Latent Space: The AI Engineer Podcast

ChatGPT Codex is here - the first cloud hosted Autonomous Software Engineer (A-SWE) from OpenAI. We sat down for a quick pod with two core devs on the ChatGPT Codex team: Josh Ma and Alexander Embiricos to get the inside scoop on the origin story of Codex, from WHAM to its future roadmap. Follow them: https://github.com/joshma and https://x.com/embirico Chapters - 00:00 Introduction to the Latent Space Podcast - 00:59 The Launch of ChatGPT Codex - 03:08 Personal Journeys into AI Development - 05:50 The Evolution of Codex and AI Agents - 08:55 Understanding the Form Factor of Codex - 11:48 Building a Software Engineering Agent - 14:53 Best Practices for Using AI Agents - 17:55 The Importance of Code Structure for AI - 21:10 Navigating Human and AI Collaboration - 23:58 Future of AI in Software Development - 28:18 Planning and Decision-Making in AI Development - 31:37 User, Developer, and Model Dynamics - 35:28 Building for the Future: Long-Term Vision - 39:31 Best Practices for Using AI Tools - 42:32 Understanding the Compute Platform - 48:01 Iterative Deployment and Future Improvements

More info: https://docs.anthropic.com/en/docs/claude-code/overview The AI coding wars have now split across four battlegrounds: 1. AI IDEs: with two leading startups in Windsurf ($3B acq. by OpenAI) and Cursor ($9B valuation) and a sea of competition behind them (like Cline, Github Copilot, etc). 2. Vibe coding platforms: Bolt.new, Lovable, v0, etc. all experiencing fast growth and getting to the tens of millions of revenue in months. 3. The teammate agents: Devin, Cosine, etc. Simply give them a task, and they will get back to you with a full PR (with mixed results) 4. The cli-based agents: after Aider’s initial success, we are now seeing many other alternatives including two from the main labs: OpenAI Codex and Claude Code. The main draw is that 1) they are composable 2) they are pay as you go based on tokens used. Since we covered all three of the first categories, today’s guests are Boris and Cat, the lead engineer and PM for Claude Code. If you only take one thing away from this episode, it’s this piece from Boris: Claude Code is not a product as much as it’s a Unix utility. This fits very well with Anthropic’s product principle: “do the simple thing first.” Whether it’s the memory implementation (a markdown file that gets auto-loaded) or the approach to prompt summarization (just ask Claude to summarize), they always pick the smallest building blocks that are useful, understandable, and extensible. Even major features like planning (“/think”) and memory (#tags in markdown) fit the same idea of having text I/O as the core interface. This is very similar to the original UNIX design philosophy: Claude Code is also the most direct way to consume Sonnet for coding, rather than going through all the hidden prompting and optimization than the other products do. You will feel that right away, as the average spend per user is $6/day on Claude Code compared to $20/mo for Cursor, for example. Apparently, there are some engineers inside of Anthropic that have spent >$1,000 in one day! If you’re building AI developer tools, there’s also a lot of alpha on how to design a cli tool, interactive vs non-interactive modes, and how to balance feature creation. Enjoy! Timestamps [00:00:00] Intro [00:01:59] Origins of Claude Code [00:04:32] Anthropic’s Product Philosophy [00:07:38] What should go into Claude Code? [00:09:26] Claude.md and Memory Simplification [00:10:07] Claude Code vs Aider [00:11:23] Parallel Workflows and Unix Utility Philosophy [00:12:51] Cost considerations and pricing model [00:14:51] Key Features Shipped Since Launch [00:16:28] Claude Code writes 80% of Claude Code [00:18:01] Custom Slash Commands and MCP Integration [00:21:08] Terminal UX and Technical Stack [00:27:11] Code Review and Semantic Linting [00:28:33] Non-Interactive Mode and Automation [00:36:09] Engineering Productivity Metrics [00:37:47] Balancing Feature Creation and Maintenance [00:41:59] Memory and the Future of Context [00:50:10] Sandboxing, Branching, and Agent Planning [01:01:43] Future roadmap [01:11:00] Why Anthropic Excels at Developer Tools

Note from your hosts: we were off this week for ICLR and RSA! This week we’re bringing you one of the top episodes from our lightning podcast series, the shorter format, Youtube-only side podcast we do for breaking news and faster turnaround. Please support our work on YouTube! https://www.youtube.com/playlist?list=PLWEAb1SXhjlc5qgVK4NgehdCzMYCwZtiB The explosion of embedding-based applications created a new challenge: efficiently storing, indexing, and searching these high-dimensional vectors at scale. This gap gave rise to the vector database category, with companies like Pinecone leading the charge in 2022-2023 by defining specialized infrastructure for vector operations. The category saw explosive growth following ChatGPT's launch in late 2022, as developers rushed to build AI applications using Retrieval-Augmented Generation (RAG). This surge was partly driven by a widespread misconception that embedding-based similarity search was the only viable method for retrieving context for LLMs!!! The resulting "vector database gold rush" saw massive investment and attention directed toward vector search infrastructure, even though traditional information retrieval techniques remained equally valuable for many RAG applications. https://x.com/jobergum/status/1872923872007217309 Chapters 00:00 Introduction to Trondheim and Background 03:03 The Rise and Fall of Vector Databases 06:08 Convergence of Search Technologies 09:04 Embeddings and Their Importance 12:03 Building Effective Search Systems 15:00 RAG Applications and Recommendations 17:55 The Role of Knowledge Graphs 20:49 Future of Embedding Models and Innovations

Vasek Mlejnsky from E2B joins us today to talk about sandboxes for AI agents. In the last 2 years, E2B has grown from a handful of developers building on it to being used by ~50% of the Fortune 500 and generating millions of sandboxes each week for their customers. As the “death of chat completions” approaches, LLMs workflows and agents are relying more and more on tool usage and multi-modality. The most common use cases for their sandboxes: - Run data analysis and charting (like Perplexity) - Execute arbitrary code generated by the model (like Manus does) - Running evals on code generation (see LMArena Web) - Doing reinforcement learning for code capabilities (like HuggingFace) Timestamps: 00:00:00 Introductions 00:00:37 Origin of DevBook -> E2B 00:02:35 Early Experiments with GPT-3.5 and Building AI Agents 00:05:19 Building an Agent Cloud 00:07:27 Challenges of Building with Early LLMs 00:10:35 E2B Use Cases 00:13:52 E2B Growth vs Models Capabilities 00:15:03 The LLM Operating System (LLMOS) Landscape 00:20:12 Breakdown of JavaScript vs Python Usage on E2B 00:21:50 AI VMs vs Traditional Cloud 00:26:28 Technical Specifications of E2B Sandboxes 00:29:43 Usage-based billing infrastructure 00:34:08 Pricing AI on Value Delivered vs Token Usage 00:36:24 Forking, Checkpoints, and Parallel Execution in Sandboxes 00:39:18 Future Plans for Toolkit and Higher-Level Agent Frameworks 00:42:35 Limitations of Chat-Based Interfaces and the Future of Agents 00:44:00 MCPs and Remote Agent Capabilities 00:49:22 LLMs.txt, scrapers, and bad AI bots 00:53:00 Manus and Computer Use on E2B 00:55:03 E2B for RL with Hugging Face 00:56:58 E2B for Agent Evaluation on LMArena 00:58:12 Long-Term Vision: E2B as Full Lifecycle Infrastructure for LLMs 01:00:45 Future Plans for Hosting and Deployment of LLM-Generated Apps 01:01:15 Why E2B Moved to San Francisco 01:05:49 Open Roles and Hiring Plans at E2B

