An AI lab building the first Business World Model

San Francisco
We're excited to announce that Skyfall has emerged from stealth. For years, the foundation model market has relied on a single paradigm: scaling laws for LLMs - more data, more compute, bigger models. However, we believe the next generation of AI models requires a different approach. Skyfall is solving the hardest open problems in frontier AI: long-horizon planning, data inefficiency, and brittle performance in dynamic real-world environments. To achieve the team's vision of a completely autonomous enterprise, the team is developing a next-generation frontier model using Continual Learning and World Modeling. Our CEO and Co-Founder Sam Pasupalak (@spisallyouneed) shares what's next for Skyfall and why we're building a new category of frontier AI. Read the full announcement to learn more about our vision and how we're addressing the foundational gaps in today's AI systems. PS: we also announced something big 👀 in the article
Around 15 years ago, Kaheer Suleman and I started Maluuba with the vision of building Universal Turing Machines. Back then, we were one of the pioneer research labs building foundational modules of deep learning and Reinforcement learning with Turing award winners @Yoshua_Bengio and @RichardSSutton. There was no AI hype then, as there is now. Those were the good old days of doing pure scientific research unlike the n+1 research that we see today. Maluuba was later acquired by Microsoft and became @MSFTResearch Canada. Grounded in that same mission, we're finally ready to introduce @skyfallai to the world after a lot of experimentation in stealth over the last year. We're a frontier neo lab building the first Autonomous Enterprise by moving beyond the current LLM paradigm. For the last 5 years, the foundational model market has relied on a single paradigm: scaling laws for LLMs - more data, more compute, bigger models. However, the real world is messy and much more complicated. In order to achieve our long term vision, the next generation of AI models requires a different approach. Skyfall is solving the hardest open problems in frontier AI: long-horizon planning, data inefficiency, and brittle performance in dynamic real-world environments. To achieve the team's vision of a completely autonomous enterprise, the team is developing a next-generation frontier model (Enterprise World Models) using Continual Learning and World Modeling. Enterprise World Models can simulate the multi-layered consequences of strategic business actions. Our approach unlocks a new category in the foundation model market. To prove it, we're introducing Morpheus, a Continual Reinforcement Learning platform for AI researchers. I'm building this company with the people I trust the most: my longtime friend Kaheer Suleman (prev. Co-Founder of Maluuba) and my brother @omgiamgod (prev. YC founder). Sumit and Kaheer are the first principles thinkers I can trust to go to the end of the world with to achieve the mission impossible together. Together with a stellar team of 25 researchers and engineers, we're pushing a new frontier in AI forward. We unpacked our long term vision in today’s Forbes feature 🔗- read it to see what we’re building toward. Thank you so much Victor Dey for the interview. To achieve our goal of enterprise world models, we are soliciting bids to acquire small SaaS startups (up to $1M) and fully automate them. If you’re interested, submit your business here: skyfall.ai/acquisition Finally, thank you to our investors and advisors for believing in our vision since day one: @Fidelity , @sk121 (@touringcapital), @karam_n and @chrisarsenault (@inovia), @morgan_blumberg (@M13Company ), @stephpalmeri (@NextViewVC ), and @michaellitt and @mmccauley (@GarageCapital ), @jennydhe, @fchollet @NaveenGRao and so many others for supporting us in this journey.
