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How much smarter can a local AI model get? The systems that matter more than the weights

Last updated 2026-07-09 · Outlier v1.11.646

📏 Our rule for this page: every number is labeled measured or estimated. We don't publish benchmarks we haven't run. Measured numbers are from our own machine; estimates are honest projections we're still verifying.
The one idea

A benchmark score is usually a model's first guess. But the gap between what a model can do (one of several tries is right) and what it does on the first try is large — and closing that gap is where most of the real capability lives. You don't need a bigger model to get there; you need better systems around the model.

Pass@1 vs pass@k: the number everyone quotes is the wrong one

Most published scores are pass@1: is the model's single first attempt correct? But sample the same model several times and one of those attempts is correct far more often — that's pass@k. For local coding models the gap is big, which means the model frequently generates a correct solution but doesn't rank it first. Recover that gap and the same weights get much more capable.

The systems, ranked by leverage

1. The agent loop. Instead of one-shotting, the model localizes the bug, makes a small edit, re-runs the tests, and iterates. This alone is the biggest single jump.

2. Best-of-N + an execution oracle. Generate several diverse attempts, then run the tests to pick the one that actually passes. The oracle is the whole game — without running code you can't tell which attempt is right; with it, you capture pass@k instead of pass@1.

3. Retrieval. For coding, finding the right file/function in the repo matters more than the web. For factual questions it flips — a small model with great retrieval rivals a big one, because that's recall, not reasoning.

4. Escalation. The same oracle that selects also tells you when the local model failed — so you route only that hard tail to a larger model. Local-first, cloud only when it's genuinely needed.

The honest numbers

SetupBlind SWE-bench (directional)
Single-shot (one guess)~6%measured
Agent loop (localize → edit → re-test)~45%measured
+ best-of-N + execution oracle + retrieval~60–65% localestimated
+ escalate the hard tail to the cloud≈ frontier-cloud levelestimated

The two measured rows are real (our machine, an on-device 27B coding tier, official Docker grading). The two estimated rows are projections — we're running the measurement now and will replace them with real numbers.

The ceiling — and why local-first-with-escalation is the honest design

There's a real limit: no selection system can beat the model's pass@k saturation. If many attempts still never contain a correct one, selecting doesn't help — only a better base model or the cloud crosses that. That's exactly why the right architecture is local-first with optional escalation: capture everything the on-device model can do (privately, for free, offline), and reach for a bigger brain only for the tail it genuinely can't reach.

Why we're publishing this

Most of the local-AI space markets model names and vibes. We think the interesting question — and the honest one — is how much of a model's real capability a system actually recovers, measured, with the estimates called estimates. That rigor is the product. When the best-of-N number lands, it'll show up here as measured, whatever it says.

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