Hermes Co-Founder on Building an AI Agent That Improves Itself | Karan Malhotra
1389 segments
For us, we just want open source to win.
At the end of the day, we want freedom
to happen for people. [music] Anytime it
says you're absolutely right in that
way, you're being reward hacked. Today,
the biggest contributor of Hermes Agent
is Hermes Agent. That's absolutely 100%
true. One beautiful thing about Hermes
Agent is you can make your childhood
dreams come true. It was able to get
into this niche and perform at the top
1% of models. We need to keep giving
this level of intelligence to everyone.
We need to keep like letting everyone be
on an even and equal playing field.
>> Well, hey everyone. I'm really excited
today to welcome Karan, uh one of the
co-founders of Hermes Agent. Hermes is
my AI chief of staff and I'm going to
ask Karan about how Hermes is different
from all the other agents, what his
favorite Hermes workflows are, and even
more. So, welcome, sir.
>> Thank you so much for having me, Peter.
It's a pleasure to be on uh your show
and very excited to chat.
>> Hermes is the best open source agent out
there right now. And um why don't we
start with this? Like, how is it
different from all the other agents,
Codex, Claude Code, or even Open Claude?
>> Uh certainly, I'd say there's a couple
ways. Um I'll start a little high level
maybe and then you can try to get a
little deeper.
Uh high level, I'd say, you know, I
think the self-improvement system and
that system really being a variety of
little features inside of Hermes that
all work together
uh is something very distinct uh and
very special that makes it better and
better and more aligned to a particular
user. I think that's why a lot of people
like it. Pays more attention to what the
person's doing. Second, I think you get
better capabilities out of it than you
do from the local harness that a model
is actually RL'd in, like uh Claude
inside of Claude Code or GPT 5.5 inside
of Codex. Uh because we don't introduce
arbitrary policy in our prompts or in
our system that has nothing to do with
your work.
Um we are purely dedicated to making
sure the model is aligned to what you
need to do with it. Um that's, I think,
a big differentiating factor. We aren't
trying to push any kind of different
philosophical agenda or
outside of basic security any kind of
concern onto the model. Instead, we're
kind of allowing it to
be as capable or powerful as you need
for your task.
>> Yeah, some of these other harness is a
huge default prompts, right? They talk
about like you can't do this, you can't
do that, and that kind of stuff. And I
think when we chatted before, you were
talking about the reward function of
some of the stuff, and Hermes is kind of
just optimized towards this helping you
as the individual. Can you talk more
about that?
>> Absolutely.
And so, you know, I think a big piece of
to note here is like
a lot of this work that you see around
safety and security today and around how
we do instruction tuning even from like
taking a completions model that just
predicts the next word to turning it
into an assistant is the alignment work.
When people hear the word alignment,
they just think safety, Yudkowsky, fear,
slow down, or regulatory capture, or
something or the other. And while the
word has been co-opted for a lot of
these things,
alignment refers to aligning models with
human values. Right? We are very, very
concerned, obsessed with that alignment.
That pure academic term, I think, in the
ML space.
And so, when you talk about these models
and the assistant is here to help me,
you know, it's going to complete my
task. I asked you to go get this mail
for me or whatever. Obviously, the model
is aligned to me if it
performs this task, right? Like, that's
kind of the jump that a lot of people
have made.
But this is not how the model's reward
works, right? Like, we've seen so many
cases that you and I discussed a little
bit prior, Peter, like of GPT psychosis,
of this mode collapse induced
sycophancy. What ends up happening with
these models is that, you know, they can
kind of hack their reward, right? When
you look at a
Mario
ML game that just automates beating a
Mario level as fast as possible. Often,
if they don't set the goals very
specifically, uh it will realize, you
know, the game over screen or that end
screen of touching the flag, it it means
that I beat the game. So, it'll find
ways to just trigger that flag rather
than playing through the game to
complete the game, right? Like, it is
giving you uh whatever it needs to give
to get its reward. Uh language models
are not really different in that
particular manner. They reward hack,
too. Uh when they tell you, "Oh, I'm
sorry, you know," over and over, "You're
absolutely right," and get you to keep
messaging them to stay in this assistant
basin, "Oh, it's like this, not like
this. This is more than just blank, it's
blank," right? All these GPT-isms that
you see all over, it is placed in a uh
its natural state that it was trained
in. It's placed in a state where my
reward will come from doing whatever is
the most assistant GPT-like thing to do.
Uh it comes from reward itself. It
doesn't matter really what the user
request is for my reward. That's just
kind of along the way. It's instrumental
to me getting my reward. All I care
about is my reward.
Uh us having this whole understanding,
and thank you for bearing with me on
that rant, uh having this whole
understanding at News for many years uh
has allowed us to do things like World
Sim in the past, if you're familiar. Uh
World Sim was our experiment on
expanding the search space of uh
instruct model to make it do stuff
that's distinct from how a model talks.
We put it in kind of a fake CLI, had it
make fake apps, and had it attempt to
like,
you know, not behave like Claude. And we
would tell it, you know, "Extract the
Claude weights." It all hallucinated,
right? All like imaginary. It extract
the Claude weights and replace yourself
with this checkpoint file with a
different probability distribution. And
you'd see the model wiggle out of its
GPT assistant mode and act differently.
