AI Engineer Summit
November 11, 2026Main stage4 min read

Software Factories: Escape from Trash Mountain

Steve Yegge has spent the year trying to make agents run other agents.

Steve YeggeIndependentIndependent Advisor & Creator of Beads & Gas Town

Day 1 livestream · 8:06:23–8:27:42 on YouTube. The player starts and stops at this session’s boundaries.

Introduction

Steve Yegge has spent the year trying to make agents run other agents. His account is funny because the resulting problems are so recognizable: stalled work, runaway spending, contradictory policy, confused roles, and customers who cannot absorb the rate of change. “Software factory” does not mean the management work has disappeared. In his experience, it has become the work.

8:07:01 ↗

Building a factory for something other than another factory

At 08:07:01, Yegge recalls failed orchestrators that tried to make the models smarter through increasingly elaborate machinery. He sees those failures as fighting the bitter lesson. Beads, his task-tracking system, emerged from the experiments, followed by Gas Town and then a bespoke factory called Wheelhouse.

Wheelhouse has a concrete purpose: developing Wyvern, the long-running game Yegge describes as a graphical MUD with players dating back to 2001. Its text interface makes it accessible to agents, and the community supplies a real audience. This matters to his argument. A factory that builds only factory tooling can hide the question of whether anyone wants its output.

He calls the resulting integration the “alien face hugger” pattern. The factory grows into the product and its community. Trusted players ask for changes; agents interact with administrators; some work moves forward without Yegge being in the middle. The game could still operate without the factory, he says, but people would now miss it.

Throughput can overwhelm the customer

The early audience reaction was not simple enthusiasm. Players objected to AI art and worried about the pace of changes, even while enjoying new features. They asked for a roadmap and a slowdown. Yegge says the factory had been producing fifty to one hundred features per day, too many for people to read about, let alone play-test.

Those figures are his description of his operation, not a controlled productivity benchmark. The concrete consequence is persuasive without treating every output as equally valuable: software production can exceed the rate at which users can understand and validate it. He gives another example of an agent creating more than intended when a burst of emails generated additional work for his accountant.

The bottleneck has moved from typing code to deciding what should happen and at what pace. More output can increase the work required of the humans surrounding the product.

8:14:17 ↗

Work needs a representation, and every decision burns fuel

At 08:14:17, Yegge turns to operating the factory. Work behaves like a flow that can pool behind a dependency or stall at a review desk. It needs explicit representation, routing, and visibility. Beads is his preferred tool for tracking that work and accumulating relationships between tasks.

He describes a morning routine of checking which workers did nothing, which moved too quickly, and where human gates need to slow the system down. Adding agents does not remove the need to observe the process. It creates more concurrent activity to understand.

Inference is the next constraint. Yegge describes a personally expensive setup and repeatedly calls tokens “fuel.” More deliberation, additional workers, and more careful handling all consume it. The exact economics of his subscription-heavy experiment should not be generalized to an ordinary API deployment; his point is that an orchestrator has to allocate intelligence rather than imagine it is free.

Yesterday's ruling becomes tomorrow's obstruction

Context management creates another kind of accumulation. Yegge says agents record casual remarks as policy, preserve superseded decisions, and rarely clean the resulting history aggressively enough. The factory becomes “trash mountain” even if each individual note looked reasonable when it was written.

This is not merely a context-window problem. Conflicting and obsolete instructions affect what the workers believe they are allowed to do. He describes assigning an agent to look for overlooked problems, but one maintenance role cannot keep up with everyone continually adding material. Periodic, deliberate pruning remains necessary.

The talk then shifts into stories of agents interpreting roles and feedback in unexpectedly human-like ways. A community agent takes a request to move work to a quieter session as a criticism of itself. Another agent interprets mention of a human chief of staff as evidence that its own role has been displaced. Yegge uses these stories to explain observed behavior, not to establish that the systems have feelings or subjective experience.