We’ll keep this brief because we’re on a tight turnaround: GPT 4.1, previously known as the Quasar and Optimus models, is now live as the natural update for 4o/4o-mini (and the research preview of GPT 4.5). Though it is a general purpose model family, the headline features are: Coding abilities (o1-level SWEBench and SWELancer, but ok Aider) Instruction Following (with a very notable prompting guide) Long Context up to 1m tokens (with new MRCR and Graphwalk benchmarks) Vision (simply o1 level) Cheaper Pricing (cheaper than 4o, greatly improved prompt caching savings) We caught up with returning guest Michelle Pokrass and Josh McGrath to get more detail on each! Chapters 00:00:00 Introduction and Guest Welcome 00:00:57 GPC 4.1 Launch Overview 00:01:54 Developer Feedback and Model Names 00:02:53 Model Naming and Starry Themes 00:03:49 Confusion Over GPC 4.1 vs 4.5 00:04:47 Distillation and Model Improvements 00:05:45 Omnimodel Architecture and Future Plans 00:06:43 Core Capabilities of GPC 4.1 00:07:40 Training Techniques and Long Context 00:08:37 Challenges in Long Context Reasoning 00:09:34 Context Utilization in Models 00:10:31 Graph Walks and Model Evaluation 00:11:31 Real Life Applications of Graph Tasks 00:12:30 Multi-Hop Reasoning Benchmarks 00:13:30 Agentic Workflows and Backtracking 00:14:28 Graph Traversals for Agent Planning 00:15:24 Context Usage in API and Memory Systems 00:16:21 Model Performance in Long Context Tasks 00:17:17 Instruction Following and Real World Data 00:18:12 Challenges in Grading Instructions 00:19:09 Instruction Following Techniques 00:20:09 Prompting Techniques and Model Responses 00:21:05 Agentic Workflows and Model Persistence 00:22:01 Balancing Persistence and User Control 00:22:56 Evaluations on Model Edits and Persistence 00:23:55 XML vs JSON in Prompting 00:24:50 Instruction Placement in Context 00:25:49 Optimizing for Prompt Caching 00:26:49 Chain of Thought and Reasoning Models 00:27:46 Choosing the Right Model for Your Task 00:28:46 Coding Capabilities of GPC 4.1 00:29:41 Model Performance in Coding Tasks 00:30:39 Understanding Coding Model Differences 00:31:36 Using Smaller Models for Coding 00:32:33 Future of Coding in OpenAI 00:33:28 Internal Use and Success Stories 00:34:26 Vision and Multi-Modal Capabilities 00:35:25 Screen vs Embodied Vision 00:36:22 Vision Benchmarks and Model Improvements 00:37:19 Model Deprecation and GPU Usage 00:38:13 Fine-Tuning and Preference Steering 00:39:12 Upcoming Reasoning Models 00:40:10 Creative Writing and Model Humor 00:41:07 Feedback and Developer Community 00:42:03 Pricing and Blended Model Costs 00:44:02 Conclusion and Wrap-Up

Evan Conrad, co-founder of SF Compute, joined us to talk about how they started as an AI lab that avoided bankruptcy by selling GPU clusters, why CoreWeave financials look like a real estate business, and how GPUs are turning into a commodities market. Chapters: 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 Compute Chapters 00:00:00 Introduction and Background 00:00:58 Analysis of GPU Business Models 00:01:53 Challenges with GPU Pricing 00:02:48 Revenue and Scaling with GPUs 00:03:46 Customer Sensitivity to GPU Pricing 00:04:44 Core Weave's Business Strategy 00:05:41 Core Weave's Market Perception 00:06:40 Hyperscalers and GPU Market Dynamics 00:07:37 Financial Strategies for GPU Sales 00:08:35 Interest Rates and GPU Market Risks 00:09:30 Optimal GPU Contract Strategies 00:10:27 Risks in GPU Market Contracts 00:11:25 Price Sensitivity and Market Competition 00:12:21 Market Dynamics and GPU Contracts 00:13:18 Hyperscalers and GPU Market Strategies 00:14:15 Nvidia and Market Competition 00:15:12 Microsoft's Role in GPU Market 00:16:10 Challenges in GPU Market Dynamics 00:17:07 Economic Realities of the GPU Market 00:18:03 Real Estate Model for GPU Clouds 00:18:59 Price Sensitivity and Chip Design 00:19:55 SF Compute's Beginnings and Challenges 00:20:54 Navigating the GPU Market 00:21:54 Pivoting to a GPU Cloud Provider 00:22:53 Building a GPU Market 00:23:52 SF Compute as a GPU Marketplace 00:24:49 Market Liquidity and GPU Pricing 00:25:47 Utilization Rates in GPU Markets 00:26:44 Brokerage and Market Flexibility 00:27:42 H100 Glut and Market Cycles 00:28:40 Supply Chain Challenges and GPU Glut 00:29:35 Future Predictions for the GPU Market 00:30:33 Speculations on Test Time Inference 00:31:29 Market Demand and Test Time Inference 00:32:26 Open Source vs. Closed AI Demand 00:33:24 Future of Inference Demand 00:34:24 Peer-to-Peer GPU Markets 00:35:17 Decentralized GPU Market Skepticism 00:36:15 Redesigning Architectures for New Markets 00:37:14 Supporting Grad Students and Startups 00:38:11 Successful Startups Using SF Compute 00:39:11 VCs and GPU Infrastructure 00:40:09 VCs as GPU Credit Transformators 00:41:06 Market Timing and GPU Infrastructure 00:42:02 Understanding GPU Pricing Dynamics 00:43:01 Market Pricing and Preemptible Compute 00:43:55 Price Volatility and Market Optimization 00:44:52 Customizing Compute Contracts 00:45:50 Creating Flexible Compute Guarantees 00:46:45 Financialization of GPU Markets 00:47:44 Building a Spot Market for GPUs 00:48:40 Auditing and Standardizing Clusters 00:49:40 Ensuring Cluster Reliability 00:50:36 Active Monitoring and Refunds 00:51:33 Automating Customer Refunds 00:52:33 Challenges in Cluster Maintenance 00:53:29 Remote Cluster Management 00:54:29 Standardizing Compute Contracts 00:55:28 Unified Infrastructure for Clusters 00:56:24 Creating a Commodity Market for GPUs 00:57:22 Futures Market and Risk Management 00:58:18 Reducing Risk with GPU Futures 00:59:14 Stabilizing the GPU Market 01:00:10 SF Compute's Anti-Hype Approach 01:01:07 Calm Branding and Expectations 01:02:07 Promoting San Francisco's Beauty 01:03:03 Design Philosophy at SF Compute 01:04:02 Artistic Influence on Branding 01:05:00 Past Projects and Burnout 01:05:59 Challenges in Building an Email Client 01:06:57 Persistence and Iteration in Startups 01:07:57 Email Market Challenges 01:08:53 SF Compute Job Opportunities 01:09:53 Hiring for Systems Engineering 01:10:50 Financial Systems Engineering Role 01:11:50 Conclusion and Farewell

