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AI Agents from Zero to Hero – Part 1

Intro AI Agents are autonomous programs that perform tasks, make decisions, and communicate with others. Normally, they use a set of tools to help complete tasks. In GenAI applications, these Agents process sequential reasoning and can use external tools (like web searches or database queries) when the LLM knowledge isn’t enough. Unlike a basic chatbot, […]

Intro

AI Agents are autonomous programs that perform tasks, make decisions, and communicate with others. Normally, they use a set of tools to help complete tasks. In GenAI applications, these Agents process sequential reasoning and can use external tools (like web searches or database queries) when the LLM knowledge isn’t enough. Unlike a basic chatbot, which generates random text when uncertain, an AI Agent activates tools to provide more accurate, specific responses.

We are moving closer and closer to the concept of Agentic Ai: systems that exhibit a higher level of autonomy and decision-making ability, without direct human intervention. While today’s AI Agents respond reactively to human inputs, tomorrow’s Agentic AIs proactively engage in problem-solving and can adjust their behavior based on the situation.

Today, building Agents from scratch is becoming as easy as training a logistic regression model 10 years ago. Back then, Scikit-Learn provided a straightforward library to quickly train Machine Learning models with just a few lines of code, abstracting away much of the underlying complexity.

In this tutorial, I’m going to show how to build from scratch different types of AI Agents, from simple to more advanced systems. I will present some useful Python code that can be easily applied in other similar cases (just copy, paste, run) and walk through every line of code with comments so that you can replicate this example.

Setup

As I said, anyone can have a custom Agent running locally for free without GPUs or API keys. The only necessary library is Ollama (pip install ollama==0.4.7), as it allows users to run LLMs locally, without needing cloud-based services, giving more control over data privacy and performance.

First of all, you need to download Ollama from the website. 

Then, on the prompt shell of your laptop, use the command to download the selected LLM. I’m going with Alibaba’s Qwen, as it’s both smart and lite.

After the download is completed, you can move on to Python and start writing code.

import ollama
llm = "qwen2.5"

Let’s test the LLM:

stream = ollama.generate(model=llm, prompt='''what time is it?''', stream=True)
for chunk in stream:
    print(chunk['response'], end='', flush=True)

Obviously, the LLM per se is very limited and it can’t do much besides chatting. Therefore, we need to provide it the possibility to take action, or in other words, to activate Tools.

One of the most common tools is the ability to search the Internet. In Python, the easiest way to do it is with the famous private browser DuckDuckGo (pip install duckduckgo-search==6.3.5). You can directly use the original library or import the LangChain wrapper (pip install langchain-community==0.3.17). 

With Ollama, in order to use a Tool, the function must be described in a dictionary.

from langchain_community.tools import DuckDuckGoSearchResults
def search_web(query: str) -> str:
  return DuckDuckGoSearchResults(backend="news").run(query)

tool_search_web = {'type':'function', 'function':{
  'name': 'search_web',
  'description': 'Search the web',
  'parameters': {'type': 'object',
                'required': ['query'],
                'properties': {
                    'query': {'type':'str', 'description':'the topic or subject to search on the web'},
}}}}
## test
search_web(query="nvidia")

Internet searches could be very broad, and I want to give the Agent the option to be more precise. Let’s say, I’m planning to use this Agent to learn about financial updates, so I can give it a specific tool for that topic, like searching only a finance website instead of the whole web.

def search_yf(query: str) -> str:  engine = DuckDuckGoSearchResults(backend="news")
  return engine.run(f"site:finance.yahoo.com {query}")

tool_search_yf = {'type':'function', 'function':{
  'name': 'search_yf',
  'description': 'Search for specific financial news',
  'parameters': {'type': 'object',
                'required': ['query'],
                'properties': {
                    'query': {'type':'str', 'description':'the financial topic or subject to search'},
}}}}

## test
search_yf(query="nvidia")

Simple Agent (WebSearch)

In my opinion, the most basic Agent should at least be able to choose between one or two Tools and re-elaborate the output of the action to give the user a proper and concise answer. 