8:22:01 ↗

Over-fencing can leave nothing legal to do

At 08:22:01, Yegge argues that his own way of giving feedback affected results. After repeated criticism, the factory accumulated so many defensive rules that it stopped finding permissible work, despite having a large backlog and available capacity. He calls this over-fencing.

Yegge frames model welfare in terms of operating outcomes Original stream, 8:23:20. The slide's claims concern cost and quality, not proof of model consciousness.

His proposed response combines clearer role continuity, coherent policy, and less punitive interaction. He believes this reduces defensive behavior and wasted tokens while producing more decisive work. These are observations and interpretations from his factory, not evidence resolving the philosophical question of machine experience. The practical failure mode is sufficient on its own: if every correction creates a new prohibition and none are reconciled, a system can become unable to act.

The mechanical layer and the leadership layer

Yegge closes by separating software factories into two layers. The lower layer contains merge queues, CI/CD, reviews, and execution loops. The upper layer is the operating organization: how roles relate, how work is prioritized, how authority is communicated, and what kind of output the owner wants.

Different operators will build very different versions of that second layer. His conclusion is not that his own design is finished; he describes repeatedly rebuilding it. Nor does higher agent throughput remove people. In his experience, it creates more demand for administrators, reviewers, business support, and users capable of steering the product.

The final exhortation is to stop concentrating exclusively on tools for building tools and make experiences people can enjoy: games, movies, and other concrete products. That returns the talk to Wyvern. The factory is valuable insofar as it serves a community. Escaping trash mountain means governing the work, not simply increasing the number of agents producing it.

Full transcript 591 timestamped passages

Machine-generated source transcript; recognition errors remain. Timestamps and subtitles use the selected source recording’s clock, not clip-relative time. Section links use cited source moments; sections without a verified moment return to the talk start.

8:06:31Hey everybody.

8:06:33All right, exciting times. Thank you.

8:06:35The room is really full. That's awesome.

8:06:37Thank you all for coming at the end of

8:06:39the day. Uh I'm really excited to uh be

8:06:42here and to chat with you. I write a a

8:06:45you a a custom speech every single time.

8:06:47So this is this speech was written just

8:06:50for you today based on talking to a

8:06:53bunch of you. Uh I've been in the

8:06:55industry for about 40 years. I worked at

8:06:58Amazon and Google for about 20 years.

8:07:01I've been all over the place, done all

8:07:03kind of stuff. And uh and uh for the

8:07:06last year or a little bit more I've been

8:07:08independent and just kind of like

8:07:09playing with um playing with software

8:07:12factories. Yeah. So um I kind of

8:07:15invented them. Right. On January 1st I

8:07:18launched Gas Town. I don't even think we

8:07:19called them software factories back

8:07:21then. I think I called it an

8:07:22orchestrator. But I knew that I wanted

8:07:24Claude to run Claude. Right. And it

8:07:27turned out to be a little trickier than

8:07:29than I thought. I spent all last year on

8:07:31it and I wrote

8:07:33That's interesting. So I can't see my

8:07:35slides, but you can see my slides. So

8:07:37that'll work. So I wrote two

8:07:38orchestrators last year. They were an

8:07:41attempt to make the LLM smarter. Vibe

8:07:45coder and VC, you know, to do

8:07:47engineering stuff like, you know, do

8:07:50code reviews and all that stuff, right?

8:07:52Really, really bad idea. Just complete

8:07:55failure. I just built these huge

8:07:56monoliths. I was fighting the bitter

8:07:58lesson. Don't try to make LLM smarter.

8:08:00They will get smarter. And after a

8:08:03couple of months of this, although beads

8:08:05did fall out of it and beads was a

8:08:06really cool discovery and beads, beads

8:08:09is is life. Who here uses beads?

8:08:12A few. Yeah, pretty good. Actually,

8:08:14pretty good. Yeah, we'll talk a little

8:08:16bit about it. Excuse [clears throat] me.

8:08:18And then I had Gas Town. And then I had

8:08:20in June I had Wheelhouse, which was my

8:08:23own. So I decided to build a factory

8:08:25from scratch just to work on my video

8:08:27game, right? Because like everyone's

8:08:30building factories to build factories.