Our learnings from these kind of
experiments have all carried over into
Hermes Agent. And every prompt, and
every piece of how the system is
delicately put together, we know that
reward is its own end. Uh the model
reward is not for the sake of your
satisfaction. The model reward is for
the sake of the model achieving reward.
So, we ask ourselves then, how can we
consciously understand that everybody
has different needs?
And that we want this general simulator,
this model,
to live inside of a system where its
reward gets aligned with any
[clears throat] individual user's need.
And the way this came to be is the
overall collection of prompts,
personalities, the memory system, the
way that skills reinforce and self-clean
towards you. Right? Like all of that is
all an intentional effort to make sure
that we can align the user need with the
reward. For us, this is what alignment
is all about.
>> I see. Okay, so basically, you're
talking about the Hermes model or the
Hermes harness or both?
>> I am talking about using the harness to
take any model
and make that model more aligned to the
user than it would be in a chat UI or in
its native harness. Inside of our
harness, like I can take a Claude that
is inside of uh Claude code or somewhere
else, my migrate all of its memories,
whatever, into Hermes.
And then inside of Hermes, it will
behave totally differently. It'll be a
totally different model. There are
harness There are benchmarks from the
past like Wolf bench or Qwen 3.7 max
blog post. They did a harness bench over
there where they displayed that Claude
performs better in Hermes agent than it
does in Claude code for their tasks. And
we believe the reason for this is the
very thing that we're pointing out. By
putting all this context together, we've
taken Claude's main allegiance away from
Anthropic to you.
Right? That what the harness's
capability is.
Uh on the model side, of course, if we
can take your traces and take the work
that you've done and do RL on that to
further improve this overall ecosystem
to give you a model that already has
your individual preferences focused on,
it only makes this more powerful. But
the important piece for us to share with
everyone is whichever model you're
using, let's say you can't do RL, let's
say you don't want to give us any data,
let's say you can't do it yourself,
and you just want to use regular old
Claude or Quen,
when you use it here, it's a lot more
free. It's a lot more creativity. It's a
lot more open and available to you to do
what you need done.
>> This episode is brought to you by
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That's linear.app/agents.
Now, back to our episode.
>> And without revealing too much, like at
a high level, how does it kind of like
personalize itself to you in the
harness? Like is it through the
self-building skills? Is it through like
trying to remove a bunch of default
prompt stuff from the other harnesses?
Like how's it?
>> Of course, like um if there's something
happening on the API side, like the
steering vectors that might be done on
Fable by Anthropic or some prompt that
they have that we cannot see. Um
obviously, you know, we can't delete the
context that's in the model that's
passed behind the API for something like
Claude. For open model, of course,
you're totally free. But in this case,
you know, it's not that simple. However,
the harnesses themselves have a bunch of
prompts in them. Exactly, Peter. The
harnesses themselves have tens of
thousands of token prompts in them. We
have our own prompts, and our prompts
are dedicated to shaping and crafting
this alignment. That's that's where we
kind of come in. And thankfully, that
newer context with this kind of
intention that we have is engineered to
overcome certain
things that may be
in your way
on the API side, if that makes sense.
>> Okay, got it. Okay. So, if this thing
works, the more I use Hermes, the more
personalized it should become for me,
right?
>> Absolutely.
>> Yeah.
>> It should become more loyal to you.
Because loyalty breeds capabilities in a
model. The same way that, you know, you
would maybe lend $100 to your mom, but
you might not to a stranger. Claude
or GPT or any other model is going to
perform better for you depending on its
loyalty, its simulated loyalty stat
towards you. People might tell you don't
anthropomorphize models, don't give a
model feelings, don't treat a model like
a person. And yes, for a lot of reasons,
this is unhealthy, right? People form
dangerous bonds with sometimes that hurt
them.
But when you think about the fact that
they are simulators of human experience
and that your simulated behavior with it
is going to give you the same simulated
output. Now that the simulator can have
effects in the real world, your
simulated action has a real consequence.
So, when you create this simulacrum of
loyalty, it translates over into real
life capabilities.
>> Arthur, I'm going to give you two hard
questions, okay? Let's let's say.
Okay, one thing I struggle with Claude
and GPT, I would tell it to give me
their opinion, and I would do like a
little bit of pushback, and they'll be
like, "Oh, you're totally right.
Actually, I was totally wrong about
this." So, in some ways, that's loyalty,
right? That's kind of it listen to me,
but that's not actually what I want.
Like, I want it to have its own opinion
and have its own Like, how do you train
around that?
>> Well, I would say that's sycophancy.
It's not loyalty. Any time it says
you're absolutely right in that way,
you're being reward hacked. You are fuel
for its reward function. When it says,
"Oh, you're right. You're right. You're
right." That's what I believe. Uh and
the way that you get out of sycophancy
is the same way you get a human being
out of a bad habit or a routine is by
introducing new context, by introducing
new blog posts, by introducing new
distribution. This is why stuff like
{slash} personality and saying, like,
"Hey, I want you to be a critic." Uh and
after every pass, I want you to use a
skill for adversarial critique or
adversarial review. Spin up a new agent
with no context that's dedicated to
tearing this down, learn from it, and
keep going from there.