First, you need to write a prompt to describe the Agent’s purpose, the more detailed the better (mine is very generic), and that will be the first message in the chat history with the LLM. 

prompt = '''You are an assistant with access to tools, you must decide when to use tools to answer user message.''' 
messages = [{"role":"system", "content":prompt}]

In order to keep the chat with the AI alive, I will use a loop that starts with user’s input and then the Agent is invoked to respond (which can be a text from the LLM or the activation of a Tool).

while True:
    ## user input
    try:
        q = input('🙂 >')
    except EOFError:
        break
    if q == "quit":
        break
    if q.strip() == "":
        continue
    messages.append( {"role":"user", "content":q} )
   
    ## model
    agent_res = ollama.chat(
        model=llm,
        tools=[tool_search_web, tool_search_yf],
        messages=messages)

Up to this point, the chat history could look something like this:

If the model wants to use a Tool, the appropriate function needs to be run with the input parameters suggested by the LLM in its response object:

So our code needs to get that information and run the Tool function.

## response
    dic_tools = {'search_web':search_web, 'search_yf':search_yf}

    if "tool_calls" in agent_res["message"].keys():
        for tool in agent_res["message"]["tool_calls"]:
            t_name, t_inputs = tool["function"]["name"], tool["function"]["arguments"]
            if f := dic_tools.get(t_name):
                ### calling tool
                print('🔧 >', f"x1b[1;31m{t_name} -> Inputs: {t_inputs}x1b[0m")
                messages.append( {"role":"user", "content":"use tool '"+t_name+"' with inputs: "+str(t_inputs)} )
                ### tool output
                t_output = f(**tool["function"]["arguments"])
                print(t_output)
                ### final res
                p = f'''Summarize this to answer user question, be as concise as possible: {t_output}'''
                res = ollama.generate(model=llm, prompt=q+". "+p)["response"]
            else:
                print('🤬 >', f"x1b[1;31m{t_name} -> NotFoundx1b[0m")
 
    if agent_res['message']['content'] != '':
        res = agent_res["message"]["content"]
     
    print("👽 >", f"x1b[1;30m{res}x1b[0m")
    messages.append( {"role":"assistant", "content":res} )

Now, if we run the full code, we can chat with our Agent.

Advanced Agent (Coding)

LLMs know how to code by being exposed to a large corpus of both code and natural language text, where they learn patterns, syntax, and semantics of Programming languages. The model learns the relationships between different parts of the code by predicting the next token in a sequence. In short, LLMs can generate Python code but can’t execute it, Agents can.

I shall prepare a Tool allowing the Agent to execute code. In Python, you can easily create a shell to run code as a string with the native command exec().

import io
import contextlib

def code_exec(code: str) -> str:
    output = io.StringIO()
    with contextlib.redirect_stdout(output):
        try:
            exec(code)
        except Exception as e:
            print(f"Error: {e}")
    return output.getvalue()

tool_code_exec = {'type':'function', 'function':{
  'name': 'code_exec',
  'description': 'execute python code',
  'parameters': {'type': 'object',
                'required': ['code'],
                'properties': {
                    'code': {'type':'str', 'description':'code to execute'},
}}}}

## test
code_exec("a=1+1; print(a)")

Just like before, I will write a prompt, but this time, at the beginning of the chat-loop, I will ask the user to provide a file path.

prompt = '''You are an expert data scientist, and you have tools to execute python code.
First of all, execute the following code exactly as it is: 'df=pd.read_csv(path); print(df.head())'
If you create a plot, ALWAYS add 'plt.show()' at the end.
'''
messages = [{"role":"system", "content":prompt}]
start = True

while True:
    ## user input
    try:
        if start is True:
            path = input('📁 Provide a CSV path >')
            q = "path = "+path
        else:
            q = input('🙂 >')
    except EOFError:
        break
    if q == "quit":
        break
    if q.strip() == "":
        continue
   
    messages.append( {"role":"user", "content":q} )

Since coding tasks can be a little trickier for LLMs, I am going to add also memory reinforcement. By default, during one session, there isn’t a true long-term memory. LLMs have access to the chat history, so they can remember information temporarily, and track the context and instructions you’ve given earlier in the conversation. However, memory doesn’t always work as expected, especially if the LLM is small. Therefore, a good practice is to reinforce the model’s memory by adding periodic reminders in the chat history.

prompt = '''You are an expert data scientist, and you have tools to execute python code.
First of all, execute the following code exactly as it is: 'df=pd.read_csv(path); print(df.head())'
If you create a plot, ALWAYS add 'plt.show()' at the end.
'''
messages = [{"role":"system", "content":prompt}]
memory = '''Use the dataframe 'df'.'''
start = True

while True:
    ## user input
    try:
        if start is True:
            path = input('📁 Provide a CSV path >')
            q = "path = "+path
        else:
            q = input('🙂 >')
    except EOFError:
        break
    if q == "quit":
        break
    if q.strip() == "":
        continue
   
