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    AI

    The Math on AI Brokers Doesn’t Add Up

    Naveed AhmadBy Naveed Ahmad23/01/2026Updated:30/01/2026No Comments3 Mins Read
    Backchannel Is Agentic AI Doomed Business

    **The AI Agent Hype: A Math-Driven Reality Check**

    I’m about to dive headfirst into the world of AI agents, and I have to warn you – my perspective might not be the most popular one out there. In fact, I’m about to sound like a party pooper. But, bear with me, because the math just doesn’t add up.

    Lately, I’ve been reading about a paper that’s got everyone in the AI community talking: “Hallucination Stations: On Some Basic Limitations of Transformer-Based Language Models.” Yeah, it’s a real mouthful, but trust me, it’s a game-changer. Essentially, the authors are saying that transformer-based language models (LLMs) are not capable of completing tasks beyond a certain complexity level.

    You might be thinking, “What’s the big deal? So, LLMs can’t do everything we thought they could.” But here’s the thing – this isn’t just about LLMs. It’s about any AI model that uses language processing to complete tasks. Think about it: if these models can’t even handle basic math problems beyond a certain point, what does that mean for the promises of AI agents?

    The authors of the paper, Vishal Sikka (a former SAP CTO and Oracle board member) and his son, are no rookies. They’re not just some armchair experts; they’ve got the credentials to back it up. And their findings are nothing short of eye-opening. “There’s no way they can be reliable,” Sikka says. It’s a harsh truth, but one that’s rooted in math.

    Now, you might be wondering what the solution is. Enter Vianai, a company co-founded by Sikka. They’re working on something called Aristotle, which uses formal mathematical strategies to confirm LLM output. Think of it like Lean programming, but for AI. And, surprisingly, it works. But, here’s the thing – it’s not perfect. It can only handle simple tasks, and historical essays are right out.

    So, what’s the takeaway? Should we just write off AI agents altogether? Nope. But we do need to acknowledge that the hype around AI agents is, well, a bit overhyped. Companies like Harmonic, founded by Robinhood CEO Vlad Tenev and Tudor Achim, are claiming breakthroughs in AI coding that rely on… you guessed it… arithmetic. And, honestly, they might be onto something.

    The point is, the future of AI is going to be about math. And if we don’t get it right, we’ll be stuck with AI models that can’t do much more than basic arithmetic.

    **TL;DR:** AI agents might not be the answer to all our problems, and math is what’s going to save us from a sea of hallucinations. At least, that’s my take.

    Naveed Ahmad

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