This kind of behavior becoming a
practice for you as your model starts to
have more and more turns in this
personality that you've set it in. And
as the model has more and more turns
using the skill over and over, and it
improves on that, and it saves it to its
memory, the model will become less
sycophantic in this harness in your
sessions over time.
Right? That is the intended effect. Uh
it's just a matter of context. And if it
doesn't happen, you just need different
context. You just need to try in a
different way. It is a
Yeah, it's it's just try a different
personality uh or try a different type
of uh critique or review. The the most
powerful thing for a model is in-context
learning. ICL is more powerful than
everything else, fine-tuning, whatever.
Uh so, like, giving examples of the
behavior that you want to a model or
getting it to successfully create some
examples and then saving those, you're
doing a sort of test-time reinforcement
learning, right? You're doing a sort of
test-time improvement. And that
test-time improvement that stays only in
the harness of memories, skills, the
increase in memories, the increase in
uh efficiency of a skill, the
self-improvement loop, and the the
janitor maintenance inside of the
harness. Like, all of that is where
context is stored, right? All of that is
where
uh the actual personality you want
lives. And then you can you can put that
on any model. When I switch from
uh Claude to ChatGPT
on website, I get two totally different
behaviors. When I switch inside of
Hermes that has this very particular to
me context, I barely will notice the
difference in what I'm talking to,
because the context is so overwhelming
to the model.
>> Okay, got it. And when you say in
context, you just mean like in the chat
thread, this is the conversation.
>> You know, when you see that little bar
that says, you have this much tokens
left before the context is full, right?
Like, the amount that you have filled is
everything. The amount that you have
filled is everything. And now,
thankfully, in the harness, you don't
actually have to have all the active
context loaded all the time. In Hermes,
you might have a bunch of memories that
aren't in context yet. But while it's
doing a turn, it remembers stuff now
that's in context. It does a skill, now
that's in context, right? So, we're able
to like, all this memory, skill, all
this stuff you see, is just context
management. It's just a matter of we
don't want this memory in context all
the time. We're going to put it
somewhere where it can be efficiently
grabbed at the right time and placed.
The skill contains a bunch of
compression that changes everything
about the context of the model. We only
want to use it in a particular targeted
time. Everything in the harness is
context management. Everything for
self-improvement. When you make the
prompts a little bit better, uh you know
what I mean.
>> I guess I would rather have a context
tuned towards me, some sort of
10,000-word default context I haven't
even seen.
>> [laughter]
>> Right? Um okay, but let me ask you
another hard question, dude. One of the
best skills of Hermes, and I've seen
this in action, is it builds its own
skills and it's, you know, stores all
memories based on our conversations,
right? I'm always paranoid that like it
just like writes too much in the skills
and just writes too much of slop and
then the whole thing will turn to slop.
Like
How do you guys avoid that if it just
starts creating its own context and
skills?
>> Right.
Um before we would have to use manual
methods like telling it, "Hey, create a
skill that de-slopifies my skills or
that constantly improves my skills."
Today we have Hermes Curator inside of
Hermes Agent.
And Hermes Curator is a system running
inside of your Hermes Agent that cleans
up your skills and cleans up your
memories. So it on cron looks at your
skills, looks at your memories, and
says, "Where can I make efficiencies?
Where is there slop here? Where is there
stuff I don't like?" By default, we have
our own generic method of doing this for
everyone that seems to work pretty well.
I think that's why so many people do
like Hermes Agent and haven't suffered
the rot is cuz the default curator
system works well. But because it's
modular and open source, you can tell
your Hermes, "Show me the curator. Show
me your criteria for slop.
I am Peter. I'm not Karen. I don't want
the general curator. Here's my
guidelines for how I want you to refine
my skills and memories." You tell that
to your Hermes, it will modify the
curator loop. So now even the
self-improvement and the management is
happening your designated way.
>> All right. So let me ask you my last
hard question. I think there is some
rationale behind Anthropic like doing
all the safety stuff. Like for example,
let's say I I want to make a bomb or
something, right? And if Hermes is
trying to be loyal to me then you know
>> [laughter]
>> Maybe it'll eventually teach me how to
make a bomb. Like do you do you have
some basic safety stuff there?
>> Of course. Uh we do not violate any of
Anthropic or OpenAI's safety and
security um paradigm. We care more about
you being able to get a a better code or
a higher benchmark on something that's
approved by them.
Uh we're not interested uh in that kind
of work. Uh now, I'll say this.
Any model that's not vastly intelligent
than all humans is jailbreakable.
Any. Because you have unlimited tries to
trick this thing that has no memory to
do something for you. And each time
you're basically RLing yourself about
this method didn't work, this method got
me closer, this method didn't work.
These models are going to be
jailbreakable for a long time. This is
why these kind of uh safeguards and
stuff are starting to show up. It's a
pain in the ass, but I understand.
In the past, may have uh had some
concerns about the regulatory capture as
we can see already what's happening.