    ## memory
    if start is False:
        q = memory+"n"+q
    messages.append( {"role":"user", "content":q} )

Please note that the default memory length in Ollama is 2048 characters. If your machine can handle it, you can increase it by changing the number when the LLM is invoked:

    ## model
    agent_res = ollama.chat(
        model=llm,
        tools=[tool_code_exec],
        options={"num_ctx":2048},
        messages=messages)

In this usecase, the output of the Agent is mostly code and data, so I don’t want the LLM to re-elaborate the responses.

    ## response
    dic_tools = {'code_exec':code_exec}
   
    if "tool_calls" in agent_res["message"].keys():
        for tool in agent_res["message"]["tool_calls"]:
            t_name, t_inputs = tool["function"]["name"], tool["function"]["arguments"]
            if f := dic_tools.get(t_name):
                ### calling tool
                print('🔧 >', f"x1b[1;31m{t_name} -> Inputs: {t_inputs}x1b[0m")
                messages.append( {"role":"user", "content":"use tool '"+t_name+"' with inputs: "+str(t_inputs)} )
                ### tool output
                t_output = f(**tool["function"]["arguments"])
                ### final res
                res = t_output
            else:
                print('🤬 >', f"x1b[1;31m{t_name} -> NotFoundx1b[0m")
 
    if agent_res['message']['content'] != '':
        res = agent_res["message"]["content"]
     
    print("👽 >", f"x1b[1;30m{res}x1b[0m")
    messages.append( {"role":"assistant", "content":res} )
    start = False

Now, if we run the full code, we can chat with our Agent.

Conclusion

This article has covered the foundational steps of creating Agents from scratch using only Ollama. With these building blocks in place, you are already equipped to start developing your own Agents for different use cases. 

Stay tuned for Part 2, where we will dive deeper into more advanced examples.

Full code for this article: GitHub

I hope you enjoyed it! Feel free to contact me for questions and feedback or just to share your interesting projects.

👉 Let’s Connect 👈

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Who’s in the data-center space race?

But not everyone is that optimistic. According to Gartner, space-based data centers won’t be useful for decades, so companies should focus on expanding capacity down here on Earth. “I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” OpenAI CEO Sam Altman told The Indian Express in February. Current satellite computing can’t easily scale to data centers, agrees Holger Mueller, an analyst at Constellation Research. “Weight is still the restriction,” he says. “It’s the equivalent of you buying a tablet or small laptop to travel across Latin America versus putting in a data center in the Amazon. Different power requirements, investment, totally different setup.” Then there are issues like damaged solar panels from meteorite storms and satellite debris, he adds. “You would have to pay for operational redundancy, which is further investment.” “Data centers will be built where they are affordable,” he says. “I don’t see space happening soon. Remember the Microsoft submerged one? Crickets…” But he agrees that solar power is nice, though the sun is only visible from one side of the planet at any given time. And space is cold, he says. Cooling down in outer space In fact, space is very cold. Close to absolute zero cold. But vacuum is also a great insulator, and there’s no air to move the heat around. “You can’t convect heat away,” says Richard Bonner, CTO at Accelsius, a liquid cooling company. Bonner has worked on NASA research projects about the challenge of cooling in space and is very familiar with the problem. A small proportion of the heat might be turned back into useful electricity, but that’s not really a solution, he says, because computer chips don’t get quite that hot. Instead, heat is radiated. When an object warms up, it generates

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Community Opposition Emerges as New Gatekeeper for AI Data Center Expansion