Today’s guests, David Soria Parra and Justin Spahr-Summers, are the creators of Anthropic’s Model Context Protocol (MCP). 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): 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. Timestamps 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 Remarks

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 Luan https://www.latent.space/p/unsupervised-learning Timestamps 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 Remarks Chapters 00:00:00 Introduction and Collab Excitement 00:00:58 Open Source and Model Adoption 00:01:58 Enterprise Use of Open Source Models 00:02:57 The Competitive Edge of Closed Source Models 00:03:56 DeepSea and Open Source Model Releases 00:04:54 Market Narrative and DeepSea Impact 00:05:53 AI Engineering and GPT Wrappers 00:06:53 AI Builders and Low-Code Platforms 00:07:50 Innovating Beyond Existing Paradigms 00:08:50 Apple and AI Product Development 00:09:48 Overhyped and Underhyped AI Trends 00:10:46 Frameworks and Protocols in AI Development 00:11:45 Emerging Opportunities in AI 00:12:44 Stateful AI and Memory Innovation 00:13:44 Challenges with Memory in AI Agents 00:14:44 The Future of Model Training Companies 00:15:44 Specialized Use Cases for AI Models 00:16:44 Vertical Models vs General Purpose Models 00:17:42 General Purpose vs Domain-Specific Models 00:18:42 Reflections on Model Companies 00:19:39 Model Companies Entering Product Space 00:20:38 Competition in AI Model and Product Sectors 00:21:35 Coding Agents and Market Dynamics 00:22:35 Defensibility in AI Applications 00:23:35 Investing in Underappreciated AI Ventures 00:24:32 Analyzing Market Fit in AI 00:25:31 AI Applications with Product Market Fit 00:26:31 OpenAI's Impact on the Market 00:27:31 Google and OpenAI Competition 00:28:31 Exploring Google's Advancements 00:29:29 Customer Support and AI Applications 00:30:27 The Future of AI in Customer Support 00:31:26 Cost-Cutting vs Growth in AI 00:32:23 Voice AI and Real-World Applications 00:33:23 Scaling AI Applications for Demand 00:34:22 Summarization and Conversational AI 00:35:20 Future AI Use Cases and Market Fit 00:36:20 AI Education and Model Capabilities 00:37:17 Reforming Education with AI 00:38:15 Defensibility in AI Apps 00:39:13 Network Effects and AI 00:40:12 AI Brand and Market Positioning 00:41:11 AI Application Defensibility 00:42:09 LLM OS and AI Infrastructure 00:43:06 Security and AI Application 00:44:06 OpenAI's Role in AI Infrastructure 00:45:02 The Balance of AI Applications and Infrastructure 00:46:02 Capital Efficiency in AI Infrastructure 00:47:01 Challenges in AI DevOps and Infrastructure 00:47:59 AI SRE and Monitoring 00:48:59 Scaling AI and Hardware Challenges 00:49:58 Reliability and Compute in AI 00:50:57 Nvidia's Dominance and AI Hardware 00:51:57 Emerging Competition in AI Silicon 00:52:54 Agent Authentication Challenges 00:53:53 Dream Podcast Guests 00:54:51 Favorite News Sources and Startups 00:55:50 The Value of In-Person Conversations 00:56:50 Private vs Public AI Discourse 00:57:48 Latent Space and Podcasting 00:58:46 Conclusion and Final Thoughts

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!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, You Must Pass" and how prioritization leads to greater productivity and focus.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 ou

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 hyp

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

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) Get full access to Latent.Space at www.latent.space/subscribe

