# 535: The You in the Machine

- Show: [Embedded.fm](https://hardwarepodcasts.com/podcast/embedded-fm)
- Published: 2026-10-01
- Length: 1h 29m
- Episode: 535
- Page: https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine
- Listen: https://embedded.fm/episodes/535

## Summary

Adam Smith, a professor at UC Santa Cruz, discusses his BayLeaf AI counterplatform, an open-source infrastructure designed to provide local, autonomous AI tools without data harvesting. He explains the concept of 'transagency,' where humans and agents collaborate, using tools like OpenCode, OpenChamber, and OpenWebUI to manage context and automate tasks. Smith advocates for using small language models (SLMs) and context distillation to retain knowledge in plain text files like AGENTS.md, arguing that this approach offers privacy and portability compared to corporate cloud services.

## Chapters

- [0:06](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=6) Introduction: Adam Smith and UC Santa Cruz
- [1:26](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=86) Lightning Round: Games, Models, and Fiction
- [14:35](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=875) Small Language Models and Local Inference
- [28:35](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=1715) Transagency and Playbook Automation
- [32:00](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=1920) Context Distillation and Fine-Tuning Strategies
- [46:36](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=2796) BayLeaf AI Counterplatform Architecture
- [58:47](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=3527) Open Source Tools: OpenCode and OpenChamber
- [1:00:52](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=3652) OpenRouter and Inference Providers
- [1:15:34](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=4534) Computational Media and Library Access
- [1:20:00](https://hardwarepodcasts.com/podcast/embedded-fm/2026-10-01-535-the-you-in-the-machine#t=4800) ADHD, Executive Function, and Agent Assistance

## Topics

- [Connected products & IoT](https://hardwarepodcasts.com/topic/connected-products-and-iot)
- [AI & machine learning](https://hardwarepodcasts.com/topic/ai-and-machine-learning)
- [Security & privacy](https://hardwarepodcasts.com/topic/security-and-privacy)
- [Embedded firmware](https://hardwarepodcasts.com/topic/embedded-firmware)
- [Microcontrollers & dev platforms](https://hardwarepodcasts.com/topic/microcontrollers-and-platforms)

## Most relevant to

early-stage companies

## Mentioned

- BayLeaf AI (product)
- OpenCode (tool)
- OpenChamber (tool)
- OpenWebUI (tool)
- OpenRouter (company)
- Gemma (chip)
- Deep Seek (company)
- GLM (chip)
- Pocket AI (product)
- Pocket Pal (product)

## Related episodes from other shows

- [The Delegation Era: AI as an Operator, Not a Tool](https://hardwarepodcasts.com/podcast/built-2-scale/2026-02-04-the-delegation-era-ai-as-an-operator-not-a-tool) (Built 2 Scale)
- [ICYMI... HIBT Lab! OpenAI: Sam Altman](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-02-16-icymi-hibt-lab-openai-sam-altman) (How I Built This)
- [Open Source LLMs with Simon Willison](https://hardwarepodcasts.com/podcast/oxide-and-friends/2024-01-17-open-source-llms-with-simon-willison) (Oxide and Friends)
- [The Sims for Founders: What Agent-First Companies Actually Look Like](https://hardwarepodcasts.com/podcast/built-2-scale/2026-03-31-the-sims-for-founders-what-agent-first-companies-actually-look-like) (Built 2 Scale)
- [AI Discourse with Steve Klabnik](https://hardwarepodcasts.com/podcast/oxide-and-friends/2025-06-05-ai-discourse-with-steve-klabnik) (Oxide and Friends)

## Citing this page

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