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Liquid AI released LFM2.5-8B-A1B today. It's an on-device Mixture-of-Experts model that activates just 1.5B of 8.3B parameters per token. Here's what's actually interesting for anyone building local agents: 1. It's reasoning-only nowUnlike October's LFM2-8B-A1B, this version produces an explicit chain of thought before answering. The logic: in an MoE, a small active parameter count makes each reasoning token cheap. 2. The hallucination jump is the real story→ Non-Hallucination Rate: 7.46 → 63.47 → IFEval: 79.44 → 91.84 → MATH500: 74.80 → 88.76 → Tau² Telecom: 13.60 → 88.07 A targeted avg@k RL reward trains the model to abstain on questions beyond its knowledge. 3. It runs on hardware you already own→ 253 tok/s on an M5 Max, under 6 GB → ~30 tok/s on a phone → 18.5K tok/s and over 1.6B tokens/day on a single H100 4. Tool calling is the pointThe LocalCowork demo runs 67 tools across 13 MCP servers on one laptop. No cloud, no API keys, no data leaving the machine. Day-one support for llama.cpp, MLX, vLLM, and SGLang. Open weights, with base and post-trained checkpoints. Full analysis: https://lnkd.in/gXK5FN_Y Technical details: https://lnkd.in/gp3M7wJj Model weights: https://lnkd.in/gpgqeFcB Liquid AI Maxime Labonne