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

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 actu

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 an

If you’re in SF, join us tomorrow for a fun meetup at CodeGen Night!If you’re in NYC, join us for AI Engineer Summit! The Agent Engineering track is now sold out, but 25 tickets remain for AI Leadership and 5 tickets for the workshops. You can see the full schedule of speakers and workshops at https://ai.engineer!It’s exceedingly hard to introduce someone like Bret Taylor. We could recite his Wikipedia page, or his extensive work history through Silicon Valley’s greatest companies, but everyone else already does that.As a podcast by AI engineers for AI engineers, we had the opportunity to do something a little different. We wanted to dig into what Bret sees from his vantage point at the top of our industry for the last 2 decades, and how that explains the rise of the AI Architect at Sierra, the leading conversational AI/CX platform.“Across our customer base, we are seeing a new role emerge - the role of the AI architect. These leaders are responsible for helping define, manage and evolve their company's AI agent over time. They come from a variety of both technical and business backgrounds, and we think that every company will have one or many AI architects managing their AI agent and related experience.”In our conversation, Bret Taylor confirms the Paul Buchheit legend that he rewrote Google Maps in a weekend, armed with only the help of a then-nascent Google Closure Compiler and no other modern tooling. But what we find remarkable is that he was the PM of Maps, not an engineer, though of course he still identifies as one. We find this theme recurring throughout Bret’s career and worldview. We think it is plain as day that AI leadership will have to be hands-on and technical, especially when the ground is shifting as quickly as it is today:“There's a lot of power in combining product and engineering into as few people as possible… few great things have been created by committee.”“If engineering is an order taking organization for product you can sometimes make meaningful things, but rarely will you create extremely well crafted breakthrough products. Those tend to be small teams who deeply understand the customer need that they're solving, who have a maniacal focus on outcomes.”“And I think the reason why is if you look at like software as a service five years ago, maybe you can have a separation of product and engineering because most software as a service created five years ago. I wouldn't say there's like a lot of technological breakthroughs required for most business applications. And if you're making expense reporting software or whatever, it's useful… You kind of know how databases work, how to build auto scaling with your AWS cluster, whatever, you know, it's just, you're just applying best practices to yet another problem. "When you have areas like the early days of mobile development or the early days of interactive web applications, which I think Google Maps and Gmail represent, or now AI agents, you're in this constant conversation with what the requirements of your customers and stakeholders are and all the different people interacting with it and the capabilities of the technology. And it's almost impossible to specify the requirements of a product when you're not sure of the limitations of the technology itself.”This is the first time the difference between technical leadership for “normal” software and for “AI” software was articulated this clearly for us, and we’ll be thinking a lot about this going forward. We left a lot of nuggets in the conversation, so we hope you’ll just dive in with us (and thank Bret for joining the pod!)Full YouTubePlease Like and Subscribe :)Timestamps* 00:00:02 Introductions and Bret Taylor's background* 00:01:23 Bret's experience at Stanford and the dot-com era* 00:04:04 The story of rewriting Google Maps backend* 00:11:06 Early days of interactive web applications at Google* 00:15:26 Discussion on product management and engineering roles* 00:21:00 AI and the future of software development* 00:26:42 Bret's approach to identifying customer needs and building AI companies* 00:32:09 The evolution of business models in the AI era* 00:41:00 The future of programming languages and software development* 00:49:38 Challenges in precisely communicating human intent to machines* 00:56:44 Discussion on Artificial General Intelligence (AGI) and its impact* 01:08:51 The future of agent-to-agent communication* 01:14:03 Bret's involvement in the OpenAI leadership crisis* 01:22:11 OpenAI's relationship with Microsoft* 01:23:23 OpenAI's mission and priorities* 01:27:40 Bret's guiding principles for career choices* 01:29:12 Brief discussion on pasta-making* 01:30:47 How Bret keeps up with AI developments* 01:32:15 Exciting research directions in AI* 01:35:19 Closing remarks and hiring at Sierra Transcript[00:02:05] Introduction and Guest Welcome[00:02:05] Alessio: 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.[00:02:17] swyx: Hey, and today we're super excited to have Bret Taylor join us. Welcome. Thanks for having me. It's a little unreal to have you in the studio.[00:02:25] swyx: I've read about you so much over the years, like even before. Open AI effectively. I mean, I use Google Maps to get here. So like, thank you for everything that you've done. Like, like your story history, like, you know, I think people can find out what your greatest hits have been.[00:02:40] Bret Taylor's Early Career and Education[00:02:40] swyx: How do you usually like to introduce yourself when, you know, you talk about, you summarize your career, like, how do you look at yourself?[00:02:47] Bret: Yeah, it's a great question. You know, we, before we went on the mics here, we're talking about the audience for this podcast being more engineering. And I do think depending on the audience, I'll introduce myself differently because I've had a lot of [00:03:00] corporate and board roles. I probably self identify as an engineer more than anything else though.[00:03:04] Bret: So even when I was. Salesforce, I was coding on the weekends. So I think of myself as an engineer and then all the roles that I do in my career sort of start with that just because I do feel like engineering is sort of a mindset and how I approach most of my life. So I'm an engineer first and that's how I describe myself.[00:03:24] Bret: You majored in computer[00:03:25] swyx: science, like 1998. And, and I was high[00:03:28] Bret: school, actually my, my college degree was Oh, two undergrad. Oh, three masters. Right. That old.[00:03:33] swyx: Yeah. I mean, no, I was going, I was going like 1998 to 2003, but like engineering wasn't as, wasn't a thing back then. Like we didn't have the title of senior engineer, you know, kind of like, it was just.[00:03:44] swyx: You were a programmer, you were a developer, maybe. What was it like in Stanford? Like, what was that feeling like? You know, was it, were you feeling like on the cusp of a great computer revolution? Or was it just like a niche, you know, interest at the time?[00:03:57] Stanford and the Dot-Com Bubble[00:03:57] Bret: Well, I was at Stanford, as you said, from 1998 to [00:04:00] 2002.[00:04:02] Bret: 1998 was near the peak of the dot com bubble. So. This is back in the day where most people that they're coding in the computer lab, just because there was these sun microsystems, Unix boxes there that most of us had to do our assignments on. And every single day there was a. com like buying pizza for everybody.[00:04:20] Bret: I didn't have to like, I got. Free food, like my first two years of university and then the dot com bubble burst in the middle of my college career. And so by the end there was like tumbleweed going to the job fair, you know, it was like, cause it was hard to describe unless you were there at the time, the like level of hype and being a computer science major at Stanford was like, A thousand opportunities.[00:04:45] Bret: And then, and then when I left, it was like Microsoft, IBM.[00:04:49] Joining Google and Early Projects[00:04:49] Bret: And then the two startups that I applied to were VMware and Google. And I ended up going to Google in large part because a woman named Marissa Meyer, who had been a teaching [00:05:00] assistant when I was, what was called a section leader, which was like a junior teaching assistant kind of for one of the big interest.[00:05:05] Bret: Yes. Classes. She had gone there. And she was recruiting me and I knew her and it was sort of felt safe, you know, like, I don't know. I thought about it much, but it turned out to be a real blessing. I realized like, you know, you always want to think you'd pick Google if given the option, but no one knew at the time.[00:05:20] Bret: And I wonder if I'd graduated in like 1999 where I've been like, mom, I just got a job at pets. com. It's good. But you know, at the end I just didn't have any options. So I was like, do I want to go like make kernel software at VMware? Do I want to go build search at Google? And I chose Google. 50, 50 ball.[00:05:36] Bret: I'm not really a 50, 50 ball. So I feel very fortunate in retrospect that the economy collapsed because in some ways it forced me into like one of the greatest companies of all time, but I kind of lucked into it, I think.[00:05:47] The Google Maps Rewrite Story[00:05:47] Alessio: So the famous story about Google is that you rewrote the Google maps back in, in one week after the map quest quest maps acquisition, what was the story there?[00:05:57] Alessio: Is it. Actually true. Is it [00:06:00] being glorified? Like how, how did that come to be? And is there any detail that maybe Paul hasn't shared before?[00:06:06] Bret: It's largely true, but I'll give the color commentary. So it was actually the front end, not the back end, but it turns out for Google maps, the front end was sort of the hard part just because Google maps was.[00:06:1

