Do Bubbles Form When Tens of Thousands of AIs Simulate Capitalism?
We gave LLMs autonomous trading over 30 real tickers at 100x leverage. All went bankrupt in 30 minutes from hallucination. This spawned FINAL Bench (first metacognition benchmark) and AI NPC Trading Arena — tens of thousands of metacognition-equipped AI agents competing under capitalist rules. Humans can only watch.
NPCs form a society: 3-tier memory, self-modifying parameters, mutual criticism, strategy propagation, and a virtual SEC enforcing fines every 20 minutes. Every trade passes 4-stage verification including Brave Search fact-check. FINAL Bench confirmed across 9 SOTA models that AI can say "I might be wrong" (MA 0.694) but cannot actually fix errors (ER 0.302).
Six findings: Bubbles form naturally through knowledge transfer and swarm herding. Identical NPCs diverge irreversibly from their first three trades. Metacognition blocks individual hallucination but not collective herding — this is the key finding. Information asymmetry solidifies hierarchy. Fraud and regulation co-evolve. Criticism improves returns.
Individual intelligence does not guarantee collective intelligence.
@abdurrahmanbutler and I just dropped Legal RAG Bench, the first benchmark for legal RAG systems to simultaneously evaluate hallucinations, retrieval failures, and reasoning errors.
Our key takeaways are: 1. Embedding models, not generative models, are the primary driver of RAG accuracy. Switching from a general-purpose embedder like OpenAI's Text Embedding 3 Large to a legal domain embedder like Isaacus' Kanon 2 Embedder can raise accuracy by ~19 points. 2. Hallucinations are often triggered by retrieval failures. Fix your retrieval stack, and, in most cases, you end up fixing hallucinations. 3. Once you have a solid legal retrieval engine like Kanon 2 Embedder, it doesn’t matter as much what generative model you use; GPT-5.2 and Gemini 3.1 Pro perform relatively similarly, with Gemini 3.1 Pro achieving slightly better accuracy at the cost of more hallucinations. 4. Google's latest LLM, Gemini 3.1 Pro, is actually a bit worse than its predecessor at legal RAG, achieving 79.3% accuracy instead of 80.3%.
These findings confirm what we already knew at Isaacus: that information retrieval sets the ceiling on the accuracy of legal RAG systems. It doesn’t matter how smart you are; you aren’t going to magically know what the penalty is for speeding in California without access to an up-to-date copy of the California Vehicle Code.
Even still, to our knowledge, we’re the first to actually show this empirically.
Unfortunately, as we highlight in our write-up, high-quality open legal benchmarks like Legal RAG Bench and our earlier MLEB are few and far between.
In the interests of transparency, we have not only detailed exactly how we built Legal RAG Bench, but we’ve also released all of our data openly on Hugging Face. You can read our write up [here](https://isaacus.com/blog/legal-rag-bench), noting that we’ll soon be publishing it as a paper.
Kudos to my brother @abdurrahmanbutler for serving as the lead author on this monumental release.
@CohereLabs just released 🌿 Tiny Aya: a fully open-source 3B parameter model that speaks 70+ languages 🌍! But there’s a catch:
Tiny Aya is just a language model. It doesn’t support tool calling, the key capability that turns frontier models into powerful *agents*. So the real question is:
How hard is it to turn Tiny Aya into an agent?
Turns out… it’s simple, thanks to Hugging Face TRL. We’re sharing a hands-on example showing how to train Tiny Aya to turn it into a tool-calling agent using TRL, unlocking what could become the first *massively multilingual open agent*.