A product discussed on AI Engineer.

WTF do people use Open Models for??
Feb 22, 2025 · 28:01
Eugene Cheah of Featherless.ai breaks down how individuals and enterprises actually use open-source AI models, based on platform data. DeepSeek R1 dominates individual usage, but Mistral Nemo 8B remains the top enterprise model due to production stickiness and Apache 2.0 licensing. Creative writing and roleplay account for 30–40% of all traffic, with over 60% of users in that segment being women; coding copilots and agents make up 20–30%, driven by 'vibe coding' and token-hungry workflows like Kline. RAG and ChatGPT clones represent 20%, while agentic workflows (10–20%) succeed with human-in-the-loop designs. Cheah advises enterprises to aim for 80% automation with escape hatches, and warns against chasing 100% reliability. He concludes by introducing Quirky, a post-transformer hybrid built for $100k.

Lessons from building GenAI based applications — Juan Peredo
Feb 22, 2025 · 33:13
Juan Peredo details the hidden complexities of building GenAI applications, from model hosting and cost control to output validation and observability. He compares local (Ollama) vs cloud hosting (Modal, SkyPilot) and warns that an agent processing 3,000 calls/day with OpenAI O1 costs nearly $300,000/month, while LLaMA 3.3 70B drops that to $50,000/month. He explains techniques to mitigate hallucinations—prompt engineering, guardrails, RAG, and fine-tuning—each with trade-offs like added latency or cost. Peredo advocates externalizing prompts via LangChain Hub for easy iteration and future-proofing, and illustrates agent design with parallel calls to reduce latency. Finally, he stresses observability using tools like LangSmith to debug probabilistic failures, such as an LLM failing on case sensitivity.
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