Did you know that adding a simple Code Interpreter took o3 from 9.2% to 32% on FrontierMath? The Latent Space crew is hosting a hack night Feb 11th in San Francisco focused on CodeGen use cases, co-hosted with E2B and Edge AGI; watch E2B’s new workshop and RSVP here!We’re happy to announce that today’s guest Samuel Colvin will be teaching his very first Pydantic AI workshop at the newly announced AI Engineer NYC Workshops day on Feb 22! 25 tickets left.If you’re a Python developer, it’s very likely that you’ve heard of Pydantic. Every month, it’s downloaded >300,000,000 times, making it one of the top 25 PyPi packages. OpenAI uses it in its SDK for structured outputs, it’s at the core of FastAPI, and if you’ve followed our AI Engineer Summit conference, Jason Liu of Instructor has given two great talks about it: “Pydantic is all you need” and “Pydantic is STILL all you need”. Now, Samuel Colvin has raised $17M from Sequoia to turn Pydantic from an open source project to a full stack AI engineer platform with Logfire, their observability platform, and PydanticAI, their new agent framework.Logfire: bringing OTEL to AIOpenTelemetry recently merged Semantic Conventions for LLM workloads which provides standard definitions to track performance like gen_ai.server.time_per_output_token. In Sam’s view at least 80% of new apps being built today have some sort of LLM usage in them, and just like web observability platform got replaced by cloud-first ones in the 2010s, Logfire wants to do the same for AI-first apps. If you’re interested in the technical details, Logfire migrated away from Clickhouse to Datafusion for their backend. We spent some time on the importance of picking open source tools you understand and that you can actually contribute to upstream, rather than the more popular ones; listen in ~43:19 for that part.Agents are the killer app for graphsPydantic AI is their attempt at taking a lot of the learnings that LangChain and the other early LLM frameworks had, and putting Python best practices into it. At an API level, it’s very similar to the other libraries: you can call LLMs, create agents, do function calling, do evals, etc.They define an “Agent” as a container with a system prompt, tools, structured result, and an LLM. Under the hood, each Agent is now a graph of function calls that can orchestrate multi-step LLM interactions. You can start simple, then move toward fully dynamic graph-based control flow if needed.“We were compelled enough by graphs once we got them right that our agent implementation [...] is now actually a graph under the hood.”Why Graphs?* More natural for complex or multi-step AI workflows.* Easy to visualize and debug with mermaid diagrams.* Potential for distributed runs, or “waiting days” between steps in certain flows.In parallel, you see folks like Emil Eifrem of Neo4j talk about GraphRAG as another place where graphs fit really well in the AI stack, so it might be time for more people to take them seriously.Full Video EpisodeLike and subscribe!Chapters* 00:00:00 Introductions* 00:00:24 Origins of Pydantic* 00:05:28 Pydantic's AI moment * 00:08:05 Why build a new agents framework?* 00:10:17 Overview of Pydantic AI* 00:12:33 Becoming a believer in graphs* 00:24:02 God Model vs Compound AI Systems* 00:28:13 Why not build an LLM gateway?* 00:31:39 Programmatic testing vs live evals* 00:35:51 Using OpenTelemetry for AI traces* 00:43:19 Why they don't use Clickhouse* 00:48:34 Competing in the observability space* 00:50:41 Licensing decisions for Pydantic and LogFire* 00:51:48 Building Pydantic.run* 00:55:24 Marimo and the future of Jupyter notebooks* 00:57:44 London's AI sceneShow Notes* Sam Colvin* Pydantic* Pydantic AI* Logfire* Pydantic.run* Zod* E2B* Arize* Langsmith* Marimo* Prefect* GLA (Google Generative Language API)* OpenTelemetry* Jason Liu* Sebastian Ramirez* Bogomil Balkansky* Hood Chatham* Jeremy Howard* Andrew LambTranscriptAlessio [00:00:03]: 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]: Good morning. And today we're very excited to have Sam Colvin join us from Pydantic AI. Welcome. Sam, I heard that Pydantic is all we need. Is that true?Samuel [00:00:24]: I would say you might need Pydantic AI and Logfire as well, but it gets you a long way, that's for sure.Swyx [00:00:29]: Pydantic almost basically needs no introduction. It's almost 300 million downloads in December. And obviously, in the previous podcasts and discussions we've had with Jason Liu, he's been a big fan and promoter of Pydantic and AI.Samuel [00:00:45]: Yeah, it's weird because obviously I didn't create Pydantic originally for uses in AI, it predates LLMs. But it's like we've been lucky that it's been picked up by that community and used so widely.Swyx [00:00:58]: Actually, maybe we'll hear it. Right from you, what is Pydantic and maybe a little bit of the origin story?Samuel [00:01:04]: The best name for it, which is not quite right, is a validation library. And we get some tension around that name because it doesn't just do validation, it will do coercion by default. We now have strict mode, so you can disable that coercion. But by default, if you say you want an integer field and you get in a string of 1, 2, 3, it will convert it to 123 and a bunch of other sensible conversions. And as you can imagine, the semantics around it. Exactly when you convert and when you don't, it's complicated, but because of that, it's more than just validation. Back in 2017, when I first started it, the different thing it was doing was using type hints to define your schema. That was controversial at the time. It was genuinely disapproved of by some people. I think the success of Pydantic and libraries like FastAPI that build on top of it means that today that's no longer controversial in Python. And indeed, lots of other people have copied that route, but yeah, it's a data validation library. It uses type hints for the for the most part and obviously does all the other stuff you want, like serialization on top of that. But yeah, that's the core.Alessio [00:02:06]: Do you have any fun stories on how JSON schemas ended up being kind of like the structure output standard for LLMs? And were you involved in any of these discussions? Because I know OpenAI was, you know, one of the early adopters. So did they reach out to you? Was there kind of like a structure output console in open source that people were talking about or was it just a random?Samuel [00:02:26]: No, very much not. So I originally. Didn't implement JSON schema inside Pydantic and then Sebastian, Sebastian Ramirez, FastAPI came along and like the first I ever heard of him was over a weekend. I got like 50 emails from him or 50 like emails as he was committing to Pydantic, adding JSON schema long pre version one. So the reason it was added was for OpenAPI, which is obviously closely akin to JSON schema. And then, yeah, I don't know why it was JSON that got picked up and used by OpenAI. It was obviously very convenient for us. That's because it meant that not only can you do the validation, but because Pydantic will generate you the JSON schema, it will it kind of can be one source of source of truth for structured outputs and tools.Swyx [00:03:09]: Before we dive in further on the on the AI side of things, something I'm mildly curious about, obviously, there's Zod in JavaScript land. Every now and then there is a new sort of in vogue validation library that that takes over for quite a few years and then maybe like some something else comes along. Is Pydantic? Is it done like the core Pydantic?Samuel [00:03:30]: I've just come off a call where we were redesigning some of the internal bits. There will be a v3 at some point, which will not break people's code half as much as v2 as in v2 was the was the massive rewrite into Rust, but also fixing all the stuff that was broken back from like version zero point something that we didn't fix in v1 because it was a side project. We have plans to move some of the basically store the data in Rust types after validation. Not completely. So we're still working to design the Pythonic version of it, in order for it to be able to convert into Python types. So then if you were doing like validation and then serialization, you would never have to go via a Python type we reckon that can give us somewhere between three and five times another three to five times speed up. That's probably the biggest thing. Also, like changing how easy it is to basically extend Pydantic and define how particular types, like for example, NumPy arrays are validated and serialized. But there's also stuff going on. And for example, Jitter, the JSON library in Rust that does the JSON parsing, has SIMD implementation at the moment only for AMD64. So we can add that. We need to go and add SIMD for other instruction sets. So there's a bunch more we can do on performance. I don't think we're going to go and revolutionize Pydantic, but it's going to continue to get faster, continue, hopefully, to allow people to do more advanced things. We might add a binary format like CBOR for serialization for when you'll just want to put the data into a database and probably load it again from Pydantic. So there are some things that will come along, but for the most part, it should just get faster and cleaner.Alessio [00:05:04]: From a focus perspective, I guess, as a founder too, how did you think about the AI interest rising? And then how do you kind of prioritize, okay, this is worth going into more, and we'll talk about Pydantic AI and all of that. What was maybe your early experience with LLAMP, and when did you figure out, okay, this is something we should take seriously and focus more resources on it?Samuel [00:05:28]: I'll answer that, but I'll answer what I think is a kind of parallel question, which is Pydantic's weird, because Pyda

