This 100% self-improving AI Agent is insane… just watch

By David Ondrej

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Key Concepts

  • Hermes Agent: An open-source, general-purpose AI agent designed for developers, optimized for open-source models, and characterized by a self-improving agentic loop.
  • Self-Improving Loop: A mechanism where the agent evaluates its own performance, learns from mistakes, and saves successful strategies as reusable "skills."
  • GAPA (Generic Evolution of Prompt Architectures): A research pipeline that analyzes execution traces to mutate and optimize the agent's prompts and code.
  • VPS (Virtual Private Server): A dedicated virtual environment recommended for running AI agents to ensure they have full system access and isolation.
  • Memory Layers: Hermes Agent utilizes four distinct memory layers: memory.md, user.md, SQLite session archives, and procedural skill memory.
  • Agentic Workflow: The shift toward autonomous systems that can perform complex tasks, manage files, and interact with messaging platforms (Telegram, Discord, etc.) without constant human intervention.

1. Overview of Hermes Agent

Hermes Agent is an open-source project by Nous Research that functions as a self-improving alternative to OpenClaw. While primarily built for developers, it is a general-purpose agent capable of handling tasks ranging from software development and data science to QA and red teaming. It has gained significant traction, reaching 15,000 stars on GitHub, and is noted for its ability to optimize itself through trial and error rather than requiring manual prompt engineering or fine-tuning.

2. Deployment and Installation

The video emphasizes that for optimal performance, an AI agent should be treated like a new employee—given its own dedicated computer (VPS).

  • Infrastructure: Hostinger is recommended for deploying a KVM2 server, which can host multiple agents (Hermes, OpenClaw, Agent Zero) simultaneously.
  • Installation Process:
    1. Setup: Create a dedicated user (Hermes) on the VPS with sudo privileges.
    2. Scripting: Use the one-line quick install script provided in the official GitHub repository.
    3. Configuration: The installer automatically detects system dependencies (Ubuntu, Python, Node.js, uv package manager).
    4. Integration: Users can connect inference providers (OpenRouter, OpenAI, etc.) and messaging platforms like Telegram via the BotFather API.
    5. Gateway: The agent can be run via a Terminal User Interface (TUI) or as a background service using systemd for persistent operation.

3. The Self-Improving Mechanism (GAPA)

The core innovation of Hermes Agent is its "self-evolution" capability.

  • Methodology: Every ~15 tool calls, the agent pauses to evaluate its message history and execution traces.
  • Back-Propagation Analogy: Similar to how transformers learn, the agent "back-propagates" through its chat history to identify why a task failed.
  • Skill Creation: When the agent successfully completes a complex task (typically 5+ tool calls) or overcomes a specific error, it packages the solution into a permanent "skill" that it can reference in future tasks.

4. Memory Architecture

Unlike agents that rely solely on markdown files, Hermes Agent employs a sophisticated four-layer memory system:

  1. Markdown Files: memory.md and user.md for human-readable context.
  2. SQLite Session Archive: Used for efficient querying of large datasets, which the presenter argues is superior to flat files for agentic memory.
  3. Procedural Memory: Skills generated through the self-improving loop.
  4. Dialectic Chat: An optional "Honcho" user modeling feature where the agent actively asks the user about their preferences to refine its behavior.

5. Comparison and Integration

  • Hermes vs. OpenClaw/Agent Zero: Agent Zero is described as more mature (nearly two years old), while Hermes is newer and more "rough around the edges." However, Hermes offers a hermes claw migrate command to transition existing OpenClaw setups.
  • Versatility: Hermes supports multiple terminal backends (local, Docker, SSH) and can be used as a tool within other pipelines, such as OpenClaw, for specific deployment tasks.
  • Observability: The agent provides detailed metrics, including token usage, system prompt status, and time elapsed since the last message.

6. Notable Quotes

  • "Imagine if your OpenClaw could create new skills and self-improve based on the mistakes it did... without you having to lift a finger."
  • "The smartest agents will all tell you SQL. So even if you don't understand it, please give your agents access and ability to work with SQL databases."
  • "In 2026, you really cannot afford to not be AI-first."

Synthesis and Conclusion

Hermes Agent represents the next evolution in AI agents, moving beyond static execution toward autonomous, self-optimizing systems. By combining a robust SQLite-based memory architecture with the GAPA evolutionary pipeline, it reduces the burden of manual configuration. The primary takeaway is that the future of AI agents lies in "self-improving loops," and users are encouraged to dedicate time to experimenting with these tools to remain at the cutting edge of the industry.

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