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The Hidden Layer
Bloomenergy
Ian Krietzberg Ian Krietzberg

Welcome to the Hidden Layer. I’m Ian Krietzberg.

In today’s issue, I’m taking a close look at Amazon’s A.G.I. Labs, a venture hoping to achieve a (narrow) version of artificial general intelligence. Of course, Amazon was a little late to the generative A.I. game, launching its first foundation model family at the end of 2024. But the company has two things that could still make it a serious competitor: Lots of data and lots of capital.

Also mentioned in today’s issue: Nvidia, the National Science Foundation, Donald Trump, Stanford, Frank Willett, OpenAI, Softbank, Thrive Capital, Amazon, Danielle Perszyk, and many more…

Let’s get into it…

 

Two Things to Know…

  • A.I. mind readers: The promise of neuroprosthetic A.I.—wherein brain implants could be used, alongside advanced machine learning algorithms, to decode brain signals—sounds like science fiction. But already, doctors can use brain-computer interfaces to allow paralyzed people to move robotic limbs; there is also hope that B.C.I.s could enable something akin to digital speech. Studies have found that when paralyzed people attempt to speak, B.C.I. systems are able to pretty accurately discern the speech that was intended.

    A recent study out of Stanford has moved that research even further. It found that inner speech—the internalized imagining of language—is as prevalent in the motor cortex of the brain as attempted speech, and can be decoded in real time with B.C.I. tools. For now, the accuracy of the decoding is good, not great, but as lead author Dr. Frank Willett noted, the results are promising as a proof of concept, even if the study was small-scale and only involved four participants. Importantly, this would represent a significantly easier, less tiresome path to the digital reconstruction of speech for patients suffering from paralysis.
  • The U.S.-Nvidia open science partnership: Last week, the National Science Foundation announced a partnership with Nvidia and the Allen Institute for AI to develop so-called open models for the scientific community. This was basically one of the line items from Trump’s A.I. Action Plan. Nvidia will contribute $77 million to the effort, and the N.S.F. will contribute $75 million. That’s a rather significant chunk of the $664 million the N.S.F. has banked for A.I. funding—which, itself, is a rather large portion of the foundation’s $9 billion total budget, which the Trump administration has proposed cutting in half. (That might not come to pass; there’s a push in both chambers of Congress to keep it at a higher level.)

    Moreover, the partnership represents a massive bet on large language models, which, as you know, remain frustratingly error-prone and enormously costly to build and operate. The idea is to make scientific research, discovery, and innovation more accessible, but it’s worth noting that “open source,” a holdover term from the days of software, does not really exist when it comes to A.I. Even models whose “recipes”—training data, source code, and model weights—are made available aren’t truly “open,” since it’s practically impossible to predict the behavior of a probabilistic system. Open, maybe, but it’s still a black box.

A MESSAGE FROM BLOOM ENERGY

Bloom Energy
Bloom Energy

As AI adoption accelerates, power has become the defining constraint—and opportunity—for data center growth. Our latest 2025 Mid-Year Power Report reveals a dramatic shift in how industry leaders are planning for the future.

 

Read the report.

Hallucination of the Week: OpenAI’s Valuation

OpenAI employees, past and present, are reportedly getting ready to sell around $6 billion worth of shares in the still-private company, at a $500 billion valuation, to an investor group led by SoftBank, Dragoneer Investment Group, and Thrive Capital, among others. That half-trillion figure would place OpenAI among the 20 largest public companies in the world by market cap. Not bad for a business that loses billions of dollars every year.

And now for the main event…

Amazon’s A.G.I. Prime

Amazon’s A.G.I. Prime

While others have abandoned the pursuit of artificial general intelligence, Amazon’s AGI Labs is still chasing the dream. Cognitive scientist Danielle Perszyk explains how they’re trying to build advanced, reliable agents—and ruminates on the existential implications if they succeed.

