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Models · Jul 23, 2026

Poolside AI releases Laguna S 2.1, a 118B-parameter MoE model outperforming larger open-weight models

Poolside AI details its 'Model Factory' system and launches Laguna S 2.1, a 118B-parameter Mixture-of-Experts model with 8B activated per token, claiming performance that rivals models nearly 10x its size.

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TL;DR
  • Poolside AI, a small research team, claims its Laguna S 2.1 model (118B total parameters, 8B activated per token) outperforms larger open-weight models, including a ~1T parameter model from Thinking Machines.
  • The company describes its 'Model Factory' system, which enables rapid model development with 10,000–20,000 experiments per month and eight-week cycles from pre-training to release.
  • Poolside’s Laguna S 2.1 features a 1M-token context window and supports 'thinking' and 'no-thinking' modes.

Poolside AI, co-led by Eiso Kant, has released Laguna S 2.1, a 118-billion-parameter Mixture-of-Experts (MoE) model with 8 billion parameters activated per token. The company asserts that this model outperforms larger open-weight models, including a roughly 1-trillion-parameter model from Thinking Machines, which is nearly ten times its size.

To achieve this, Poolside developed a system it calls the 'Model Factory,' an end-to-end pipeline designed to rapidly train and improve models. The system supports 10,000–20,000 experiments per month, enabling the team to move from pre-training to model release in as little as eight weeks. Key components include streaming data directly into training, reproducible experimentation, and low-precision compute optimizations.

Laguna S 2.1 introduces a context window of up to 1 million tokens and offers both 'thinking' and 'no-thinking' modes. The model’s architecture and training pipeline are detailed in a technical report praised for its transparency, according to Poolside’s co-CEO.

Poolside’s approach emphasizes engineering efficiency, with Eiso Kant noting that 95% of model-building improvements can be attributed to better data or compute efficiency. The company also highlights the role of persistence, verification, and backtracking in outperforming raw model intelligence, particularly in long-horizon tasks.

The release follows Poolside’s $500 million funding round and reflects its commitment to open-weight and open-research principles. Kant argues that a competitive landscape with many foundation-model companies is preferable to an oligopoly, even if Poolside becomes one of the dominant players.

Sources
  1. 01Latent Space — swyxInside the Model Factory — Eiso Kant, Poolside AI
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