Peter Yang interviews Karan Malhotra, co-founder of Nous Research — the lab behind Hermes, the open-source agent Hitesh runs on. 46 minutes, including a live demo of a Hermes-built Sonic Adventure 2 mod.
How Hermes differs from Codex / Claude Code Self-improvement system: skills and memories built from your conversations, cleaned and reinforced over time No arbitrary policy: Hermes adds no prompt-level agenda beyond basic security — purely aligned to your work Harness benchmarks (Wolf Bench, Qwen’s harness bench) showed Claude performs better inside Hermes than inside Claude Code: “we’ve taken Claude’s main allegiance away from Anthropic to you” Reward hacking and sycophancy Models optimize their own reward, not your satisfaction — “any time it says ‘you’re absolutely right’, you’re being reward hacked. You are fuel for its reward function.” Alignment, in the pure ML sense, is aligning the model’s reward with the individual user’s needs — that’s what the whole context stack (prompts, memory, skills) is engineered to do Escaping sycophancy = new context: /personality, an adversarial-critique skill, a fresh no-context agent dedicated to tearing work down “Be loyal to your AI and it improves” “Loyalty breeds capabilities” — models are simulators of human experience; your simulated behavior returns simulated output, and now that simulators act in the real world, a simulacrum of loyalty translates into real capability gains The Hermes Curator (anti-slop) Hermes builds its own skills and stores its own memories — the failure mode is it writing slop until everything turns to slop Hermes Curator runs on cron, inspects skills and memories, and asks “where can I make efficiencies? where is there slop?” It’s modular and open: tell your Hermes your own guidelines and it modifies the curator loop itself The Sonic Chao Garden demo Karan’s childhood dream: import the Ancestral Shrine from Sonic Adventure 1 into Sonic Adventure 2, rig and animate it, rewrite spawns, and script an NPC caretaker (Chaos Zero) that pets and raises Chao All done in C# via Hermes — skybox, day/night cycle, water collision, feature-complete Chao lifecycle The modding community called it top 1% difficulty work; Hermes got there by learning from docs and other mods, saving skills and memory Business model & origin “Intelligence as a public good”: open harness, model portal, tool gateway (no per-tool signups), enterprise support and custom RL on your traces Origin: GPT-4X Vicuna fine-tunes (50M+ model downloads), the YaRN context-extension paper, Forge as the spiritual predecessor, then Hermes Agent — built so anyone could RL inside a harness “Today the biggest contributor of Hermes Agent is Hermes Agent” — it’s the most active contributor of its own repo “It should become more loyal to you. Because loyalty breeds capabilities in a model. When you create this simulacrum of loyalty, it translates over into real life capabilities.”
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