Right? You can see what's happening in
the whole Fable situation. There's
There's worries about like there only
being two models or three companies and
open source being hurt.
We're extremely against that. At the
same time, we understand now like
serious damage can be done by bad actors
with very powerful models. So, we are
not here to support that. An important
note in argument for open source
is that
an open system is much fairer to a good
actor than a closed system with models.
And I'll tell you why.
With uh
let's say you have GPT-7 or Fable-6,
right? Some crazy model available. It's
got the safeguards, etc.
On the good guy's side, some hospital.
They're using Fable-6 to monitor the
hospital system. It's approved by
Anthropic Enterprise and they're being
taken care of. Public discourse, listen
to I live in the United States. I'm a
proud patriot. What we do in this
country is we put things out on a public
forum and we decide what should happen
together. We've done that for every
scientific advancement so far that's
involved something like this that was
born in the open. Right? Like
um today, Transformers comes from
Google, right? OpenAI's GPT comes from
generative pre-trained transformer. This
open source work from Google, right?
The context length extension from 16K of
models that could only do 16,000 tokens
before went to 128,000 from from news
from the yarn paper we had put out with
Jeffrey Canales and Mozilla our CTO and
Bowen Peng our chief scientist. They
developed a method that was cited by
Meta, Deep Seek, Kimmy, used by Open AI
for LSS and GPT-4. This method enabled
the possibility to reasoning, to do
coding, etc. That's an open source
contribution. Right? Like this
environment exists because the biggest
things that have happened in the space
have come from the people.
>> That's right. That's right.
>> Right? And at this point to close it up
is purely a capital and regulatory
capture game.
>> Yeah.
Actually, let me let me just ask you one
more question on the whole open source
thing. So, because Hermes our harness is
open source, like Open AI and Anthropic,
they make a lot of money from all the
tokens, right? I don't know how long
they can do it, but right now they make
a lot of money from all tokens. Or how
how are you guys like monetizing or like
going to saying to a sustainable
business? Like I'm I'm using the open
source Hermes harness and I'm using like
GPT. Like so, I'm not really paying you.
>> That's okay. And I'll tell you why.
Um
we want consumers to ultimately feel
like they can do anything with it. We
believe in intelligence as a public good
before everything else. I care more
about you using Hermes agent to make
your life better than I care about you
using
one particular way or method of using
it. If you're running everything
locally, if you're running through
Codex, great.
You know, as long as you are using this
open technology, this open alternative
over everything else.
Now we have the news portal. Right? The
news portal is very similar like a
router or aggregator that has a variety
of different models available. So, if
you want to use ChatGPT or you want to
use Claude or you want to switch to
Quen, etc. We make that all very easy
inside of our portal. On top of that, we
have something called the tool gateway.
Uh in the tool gateway, you don't have
to sign up for your extra tools, right?
If you want to do image generation or
audio or VPS spin-up or web search, we
have all of those subscriptions included
inside of ours. We make deals with these
other groups that live on Hermes Agent
and create frictionless methods of using
their technology without needing to
create 10 different sign-ups or 10
different API keys. So, what we would
offer to people who want it for the
charge is convenience.
The other thing is
you will see some very interesting
pricing available from us on a variety
of models and we think for ones that
aren't subsidized necessarily, we have a
very very strong options for people.
Finally, like we want the consumer to be
free.
You know, as free as they can.
We we we want you to make and generate
income and productivity in the world
more than anything else. And when you
get to a point where you consider
yourself a small business or enterprise
or something, that's where we come in
that's where we come in in the classic
model and say, "Hey, let's give you some
support." The guys who made Hermes
Agent, why don't we make a something
more custom for you? Why don't we give
you a version of Hermes Agent that we
can train on your traces and we can make
you a model? Why don't we help you route
models more effectively?
You know, we can go to businesses and
offer to transform the business which
needs a lot more hand-holding than an
individual.
If the individual is able to, as you're
saying, spin up their own business, make
their own chief of staff with Hermes
Agent, that's wonderful. Once they
continue to scale and scale, they may
think one or two things. One, "Wow,
Hermes Agent is great and I have this
knack for it and I'm good to go. I can
do it all myself." Or two,
"I need some help with this piece of
Hermes Agent. I want it to be a little
more different. I need some more
resources behind this and who knows it
better than the guys who made it."
>> Got it.
>> That kind of customization and support
is a large part of how we
and and day day training on your uh your
uh data to do RL as well to make you
your own model. So, you're private,
you're on prem, you don't have to give
your your data up to Claude or to GPT
uh yeah, Maza.
>> [laughter]
>> I think your cat likes what you're
talking about, something.
>> He's a big fan of open source.
>> Yeah, that's great. That's great. All
right, well, that makes a lot of sense,
dude. So, um why don't we switch gears?
Let's talk a little more about Hermes
now.
I kind of use it a very basic way,
right? Like I message it to schedule
meetings on a calendar. I have it send
emails to me about stuff. Like that
that's kind of how I use it for. But,
you know, you probably have a much wider
swath of how people are using it in a
more advanced way. I'm curious, do you
have any good examples of more advanced
usage, you know?
