Needle2: 14MB agentic LLM for phones, wearables, smart home and robots

Hey HN,Henry from Cactus here!We previously released Cactus Needle, a 14MB agentic LLM for tool call, device use, and structured extraction for phones, wearables, smart homes, small robots and microcontrollers. We got really great feedback here, and have now incorporated the suggestions to release Needle 2.The whole model is a single 14MB binary that runs a full session in 28MB of RAM; 45m parameters at 2bit compression. Needle hits 500 tokens/sec decode speed on a Raspberry Pi 5, sits between 400-1,500 tokens/sec on VR devices like Meta Quest 3S and Apple Vision Pro, and ranges 300-700 on sub-$200 phones such as the Samsung A-Series.On the tool call and mobile device use benchmarks, Needle 2 trades wins with closest small models like LFM2.5 230M and Apple Foundation Model, at 5x to 70x smaller, both at f16 vs Needle 2 at 2bit. Needle is based on Simple Attention Networks from our paper (https://arxiv.org/abs/2607.18363).Edge AI has lately meant Macs and PCs, but that is just 1.5 billion of over 21 billion connected IoT devices in the world today, and in emerging markets most phones ship under $200, no NPU, cheap GPUs. These include budget phones, Raspberry Pis, microcontrollers, wearables, small robots like Reachy Mini, and connected home devices.A conventional transformer of Needle's width and depth spends 164 MFLOPs per token, and even one squeezed down to Needle's parameter count spends 87, Needle spends 70. Even on a high-end phone, an always-on assistant lives inside a power budget; every MFLOP is milliwatt-hours, and Needle spends 7x to 85x fewer of them per token than the smallest performant LLMs. More about the architecture in the link.When we structure intelligence for consumer devices as functions with typed parameters, the only hard part is mapping a messy sentence onto them; which function, with which values. Our research found that when framed that way, the problem needs no world knowledge and no open-ended prose

Hacker NewsToolAISource
0Sign in to voteCopy link

FL score

72

out of 100

Verdict

VALIDATE

high confidence

Competition

No competitor data yet

Trend

No signal yet

A 14MB language model optimized for resource-constrained devices that executes tool calls and device commands without cloud dependency.

The pain

Developers building for budget phones, wearables, and IoT devices face a hard choice: use cloud APIs (latency, privacy, cost) or accept no AI capabilities. Existing edge models either don't fit in memory or are too slow to be practical. A Raspberry Pi or $150 phone has no viable on-device AI assistant today.

The gap

The market has optimized for high-end devices (Macs, flagships with NPUs). The 19.5 billion remaining connected devices run on constrained hardware where even compressed transformers consume too much power and memory. No one has solved the specific problem of tool-calling and device control at this scale.

Build angle

Ship Needle 2 as a developer SDK with reference implementations for common platforms (Android, iOS, Raspberry Pi, smart home hubs). Focus on the B2B2C path: sell to device manufacturers and app developers who need local AI for their products. Monetize through licensing tiers based on device shipment volume. The technical moat is the Simple Attention architecture, competitors can't easily replicate the efficiency gains.

Strengths

  • Genuine technical differentiation: 5-70x smaller than nearest competitors while matching performance on tool-calling benchmarks
  • Addresses a real market gap: 19.5B IoT devices with no practical on-device AI option today
  • Proven execution: already shipped Needle 1, incorporated feedback, published peer-reviewed architecture
  • Multiple revenue vectors: device OEMs, app developers, robotics companies, smart home platforms
  • Power efficiency is measurable and defensible, 7-85x fewer MFLOPs per token is a hard technical fact
  • Tool-calling focus is smart: structured extraction needs no world knowledge, reducing model complexity

Risks

  • Market timing: device manufacturers move slowly; adoption cycle could be 18-36 months before meaningful revenue
  • Competitive response: larger AI labs (Apple, Google, Meta) can throw resources at edge models; they already have distribution
  • Monetization friction: licensing models for hardware are complex; per-device fees create friction with manufacturers
  • Benchmark gaming risk: tool-calling benchmarks are narrow; real-world performance on diverse tasks may not match claims
  • Developer adoption: requires developers to learn new model, integrate SDK, test on constrained hardware, higher friction than cloud APIs
  • Hardware fragmentation: performance varies wildly across devices (300-1500 tokens/sec range); hard to guarantee consistent UX

Questions about this idea?

FlyBot reads the scoring and gives you a second opinion on “Needle2: 14MB agentic LLM for phones, wearables, smart home and robots”.

Open FlyBot