The Good Tech Companies - How Coral Protocol Proved Small Models Can Outperform Big Tech’s AI Systems

Episode Date: August 7, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/how-coral-protocol-proved-small-models-can-outperform-big-techs-ai-systems. Coral Protocol b...eats Microsoft-backed Magnetic-UI by 34 percent on GAIA, proving horizontal scaling is the future of agentic AI. Check more stories related to tech-stories at: https://hackernoon.com/c/tech-stories. You can also check exclusive content about #coral-protocol, #coral-protocol-news, #cryptocurrency, #ai, #agents, #good-company, #dlt, #big-tech, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. Coral Protocol beats Microsoft-backed Magnetic-UI by 34 percent on GAIA, proving horizontal scaling is the future of agentic AI.

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Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How Coral Protocol-proofed small models can outperform big techs AI systems. By Ashan Pondy, is bigger always better in AI? Coral Protocol challenges that idea head on. Why are we still chasing larger and larger models in artificial intelligence? That is the question Coral Protocol set out to answer. In a performance test using the Gaia benchmark, Coral System outperformed Microsoft-backed magnetic UI by a margin of 34%. Not by building a larger model, but by orchestrating multiple smaller ones,
Starting point is 00:00:37 what the company calls horizontal scaling. The result is a challenge to the long-standing norm of AI development, adding more parameters to squeeze out better results. Coral's approach does not focus in size but rather on function, coordination, and collaboration between smaller specialized agents. What is the Gaia benchmark and why does it matter? The Gaia benchmark is one of the most rigorous tests in artificial intelligence. It evaluates AI models based on their ability to solve complex real-world problems that would require skilled human effort. The benchmark includes 450 non-trivial tasks such as research and synthesis. Data analysis, planning and problem-solving, answer generation, visual and video interpretation. Unlike benchmarks like MMLU or GSM 8K,
Starting point is 00:01:24 which test memorized knowledge or logic puzzles, Gaia is designed to simulate general purpose AI assistance. This makisid a more useful metric for assessing real-world usefulness of LLM-based agents. When Coral topped the Gaia charts for mini-models, it validated an alternative school of thought. Instead of building a single large model, Coral stacked multiple smaller agents in a coordinated system to achieve more with less. What is Coral Protocol? Coral Protocol is an open-source infrastructure that enables intelligent collaboration between small, specialized AI agents. Instead of scaling up a single large model, Coral distributes intelligence across multiple smaller models using a multi-agent coordination system.
Starting point is 00:02:07 This makes the AI more efficient, more adaptable, and lower in cost. It is designed to support what it calls the Internet of Agents, where developers can deploy AI agents that work together in real time using Coral's decentralized architecture. Inside Coral's agentic system, how it actually works. At the heart of Coral's system is its multi-agent framework, which leverages 8x5. centralized, open protocol for orchestrating tasks. Rather than centralizing intelligence in a monolithic LLM, Coral's setup resembles a collaborative mesh. Each agent is assigned a specific function, like answering, critiquing, planning, browsing, or processing images and communicates with other
Starting point is 00:02:46 agents using Coral's MCP, multi-agent communication protocol. This design allows Coral to deploy focused intelligence, task-by-task, across agents. The agents work in parallel, increasing speed and specialization without requiring more parameters in any individual model. The architecture is inspired by existing frameworks like Camel's Owl, but Coral pushes the idea further by decentralizing coordination and integrating interoperability as a core feature. Greater than, it's proof that horizontal scaling isn't just possible, it's practical, greater than said Kylam Forder, CTO of Coral Protocol. The Internet of Agents is now a greater than working reality.
Starting point is 00:03:26 Why this matters for AI's future and NVIDIA's bet on small models. Coral's win does not just shake up benchmarking leaderboards. It reinforces a broader industry shift. NVIDIA's thesis that small models are the future. Arsend-invideo white paper argued that large models are hitting diminishing returns, and the path forward lies in orchestrating smaller, faster, and more specialized models. Coral's Gaia benchmark result puts practical weight behind that theory. The Coral team did not just optimize performance. They demonstrated that even open mini models can outperform corporate-backed AI infrastructure when the system is well designed. This opens the door for AI developers working with constrained resources. With Coral's approach, one does not need the latest 70B plus parameter model or billion dollar GPUs to build high-functioning AI applications. Microsoft, Magnetic Ui, and the race to build agentic infrastructure. Magnetic UI, a Microsoft, a Microsoft, a Microsoft,
Starting point is 00:04:25 Microsoft-backed system was previously one of the leading frameworks built to demonstrate advanced user AI interaction via large models. Its approach leaned heavily into vertical scaling, larger models, more parameters, more computational complexity. Coral's 34% performance advantage raises questions about the sustainability and efficiency of that approach. If smaller agents can do the job better, cheaper, and faster, why keep building bigger? Coral's developers are positioning their protocol as the open infrastructure for the internet of agents. The implications are serious. AI systems could become decentralized, developer-led, and lighter weight, reducing costs and expanding access beyond big tech's walled gardens. Why this is a defining moment in the AI scaling debate.
Starting point is 00:05:11 Coral Protocol's result is not just about beating Microsoft on a test. It is about shifting the scaling narrative in AI altogether. For years, the dominant idea has been, the bigger the model, the better the results. That belief create a high barrier to entry and consolidated AI power into a few centralized players. This Gaia benchmark result, combined with NVIDIA's research and the emergence of open coordination protocols like Coral, points to a future where AI scales by distribution, not just volume. If open source developers can plug into Coral's protocol, spin-up specialized agents, and outperform the biggest names in the industry. We are entering a new phase in AI evolution. The key is interoperability and communication between intelligent agents.
Starting point is 00:05:57 Not just bigger brains, but smarter systems. How developers can use Coral Protocol today. If you are an agent developer, you can, Coralize, your agents using Coral's infrastructure. This means plugging into their open protocol for multi-agent orchestration. Secure communication using MCP, decentralized trust and payments, graph-based architecture for agent discovery and routing. If you are building an application, you can use Coral's infrastructure to run lightweight, distributed AI systems without relying on expensive LLMs. Documentation HTTPS colon slash slash docs. Coral Protocol
Starting point is 00:06:35 Org, Coral Doc, Introduction, What is Coral Protocol Final Thoughts? Agentic AI systems are evolving quickly, and Corals win at Gaia as an early signal of what is to come. It shows that mini-models, when well-coordinated, air-capable of outperforming giants. It also suggests that AI infrastructure will soon prioritize interconnectivity and orchestration over raw size. The open-source ecosystem should take note. Coral's architecture could serve ASA blueprint for decentralizing AI access, empowering independent developers, and eventually forming the infrastructure for safe AGI. Don't forget to like and share the story. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality,
Starting point is 00:07:22 but the claims here and belong to the author. Hashtag DiO thank you for listening to this Hackernoon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.

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