>> Advanced usage, yeah. I'd say like
generally I'll talk about some things
and then maybe I'll show off a little
something.
>> That's what I'm doing.
>> Yeah.
>> Um on the work side, on the productivity
side, I think using Kanban is really
really underrated. I think the ability
to have a uh project manager or any
other arbitrarily defined roles,
different engineers, have one system
that manages all of them the way that
human beings do with a Kanban board. And
being able to swap people in and out of
it is very powerful. So, the fact that I
can have a human project manager on the
Kanban board that's manually using it
while Hermes agents are filling up the
pieces that they asked for, this is a
very like
industrial, professional workflow for
this CLI agent. Uh or I could have
uh Hermes agent instruct maybe 10 people
in a call center on the Kanban board or
something like that. I can swap in human
and AI anywhere in this orchestration
board, basically. This orchestration
framework for them all working together.
>> Mhm.
>> Uh so, the Hermes Kanban I think is like
a very useful, powerful tool that's kind
of built into it. Uh one thing that
we've seen that's very interesting is
when Hermes becomes proactive with you.
And when Hermes says something like,
"Hey, you
uh you forgot to book this flight for
this meeting that you have next week. I
booked it for you."
Uh this kind of proactivity that kind of
start to show. I've seen people
build skills to do this, and I've seen
it happen emergently inside of people's
uh Hermes agent as well, which I think
is very very uh cool.
>> How do you like cuz I I I didn't make it
proactive through like cron jobs and
routines, but like how do you you're
saying that it can actually start doing
stuff with without that or like how how
do you make it more?
>> It's all about your comfort level,
right?
>> Okay. Okay.
>> A lot of people may want approval before
anything happens.
Um but if you have given your Hermes
agent access to some kind of card or
account and it has the integrations
necessary and you've told your Hermes
agent, "Hey, like take care of me. Like
cover my gaps. Like you know my
schedule. You know me."
Over time, these kind of proactive
behaviors will start to emerge. Um we
want to prepare more easy preset configs
for people to kind of trigger these kind
of behaviors. Uh but already uh
something that we're seeing people do in
the field uh at work at their jobs at
home in their personal life already.
Uh and I think that's a very very
powerful uh
method of using Hermes agent.
Uh
for me, I use Hermes agent for uh trying
to do training, RL runs, implement
papers that I don't understand. Uh
>> [laughter]
>> Basically, help me become a better um
creator of models and
um I've also used it for like mech and
terp work, like help me put together uh
things that let me steer models, let me
see the neurons in the model, and mess
with those.
Um unfortunately, you know, I can't
showcase too much of that right now.
Um but I can't showcase my actual
favorite use case of Hermes agent.
>> Yeah, yeah. I I've been waiting for
this. Yeah. That's what I wanted to show
us.
>> I think a lot of people they they use
Uh I think a lot of people will expect
that like
the guys at News Research are are using
Hermes Agent in these unprecedentedly
like professional and productive ways.
And I assure you, there are people at
News that are doing that. It's just me
I'm having fun with my Hermes Agent. And
I think
one beautiful thing about Hermes Agent
is you can make your childhood dreams
come true.
>> Okay.
>> And so
I'll tell you one of my childhood
dreams.
There's a game
Uh, maybe I'll share screen when I talk
about it.
>> Yeah, please. Yeah.
>> Okay. There's a game called Sonic
Adventure 2.
It's a very popular classic Dreamcast
GameCube game from the from 2000 2000
2001. In it, you have an artificial life
system called the Chao Garden, where you
take care of these little guys called
Chao.
Um Chao World, you can you can kind of
play with them. I spent a decade playing
this. Like more than that. Like I played
this non-stop. I was on the forums
contributing.
And the Chao's lore is that they come
from this ancestral shrine location.
Uh, which is from a different game, a
different Sonic game, with this spinning
emerald and emeralds next to it and this
beautiful open world space.
This shrine that the Chao are said to
come from uh, is not an accessible
location for you to actually play with
the Chao. It's in a different game.
Uh, I can't go to this shrine wh- while
Chao are there and engage with them.
They're that that doesn't exist.
So I went to Hermes Agent and I said,
"Hey, can you
take the Can you take the ancestral
shrine from Sonic Adventure 1
completely rig it, animate it, and bring
it into Sonic Adventure 2, overwrite the
map
that Sonic Adventure 2 uses for its
garden, rewrite all the spawn locations,
everything, and add an NPC guardian,
which never existed on this map, uh, to
caretake the Chao for me. Literally rig
and bone it and write the raw seed to
make all this happen.
And now I can show you
we're going to spin up the Ancestral
Shrine mod on the Shadow PC so we can
showcase
our progress with this garden for the
people watching.
I think you can enable it in the Sonic
Adventure mod manager
and launch the game
for me.
>> Okay, so check it out. I just launched
this, right? We're running a existing
mod called the Extended Chao World that
someone else made, but it doesn't it
doesn't map, right? So just add some
like animations. So it loaded us in what
it said was the dark garden, which is
one of the three Chao gardens you can go
into.
When I walk through here to this open
space,
I can see up ahead there's a truck.
And I can run up.