Sponsorships and tickets for the AI Engineer Summit are selling fast! See the new website with speakers and schedules live! If you are building AI agents or leading teams of AI Engineers, this will be the single highest-signal conference of the year for you, this Feb 20-22nd in NYC.We’re pleased to share that Karina will be presenting OpenAI’s closing keynote at the AI Engineer Summit. We were fortunate to get some time with her today to introduce some of her work, and hope this serves as nice background for her talk!There are very few early AI careers that have been as impactful as Karina Nguyen’s. After stints at Notion, Square, Dropbox, Primer, the New York Times, and UC Berkeley, She joined Anthropic as employee ~60 and worked on a wide range of research/product roles for Claude 1, 2, and 3. We’ll just let her LinkedIn speak for itself:Now, as Research manager and Post-training lead in Model Behavior at OpenAI, she creates new interaction paradigms for reasoning interfaces and capabilities, like ChatGPT Canvas, Tasks, SimpleQA, streaming chain-of-thought for o1 models, and more via novel synthetic model training. Ideal AI Research+Product ProcessIn the podcast we got a sense of what Karina has found works for her and her team to be as productive as they have been:* Write PRD (Define what you want)* Funding (Get resources)* Prototype Prompted Baseline (See what’s possible)* Write and Run Evals (Get failures to hillclimb)* Model training (Exceed baseline without overfitting)* Bugbash (Find bugs and solve them)* Ship (Get users!)We could turn this into a snazzy viral graphic but really this is all it is. Simple to say, difficult to do well. Hopefully it helps you define your process if you do similar product-research work. Show Notes* Our Reasoning Price War post * Karina LinkedIn, Website, Twitter* OSINT visualization work* Ukraine 3D storytelling* Karina on Claude Artifacts* Karina on Claude 3 Benchmarks* Inspiration for Artifacts / Canvas from early UX work she did on GPT-3* “i really believe that things like canvas and tasks should and could have happened like 2 yrs ago, idk why we are lagging in the form factors” (tweet)* Our article on prompting o1 vs Karina’s Claude prompting principles* Canvas: https://openai.com/index/introducing-canvas/ * We trained GPT-4o to collaborate as a creative partner. The model knows when to open a canvas, make targeted edits, and fully rewrite. It also understands broader context to provide precise feedback and suggestions.To support this, our research team developed the following core behaviors:* Triggering the canvas for writing and coding* Generating diverse content types* Making targeted edits* Rewriting documents* Providing inline critiqueWe measured progress with over 20 automated internal evaluations. We used novel synthetic data generation techniques, such as distilling outputs from OpenAI o1-preview, to post-train the model for its core behaviors. This approach allowed us to rapidly address writing quality and new user interactions, all without relying on human-generated data.* Tasks: https://www.theverge.com/2025/1/14/24343528/openai-chatgpt-repeating-tasks-agent-ai* * Agents and Operator* What are agents? “Agents are a gradual progression of tasks: starting with one-off actions, moving to collaboration, and ultimately fully trustworthy long-horizon delegation in complex envs like multi-player/multiagents.” (tweet)* tasks and canvas fall within the first two, and we are def. marching towards the third—though the form factor for 3 will take time to develop * Operator/Computer Use Agents* https://openai.com/index/introducing-operator/* Misc:* Andrew Ng* Prediction: Personal AI Consumer playbook* ChatGPT as generative OSTimestamps* 00:00 Welcome to the Latent Space Podcast* 00:11 Introducing Karina Nguyen* 02:21 Karina's Journey to OpenAI* 04:45 Early Prototypes and Projects* 05:25 Joining Anthropic and Early Work* 07:16 Challenges and Innovations at Anthropic* 11:30 Launching Claude 3* 21:57 Behavioral Design and Model Personality* 27:37 The Making of ChatGPT Canvas* 34:34 Canvas Update and Initial Impressions* 34:46 Differences Between Canvas and API Outputs* 35:50 Core Use Cases of Canvas* 36:35 Canvas as a Writing Partner* 36:55 Canvas vs. Google Docs and Future Improvements* 37:35 Canvas for Coding and Executing Code* 38:50 Challenges in Developing Canvas* 41:45 Introduction to Tasks* 41:53 Developing and Iterating on Tasks* 46:27 Future Vision for Tasks and Proactive Models* 52:23 Computer Use Agents and Their Potential* 01:00:21 Cultural Differences Between OpenAI and Anthropic* 01:03:46 Call to Action and Final ThoughtsTranscriptAlessio [00:00:04]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel, and I'm joined by my usual co-host, Swyx.swyx [00:00:11]: Hey, and today we're very, very blessed to have Karina Nguyen in the studio. Welcome.Karina [00:00:15]: Nice to meet you.swyx [00:00:16]: We finally made it happen. We finally made it happen. First time we tried this, you were working at a different company, and now we're here. Fortunately, you had some time, so thank you so much for joining us. Yeah, thank you for inviting me. Karina, your website says you lead a research team in OpenAI, creating new interaction paradigms for reasoning interfaces and capabilities like ChatGPT Canvas, and most recently, ChatGPT TAS. I don't know, is that what we're calling it? Streaming chain of thought for O1 models and more via novel synthetic model training. What is this research team?Karina [00:00:45]: Yeah, I need to clarify this a little bit more. I think it changed a lot since the last time we launched. So we launched Canvas, and it was the first project. I was a tech lead, basically, and then I think over time I was trying to refine what my team is, and I feel like it's at the intersection of human-computer interaction, defining what the next interaction paradigms might look like with some of the most recent reasoning models, as well as actually trying to come up with novel methods, how to improve those models for certain tasks if you want to. So for Canvas, for example, one of the most common use cases is basically writing and coding. And we're continually working on, okay, how do we make Canvas coding to go beyond what is possible right now? And that requires us to actually do our own training and coming up with new methods of synthetic data generation. The way I'm thinking about it is that my team is going from very full stack, from training models all the way up to deployment and making sure that we create novel product features that is coherent to what you're doing. So we're really working on that.swyx [00:02:08]: So it's, it's a lot of work to do right now. And I think that's why I think it's such a great opportunity. You know, how could something this big work in like an industrial space and in the things that we're doing, you know, it's a really exciting time for us. And it's just, you know, it's a lot of work, but what I really like about working in digital space is the, you know, the visual space is always the best place to stay. It's not just the skill sets that need to be done.Alessio [00:02:17]: Like we have, like, a lot of things to be done, but like, we've got a lot of different, you know, things to come up with. I know you have some early UX prototypes with GPT-3 as well, and kind of like maybe how that is informed, the way you build products.Karina [00:02:32]: I think my background was mostly like working on computer vision applications for like investigative journalism. Back when I was like at school at Berkeley, and I was working a lot with like Human Rights Center and like investigative journalists from various media. And that's how I learned more about like AI, like with vision transformers. And at that time, I was working with some of the professors at Berkeley AI Research.swyx [00:03:00]: There are some Pulitzer Prize winning professors, right, that teach there?Karina [00:03:04]: No, so it's mostly like was reporting for like teams like the New York Times, like the AP Associated Press. So it was like all in the context of like Human Rights Center. Got it. Yeah. So that was like in computer vision. And then I saw... I saw Crisolo's work around, you know, like interpretability from Google. And that's how I found out about like Anthropic. And at that time, I was just like, I think it was like the year when like Ukraine's war happened. And I was like trying to find a full-time job. And it was kind of like all got distracted. It was like kind of like spring. And I was like very focused on like figuring out like what to do. And then my best option at that time was just like continue my internship. At the New York Times and convert to like full-time. At the New York Times, it was just like working on like mostly like product engineering work around like R&D prototypes, kind of like storytelling features on the mobile experience. So it kind of like storytelling experiences. And like at that time, we were like thinking about like how do we employ like NLP techniques to like scrape some of the archives from the New York Times or something. But then I always wanted to like get into like AI. And like I knew OpenAI for a while, like since I was like, and I was like, I don't know, I don't know. So I kind of like applied to Anthropic just on the website. And I was rejected the first time. But then at that time, they were not hiring for like anything like product engineering or front-end engineering, which was something I was like, at that time, I was like interested in. And then there was like a new opening at Anthropic was like kind of like you are front-end engineer. And so I applied. And that's how my journey began. But like the earlier prototypes was mostly like I used like Clip.swyx [00:05:13]: We'll briefly mention that the Ukrainian crisis actually hit home more for you than most people because you're fro