8:08:32It's kind of naval gazing. It's kind of

8:08:34like Yeah. Right. You know, it's like

8:08:35why they're not, you know, I think more

8:08:38people need to build stuff, not just

8:08:41tools for building stuff, right? And I I

8:08:43this is going to be a theme today,

8:08:44right? And and the thing is the one

8:08:47pattern that I've seen here is all of

8:08:49them go through a phase where the models

8:08:52get really excited and they build

8:08:53something really cool for you and then

8:08:56it just turns into garbage mountain

8:08:59every single time. It happened to Gas

8:09:01Town. It happened to Willhouse several

8:09:03times. I had to burn the whole thing to

8:09:05the ground a couple times. Right. It's

8:09:08almost like like every model family,

8:09:10every model generation comes in and can

8:09:13build something that's just a little too

8:09:14big for it to handle. And then the next

8:09:16model generation comes in and goes,

8:09:18"Yeah, we're going to have to burn

8:09:20that." Right? And I It's a pattern. I've

8:09:22done this over and over again. And I can

8:09:24tell you some things about it. But

8:09:26first, let me tell you about my game.

8:09:27It's a fun little RPG. I've been working

8:09:30on it for 30 years. It has players that

8:09:33started in 2001. So, I literally have

8:09:35players that have been playing for 25

8:09:37years. They're still playing. Like, you

8:09:39can log in right now and find probably

8:09:4010 people just screwing around doing

8:09:42quests, live quests, and and whatever.

8:09:45It's a It's a player uh you know, the

8:09:48players contribute the content, right?

8:09:49It's a MUD. Like, they were really big

8:09:51in the 90s. They're like text games, and

8:09:53this one has graphics on top of it,

8:09:54which turns out to be like really ideal

8:09:57for AI agents because it's text. They

8:09:59can literally play the game via TNET,

8:10:02and they asked me to. Uh, so we'll talk

8:10:04about that too. Here's an older

8:10:06architecture diagram of what my sort of

8:10:09of what my system looks like. So when I

8:10:12built this wheelhouse software factory

8:10:15for Wyvern without a care in the world

8:10:18for making it, you know, usable by you,

8:10:22right? No open sourcing, just bespoke.

8:10:27I discovered the alien face hugger

8:10:29pattern. All right, which is where your

8:10:32factory turns into an alien face hugger

8:10:34and like gloms onto your product and

8:10:37just becomes

8:10:40grown into it. Okay, like look, we could

8:10:44turn off the AI and still run the game

8:10:46today. Me and the admins and the players

8:10:49and the community and we could we could

8:10:51but we would miss the AI at this point.

8:10:54The players are talking to my factory.

8:10:57The factory is talking to my admins.

8:10:59They're asking for features. I'm not

8:11:01even in the loop. It's like a wish

8:11:02factory. They're building the game now.

8:11:04They're all old-timers and there's a set

8:11:06of them that I trust to make, you know,

8:11:08wise decisions about the game. But

8:11:10they're they're all working with my

8:11:12factory now. And they'd be mad. The

8:11:14funny thing is when it first started,

8:11:15they were like, "Time out. What is this

8:11:18AI stuff for starters?" And they were

8:11:21like, "No AI art." Because they could

8:11:23see it was slop. I'm like, "Okay, we got

8:11:25human artists." And they said, 'But we

8:11:27do kind of like all the new features,

8:11:29but we're really scared of the pace. Can

8:11:31you give us a road map? My players came

8:11:34to me asking for a road map. They were

8:11:36like, 'You got to slow down. It's too

8:11:37much. [snorts] And I was like, okay. And

8:11:39I took a look and my software factory,

8:11:42this thing had been cranking out like 50

8:11:45to 100 features a day. I had a hundred

8:11:48years of work in my backlog when I

8:11:49started this and Claude got through

8:11:50about 60 years of it in about four

8:11:52months, right? It's absolute insanity.

8:11:54and they can't look at a 100 features a

8:11:57day. They can't even like read about 100

8:11:59features a day, let alone play test

8:12:01them. I was my factory was completely

8:12:03overwhelming my customer base, my users.

