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Shawn Wang: evaluation

22 Apr 2026 Latent Space Shopify’s AI Phase Transition: 2026 Usage Explosion, Unlimited Opus-4.6 Token Budget, Tangle, Tangent, SimGym — with Mikhail Parakhin, Shopify CTO

“Like I think for example, right, like in the audio kind, kind of use cases, the SSMs ef-effectively have unbounded context length because they, they just have to operate on like the most, the sliding window of the most recent stuff.”

— Shawn Wang

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Speaker
Shawn Wang
Attribution
Verified speaker
Claim type
evaluation
Recorded
22 Apr 2026
Publisher
Latent Space

Transcript context

…You- we all familiar with transformer architectures. And, uh, for the longest time, there was a competing architecture, it’s called the state space models. So, so Sams, uh, you know, Chris, Chris Reyes, one of the pioneers and, and lots of startups, uh, trying to make those realities. They have, uh, significant benefits being main being, uh, being much faster and, uh, lower footprint and not quadratic in length, you know, sort of, uh, linear in, in, uh, in your context length. But with state space models- They never quite made it. Like they’re used-- They have, uh, certain niches when they thrive, their hybrid architectures are useful, but they never quite made it. And liquid neural networks are, you can think of them as a next step, like, uh, sort of, uh, state-space model square. It’s non-transformer architecture that’s more complicated than sta-state space and really difficult to code if you-- if I’m being honest. But it’s, um, very efficient. It’s, uh, subline-- sub, uh, quadratic in, in length of your context. Uh, it’s very compact way to represent things, and that’s a liquid AI company. They... Their goal is to productize it, and very often you have this need, uh, when you need to have long context and small model, and you want to have low latency. Like in general, it’s basically on par with transformers, and if you do hybrids with transformers, it’s, it’s even better. That’s why we at Shopify, when we tried multiple and we constantly try multiple models, multiple companies, we found that for small, particularly with low latency applications, when you have low latency and/or if you need longer context lengths, liquid was the best. And so we still use the whole zoo and always like obviously test and use everything, uh, every open source model and, you know, it feels like sometimes even every private model. Uh, but liquid’s been taking quite a bit of, uh, at least internal Shopify share. And the reason I’m excited is, yeah, because it’s, it’s the only non-transformer architecture that I found being genuinely competitive. Uh, and, uh, you know, for we use it for search and for, for long context, uh, pulse distilling and others. This is the overview. I don’t know how approachable Sha, sorry. Maybe, maybe still too obtuse. I, I mean, I think they haven’t been that open about their implementation details. I think the... I would say like liquid hasn’t been like if there’s a lot of technical detail published, I haven’t read like a, a formal sort of paper on the implementation details. Uh, but I, I did get the sort of relationship between the SSMs and the others. This is one of the sort of, uh, charts that was, you know, showing the relationship between like full attention versus Something that’s, uh, more like a RNN type in terms of their, their efficiency. Um, and then the, the other chart was this old one, uh, where it compares versus, uh, some of the other models. Uh, doesn’t exactly have the correct Y-axis, but close enough where you can see like it’s basically a, a step change difference in terms of the efficiency. I think the surprise to me was that you guys are, uh, actively using it already in internally inside of Shopify. And like I, I’m curious, like what are the constraints that you’re optimizing for, right? Is it when you say smaller, is it like the 1B size? Uh, what kind of like latency constraint are you, are you optimizing for? What kind of context length, um, sort of considerations, right? Like I think for example, right, like in the audio kind, kind of use cases, the SSMs ef-effectively have unbounded context length because they, they just have to operate on like the most, the sliding window of the most recent stuff. Uh, I’m just kinda curious, like w-what do you see the potential here? Yeah. The SSMs are effectively because, yeah, because the state embeds all the, all the previous information needed, or that’s the assumption. SSMs effectively have infinite context length. The, the problem with, uh, with them is that expressiveness is not there. The, uh, uh, Liquids are effectively souped up SSMs. We are much more expressive, m-uh, com-more complicated again to code. There is, there is a paper on it. You can, you can see it. Differential equation rolled out and, and then computed as a, uh, as really as a convolution. It’s a bit involved. The thing where we, we use it is specifically either for where we need super low latency, and we’re-- there was a lot of very fun project with, uh, Santa ML and Liquid AI themselves. We run it at, uh, thirty milliseconds, a, a tiny model, like three hundred million parameters in, but we run it in thirty milliseconds, uh, end to end for search when you, when you type a query, and then we produce all the possible things what you, what you can mean by that query and some, you know, uh, not only synonyms, but, but, uh, a que-kind of full query understanding the, the whole tree of what you might need and including your personal personalization because you might have done like previous queries and lowering it all down into the search server so that the requirements on latency obviously they are very, uh, very strict. So, so then we are able to run it under thirty milliseconds because, ‘cause at Liquid, you know, Qwen doesn’t run on this. And even Liquid, we had to work a lot with NVIDIA and to... because almost everything is not designed in CUDA for or in, in the current stack for, for low latency. Like small things that don’t matter with large models, you know, start mattering a lot, and we had to optimize it. There is different end of the spectrum where this is maximum through, uh, bandwidth throughput for things like, for example, offline categorization when A new product appears. We need to do analysis. We need to assign where it is in taxonomy. We need to extract and normalize attributes. We need to do, uh, you know, clusters like, oh, it’s the same thing as that other merchant is selling, right? That is like un-- like almost unbounded, uh, amount of energy you need to spend on it because it’s, uh, you know, it’s quadratic kind of, uh, problem, and we have billions and billions of products. So you don’t care about latency as much. You know, it’s kind of an overnight batch job, but you, you want to maximum throughput. And you usually in those cases, you also sometimes like for, uh, Sidekick Pulse, you also need long context. These are... We are talking models in maybe seven, eight billion, uh, parameter range, uh, where we would, we would take a large model, like we would take something huge, largest we can, we can find. We would distill into liquid for a specific task, such as, for example, for our catalog, uh, formulation or for, for Pulse.…

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