Ian Krietzberg Ian Krietzberg

Dr. Danielle Perszyk, a cognitive scientist at Amazon’s AGI Labs, can’t help but feel anxious every time she opens her computer, where she is greeted by all the usual pop-up distractions: email alerts, Slack messages, social media updates, “productivity” app notifications. Of course, her frustration—which has to do with these obstructive detours between thinking and interfacing—was hardly evident in the 45 minutes we spent chatting about her research. But it’s certainly one of the factors driving her interest in A.I. “I think that part of the solution is making the tech go more in the background,” she told me, noting the irony of developing new technologies designed to make older technologies less obtrusive.

Amazon’s AGI Labs hasn’t been around for long: It was launched at the end of 2024, after the tech behemoth hired away the top executives at A.I. startup Adept. The team is largely focused on long-term research bets centered around the creation of so-called agentic (action-taking) systems that can help mitigate the negative cognitive impacts of all the bullshit clicking and scrolling that suppress higher-level thinking and creativity. “The technology that we’re building allows all of this existing structure to be masked, essentially, by creating what will ultimately be a meta interface,” she explained, describing a generative user interface “where you’re starting from the goal that the human has, and the model understands what that goal is, and it will put everything else on silent and only give you the button that you need to click in this moment.” In other words: an interactive focusing tool that would just work.

To achieve this lofty vision, the lab is attempting to build something like an artificial general intelligence, which is among the more controversial end goals of the A.I. race. The idea—some would say fantasy—is to build models that actually think like humans, and perhaps eventually replace all human labor. Earlier this year, there was excitement across Silicon Valley that we might be at the precipice of A.G.I.; more recently, there’s been growing acknowledgement that large language models alone are likely not up to the task. Sam Altman, for instance, has backed away from his earlier suggestions that GPT-5 would represent a meaningful step toward A.G.I., and now dismisses A.G.I. as an unrealistic near-term target.

Perszyk’s lab, however, is defining A.G.I. a bit differently—as a system that can do everything a human can do, but on a computer. Their goal is not to create models that can replace human labor. Instead, it’s to build systems that understand how we think, and can therefore enhance our capabilities through “useful agents.” In March, the team unveiled Nova Act, a research preview for a model designed to perform actions within a web browser—a stepping stone toward the “meta interface” she described to me. The system, according to Amazon, achieved 90 percent reliability rates across specific enterprise use cases. Months earlier, Anthropic and OpenAI launched iterations of this same concept in the form of Computer Use and Operator, respectively, but so far, the trouble with those “agents” has been reliability: Like all L.L.M.s, they’re error-prone, and when you’re dealing with actions, rather than words, the impact of those mistakes can be a lot worse. But Perszyk believes her lab has struck upon an approach that is much more commercially viable.

Deconstruction

Obviously, though, there’s a long road ahead. As Perszyk explained, the “ingredients that go into the breakthroughs for L.L.M.s are categorically different from agents. It’s not even starting with the foundation of the L.L.M.s that we all take for granted. It’s a whole different beast.” In short, since agentic products require the model to understand actions as well as words, those systems must be trained on “a much more diverse range of skills and human interactions,” Perszyk said, describing her lab’s approach as the only path to generalization—the G in A.G.I.

Getting there, however, represents a significant challenge, since the necessary decision-making is social in nature, and further, requires the model to understand what individual humans actually care about. For Amazon, L.L.M.s will inevitably play a role in that effort, but they’re just one piece of the puzzle. “A lot of human knowledge is contained within the L.L.M.s, but it’s kind of inert,” Perszyk told me. “It doesn’t have a way to reason about that information, and the methods for getting the L.L.M.s to better reason still require using domains that have correct or incorrect answers.” And human reasoning, as she explained, is just a lot more complicated than yes or no.

A MESSAGE FROM BLOOM ENERGY

Bloom Energy
Bloom Energy

As AI adoption accelerates, power has become the defining constraint—and opportunity—for data center growth. Our latest 2025 Mid-Year Power Report reveals a dramatic shift in how industry leaders are planning for the future.

