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@@ -4,7 +4,7 @@ Hey folks, dex here.
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You may remember me from April's [12-factor agents](https://hlyr.dev/12fa) post, as the coiner of the term "context engineering" or from the [AI Engineer talk on the topic](https://www.youtube.com/watch?v=8kMaTybvDUw).
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I'm stoked to share with y'all we've been up to since then and why it matters to every team that's serious about software.
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I'm stoked to share with what we've been up to since then and why it matters to every team that's serious about software, and get feedback from the community here.
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**Note** - if you prefer video - this post is based on [a talk that was recorded at YC](https://hlyr.dev/ace) on Aug 20th
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@@ -32,14 +32,14 @@ This matched what I heard talking with founders:
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* “Doesn’t work in big repos.”
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* “Doesn’t work for complex systems.”
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The general vibe on Ai-coding for hard stuff tends to be
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The general vibe on AI-coding for hard stuff tends to be
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> Maybe someday, when models are smarter…
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Heck even [Amjad](https://x.com/amasad) was on a [lenny's podcast 9 months ago](https://www.lennysnewsletter.com/p/behind-the-product-replit-amjad-masad) talking about how PMs use Replit agent to prototype new stuff and then they hand it off to engineers to implement for production.
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(Disclaimer: i haven't caught up with him recently (ok, ever), this stance may have changed)
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Whenever I hear "Maybe someday when the models are smart" I leap to exclaim **that’s what context engineering is all about**: getting the most out of *today’s* models.
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Whenever I hear "Maybe someday when the models are smart" I generally leap to exclaim **that’s what context engineering is all about**: getting the most out of *today’s* models.
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While obsessing over these talks and llms and context for the last few months, I think we found something really cool.
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@@ -125,11 +125,11 @@ As we went deep on in [12-factor agents](https://hlyr.dev/12fa), LLMs are statel
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This is just as true for [wielding](https://www.youtube.com/watch?v=F_RyElT_gJk) coding agents as it is for general agent design, you just have a smaller problem space, and rather than building agents, we're talking about using agents.
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At any give point, a turn in an agent like claude code is a stateless function call. Context window in, next step out.
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At any given point, a turn in an agent like claude code is a stateless function call. Context window in, next step out.
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<imgwidth="1334"height="747"alt="Screenshot 2025-08-29 at 11 11 08 AM"src="https://github.com/user-attachments/assets/471ecb31-5502-4100-8371-112dee75ac76" />
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That is, the contents of your context window are the ONLY lever you have to affect the quality of your output. So yeah, **it's worth obessing over**.
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That is, the contents of your context window are the ONLY lever you have to affect the quality of your output. So yeah, it's worth obsessing over.
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You should optimize your context window for:
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@@ -274,7 +274,7 @@ Remember that part in the example where I read the research and threw it out cau
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There's a certain type of person who is always looking for the one magic prompt that will solve all their problems. It doesn't exist.
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Frequent Intention Compaction via a research/plan/implement flow will make your performance better, but what makes it good is that you build high-leverage human review into your pipeline.
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Frequent Intentional Compaction via a research/plan/implement flow will make your performance better, but what makes it good is that you build high-leverage human review into your pipeline.
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<imgwidth="1331"height="748"alt="Screenshot 2025-08-29 at 11 16 08 AM"src="https://github.com/user-attachments/assets/f12a10e2-7ffe-44c5-9d9a-b6e42ff5251e" />
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@@ -302,23 +302,22 @@ When you review the research and the plans
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People have a lot of different opinions on what code review is for.
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I prefer [Blake Smith's framing in Code Review Essesentials for Software Teams](https://blakesmith.me/2015/02/09/code-review-essentials-for-software-teams.html), where he says the most important part of code review is mental alignment - keeping members of the team on the page as to how the code is changing and why.
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I prefer [Blake Smith's framing in Code Review Essentials for Software Teams](https://blakesmith.me/2015/02/09/code-review-essentials-for-software-teams.html), where he says the most important part of code review is mental alignment - keeping members of the team on the page as to how the code is changing and why.
