Skip to content
FPS: --
Models

Case study · August 2026

From an RSI hackathon win to our first trained model.

PodMan proved that a small team could observe agent work, catch duplication, and feed better context back into the next action. Karti-Small-RSI-3B takes that same recursive discipline into model development: reviewed evidence, bounded training, held-out evaluation, and deliberate promotion.

2nd / 95+overall at the AI Engineer World’s Fair Hackathon
2 track winsLiveKit and DigitalOcean
512verified rows in the first training cycle
64optimizer steps in the first LoRA SFT run

01 · The signal

The RSI idea survived contact with a real room.

The 2026 AI Engineer World’s Fair Hackathon centered on recursive self-improvement. Our team built PodMan, a voice teammate that watches a shared engineering room, flags duplicate work and merge collisions, and returns useful context to the team. It placed second overall out of more than 95 teams and won the LiveKit and DigitalOcean tracks.

See PodMan

02 · The next question

Could the improvement loop teach a model we own?

Cloud models are extraordinary, but the Veronica and Prime Agent stack also needs a compact brain that can run locally, stay useful during an outage, call our tools precisely, and improve from reviewed work without exporting private household or operating context. That made a 3B model the right first target: small enough to iterate on, large enough to prove the whole system.

03 · The operating loop

Improvement has to earn promotion.

  1. 01

    Collect

    Reviewed public seeds and authorized agent traces.

  2. 02

    Verify

    Rights, redaction, provenance, structure, and tool intent.

  3. 03

    Train

    A bounded candidate from a pinned open foundation.

  4. 04

    Evaluate

    Held-out tool behavior, response contracts, and boundaries.

  5. 05

    Promote

    Only after measured improvement and explicit human review.

04 · First result

One completed checkpoint—and a repeatable path to the next one.

The first private checkpoint completed a BF16 LoRA supervised fine-tuning run from the pinned SmolLM3-3B foundation: 512 verified training rows, 64 optimizer steps, and a clean diagnostic evaluation. More important than a single score, the run established the complete path from curated evidence to a trained checkpoint and identified the next work: clarification coverage, strict response contracts, and tool-call structure.

Read the model card and recipe