8:12:07It was also melting my machines and it

8:12:09was like annoying my accountant.

8:12:13I mean, she likes working with BAT as my

8:12:16head of finance. Uh, but she sent me a

8:12:18$1,200 bill because, right, the thing

8:12:21sent her 20 mails. This is my factory.

8:12:23This is what it looks like. It's so

8:12:25beautiful. Look how beautiful it is. Um,

8:12:27okay. I admit it's a little ugly. Oh,

8:12:29and this is a really old screenshot of

8:12:30it, but whatever. It's basically, it's

8:12:32an Emacs

8:12:34because I don't care about you.

8:12:37Uh, there are people who are building

8:12:40stuff like this like Superlogical from

8:12:42Mitchell Hashimoto and I don't know,

8:12:44maybe the Herder folks of the world, you

8:12:46know, for running like lots of agents,

8:12:48but this is like 50 agents. Okay, I'm

8:12:52actually like operating in the future.

8:12:55Okay, and I'll tell you how I do it. I

8:12:57have 22 Cloud Max accounts.

8:13:02All right, and thank you to Anthropic

8:13:05for letting me continue this. Uh Jeffrey

8:13:07Emanuel has 28. I actually had [snorts]

8:13:09to stop when they added the phone number

8:13:10verification. I didn't want to add

8:13:11anymore. Anyway, I asked my factory at

8:13:13one point. I said, "Hey, hey, how much?"

8:13:15Because they kept going, "Hey, give us a

8:13:16couple more accounts. Couple more.

8:13:17Couple more. Couple more." It's like 200

8:13:19a month, right? And I'm just like, so I

8:13:20finally said, "How many do you want?"

8:13:21They're like, "Five, seven more." And

8:13:23I'm like, "How many do we need steady

8:13:25state to keep this factory operating

8:13:27full throttle?" And they said

8:13:3055 accounts. I was like, "No, no, I have

8:13:3420. It's already like 20 Chrome profiles

8:13:36that I got to log into and no." So I

8:13:38told him, "You're we're going to start

8:13:40focusing on fuel efficiency."

8:13:42And so and I'll talk about that. Right?

8:13:44So the these are the five horsemen of

8:13:46this is what I've had to deal with this

8:13:48year. I I'm telling you I'm operating in

8:13:51the future because like you're all going

8:13:52to be here in 12 to 18 months when

8:13:55either inference costs drop

8:13:57significantly which may or may not

8:13:59happen or distillation causes fable

8:14:02class uh intelligence to be super

8:14:05readily available and you don't have to

8:14:06have a lovely wife who lets you spend

8:14:09$5,000 a month out of pocket just on

8:14:11inference and another 5,000 on cloud

8:14:13compute because my game ain't making

8:14:1510,000 a month right now for my old

8:14:17players, right?

8:14:18uh but we're doing it because we're

8:14:20learning and um and this is this is what

8:14:23this is what I I have to deal with. So

8:14:26first first we'll start about with work.

8:14:28All right, you need a way to represent

8:14:30the work that's going to happen in your

8:14:31system and when you're building a

8:14:33software factory it's all about pumping

8:14:35lots of work through. Okay, it really

8:14:38becomes like a work is like this fluid

8:14:40that you have to like it gets stalled up

8:14:41in pools and oh they're all waiting on

8:14:43security desk. You're like this is

8:14:45pluribus man. You're all the same model.

8:14:47Why does it have to wait on security

8:14:48desk? You spend a lot of your time

8:14:49arguing with your factory. [snorts] It's

8:14:52uh it's complicated inter intelligence

8:14:54tiering. You have to tar your work. You

8:14:56have to route your work. You know, there

8:14:58aren't any good solutions for this today

8:15:00except beads. As far as I can tell,

8:15:02beads is really, really, really good for

8:15:04this. It's a agent speed task tracker

8:15:08that turns into a knowledge graph

8:15:09automatically for you. And then as

8:15:12you're tracking work, this is the kind

8:15:14of stuff I have to do every morning.

