July 02, 2026

Straker Signal Edition #03

via straker.ai

Why building your own AI models is hard, and why that matters.

In a market where most companies build a thin layer of software over someone else’s AI, Straker does something different: we build our own models. This is a short account of why that work is genuinely difficult, what we’ve learned doing it, and why the difficulty itself is worth understanding.

The counterintuitive result is that smaller can be better.

The industry’s working assumption for years was that the biggest model, most parameters, most data, wins. For a lot of work, the opposite turns out to be true, and understanding why is the starting point.

Frontier models are general-purpose all-rounders. To answer almost any question, they carry hundreds of billions of parameters; some run beyond a trillion. That breadth is real and valuable for open-ended, creative, reasoning-heavy problems. But a great deal of business-critical work isn’t open-ended. Translating a financial disclosure, checking a patent, scoring a document for quality: these are well-defined, repeatable, high-volume tasks. On work like that, a model built for the task can beat a far larger model built for everything.

The reason is specialisation. A general model’s breadth is exactly what lets it pick the wrong meaning of a word like “equity” (ownership in a company, or the value of a home above its mortgage) and quietly corrupt a disclosure. A model trained narrowly on one domain learns that field’s terminology and rules, and gets those details right more often. For scale: Straker’s models run at three to seven billion parameters against frontier systems up-to hundreds of times larger.

The interesting claim isn’t “smaller and nearly as good”; it’s that the smallness and the accuracy come from the same thing: focus.

This is not an absolute. General models still lead on some tasks, and any honest account says so. The point is narrower: on specialised, regulated work, a purpose-built model rarely loses to a generalist.

Read the rest of the article HERE.