SMALL ACTION MODELS ARE THE FUTURE OF AI AGENTS

Summary from the TLDR Founders newsletter

Using large foundation models for agent tool-calling is like using a Ferrari to deliver pizza - expensive, rate-limited, and overpowered for what's essentially a selection task. NVIDIA's research shows small language models are actually better suited for tool orchestration, and testing confirms this - a Salesforce xLAM model runs fast on a Mac M2 Pro with excellent accuracy while forcing better system design through deterministic interfaces and robust error handling.