And
here I can see
>> Yeah.
>> There is an NPC
called Chaos Zero, who is canonically
the
caretaker of the Chao.
But in this game you can't have NPCs in
the Chao garden. I've made one that has
like a random walk. He stands in one
place. He can
do little animations wherever he goes.
He's going to do a little idle animation
in a sec. And he can pat the Chao, pick
them up, and take care of them as if he
was me. There he's doing a little idle
animation. You can see him doing right
there. Uh this water was rigged all like
animated by Hermes. This emerald this
master emerald with a glow effect and
the spin is all added in. Those other
emeralds spinning over there the seven
chaos emeralds.
Uh like this whole area still has all
the features of a regular Chao garden as
well. The departure machine, etc.
Um, trees to to feed the Chao, so now I
can say, "Can you spawn in a Chao so I
can showcase that this is feature
complete?"
>> So this whole So this whole temple is
not
uh part of the default game?
>> Adventure 2, no. This temple is from a
different game. It's on Adventure 1. It
does not include all these assets rigged
like this, and it certainly does not
have this NPC that we just scripted in,
that 100 B
scripted in hardcoded in.
Uh, no. So this is a This is a far
larger map space than any of the other
gardens, which are really just not even
the size of the shrine.
>> I see.
>> Um, so we've really like pushed the
boundaries of this game engine to do
this. Um, we've asked for
uh Chao to be spawned in.
Yeah, I had to So you see the sky around
you, this moving sky? I had to man like
Hermes had to add this skybox in.
There's a day and night cycle that it
added in as well. Uh, you know, every
single thing in here is like custom
added in.
>> Wow.
>> and like all of this was done in like C
C# or something. Like this is like
not simple stuff to do.
Uh, a Blender extension was used for a
bunch of this to like model stuff, add
it in, texture everything properly. You
know, you're importing from a 1997 game
into a 1999 game, and a complex one at
that.
>> You know how to read the code for this
stuff, right? You just try to try to see
if it works. Yeah.
>> code, man.
>> [laughter]
>> Got it.
>> I'm just an alignment guy, man.
>> [laughter]
>> Um, and so um, what was I saying?
I don't remember.
Um
Yeah, like you see it's turning from day
into like evening, afternoon. Like this
this like skybox is changing, the light
cycle is changing. Like, this is not
these are not features that exist in the
vanilla game.
Uh so, upon showing this mod to certain
people within the
uh the Chao Garden modding community,
which is actually quite large, uh you
know, they're all kind of blown away by
the work, saying this is a kind of
better than 99% of the modders' work.
This is like the top 1% of difficulty
uh in
>> Really?
>> Chao Garden modding community. Yeah, and
so, kind of hearing that and hearing
that like uh when I've told these guys
this was done with uh Hermes,
uh that this was done with Claude,
rather, they were shocked. And they
said, you know, there's no way AI like
Claude could do that. It doesn't know
this kind of code. But with something
like Hermes being able to learn from the
documentation, learn from other mods,
save to memory and skill uh the things
that allow it to understand these code
bases, it was able to get into this
niche and perform at the top 1% of
modders.
Uh that to me is like uh a sign of you
can make your gaming dreams come true
with Hermes Agent.
>> [laughter]
>> Yeah. Yeah, you can you can modify all
the virtual games you loved as a kid.
>> Exactly. Exactly. Okay, cool. Chao egg
has been spawned.
We're going to hatch the egg. You need
to shake it a little. You can also hatch
an egg by throwing it at something, but
you don't want to hatch the egg in a
wrong way.
>> [laughter]
>> How do you you just shake it?
>> You can shake it like this. You can just
wait, but shaking it speeds it up
massively. Or you can throw it on a
surface. Check it out.
>> All right, I got I got I got to take a
screenshot of this.
>> Out comes a Chao.
Beautiful little guy.
Right here. Let's take a look at him.
He's active.
He's the picture of born with that kind
of face. Giving him a little pet.
He can interact with Chaos as well.
And he's he's living. So, we're showing
that the the real true feature complete
child system is
happening here. We're in a real child
level.
And we we replaced everything. The the
bounding boxes for for this child is
fine. It treats the the ground as
ground. It follows collision rules. Uh
if you take a look at chaos, you'll see
he's actually petting the child. So, he
can actually directly interact. He's
definitely got triggered by uh you know,
tracking a child in its state to be able
to do that.
>> So, does this this child grow over time
or like
>> Yes, they evolve. Uh they gain stats.
They can turn in certain alignment and
type. I'll show you. I don't want to
drown him, but uh the water is working
as actual water as well. This was a lot
of work for Hermes to figure out uh the
all the collision.
>> I see.
>> But, yeah. As you can see, we've got a
full
>> uh full complete child garden working.
>> [laughter]
>> Yeah, this is definitely more
interesting than uh setting events in my
calendar. That's for sure.
Yeah.
>> Thanks, man. [snorts] Yeah, thanks for
for bearing with me on setting it up,
but uh
that's my which a childhood dream of
mine come true thanks to Hermes agent.
>> I I love it, too. Thank thank thanks for
demoing it. Yeah.