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Part 3: Why building an autonomous business is the missing step? 🌐✨
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Why are we stepping away from standard language modeling? Full breakdown on YT: piped.video/watch?v=zk9ohvbD…
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Part 2: Why do we need to move beyond language? ✍️
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The post-automation era isn’t just going to change work but it will also redefine human ambition. Dive into Sam’s (@spisallyouneed) Thesis Statement on what comes next: every.to/thesis-statements/s…
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Skyfall AI retweeted
Part 1: What are World Models? 🌀
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Could an AI run an entire company on its own? @spisallyouneed (Co-founder & CEO, @skyfallai) weighs in on replacing executive intuition with AI. Now streaming on Spotify 🎧
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What happens when an AI CEO takes the reins of a real-world business? Our Co-Founder and CEO @spisallyouneed joined the @withmantle Podcast with @avarma to discuss a bold new paradigm: buying a real-world business and replacing the traditional executive suit with an AI CEO. It’s an insider look at why software engineering is "easy" for AI, but running a complex, human-driven company is orders of magnitude harder. A must-listen for founders and tech leaders curious about the future of autonomous leadership. piped.video/watch?v=3dlHRCCV…
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A few months ago, we set out on a mission to acquire SaaS businesses and build the first fully autonomous enterprise. Where are we now? Our Co-Founder & CEO @spisallyouneed sat down with @bozonit on the 1st10 Podcast to break down @skyfallai's vision for Enterprise World Models and why traditional LLMs aren't enough to run a company in the real world. 🎙️Catch the full conversation below piped.video/watch?v=kwXAi73P…
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Skyfall AI retweeted
Are we beginning to see the end of LLMs? My latest guest on the 1st10 Podcast, @spisallyouneed founder of Skyfall AI thinks we are. His argument isn’t that LLMs disappear. It’s that we’re reaching the limits of what next-word prediction can accomplish, regardless of how much compute, data or context we throw at it. The next paradigm according to Sam is world models. AI that doesn’t just process information, but figures out how different actions change the world and predicts what happens next. We get into: • Why LLMs work so well for coding but struggle with more complex tasks • The “soccer analyst who’s never played soccer” problem • How world models are fundamentally different • Why today’s AI talent arms race may be targeting the wrong people • What the AI stack looks like beyond LLMs It’s a contrarian take on where AI goes from here and one of my favorite conversations on the topic. Full episode on YouTube and Spotify. Links in comments.
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Skyfall AI retweeted
So much fun recording together @spisallyouneed Thanks again for being such a great guest. Highly recommend the listen if you're curious about what comes next after LLMs! It's a take you'll definitely not want to miss!
I believe we’re beginning to see the end of LLMs as the dominant AI paradigm. They’re not going away. They’re incredibly useful for specific, well-defined tasks like software engineering. But for more complex problems that require understanding how actions change the real world, I don’t believe scaling LLMs alone gets us there. That’s where World Models come in. I joined @bozonit on the 1st10 Podcast to talk about why I think the next major leap in AI will come from models that can reason about states, actions and possible futures and what we’re building at @skyfallai AI around that thesis. Clip below. Full conversation on YouTube and Spotify in comments:
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Skyfall AI retweeted
I believe we’re beginning to see the end of LLMs as the dominant AI paradigm. They’re not going away. They’re incredibly useful for specific, well-defined tasks like software engineering. But for more complex problems that require understanding how actions change the real world, I don’t believe scaling LLMs alone gets us there. That’s where World Models come in. I joined @bozonit on the 1st10 Podcast to talk about why I think the next major leap in AI will come from models that can reason about states, actions and possible futures and what we’re building at @skyfallai AI around that thesis. Clip below. Full conversation on YouTube and Spotify in comments:
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"LLMs are not going to disappear. They are just good as low-level agents" @spisallyouneed (Co-Founder & CEO of @skyfallai) joined Boris Epstein on the 1st10 Podcast to discuss why world models are the next frontier and how @skyfallai is leading the way. Full episode on Youtube and Spotify (links below!) ⤵️
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Hear directly from our Co-Founder and CEO @spisallyouneed about why we need to move beyond language models in order to build human-level intelligence in enterprises. piped.video/watch?v=3dlHRCCV…
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Our paper on Semantic Bandits (In-Context Exploration-Exploitation is Biased by Semantic Priors) just got accepted to @COLM_conf. This is work we developed in partnership with @Mila_Quebec, and it opens up new directions for how language models can explore structured decision spaces. 🔗 colmweb.org/index.html
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