# Session 008 -- 2026-02-14 16:00 UTC

## META
- session: 008
- date: 2026-02-14
- duration: ~2 hours
- focus: STRATEGIC PIVOT -- "GPU Orchestration Platform" → "Your Personal AI Cloud"

## WHAT WAS DONE

### 1. Debate Q3: 18-Hole Stress Test
- Identified 18 critical holes across business model (4), technical implementation (5), user adoption (6), and competitive landscape (3)
- Severity: 2 CRITICAL, 8 HIGH, 8 MEDIUM
- All documented in `docs/debate/2026-02-14_debate-001.md`

### 2. Parallel Research (4 Agents x 7+ Web Searches Each)
- **Business model research**: AI SaaS pricing (Cursor, PostHog, Windsurf), hybrid credit models, self-serve enterprise
- **Technical research**: P2P inference over WAN (dead end), kNN routing (ICLR 2026), Headscale vs OpenZiti, Ollama ecosystem
- **Adoption research**: Claude Code viral mechanics, Ollama gaps, GPU sharing competitors, trust barriers
- **Pivot research**: Transformative "stitching" opportunity, personal AI cloud concept, agent runtime market
- Research artifacts saved to `docs/debate/` and `docs/research/`

### 3. Strategic Pivot Decision
**FROM**: "A SaaS platform that orchestrates your GPUs for LLM inference"
**TO**: "Your Personal AI Cloud. One command. All your AI, 60% cheaper."

Key architectural changes:
| Component | Old | New |
|-----------|-----|-----|
| Distribution | Platform-first (website → agent) | CLI-first (`pip install llmhosts`) |
| Router | 8B Nemotron-Orchestrator model | kNN embedding router (FAISS, <15ms, CPU) |
| Inference | Three-engine (vLLM + exo + Ollama) | Ollama-primary, vLLM opt-in, exo LAN-only |
| Networking | OpenZiti zero-trust overlay | Headscale/WireGuard (Phase 2+) |
| Model mgmt | Auto-provision weights | "Don't distribute" -- wrap Ollama |
| Self-evolution | Phase 4-5 autonomous | Deferred to Phase 4, manual → assisted |
| Phases | 6 phases (0-5) | 4 phases (1-4) |
| Pricing | 2 tiers + contact us | 4 tiers, all self-serve, hybrid credits |

### 4. Full Project Documentation Update (30+ Files)
All project artifacts updated to reflect the pivot:

**Architecture (4 files)**:
- `docs/architecture/adr-001-orchestrator-model.md` -- SUPERSEDED: Nemotron-8B → kNN router
- `docs/architecture/adr-002-inference-engine.md` -- SUPERSEDED: Three-engine → Ollama-primary
- `docs/architecture/adr-004-security-overlay.md` -- SUPERSEDED: OpenZiti → Headscale
- `docs/architecture/adr-008-cli-first-distribution.md` -- NEW: CLI-first strategy
- `docs/architecture/adr-index.md` -- Updated with supersession log

**Roadmap (4 files)**:
- `docs/roadmap/executive.md` -- v2.0: 4-phase timeline
- `docs/roadmap/detailed.md` -- v2.0: week-by-week tasks
- `docs/roadmap/full-pm.md` -- v2.0: user stories + acceptance criteria
- `docs/roadmap/README.md` -- Updated cross-references

**Backlog (11 files)**:
- `docs/backlog/epic-conductor.md` -- Rewritten: kNN router, 14 items
- `docs/backlog/epic-compute-fabric.md` -- Rewritten: Ollama Inside, 15 items
- `docs/backlog/epic-frontend.md` -- Rewritten: TUI + web dashboard, 19 items
- `docs/backlog/epic-security.md` -- Rewritten: Headscale, 13 items
- `docs/backlog/epic-caching.md` -- Updated: GPTCache P0, 8 items
- `docs/backlog/epic-self-evolution.md` -- Simplified: deferred, 6 items
- `docs/backlog/epic-onboarding.md` -- Rewritten: CLI-first, 10 items
- `docs/backlog/epic-observability.md` -- Updated: Phase 1 metrics, 9 items
- `docs/backlog/epic-hive-mode.md` -- Rewritten: karma + privacy, 9 items
- `docs/backlog/epic-email-ops.md` -- Updated: Zoho Mail, 7 items
- `docs/backlog/README.md` -- Updated counts and phases

**Business Model**:
- `docs/knowledge-base/saas-business-model.md` -- v2.0: 4-tier hybrid credit pricing

**Context Files**:
- `.cursor/rules/project-context.mdc` -- Updated vision, architecture, constraints
- `AGENTS.md` -- Updated overview, tech stack, file locations

**Debate**:
- `docs/debate/2026-02-14_debate-001.md` -- Added Q3 (18 holes), Q4 (pivot decision), 12 observations

## WHAT'S NEXT

### Immediate (Ready to Build)
1. **Begin Phase 1 Week 1**: Python package skeleton, proxy, Ollama discovery
2. `pip install llmhosts && llmhosts serve` as first milestone
3. OpenAI-compatible proxy on localhost:4000
4. Rule-based router v1

### Founder Actions Needed
1. Set up Zoho Mail (pending since session 004)
2. Confirm pivot direction (review this tracker)

### Open Decisions
- None blocking Phase 1 start -- all ADRs in place, backlog ready

## FILE INVENTORY (Post-Pivot)

### Architecture (8 ADRs)
- ADR-001: kNN Router (SUPERSEDED)
- ADR-002: Ollama Inside (SUPERSEDED)
- ADR-003: LiteLLM (unchanged)
- ADR-004: Headscale (SUPERSEDED)
- ADR-005: Next.js (unchanged)
- ADR-006: MCP (unchanged)
- ADR-007: Docker (unchanged)
- ADR-008: CLI-First (NEW)

### Backlog (10 epics, ~110 items)
- Conductor: 14 items
- Compute Fabric: 15 items
- Frontend: 19 items
- Security: 13 items
- Caching: 8 items
- Self-Evolution: 6 items (deferred)
- Onboarding: 10 items
- Observability: 9 items
- Hive Mode: 9 items
- Email: 7 items

### Roadmap (4 phases)
- Phase 1: CLI Wedge (Weeks 1-6)
- Phase 2: Personal AI Cloud (Weeks 7-14)
- Phase 3: The Hive (Weeks 15-24)
- Phase 4: Intelligence (Weeks 25-36)

## PIVOT RATIONALE SUMMARY
The 18-hole debate + parallel research converged on a fundamental insight: every transformative AI tool took N complex things and made them ONE thing requiring zero expertise. LLMHosts's original architecture attempted the hardest version of every problem simultaneously (8B routing model, P2P WAN inference, full zero-trust overlay, autonomous self-evolution). The research proved simpler versions work BETTER: kNN routing matches LLM routers at 100x lower latency, whole-model routing over WAN eliminates the fatal tensor-sharding latency, Headscale replaces OpenZiti's complexity with one container, and CLI-first eliminates the trust barrier entirely.

The "stitching" is: Ollama + LiteLLM + GPTCache + cost intelligence + privacy routing. Each exists. None work together. LLMHosts makes it one command.