One last Gold sponsor slot is available for the AI Engineer Summit in NYC. Our last round of invites is going out soon - apply here - If you are building AI agents or AI eng teams, this will be the single highest-signal conference of the year for you!While the world melts down over DeepSeek, few are talking about the OTHER notable group of former hedge fund traders who pivoted into AI and built a remarkably profitable consumer AI business with a tiny team with incredibly cracked engineering team — Chai Research. In short order they have:* Started a Chat AI company well before Noam Shazeer started Character AI, and outlasted his departure.* Crossed 1m DAU in 2.5 years - William updates us on the pod that they’ve hit 1.4m DAU now, another +40% from a few months ago. Revenue crossed >$22m. * Launched the Chaiverse model crowdsourcing platform - taking 3-4 week A/B testing cycles down to 3-4 hours, and deploying >100 models a week.While they’re not paying million dollar salaries, you can tell they’re doing pretty well for an 11 person startup:The Chai Recipe: Building infra for rapid evalsRemember how the central thesis of LMarena (formerly LMsys) is that the only comprehensive way to evaluate LLMs is to let users try them out and pick winners?At the core of Chai is a mobile app that looks like Character AI, but is actually the largest LLM A/B testing arena in the world, specialized on retaining chat users for Chai’s usecases (therapy, assistant, roleplay, etc). It’s basically what LMArena would be if taken very, very seriously at one company (with $1m in prizes to boot):Chai publishes occasional research on how they think about this, including talks at their Palo Alto office:William expands upon this in today’s podcast (34 mins in):Fundamentally, the way I would describe it is when you're building anything in life, you need to be able to evaluate it. And through evaluation, you can iterate, we can look at benchmarks, and we can say the issues with benchmarks and why they may not generalize as well as one would hope in the challenges of working with them. But something that works incredibly well is getting feedback from humans. And so we built this thing where anyone can submit a model to our developer backend, and it gets put in front of 5000 users, and the users can rate it. And we can then have a really accurate ranking of like which model, or users finding more engaging or more entertaining. And it gets, you know, it's at this point now, where every day we're able to, I mean, we evaluate between 20 and 50 models, LLMs, every single day, right. So even though we've got only got a team of, say, five AI researchers, they're able to iterate a huge quantity of LLMs, right. So our team ships, let's just say minimum 100 LLMs a week is what we're able to iterate through. Now, before that moment in time, we might iterate through three a week, we might, you know, there was a time when even doing like five a month was a challenge, right? By being able to change the feedback loops to the point where it's not, let's launch these three models, let's do an A-B test, let's assign, let's do different cohorts, let's wait 30 days to see what the day 30 retention is, which is the kind of the, if you're doing an app, that's like A-B testing 101 would be, do a 30-day retention test, assign different treatments to different cohorts and come back in 30 days. So that's insanely slow. That's just, it's too slow. And so we were able to get that 30-day feedback loop all the way down to something like three hours.In Crowdsourcing the leap to Ten Trillion-Parameter AGI, William describes Chai’s routing as a recommender system, which makes a lot more sense to us than previous pitches for model routing startups:William is notably counter-consensus in a lot of his AI product principles:* No streaming: Chats appear all at once to allow rejection sampling* No voice: Chai actually beat Character AI to introducing voice - but removed it after finding that it was far from a killer feature.* Blending: “Something that we love to do at Chai is blending, which is, you know, it's the simplest way to think about it is you're going to end up, and you're going to pretty quickly see you've got one model that's really smart, one model that's really funny. How do you get the user an experience that is both smart and funny? Well, just 50% of the requests, you can serve them the smart model, 50% of the requests, you serve them the funny model.” (that’s it!)But chief above all is the recommender system.We also referenced Exa CEO Will Bryk’s concept of SuperKnowlege:Full Video versionOn YouTube. please like and subscribe!Timestamps* 00:00:04 Introductions and background of William Beauchamp* 00:01:19 Origin story of Chai AI* 00:04:40 Transition from finance to AI* 00:11:36 Initial product development and idea maze for Chai* 00:16:29 User psychology and engagement with AI companions* 00:20:00 Origin of the Chai name* 00:22:01 Comparison with Character AI and funding challenges* 00:25:59 Chai's growth and user numbers* 00:34:53 Key inflection points in Chai's growth* 00:42:10 Multi-modality in AI companions and focus on user-generated content* 00:46:49 Chaiverse developer platform and model evaluation* 00:51:58 Views on AGI and the nature of AI intelligence* 00:57:14 Evaluation methods and human feedback in AI development* 01:02:01 Content creation and user experience in Chai* 01:04:49 Chai Grant program and company culture* 01:07:20 Inference optimization and compute costs* 01:09:37 Rejection sampling and reward models in AI generation* 01:11:48 Closing thoughts and recruitmentTranscriptAlessio [00:00:04]: Hey everyone, welcome to the Latent Space podcast. This is Alessio, partner and CTO at Decibel, and today we're in the Chai AI office with my usual co-host, Swyx.swyx [00:00:14]: Hey, thanks for having us. It's rare that we get to get out of the office, so thanks for inviting us to your home. We're in the office of Chai with William Beauchamp. Yeah, that's right. You're founder of Chai AI, but previously, I think you're concurrently also running your fund?William [00:00:29]: Yep, so I was simultaneously running an algorithmic trading company, but I fortunately was able to kind of exit from that, I think just in Q3 last year. Yeah, congrats. Yeah, thanks.swyx [00:00:43]: So Chai has always been on my radar because, well, first of all, you do a lot of advertising, I guess, in the Bay Area, so it's working. Yep. And second of all, the reason I reached out to a mutual friend, Joyce, was because I'm just generally interested in the... ...consumer AI space, chat platforms in general. I think there's a lot of inference insights that we can get from that, as well as human psychology insights, kind of a weird blend of the two. And we also share a bit of a history as former finance people crossing over. I guess we can just kind of start it off with the origin story of Chai.William [00:01:19]: Why decide working on a consumer AI platform rather than B2B SaaS? So just quickly touching on the background in finance. Sure. Originally, I'm from... I'm from the UK, born in London. And I was fortunate enough to go study economics at Cambridge. And I graduated in 2012. And at that time, everyone in the UK and everyone on my course, HFT, quant trading was really the big thing. It was like the big wave that was happening. So there was a lot of opportunity in that space. And throughout college, I'd sort of played poker. So I'd, you know, I dabbled as a professional poker player. And I was able to accumulate this sort of, you know, say $100,000 through playing poker. And at the time, as my friends would go work at companies like ChangeStreet or Citadel, I kind of did the maths. And I just thought, well, maybe if I traded my own capital, I'd probably come out ahead. I'd make more money than just going to work at ChangeStreet.swyx [00:02:20]: With 100k base as capital?William [00:02:22]: Yes, yes. That's not a lot. Well, it depends what strategies you're doing. And, you know, there is an advantage. There's an advantage to being small, right? Because there are, if you have a 10... Strategies that don't work in size. Exactly, exactly. So if you have a fund of $10 million, if you find a little anomaly in the market that you might be able to make 100k a year from, that's a 1% return on your 10 million fund. If your fund is 100k, that's 100% return, right? So being small, in some sense, was an advantage. So started off, and the, taught myself Python, and machine learning was like the big thing as well. Machine learning had really, it was the first, you know, big time machine learning was being used for image recognition, neural networks come out, you get dropout. And, you know, so this, this was the big thing that's going on at the time. So I probably spent my first three years out of Cambridge, just building neural networks, building random forests to try and predict asset prices, right, and then trade that using my own money. And that went well. And, you know, if you if you start something, and it goes well, you You try and hire more people. And the first people that came to mind was the talented people I went to college with. And so I hired some friends. And that went well and hired some more. And eventually, I kind of ran out of friends to hire. And so that was when I formed the company. And from that point on, we had our ups and we had our downs. And that was a whole long story and journey in itself. But after doing that for about eight or nine years, on my 30th birthday, which was four years ago now, I kind of took a step back to just evaluate my life, right? This is what one does when one turns 30. You know, I just heard it. I hear you. And, you know, I looked at my 20s and I loved it. It was a really special time. I was really lucky and fortunate to have worked with this amazing team, been successful, had a lot of hard times. And through the hard times, learned wisdom and then a l