Remember those 2k line golang PRs? I cared about them being correct and well designed, but the biggest source of internal unrest and frustration on the team was the **lack of mental alignment**.
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I was completely losing touch with what our product was and how it worked.
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Anyone who's worked with a very productive AI coder has had this experience.
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Remember those 2k line golang PRs? I cared about them being correct and well designed, but the biggest source of internal unrest and frustration on the team was the lack of mental alignment. I was starting to lose touch with what our product was and how it worked.
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I would expect that anyone who's worked with a very productive AI coder has had this experience.
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This is actually the most important part of research/plan/implement to us.
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A guaranteed side effect of everyone shipping way more code and complexity is that a much larger proportion of your codebase is going to be unfamiliar to any given engineer at any point in time.
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A guaranteed side effect of everyone shipping way more code is that a much larger proportion of your codebase is going to be unfamiliar to any given engineer at any point in time.
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I won't even try to convince you that research/plan/implement is the *right approach for most teams* - it probably isn't. But you ABSOLUTELY need an engineering process that
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I won't even try to convince you that research/plan/implement is the right approach for most teams - it probably isn't. But you ABSOLUTELY need an engineering process that
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1. keeps team members on the same page
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2. enables team members to quickly learn about unfamiliar parts of the codebase
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For most teams, this is pull requests and internal docs. For us it's now specs, plans, and research.
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For most teams, this is pull requests and internal docs. For us, it's now specs, plans, and research.
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I can't read 2000 lines of golang daily. But I *can* read 200 lines of a well-written implementation plan.
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@@ -338,15 +337,15 @@ Basically we got everything we needed.
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So you don't think I'm just another [hyped up mustachio'd sales guy](https://www.youtube.com/watch?v=IS_y40zY-hc&lc=UgzFldRM6LU5unLuFn54AaABAg.AMKlTmJAT5ZAMKrOOAMw3I), I'll note that this does not work perfectly for every problem.
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In August the whole team spent 2 weeks spinning circles on a really tricky race condition that spiraled into a rabbit hole of issues with MCP sHTTP keepalives in golang and a whole bunch of other race-y nonsense.
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But in general, I know this works well for us. Our intern shipped 2 PRs on his first day, and 10 on his 8th day. I was genuinely skeptical that it would work for anyone else, but me and Vaibhav shipped 35k LOC of working BAML code in 7 hours. And if you haven't met Vaibhav, he's one of the most fastidious engineers I know when it comes to code design and quality.
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But that's the exception now. In general, this works well for us. Our intern shipped 2 PRs on his first day, and 10 on his 8th day. I was genuinely skeptical that it would work for anyone else, but me and Vaibhav shipped 35k LOC of working BAML code in 7 hours. (And if you haven't met Vaibhav, he's one of the most meticulous engineers I know when it comes to code design and quality)
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### What's coming
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I'm reasonably confident that coding agents will be commoditized.
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The hard part will be the team and workflow transformation. Everything about collaboration will change in a world where AI writes 99% of our code.
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And I belive pretty strongly that if you don't figure this out, you're gonna get lapped by someone who did.
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And I believe pretty strongly that if you don't figure this out, you're gonna get lapped by someone who did.
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### okay so clearly you have something to sell me
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@@ -358,7 +357,7 @@ On Tuesday, we're launching CodeLayer, our new "post-IDE IDE" in private beta -
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## For Engineering Leaders
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If you or someone you know is an engineering leader that wants to 10x their team's productivity with AI, we're are forward-deploying with everyone from 6-person startups to 1000-employee public companies to help teams make the culture/process/tech shift to transition to the ai-first coding world.
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If you or someone you know is an engineering leader that wants to 10x their team's productivity with AI, we're forward-deploying with everyone from 6-person startups to 1000-employee public companies to help teams make the culture/process/tech shift to transition to the ai-first coding world.
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