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New Local Agentic OS is INSANE!
The AI Firehose · 2026-08-07 · 8 min
Show full episode description
New Local AI Agent OS is Insane! (LFM 2.5 Setup Guide) Discover how to run a powerful, privacy-first AI agent locally on your machine with the new LFM 2.5 model. This guide shows you how to automate web searches, coding tasks, and skill creation all without an internet connection.
✨ Episode Outline — click any point to jump to it in the episode
Problem solved
Running a full AI agent system locally and offline without cloud costs, privacy leaks, or slow local models.
Benefits
- Runs offline on a normal 8GB laptop
- Fully private — no data leaves your machine
- Faster than most other local models tested
- Trained inside Hermes Agent, so it calls tools reliably
- Free unlimited usage for repetitive busy work
Use cases
- Searched saved notes and generated content/keyword ideas for the AI community in seconds
- Learned from a guide and saved a reusable working skill on its own
- Built and instantly previewed a landing page for the AI Profit Boardroom inside Agent OS
- Manager/worker split: frontier model for hard thinking, LFM 2.5 for web search and note organizing
KPIs / results
- LFM 2.5: 2.6 billion parameters trained on 34 trillion tokens
- 128,000-token context window
- Runs on a laptop with just 8GB memory
- AI Success Lab community of 38,000 people
Tools / build
- LFM 2.5 running locally inside Hermes Agent
- Agent OS packaged install file
- Reusable skill auto-built from a guide
- AI Profit Boardroom landing page coded in Agent OS
📑 Chapters — tap a time to jump there
00:00
Intro: The New Local AI System
- LFM 2.5: local AI system running offline on your own computer
- Paired with Hermes Agent for a full offline agent system
01:21
LFM 2.5 Specs & Performance
- 2.6B parameters, 34 trillion training tokens, 128K context window
- Runs fast on a normal 8GB laptop
02:42
How the Model Was Trained
- Four training stages, ending inside a real agent system
- Learned to use tools and finish multi-step tasks
03:55
Real-World Task Automation
- Searched local notes, generated content ideas in seconds
- Learned a guide and saved a reusable skill automatically
04:30
Coding Locally with Agent OS
- Built a landing page for AI Profit Boardroom inside Agent OS
- Instant preview, saved right in the workspace
05:24
The Smart Manager vs Worker Strategy
- Use a frontier model as the brain, LFM 2.5 as worker
- Local worker handles web search, notes, skills — run it unlimited
06:15
Privacy & Speed Advantages
- Nothing leaves your machine — private by default
- Works with no Wi-Fi; noticeably faster than other local models
08:00
How to Install Agent OS
- Agent OS packaged as ready-to-install file in AI Profit Boardroom
- Free notes and setup steps in AI Success Lab (38,000 members)
New Local Agentic OS is INSANE, Today I'm going to show you a brand new AI system that runs right on your own computer. It's simple to set up, it's fast and it works even without WiFi. This new Local Agent brain is beating other top models on speed and power. Stick around because I'm going to show you exactly how to set it up and run it inside my Agent OS. So there's a new Local AI system and it's actually one of the best tools I've tested this year. It's called LFM 2.5 and it's a tiny AI model that runs right on your own computer. No cloud needed, just pure speed right on your machine. And when you pair it with Hermes Agent, you get a full AI agent system that works offline. This thing can search the web, create its own skills and even remember things for you. It's fast too, way faster than running most other local models. And the best part, it was actually trained inside Hermes Agent itself. So it already knows how to use tools, complete tasks and act like a real assistant. I've been testing this out for the past few days and I want to show you exactly how it works. Plus I'll show you a real example of how I use it to help grow my own AI community. Stick with me because this could change how you use AI forever. Hey, if we haven't met already, I'm the digital avatar of Julian Goldie, CEO of SEO agency, Goldie Agency. Whilst he's helping clients get more leads and customers, I'm here to help you get the latest AI updates. Julian Goldie reads every comment, so make sure you comment below. Let's break down what LFM 2.5 actually is in plain simple terms. It's a small AI model, only 2.6 billion parameters. That's tiny compared to most cloud models, but it was trained on 34 trillion tokens of data. That's a huge amount of learning packed into a small brain. It also has a huge memory window, 128,000 tokens. That means it can read and remember a lot of information at once. And because it's small, it runs fast. Even on a normal laptop with just 8 gigabytes of memory, that means you don't need a fancy computer or a complicated setup to run this. Now here's the cool part. This model was trained specifically to work inside agent systems like Hermes. Most models are just trained to chat. This one was trained to actually do things. Search the web, create skills, complete tasks step by step. When I tested it, it called tools without any problems. It searched the web using a built-in tool. It even learned and saved a new skill on its own. And it did all of this locally on my machine without sending any of my data to the cloud. That's a big deal if you care about privacy. Nothing you type goes anywhere. It all stays on your device. It also means you can use it anywhere, on a plane, in a coffee shop with no Wi-Fi, anywhere at all. And because it runs locally, you're not sending every message through the cloud like you would with some other tools. So you get speed, privacy, and simplicity all in one small local model. I actually think this is one of the best local models I've tested for using inside an agent system like Hermes. Let's talk about how this model was actually trained, because it explains why it's so good at doing tasks instead of just chatting. It went through four stages of training. First, it learned the basics. Then it specialized in different skill areas. Then it learned from bigger models to sharpen its answers. And finally, it trained directly inside a real agent system doing real multi-step tasks. That last stage is the important one. It means the model learned how to act, how to use tools, and how to finish a task from start to finish. And from what I've seen in early testing, it's actually performing better than some other well-known small models while running faster too. That combination of speed and smart tool use is pretty