Ep 37: Everyone wants bigger context windows. Linus Lee thinks that's the wrong instinct
Linus Lee, Head of AI at Thrive Capital, sits down with Pete Soderling to talk context engineering, monolithic agents, and the failure mode most teams aren't measuring yet.Most teams building AI agents right now are reaching for bigger context windows. Linus thinks that's the wrong instinct. He runs AI at Thrive and ships an internal research agent called Puck that's processed billions of tokens in production — which means he's seen the failure modes most of us are still pretending don't exist.In this conversation, we get into:– Why context engineering is really a search problem– Why monolithic agents get brittle the second you try to change anything– The observability gap nobody's talking about — when your dashboards are green but your agent isn't actually doing what the user asked– Why he's pulling 50-year-old IBM diagrams into modern AI workLinus is speaking at AI Council SF, May 12–14, 2026.🎟️ Grab your ticket: https://aicouncil.com/sf-2026📖 Read the full Q&A: https://petesoder.substack.com/p/linus-lee-says-your-agent-is-tooChapters:00:00 Why a product person ends up at a VC firm02:31 What working in investing taught him about data08:49 The trap most engineers fall into with context windows12:19 Context engineering as a search problem15:37 The failure mode at scale nobody's talking about17:31 What he's most excited about at AI CouncilSubscribe for more conversations with the engineers and founders building the future of AI.#AICouncil #ContextEngineering #AIAgents #LLMs #AIEngineering--Mark your calendars for May 12-14, 2026 and join us for AI Council, the technical conference built by engineers for engineers. It's the only event where you'll be able to connect with 1,500+ practitioners for 3 days of technical deep dives, battle-tested architectures and production insights in San Francisco, the heart of the AI world.Visit us at https://aicouncil.com/sf-2026 for the latest updates or subscribe to the newsletter as we release more details about most exclusive AI conference in San Francisco!