The rapid global buildout of AI infrastructure is colliding with a new constraint that hyperscalers cannot solve with capital or GPUs: local opposition. In the first months of 2026, community resistance has already begun reshaping the development pipeline. A February analysis by Sightline Climate estimates that 30–50 percent of the data center capacity expected to come online in 2026 may not be delivered on schedule, reflecting a growing set of constraints that now include power availability, permitting challenges, and increasingly organized local opposition. The financial stakes are already substantial. Recent reporting indicates that tens of billions of dollars in planned data center development have been delayed or halted amid community pushback, including an estimated $98 billion worth of projects delayed or blocked in a single quarter of 2025, according to research cited by Data Center Watch. What had been framed throughout 2024 and 2025 as an inevitable expansion of hyperscale campuses, gigawatt-scale power agreements, and AI “factory” clusters is now encountering a different kind of gatekeeper: the communities expected to host the infrastructure. The shift is already visible in project outcomes. Across the United States, multiple projects were canceled, blocked, or fundamentally reshaped in the opening months of 2026 due to organized local opposition. Reporting from The Guardian found that 26 data center projects were canceled in December and January, compared with just one cancellation in October, suggesting that community resistance campaigns are increasingly capable of stopping projects before construction begins. At the same time, local governments are responding to community pressure with moratoriums, zoning restrictions, and permitting delays that can stall projects long enough to jeopardize financing or push developers to seek more favorable jurisdictions. While opposition to data center development is not new, the scale, coordination, and success rate of these efforts suggest a structural shift in how

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From Real Estate to AI Factories: 7×24 Exchange’s Michael Siteman on Power, Politics, and the New Logic of Data Center Development

The data center industry’s explosive growth in the AI era is transforming how projects are conceived, financed, and built. What was once a real estate-driven business has become something far more complex: an engineering and infrastructure challenge defined by power availability, network topology, and local politics. That was one of the key themes in this recent episode of the Data Center Frontier Show podcast, where Editor-in-Chief Matt Vincent spoke with Michael Siteman, President of Prodigious Proclivities and a longtime leader and board member within 7×24 Exchange International. Drawing on decades of experience spanning brokerage, development, connectivity strategy, and infrastructure advisory, Siteman offered a field-level view of how the industry is adapting to the demands of AI-driven infrastructure. “The business used to be a pure real estate play,” Siteman said. “Now it’s a systems engineering problem. It’s power, network topology, the real estate itself, and political risk—all of these factors that have to work together.” Site Selection Becomes Systems Engineering For much of the early data center era, location decisions revolved around traditional real estate considerations: available buildings, proximity to customers, and nearby fiber connectivity. That logic has fundamentally changed. “Years ago, the question was: Is there a building? Are there carriers nearby?” Siteman recalled. “Now it’s completely different. Power availability, network topology, community acceptance—these are the variables that define whether a site works.” Utilities themselves have become gatekeepers in the process. “You go to a utility and ask if there’s power,” he explained. “They might say, ‘We might have power, but you have to pay us to study whether we actually have power.’” In many regions experiencing rapid digital infrastructure expansion, the answer increasingly comes back the same: there simply isn’t enough grid capacity available. Power Becomes the Project In the gigawatt-scale era of AI infrastructure, power strategy has moved

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Meta’s Expanded MTIA Roadmap Signals a New Phase in AI Data Center Architecture

Silicon as a Data Center Design Tool Custom silicon also allows hyperscale operators to shape the physical characteristics of the infrastructure around it. Traditional GPU platforms often arrive with fixed power envelopes and thermal constraints. But internally designed accelerators allow companies like Meta to tailor chips to the rack-level power and cooling budgets of their own data center architecture. That flexibility becomes increasingly important as AI infrastructure pushes power densities far beyond traditional enterprise deployments. Custom accelerators like MTIA can be engineered to fit within the liquid-to-chip cooling frameworks now emerging in hyperscale AI racks. These systems circulate coolant directly across cold plates attached to processors, removing heat far more efficiently than air cooling and enabling higher compute densities. For operators running thousands of racks across multiple campuses, small improvements in performance-per-watt can translate into enormous reductions in total power demand. Software-Defined Power One of the subtler advantages of custom silicon lies in how it interacts with data center power systems. By controlling chip-level power management features such as power capping and workload throttling, operators can fine-tune how servers consume electricity inside each rack. This creates opportunities to safely run racks closer to their electrical limits without triggering breaker trips or thermal overloads. In practice, that means data center operators can extract more useful compute from the same electrical infrastructure. At hyperscale, where campuses may draw hundreds of megawatts, these efficiencies have a direct impact on capital planning and grid interconnection requirements. The Interconnect Layer AI accelerators do not operate in isolation. Their effectiveness depends heavily on how they connect to memory, storage, and other compute nodes across the cluster. Industry analysts expect next-generation inference platforms to rely increasingly on high-speed interconnect technologies such as CXL (Compute Express Link) and advanced networking fabrics to support disaggregated memory architectures and low-latency

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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