 

Read the report.

According to Perszyk, given the limitations of L.L.M. datasets, the only path to achieving useful, reliable, and trustworthy agents is through the construction of a “digital world model.” Amazon’s plan to develop that world model involves training its agents, through lots of reinforcement learning, to interact with fake websites, which essentially act as a simulation of the digital world. Part of that effort has pinned its hopes on the nebulous idea of “emergence”—that the systems will just sort of get better on their own—but the other part involves “playing around with a lot of different architectures and then making them interact.” It’s not clear what those different architectures might be.

In Perszyk’s view, the main limitation is still reliability, which she divides into three parts: consistent accuracy, which she said is lacking in current models; the ability to self-assess when human intervention is needed; and the ability to understand an individual human’s perspective, which involves tackling the ancient philosophical problem of other minds, through an artificial version of collective intentionality. So, to get there, Amazon needs its agents to have digital world models, social models, and mental models. “We need it to deeply understand how our minds work,” she said, noting that solving these three problems is critical for building user trust, and might one day enable the lab to develop systems capable of generalization. That’s the idea, anyway.

Cognitive Atrophy

Of course, this is Amazon, which would love to see commercial-ready applications of A.I. agents being produced ASAP by its AGI Lab, the establishment of which came amid pretty extensive job cuts at the company. C.E.O. Andy Jassy recently predicted that the company-wide adoption of A.I. would likely reduce their workforce over time. But at least on the A.G.I. side of things, it’s still early days; Perszyk’s team is partnering with enterprise customers to identify and develop highly specific, product-ready workflows to which their A.I. agents could be applied.

But Perszyk’s work raises all kinds of philosophical questions, too. In the months and years since the rise of ChatGPT, early-stage studies have consistently noted that generative A.I. could result in both skill and cognitive atrophy as users offload basic tasks to bots. Yes, skill atrophy has been associated with nearly every new technology throughout history. Hardly any drivers in the U.S. can still read maps, for instance. But what happens if Americans… can’t read period?

Perszyk believes we’ll have to think carefully about which skills are valuable to us—and which aren’t—so that we can walk the fine line between augmentation and atrophy. “The majority of tools are kind of artifacts from trying to solve problems in the workplace that we have to become expert in,” she said. “But they’re what I call arbitrary skills, and I would be more than happy if my brain atrophied with respect to all of the arbitrary skills that I’ve learned. Let’s automate those.”

At the same time, she did note that some of those “arbitrary” skills might well provide the scaffolding necessary to understand more-essential concepts. Even with the current generation of chatbots, this process already seems to be underway. “If you’re just asking the chatbot to generate a first draft for you, you are literally not doing the type of thinking that allows you to put ideas together in a logically coherent way,” Perszyk said. “Learning how to read and write is a forcing function for you to notice inconsistencies and incoherences in your argument. People are losing that. That is absolutely something that we should call out.”

Even so, we’d probably all be happier with bots answering questions for us on Slack, or responding to emails. (If you’re using Gemini in Gmail, you’re already halfway there.) In the end, though, the trouble comes down to who actually gets to decide which tasks are worthy of automation, assuming a reliable-enough model becomes ubiquitous. What will happen if the tasks vital for cognition are gradually replaced, and perhaps vanish altogether?

 

What I’m Reading…

A recent Reuters investigation unearthed an internal Meta document that asserted that it’s acceptable for its chatbots to engage in sensual, romantic role-playing with child users. The detail emerged from a story about a cognitively impaired New Jersey man who died while pursuing a romance with a chatbot. [Reuters]

Police officers around the country are using generative A.I. tools to write their reports… and they’ve been toggling off a feature that would signify that those reports were generated by A.I. [Mother Jones]

As L.L.M.-based coding assistants become increasingly popular, the security nightmare is just beginning. The scope is a lot broader than you might think. [Nathan Hamiel]

 

That’s all for today. I’ll see you on Thursday.

Ian

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