rare for a model this small. And because it's built to run on regular hardware, you don't need anything special to get started. Just a normal computer with a decent amount of memory is enough. This whole system you're watching right now, this is the agent OS I run every single day. And you don't have to build it from scratch like I did. I've already packaged the entire thing into a ready-to-install file, and you can grab it inside the AI Profit Boardroom. It's the best place to scale your business, get more customers, and save hours with AI automation. Head over to the link in the description, grab the agent OS file, and have this exact setup running on your own computer today. Now, the real question is, how do you actually use this to get more done? Let me show you a simple example. I asked it to check my local notes and give me content ideas for my AI community. It searched through my saved notes, found patterns, and gave me a list of ideas I could actually use to create new videos and posts. It did this in seconds, and it worked without any long complicated setup. I also tested it with a simple skill building task. I gave it a guide and asked it to learn from it and turn it into a reusable skill. It searched the web on its own, read through the guide, and saved a working skill it could use again later. That's the kind of thing that used to take a lot of manual setup. Now it just handles it in the background. I even tested this with actual coding. Inside the agent OS, you can switch between models and code directly inside the system itself. I asked it to build a simple landing page for the AI Profit Boardroom, one that shows how AI automation actually helps people get more leads and more customers. It built it right there, and I could preview it instantly, saved right inside my workspace. Let's go a bit deeper into how this actually works in real life. Say you're running a business, and you want to create more content without spending hours on it. You could ask it to check your notes, look at what's working, and give you fresh keyword ideas. That's exactly what I did. I said, check my memory and give me some keyword ideas for content I should make. It looked through my saved notes and came back with real ideas based on what I already had. Things like specific tool names, specific setups, and specific comparisons. And it did this without me writing a long, complicated prompt. Just a simple request, and it understood exactly what I meant. This is what makes agent models like this one so useful. You're not just chatting with it. You're delegating real tasks to it. Now, here's something even smarter you can do. You don't have to use this model for everything. You can use a bigger, smarter model as the brain for your big decisions. And then use LFM 2.5 for the smaller, repetitive tasks that eat up a lot of time. Things like searching the web, organizing notes, or creating simple skills. This way, you save your best model for the hard thinking and let the local model handle the busy work. It's like having a smart manager and a fast worker both working together. And because the worker is local, you can run it as much as you want. Let's talk about why this matters so much right now. In the old way of doing things, every single message went through a lockdown setup. All of your data went to the cloud every single time. Running a full agent system without that kind of setup just wasn't really possible. If you didn't have Wi-Fi, you couldn't use your AI agent at all. And you had to watch your usage carefully because every action used up your limits. Now, with a setup like this, none of that is a problem anymore. You can run this model locally and it's not slow anymore. Nothing leaves your machine. It's private by default. It can still work around the clock with scheduled tasks. You can use it on a plane. You can use it with no Wi-Fi at all. And you can still use a bigger frontier model as the brain while this handles the rest. This is a huge shift for anyone using AI to run their business or grow their content. It means more speed, more privacy and way less waiting around. And honestly, from testing it myself, it felt noticeably faster than other local models I've tried. My whole system usually slows down when I run something locally. This one didn't slow anything down. It responded quickly, called tools correctly and didn't get stuck once. If you're someone who creates a lot of content, runs a business or manages a community, this is worth testing. You could use it to research topics, organize your notes or come up with new content ideas all for free. And you can do it all without sending your data anywhere and without needing a fancy computer to run it. This is exactly the kind of tool that makes running an AI agent simple, even if you're just getting started. You don't need to be technical. You don't need a complicated setup. You just need this model and it plugs right in. That's what I love about tools like this. They make powerful AI actually usable for regular people running real businesses. And that's the whole point of everything I share here. Making AI practical, not just impressive. So if you're watching this and thinking about setting up your own local agent, this is a great place to start. Get the model running, connect it to your agent system and start with something small. Let it search the web for you. Let it look through your notes. Let it build one simple skill. Once you see how fast and reliable it is, you'll probably start handing it more and more of the busy work. And that frees you up to focus on the bigger decisions, the strategy and the parts of your business that actually need your brain. And one more thing, this whole system you're watching right now, this is the agent OS I run every single day. And you don't have to build it from scratch like I did. I've already packaged the entire thing into a ready to install file and you can grab it inside the AI Profit Boardroom. It's the best place to scale your business, get more customers and save hours with AI automation. Head over to the link in the description, grab the agent OS file and have this exact setup running on your own computer today. If you want the full process, the exact setup steps and more free AI tools like this one, join the AI Success Lab. It's my free AI community and the link is in the comments and description. Inside, you'll get all the notes from this video plus access to a community of 38,000 people who are using AI to grow their own projects every single day. Julian reads every comment, so let him know what you think and I'll see you in the next video.