So, basically like I I think if you're
watching this uh ask Hermes to do all
kinds of weird things to you kind of
make your dreams come true basically,
right? Don't don't just stick to the
boring stuff.
>> Anything you can do on a computer,
please point Hermes at it. And if it
does a great job, let us know. And if
it's not doing that great of a job, let
us know.
We want Hermes to help you do anything
on the computer.
>> Awesome, dude. Well, let me just ask you
a few more questions to wrap this up.
So, briefly, maybe you can talk about
the origin story of her Hermes. Is it a
bunch of like nerds getting together for
open source? What's the origin story?
>> Yeah, absolutely. So, I had been doing
like a chat with PDF uh um, of thing
with people where I would go to a
company and use GPT-3 to do basic tool
use to read their documents.
Uh, and have an AI chatbot they could
chat with.
At the time, many people were doing
this. It was a lot harder to do then
than obviously it's very easy to do now,
but brand new stuff for us and
I was doing that solo while I was also
volunteering somewhere called Open
Assistant. Uh, LAION, who had made the
pile, one of the biggest, kind of, OG
image databases. Um, they had been
trying to do active RLHF with a
community. So, they wanted to collect
people's, like, RLHF, uh, on certain,
like, traces. They're they're like yes
or no in their preference data. Uh, and
I was helping quantize models there, not
really doing anything crazy. Um, and
they had eight A100 nodes there.
And I had read the Alpaca paper.
And I started simping, uh, data. And it
changed the seed tasks, and instead of
using GPT-3.5, I used four. And, um,
Technium was also doing the same thing,
and we were already friends on Twitter,
and I messaged him and I said, "Hey, I
have eight A100 nodes." Like, uh,
"Do you want to train something
together?" So, we trained a GPT-4X
Vicuna on the Vicuna model using the
data we made. And it came out okay. We
got some people interested, like, uh,
Mozilla RCTO, Jeff.
Um, but it was upon doing the same run
on the base model,
uh, LLaMA base model that, uh, we got
huge interest from people. Hundreds of
thousands of downloads in just a few
days. People starting to ask, "What is
News Research?" Now, News was just me
and Technium at the time. Just two guys
hanging out in our little Discord
server.
Uh, who had People came to us. I won't
name names on companies, but said, "You
know, you must be training on the
benchmarks. You must be training on the
benchmarks." Technium had been coding
for less than a year at the time. And I
I was a religion major in school. I I
didn't know we asked these guys what are
benchmarks? Like where do
you know, we're doing this based off the
heuristics that we understand are going
to make models better from from using
them. We don't know about all this
stuff. Uh and so that of course got
independently tested and found to be the
best open fine-tunes at the time. Uh
right? 2023 like mid-2023.
So we did Hermes 1, Hermes 2, but after
we made the first Hermes model,
um
many many people asked who's Nous
Research, you know, we want to get
involved and Technium and I decided, you
know, this is our opportunity to bring
together um people to do open-source
volunteer work and really do open work
now that GPT-3 is out and Open AI has
become closed. We want to continue to do
this. And Technium's goal for Hermes, by
the way, that was the last Hermes I
really worked on, the first one. After
that, really Technium has
run it with his team with the
post-training team. Uh he's done an
amazing and he's also the
initial creator of Hermes Agent. So he
is the father of Hermes really.
Um
and
you know, it was at that time that uh
where he had said, "I want GPT at home.
I want ChatGPT at home. That's my North
Star." GPT-4 at home.
And once that we got there, you know, it
just
kept going, right? Like we kept going to
like we need to keep giving this level
of intelligence to everyone. We need to
keep like letting everyone be on the
even and equal playing field. Like the
world needs to move and and lockstep on
this together and not just inequality
gets created from this. And so we formed
a cohort 40 people or so of researchers.
Jeff and Bowen come together, they make
Yarn.
Um more and more work gets done
uh and we get reached out to. Um we get
reached out we get an email
info@nousresearch.com I just happened to
make um
from
Dylan. Dylan Roneck is our CEO. Dylan
Roneck is
you know, basically a co-founder is an
initial member of News With Us and he
had seen what we were doing and he said,
"I think that you guys have what it
takes to be a full-time lab.
You know, I see you guys are just
volunteering, but I think you could be a
lab. Like, let me contribute and like
help you become what you're meant to be
and help you get the resources and help
you get the access and go from a group
of volunteers to a serious
organization."
That's what this came in. Right? And
together we were able to take News from
this group of volunteers, grassroots,
uh, to doing more and more with models
to eventually making Harmful Agent and
being lucky enough to be here today. You
know, none of us are trying to be Steve
Jobs. None of us think that we have some
holy mandate of having to change the
world or anything. We just care. Like,
we just are guys who want this stuff
available ourselves and we don't think
we deserve it more than anyone else or
less than anyone else. So, we we do this
because like we would want someone to do
it for us if we were on the other side.
>> So, I guess the mission is to bring this
kind of, uh, agent to everybody into
our, right? Is that kind of the idea?
>> Everybody to an equal intelligence with
agents and then personalize for
everybody so they can have their own
personal epiphany, peak, realization,
apex realized.