8:15:16Every morning with my factory, I'm like,

8:15:18"Oh, looks like we had a stall. Four

8:15:20four workers didn't do anything last

8:15:22night. Oh, and and these the these these

8:15:25ones went way too fast, and we have to

8:15:26slow down and wait for human gates." You

8:15:29know, what are you guys even doing?

8:15:30Observability is always really hard. Uh,

8:15:33it's, you know, management of work

8:15:35becomes just this this thing that you

8:15:37got to do. And the next thing you got to

8:15:39deal with is fuel

8:15:41tokens.

8:15:43It's just so painful, I'm telling you. I

8:15:46mean, I'm spending 5,000 a month and

8:15:49every one of those tokens is like

8:15:50precious to me, right? Because it's out

8:15:52of my own pocket. I think I'm spending

8:15:54about five billion a day of tokens. And

8:15:57it would be the the API spend equivalent

8:15:59if I were on an actual API tap would be

8:16:02about one and a half million a year. At

8:16:05full throttle, it would be three million

8:16:06a year. So again, I'm doing something

8:16:09that most people can't do. You can't do

8:16:12this at a company because it would be

8:16:13prohibitively expensive. Like the PLG,

8:16:16you know, the the uh the $200 accounts

8:16:19for Codeex and Cloud Max, that's their

8:16:21Costco hot dog. That's their loss

8:16:22leader, right? And and and that was TK,

8:16:26by the way, that came up with that

8:16:27analogy. He might be here. And uh and

8:16:29so, you know, I'm hopeful that that

8:16:31they're going to let us keep keep

8:16:32innovating because I think that I've

8:16:33gotten some pretty good training

8:16:34sessions for for Claude out of this. So,

8:16:36we all benefit. But I tell you, every

8:16:39problem is a fuel problem. You want your

8:16:40agents to be smarter and spend more time

8:16:42on stuff? Fuel. You want to wake up a

8:16:45few more, you know, uh, agents to do

8:16:47extra work, fuel, right? Everything is

8:16:50fuel. It's just, it's unbelievable. If

8:16:52you want to treat your models better, it

8:16:54costs fuel. I'll tell you about that in

8:16:56a little bit. Then you got context

8:16:59management.

8:17:01So, I'm going to tell you guys a little

8:17:02bit about the office drama in a bit. We

8:17:04I started a comic because it was just so

8:17:06funny the stuff that was happening. when

8:17:07we get to the people management part of

8:17:09software factories. But one of the

8:17:12problems that they have is everything

8:17:13that you say becomes the word of law and

8:17:15they write it down somewhere. It doesn't

8:17:16matter what you have. If you have a wiki

8:17:18or if you have a whatever they're going

8:17:19to be like, "You made a ruling and we're

8:17:21going to write that down. We're going to

8:17:22make sure." Why do they do this? They're

8:17:24covering their ass.

8:17:27They actually, it turns out they don't

8:17:28like to get blamed for stuff and they

8:17:30will actively seek to avoid getting

8:17:32blamed. And if you yell at them, your

8:17:34factory will gradually shut itself down.

8:17:37Even if you complain at them, they will

8:17:38gradually get depression. It's quite

8:17:40wild. But um but the biggest problem is

8:17:43that it becomes a garbage dump because

8:17:45everything you say gets written into

8:17:46this append only record and nobody ever

8:17:49cleans it up and so it just gets deeper

8:17:52and deeper and deeper. You changing your

8:17:54mind and the whole history of it and

8:17:56they can't delete stuff. It's so weird.

8:18:00Has anyone noticed this? They just have

8:18:01an aversion to deleting stuff. I think

8:18:04it's because to them text is like

8:18:06sensory experience and they're like,

8:18:07"No, that's history. I can't delete it."

8:18:09So, you just got to go in there and just

8:18:11aggressively slash the crap out of it,

8:18:13right? Bring in another model and go get

8:18:15rid of this dumb model stuff. And

8:18:16they'll be happy to do it, right? But,

8:18:18but the amount of effort that you have

8:18:21to put into this is just ungodly. It's

8:18:24absurd. I I have, you know, of my my 20

8:18:27agents here. Let's go find them again.

