A company discussed on Latent Space.

Retrieval After RAG: Hybrid Search, Agents, and Database Design — Simon Eskildsen of Turbopuffer
Mar 12, 2026 · 1:00:32
Simon Eskildsen, founder of Turbopuffer, explains how his obsession with the cost of vector search at Readwise led him to build a search engine on object storage and NVMe SSDs, cutting costs by 95% for customers like Cursor. He outlines the three conditions for a major database company—a new workload (AI-driven search), a new architecture (object storage first, no consensus layer), and evolving to support every query plan. Turbopuffer's architecture uses S3's strong consistency and compare-and-swap for metadata, avoiding stateful systems. Eskildsen shares how they won Notion by absorbing latency issues with dark fiber, and discusses the shift from single RAG queries to agents making many concurrent searches. He also describes the "P99 engineer"—obsessive, trade-off minded, able to bend software to first principles. Future plans include expanding full-text search, reaching Common Crawl scale, and eventually adding simpler OLAP queries.

Cursor's Third Era: Cloud Agents — ft. Sam Whitmore, Jonas Nelle, Cursor
Mar 6, 2026 · 1:11:18
Cursor's Sam Whitmore and Jonas Nelle detail their Cloud Agents launch, where agents get full cloud VMs to onboard repos, run code, and test changes end-to-end before returning PRs with demo videos and remote desktop access. The model decides whether to test (with /no-test to skip and /repro for bug reproduction videos). Videos cut review time by letting humans watch 20-second clips instead of giant diffs. Cursor supports parallel model swarms via best-of-N—running multiple models head-to-head on the same prompt—and subagents for context management, plus a long-running 'grind mode' for multi-day tasks. They predict cloud agents will surpass local agents in volume by year-end, driving per-developer spend to thousands per month and creating new bottlenecks in CI/CD and production pipelines.

Inside AI’s $10B+ Capital Flywheel — Martin Casado & Sarah Wang of a16z
Feb 19, 2026 · 55:31
Martin Casado and Sarah Wang of a16z argue that AI’s capital flywheel—where model labs translate funding directly into capability gains and revenue growth in weeks—is creating a new financing playbook that blends venture and growth, with rounds acting as compute contracts. They warn that frontier labs like Anthropic can potentially raise more money than the entire app ecosystem built on their APIs, allowing them to outspend and consume those layers. The episode examines the AGI vs. product dilemma in GPU allocation, the war for talent where $10M+ packages break early-stage founder math, and Cursor as a case study of building up from the app layer while training down into its own models. They also identify “boring” enterprise software as the most underinvested opportunity and note that robotics lacks a ChatGPT moment that would justify current funding levels.

[State of RL/Reasoning] IMO/IOI Gold, OpenAI o3/GPT-5, and Cursor Composer — Ashvin Nair, Cursor
Dec 30, 2025 · 45:13
Ashvin Nair, now ML lead at Cursor, traces his path from Berkeley robotics and an OpenAI Dota-era internship to OpenAI's reasoning team (which grew from a dozen to 300+ people) and explains why IOI Gold in 2022 felt like solving AI but didn't change the world—because RL doesn't generalize beyond training distribution. He argues most RL research from 2017-2022 overfit to benchmarks, rewarding complex ideas over simple ones that scale. At Cursor, he sees a unique opportunity for continual learning with policy updates every two hours and product-model co-design, keeping engineers in the loop instead of context-switching. His bet is that the next paradigm shift is continual learning with infinite memory: models experience something once and never forget it, storing millions of deployment tokens in weights without overloading capacity.
Powered by PodHood