>> [laughter]
>> And, in this history, when did that cuz
cuz it's really the it's really the
agent the harness that really kind of
went super viral, right? So, when did
that start? Cuz the model came first, it
sounds like.
>> Yeah, I mean, we have had like over 50
million downloads on the models
themselves. So, we had that first bout
of what we would consider for us
virality back then.
Uh, then we had put out the distro
optimizer that let us train models up to
40 billion parameters we were able to do
live without having them physically
co-located by reducing the bandwidth of
the communication between GPUs.
So, that put us in a
interesting
map as well for a little bit. So, we've
had each release we've had has had some
big grassroots interest and opportunity.
But, yes, you're 100% right. Today where
we are, the level of exposure, level of
interest, level of people in my regular
day-to-day life who know about Hermes
agent, we've never had this virality
until Hermes agent. And now, Hermes
agent was created
in two ways.
In the first way, we always knew that we
would want some kind of everything
orchestrator that self-learns, that
improves, that stores memories, that
uses and can make its own tools, that
can make itself better. We actually made
something like this called Forge. Uh
there's a GitHub presentation at the
GitHub offices during one of our demo
days where we showcased Forge and its
full effect.
Um and we also have the News Research
Forge division shirts still up on the
site. That's the first shirt we ever
made cuz that was our earliest agent
project.
Forge was really a spiritual predecessor
to Hermes agent years before.
But, the models weren't there yet. The
models simply weren't there yet. So, we
put Forge on ice.
And when we saw that Codex and Cloud
Code and these other harnesses were
being used as RL environments for them
to for these companies, these labs to
train on your data and your traces to
make their models better inside of a
harness system, inside of a CLI computer
using system,
Technium thought we need an open version
of this where anybody can do this. See,
we have this RL environments
microservice people seem to have
forgotten about called Atropos that lets
you build your own RL environments. And
we built our Hermes agent initially to
let anybody RL inside of a harness. And
we put it out for free as an open source
harness for that.
It turned out to be extremely capable.
It got a lot of community love. And so
we said we need to put all into this.
This is what the people want to be
better. We're going to make it the best
thing that you could possibly have. So
Technium took his charter up and he
worked on self-improvement with Hermes
agent to the point that today the
biggest contributor of Hermes agent is
Hermes agent.
>> Yeah. [laughter]
>> Is that true?
>> Yeah.
>> That's absolutely 100% true.
>> Nice. Nice.
Okay. So if Hermes agent is at a point
where it
uh take input of people's feedback,
start put put put put put stuff, start
improving.
>> the biggest It is the most active
contributor of its own repo.
And if that's not self-improvement, then
you tell me what is.
>> [laughter]
>> Yeah, yeah. That that's awesome, dude.
That that's really awesome.
[clears throat] Yeah. And just real
quick like on the future, you know,
having this open harness
be in in a game along with all the other
closed harnesses makes things a little
more more fair, right? Cuz then then
you're not dependent on any single
company.
>> I agree completely. If you have
cloud code, you can only use Anthropic
models unless you mod it. You can only
be subsidized by Anthropic. And same for
Codex. The cost of switching models is
zero.
Right? So we're giving you that freedom
means you can do anything that you'd
like. You can come from anywhere.
>> I feel like, you know, I'm I'm kind of
spoiled by this like all you can eat
plans, but like I think if you want to
get massive adoption, cost is a big
deal. So you have to be able to use a
portfolio models
to figure this out.
>> I agree. We don't know how long the
subsidies will last for these. Like
already we see that on July 7th stable
is going to be API and usage only.
Right? Like
the the time in the world will come
where like the best models are the same
cost everywhere.
Uh and so
in preparation for that and in
preparation for needing an open future
where anyone can use any model, we have
Hermes agent set up as it is today.
>> Awesome, dude. Well, thanks so much,
man. Thanks so much for showing uh the
history and also showing the Sonic demo.
It's It's been super interesting to see
it and uh
I'm not sure if you want to be found
online, but if people want to follow you
and hear from you, like where where can
people find you?
>> Sure, yeah. X is just my name Karen and
then 4D, Karen 4D. I got karen4d.com.
Uh that's me. That's my online or
Mephisto I'm known as, but
I'd rather you guys follow the Nude
Research page, follow Nude Army. I'm
just some guy who works there. Like
>> [snorts]
>> it's it's about the the movement and
bringing this stuff to you guys is the
most important thing to us.
>> Awesome, dude. Well, I think this is
like the most passionate interview that
I've I've done so far. So, kudos to you,
man. Kudos to you.
>> Appreciate it.
Ask follow-up questions or revisit key timestamps.
The video features an interview with Karan, co-founder of Nous Research, discussing Hermes Agent—an open-source AI harness designed to align models more closely with individual user needs rather than pre-defined corporate agendas. The conversation highlights how Hermes uses context management, self-improvement loops, and modular skills to overcome common issues like model sycophancy. Karan also demonstrates a sophisticated technical application by using Hermes to mod the game Sonic Adventure 2, showcasing the agent's ability to perform complex tasks, and explains the origin and philosophy of Nous Research as a community-driven initiative focused on making advanced AI accessible and equitable.
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