camp. Betaworks is like a really cool VC because they invest in out there things. They're like way ahead of everybody else. And like back then it was they had something called Bot Camp. They took six companies and it was us and Hugging Face. And then I think the other four, I'm pretty sure, are dead. But and Hugging Face was the one that really got, you know, I mean, 30% success rate is pretty good. Yeah. But yeah, when we it was, it was like it was just the two founders. Yeah, they were kind of like an AI company in the beginning. It was a chat app for teenagers. A lot of people don't know that Hugging Face was like, hey, friend, how was school? Let's trade selfies. But then, you know, they built the Transformers library, I believe, to help them make their chat app better. And then they open sourced and it was like it blew up. And like they're like, oh, maybe this is the opportunity. And now they're Hugging Face. But anyway, like we were obsessed with it at that time. But then it was clear that there's some people who really love chatting and like answering questions. But it's like a lot of work, like just to kind of manually.Maria [00:06:00]: Yeah.Ethan [00:06:01]: Teach like all these things about you to an AI.Maria [00:06:04]: Yeah, there were some people that were super passionate, for example, teenagers. They really like, for example, to speak about themselves a lot. So they will reply to a lot of questions and speak about them. But most of the people, they don't really want to spend time.Ethan [00:06:18]: And, you know, it's hard to like really bring the value with it. We had like sentence similarity and stuff and could try and do, but it was like it was premature with the technology at the time. And so we pivoted. We went to YC and the long story, but like we pivoted to consumer video and that kind of went really viral and got a lot of usage quickly. And then we ended up selling it to Twitter, worked there and left before Elon, not related to Elon, but left Twitter.swyx [00:06:46]: And then I should mention this is the famous time when well, when when Elon was just came in, this was like Esther was the famous product manager who slept there.Ethan [00:06:56]: My co-founder, my former co-founder, she sleeping bag. She was the sleep where you were. Yeah, yeah, she stayed. We had left by that point.swyx [00:07:03]: She very stayed, she's famous for staying.Ethan [00:07:06]: Yeah, but later, later left or got, I think, laid off, laid off. Yeah, I think the whole product team got laid off. She was a product manager, director. But yeah, like we left before that. And then we're like, oh, my God, things are different now. You know, I think this is we really started working on again right before ChatGPT came out. But we had an app version and we kind of were trying different things around it. And then, you know, ultimately, it was clear that, like, there were some limitations we can go on, like a good question to ask any wearable company is like, why isn't this an app? Yes. Yeah. Because like.Maria [00:07:40]: Because we tried the app at the beginning.Ethan [00:07:43]: Yeah. Like the idea that it could be more of a and B comes from ambient. So like if it was more kind of just around you all the time and less about you having to go open the app and do the effort to, like, enter in data that led us down the path of hardware. Yeah. Because the sensors on this are microphones. So it's capturing and understanding audio. We started actually our first hardware with a vision component, too. And we can talk about why we're not doing that right now. But if you wanted to, like, have a continuous understanding of audio with your phone, it would monopolize your microphone. It would get interrupted by calls and you'd have to remember to turn it on. And like that little bit of friction is actually like a substantial barrier to, like, get your phone. It's like the experience of it just being with you all the time and like living alongside you. And so I think that that's like the key reason it's not an app. And in fact, we do have Apple Watch support. So anybody who has a watch, Apple Watch can use it right away without buying any hardware. Because we worked really hard to make a version for the watch that can run in the background, not super drain your battery. But even with the watch, there's still friction because you have to remember to turn it on and it still gets interrupted if somebody calls you. And you have to remember to. We send a notification, but you still have to go back and turn it on because it's just the way watchOS works.Maria [00:09:04]: One of the things that we are seeing from our Apple Watch users, like I love the Apple Watch integration. One of the things that we are seeing is that people, they start using it from Apple Watch and after a couple of days they buy the B because they just like to wear it.Ethan [00:09:17]: Yeah, we're seeing.Maria [00:09:18]: That's something that like they're learning and it's really cool. Yeah.Ethan [00:09:21]: I mean, I think like fundamentally we like to think that like a personal AI is like the mission. And it's more about like the understanding. Connecting the dots, making use of the data to provide some value. And the hardware is like the ears of the AI. It's not like integrating like the incoming sensor data. And that's really what we focus on. And like the hardware is, you know, if we can do it well and have a great experience on the Apple Watch like that, that's just great. I mean, but there's just some platform restrictions that like existing hardware makes it hard to provide that experience. Yeah.Alessio [00:09:54]: What do people do in like two or three days that then convinces them to buy it? They buy the product. This feels like a product where like after you use it for a while, you have enough data to start to get a lot of insights. But it sounds like maybe there's also like a short term.Maria [00:10:07]: From the Apple Watch users, I believe that because every time that you receive a call after, they need to go back to B and open it again. Or for example, every day they need to charge Apple Watch and reminds them to open the app every day. They feel like, okay, maybe this is too much work. I just want to wear the B and just keep it open and that's it. And I don't need to think about it.Ethan [00:10:27]: I think they see the kind of potential of it just from the watch. Because even if you wear it a day, like we send a summary notification at the end of the day about like just key things that happened to you in your day. And like I didn't even think like I'm not like a journaling type person or like because like, oh, I just live the day. Why do I need to like think about it? But like it's actually pretty sometimes I'm surprised how interesting it is to me just to kind of be like, oh, yeah, that and how it kind of fits together. And I think that's like just something people get immediately with the watch. But they're like, oh, I'd like an easier watch. I'…

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