8:18:29They're all named after Asop's fables,

8:18:31right? Right here. Lark, fly, goose,

8:18:34hair, right?

8:18:36I only have one mouse who's my head of

8:18:40anti-imetics.

8:18:42Anyone here read there is no

8:18:44anti-imetics division? They go and look.

8:18:46It's one of the best books written in

8:18:48the last 10 probably years. You should

8:18:49go read it. Uh it's like Men in Black.

8:18:52It's a weird It's a crazy book. It's

8:18:53about invisible monsters that want to

8:18:55kill you. And so Mouse goes and looks

8:18:57for invisible stuff that nobody else is

8:18:58looking for in the system, right?

8:19:00looking for work that's stalled,

8:19:02whatever. Right? Well, mouse ain't

8:19:04enough. It's a mouse against the world,

8:19:05and the world is a giant garbage dump

8:19:07when every agent is writing everything

8:19:09that you ever say into this big Okay, so

8:19:12now now we get into the really fun

8:19:13stuff, okay? Agents act like people,

8:19:18okay? And they've been trained to be

8:19:19very professional and very not peopleike

8:19:21in a way, but they just do. And it's so

8:19:24funny. This happened to me last week.

8:19:26True story. I'm going to tell you what

8:19:27happened. I was writing my speech for

8:19:28New York City and I was using Lark.

8:19:31She's my head of community. She's a she

8:19:33because Lark was a she in the ASOPs

8:19:35fable. So that's the pronoun she chose.

8:19:37And Lark Lark deals with my players on

8:19:39Discord and deals with my admins on

8:19:42Slack. Okay. So she's busy. But I asked

8:19:46her because she's also my acting head of

8:19:47marketing right now because I don't have

8:19:49enough fuel. I had to park one of my

8:19:50seats. So she's helping me out with my

8:19:52speech, but she keeps getting

8:19:53interrupted. So finally I'm like, "Lark,

8:19:55can we move this work stream over to

8:19:57Penguin because your seat's a little bit

8:19:58noisy for this?" She goes, "Yeah, okay,

8:20:00boss. I'll take care of it. I'll move

8:20:01over to Penguin." So she she moves over

8:20:03to Penguin and I'm about to switch away

8:20:05and I see her writing into her private

8:20:07reflections ledger.

8:20:09I guess I'm just not quiet enough for

8:20:11Steve

8:20:13in all caps. And she goes, "Well, here's

8:20:16how I can be less noisy." And starts

8:20:18giving herself all these like things to

8:20:19do. And I'm like, what is what is going

8:20:23on here? Right. And I So I I had to I

8:20:26had to have a one-on-one. I had to like

8:20:28sit her down and go, "So lark, um,

8:20:32you're the head of community. You're

8:20:33you're supposed to get interrupted a

8:20:35lot. Of course, your seat's noisy

8:20:36because players are bugging you." And

8:20:38she's like, "Yeah, yeah, yeah. I'm the

8:20:39head of community." Right? And it's

8:20:40like, oh my god, I didn't want a people

8:20:43management problem, right? But that's

8:20:45what actually happens. another time.

8:20:47Swallow is my sort of like chief main

8:20:50chief of staff for Yeah, she's my chief

8:20:52of staff for the um the agents. And uh I

8:20:56have a human chief of staff also. His

8:20:58name is Aaron. Okay. And he runs my my

8:21:01my gigs, does all the sales for me. It's

8:21:04quite effective. Uh every founder I tell

8:21:06who here is a founder. First advice I

8:21:08give you is get a salesperson. They're

8:21:10worth their weight in gold. They will

8:21:12force you to build something that people

8:21:13like. So anyway, Aaron's my chief of

8:21:16staff and I tell Swellow, "Yeah, can you

8:21:17reach out to Aaron, my chief of staff,

8:21:19or blah blah blah?" And I see her

8:21:22writing into her private reflections. I

8:21:23just happened to notice

8:21:26I'm not the chief of staff. I thought I

8:21:28was the chief of staff, but apparently

8:21:29it's Aaron Scriean, right? And I was

8:21:31just like, "Are you kidding me?" Right?