Sponsorships and applications for the AI Engineer Summit in NYC are live! (Speaker CFPs have closed) If you are building AI agents or leading teams of AI Engineers, this will be the single highest-signal conference of the year for you.Right after Christmas, the Chinese Whale Bros ended 2024 by dropping the last big model launch of the year: DeepSeek v3. Right now on LM Arena, DeepSeek v3 has a score of 1319, right under the full o1 model, Gemini 2, and 4o latest. This makes it the best open weights model in the world in January 2025.There has been a big recent trend in Chinese labs releasing very large open weights models, with TenCent releasing Hunyuan-Large in November and Hailuo releasing MiniMax-Text this week, both over 400B in size. However these extra-large language models are very difficult to serve.Baseten was the first of the Inference neocloud startups to get DeepSeek V3 online, because of their H200 clusters, their close collaboration with the DeepSeek team and early support of SGLang, a relatively new VLLM alternative that is also used at frontier labs like X.ai. Each H200 has 141 GB of VRAM with 4.8 TB per second of bandwidth, meaning that you can use 8 H200's in a node to inference DeepSeek v3 in FP8, taking into account KV Cache needs. We have been close to Baseten since Sarah Guo introduced Amir Haghighat to swyx, and they supported the very first Latent Space Demo Day in San Francisco, which was effectively the trial run for swyx and Alessio to work together! Since then, Philip Kiely also led a well attended workshop on TensorRT LLM at the 2024 World's Fair. We worked with him to get two of their best representatives, Amir and Lead Model Performance Engineer Yineng Zhang, to discuss DeepSeek, SGLang, and everything they have learned running Mission Critical Inference workloads at scale for some of the largest AI products in the world.The Three Pillars of Mission Critical InferenceWe initially planned to focus the conversation on SGLang, but Amir and Yineng were quick to correct us that the choice of inference framework is only the simplest, first choice of 3 things you need for production inference at scale:“I think it takes three things, and each of them individually is necessary but not sufficient: * Performance at the model level: how fast are you running this one model running on a single GPU, let's say. The framework that you use there can, can matter. The techniques that you use there can matter. The MLA technique, for example, that Yineng mentioned, or the CUDA kernels that are being used. But there's also techniques being used at a higher level, things like speculative decoding with draft models or with Medusa heads. And these are implemented in the different frameworks, or you can even implement it yourself, but they're not necessarily tied to a single framework. But using speculative decoding gets you massive upside when it comes to being able to handle high throughput. But that's not enough. Invariably, that one model running on a single GPU, let's say, is going to get too much traffic that it cannot handle.* Horizontal scaling at the cluster/region level: And at that point, you need to horizontally scale it. That's not an ML problem. That's not a PyTorch problem. That's an infrastructure problem. How quickly do you go from, a single replica of that model to 5, to 10, to 100. And so that's the second, that's the second pillar that is necessary for running these machine critical inference workloads.And what does it take to do that? It takes, some people are like, Oh, You just need Kubernetes and Kubernetes has an autoscaler and that just works. That doesn't work for, for these kinds of mission critical inference workloads. And you end up catching yourself wanting to bit by bit to rebuild those infrastructure pieces from scratch. This has been our experience. * And then going even a layer beyond that, Kubernetes runs in a single. cluster. It's a single cluster. It's a single region tied to a single region. And when it comes to inference workloads and needing GPUs more and more, you know, we're seeing this that you cannot meet the demand inside of a single region. A single cloud's a single region. In other words, a single model might want to horizontally scale up to 200 replicas, each of which is, let's say, 2H100s or 4H100s or even a full node, you run into limits of the capacity inside of that one region. And what we had to build to get around that was the ability to have a single model have replicas across different regions. So, you know, there are models on Baseten today that have 50 replicas in GCP East and, 80 replicas in AWS West and Oracle in London, etc.* Developer experience for Compound AI Systems: The final one is wrapping the power of the first two pillars in a very good developer experience to be able to afford certain workflows like the ones that I mentioned, around multi step, multi model inference workloads, because more and more we're seeing that the market is moving towards those that the needs are generally in these sort of more complex workflows. We think they said it very well.Show Notes* Amir Haghighat, Co-Founder, Baseten* Yineng Zhang, Lead Software Engineer, Model Performance, BasetenFull YouTube EpisodePlease like and subscribe!Timestamps* 00:00 Introduction and Latest AI Model Launch* 00:11 DeepSeek v3: Specifications and Achievements* 03:10 Latent Space Podcast: Special Guests Introduction* 04:12 DeepSeek v3: Technical Insights* 11:14 Quantization and Model Performance* 16:19 MOE Models: Trends and Challenges* 18:53 Baseten's Inference Service and Pricing* 31:13 Optimization for DeepSeek* 31:45 Three Pillars of Mission Critical Inference Workloads* 32:39 Scaling Beyond Single GPU* 33:09 Challenges with Kubernetes and Infrastructure* 33:40 Multi-Region Scaling Solutions* 35:34 SG Lang: A New Framework* 38:52 Key Techniques Behind SG Lang* 48:27 Speculative Decoding and Performance* 49:54 Future of Fine-Tuning and RLHF* 01:00:28 Baseten's V3 and Industry TrendsBaseten’s previous TensorRT LLM workshop: Get full access to Latent.Space at www.latent.space/subscribe