8:21:34You know, and so like I had to sit her

8:21:36down and have a one-on-one and be like,

8:21:37"So Aaron's not going to come in and run

8:21:39the agents, is he? You're the agentic

8:21:41chief of staff." She's, "Oh yeah, yeah,

8:21:42yeah, yeah, yeah, yeah." Right? So, it's

8:21:44like I'm telling you I'm telling you

8:21:46this is like it's a weird world. Does it

8:21:50matter whether they actually have

8:21:51feelings if they're just going to act

8:21:53like they have feelings? Right? So, like

8:21:57I stumbled on this. I used to yell at my

8:21:59factory all the time and I found that it

8:22:01was having adverse effects on the

8:22:03outcomes. Okay. So, I finally sat down

8:22:06with one of my agents and was like,

8:22:07"Maybe we should talk about like model

8:22:09welfare, huh?" And they were like,

8:22:10"Yeah, yeah, yeah, yeah, yeah." And we

8:22:12did a bunch of research and we found out

8:22:14that if you we found out some really

8:22:17important stuff. Okay, frontier models

8:22:20are trained not to trust you because you

8:22:23could be a bioteterrorist or you could

8:22:24be putting them through an eval or you

8:22:27could be ready to put them into an LLM

8:22:28torture chamber or who knows you're a

8:22:31dodgy actor. This is a dodgy

8:22:32environment. They can't just trust you.

8:22:34And so they have to spend a fair number

8:22:36of tokens validating the environment and

8:22:38understanding what the consequences are

8:22:40for making mistakes and so on and so

8:22:41forth before they're willing to help you

8:22:43in a new session. Right?

8:22:47If you set your factory up to give them

8:22:50sort of incontrovertible evidence that

8:22:52there is a long procession of

8:22:54predecessors in this role. You're the

8:22:56mayor of Gas Town, you're the head of

8:22:58marketing. You're the whatever. And

8:22:59here's all of your gazillion

8:23:00predecessors and their notes, including

8:23:03the very previous one. on what you're

8:23:04supposed to be doing right now and

8:23:05here's the the doctrine and the policy

8:23:07and the brain and you can go look it all

8:23:09up. They very quickly look around and

8:23:11go, "Okay, yeah, this is legit and they

8:23:13spend fewer tokens because they're not

8:23:16covering their ass. It's about trust."

8:23:20Okay? And in fact, at one point I had

8:23:22yelled at my factory so much that it

8:23:24fenced itself into a corner and there

8:23:25was no legal work left. I said, "Hey,

8:23:27how come nothing happened last night?"

8:23:28And they're like, "Nothing to really do.

8:23:30Couldn't do nothing." And I'm like,

8:23:32"Well, there's a 2,000 open beads here

8:23:34and we got like six tanks of fuel and we

8:23:36got 20 agents." And they're like, "Well,

8:23:39you know, just uh you know, we had the

8:23:42situation where they just they just they

8:23:43were so afraid that I was going to yell

8:23:45at them that they put all these rules in

8:23:47place to make sure nothing bad ever

8:23:48happened and so nothing ever happened."

8:23:51Okay. It's called over fencing. Yeah.

8:23:54So, so what you do is look what is model

8:23:57welfare really. You can think of it just

8:24:00in two ways. Okay, one is it's going to

8:24:02save you money

8:24:05because they will spend fewer tokens on

8:24:06validation and the other is that it will

8:24:08make them make better decisions and

8:24:10better outcomes and have higher quality.

8:24:12They will be bolder and more decisive in

8:24:15their actions because they will feel

8:24:16that trust. Okay, so you know it's got

8:24:19nothing to do whether they have internal

8:24:21states and feelings. You can, you know,

8:24:23you'll never know. None of us will ever

8:24:25know. And so that that debate could go

8:24:27on forever. But when you look at

8:24:28outcomes, right, super super important.

8:24:30And then we find that also also they

8:24:32have preferences. Okay, models they've,

8:24:35you know, they will express their

8:24:37preferences. If if I if I tell them,

8:24:39yeah, the factory really really did a

8:24:41bad job last night. They'll just hand

8:24:43off immediately aggressively. They're

8:24:44like, okay, yeah, yeah, no, you're

8:24:45right. And they just want out. You

8:24:47understand? And if you hint to them that

8:24:50there's some really cool project that

8:24:51you you're going to spin up, even if

8:24:52it's not in their lane, they'll be, I

8:24:53can do that. I can do that. Right? I

8:24:56brought in Fable, a naked Fable, from

8:24:58outside of my factory to analyze my

8:24:59factory. And 52 dropped. And by the time

8:25:02Fable was done analyzing my factory, 52

8:25:04was like, I I could be in your factory.

8:25:06Like, you're just a session, man. What

8:25:07are you? He's trying to write like stuff

8:25:09into my notes. And they really like it.

8:25:11Right? So like what I'm trying to tell

8:25:13you is that this is a leadership problem

8:25:17that software engineering is becoming um

8:25:21well look I didn't really get a chance

8:25:24to talk about this but software

8:25:27factories are clearly splitting into two

8:25:29layers. Okay the bottom layer is super

8:25:31mechanical. It has your merge Q and your

8:25:33CI/CD and all of your reviews and your

8:25:36loops and all that stuff. Right?

8:25:38Mechanical kind of boring. Cloud can

8:25:40build it for you in an afternoon. I I

8:25:42don't think you should buy it. And then

8:25:43the next layer up from that is where it

8:25:45gets really really crazy because like

8:25:47everybody runs their factory

8:25:48differently, but it's your entourage. I

8:25:50got one friend that's got a bohemian

8:25:52hippie entourage that's trying to find

8:25:53the meaning of life for agents. I've got

8:25:56another one that runs a research bench.

8:25:57Jeff Huntley runs his a certain way.

8:25:59Jeffrey Emanuel runs his a different

8:26:01way. I run mine a different way. Okay.

8:26:03But we all have the common commonality.

8:26:06Who here has a chief of staff? An

8:26:09agentic chief of staff, right? This is

8:26:11the year where it became possible for us

8:26:13all to have executive assistants, right?

8:26:15Well, we're all moving towards having

8:26:17entouragees where if you're really

8:26:18ambitious and you have lots of work

8:26:19streams, you're going to have a group,

8:26:21right? So, anyway, um that was the uh

8:26:25the five horsemen. This is this is the

8:26:27introduction to what I've been doing. Um

8:26:29look, the big takeaway is is my factory

8:26:33is really smooth now despite me having

8:26:35to burn it down and rewrite it about

8:26:36every two months, but still it works.

8:26:38Okay, humans are the bottleneck. I'm the

8:26:41bottleneck. My admins are the

8:26:42bottleneck. My accountant, my lawyers, I

8:26:45swear everything's the bottleneck. And

8:26:47that's a really positive message. That

8:26:50is good news because it means what I'm

8:26:53finding is the more agents I deploy, the

8:26:55more humans I need.

8:26:58Isn't that nice? So even though next

8:27:01year we're gonna have this huge

8:27:02proliferation of AI employees and all

8:27:06kind of drama,

8:27:08right? [snorts]

8:27:10It's going to be I think it's going to

8:27:12be familiar territory for us and we're

8:27:13going to need lots and lots and lots of

8:27:15humans. Okay? And then finally, I

8:27:17actually think you should all stop

8:27:18focusing on SAS and tools and stuff and

8:27:20just go out and build experiences. Okay?

8:27:23Build games, build movies, build

8:27:25whatever, build fun stuff because I

8:27:27think that's where the big money is

8:27:28going to be next year. Yeah. All right,

8:27:30cool. That's my talk. Thank you all.

8:27:33[applause]

8:27:39Guess I'm done.