Skyfall AI

Building Enterprise Super Intelligence 👉 Try Morpheus now:

[Skyfall AI @skyfallai]

We're excited to announce that Skyfall has emerged from stealth.

For years, the foundation model market has relied on a single paradigm: scaling laws for LLMs - more data, more compute, bigger models. However, we believe the next generation of AI models requires a different approach. Skyfall is solving the hardest open problems in frontier AI: long-horizon planning, data inefficiency, and brittle performance in dynamic real-world environments. To achieve the team's vision of a completely autonomous enterprise, the team is developing a next-generation frontier model using Continual Learning and World Modeling.

Our CEO and Co-Founder Sam Pasupalak (@spisallyouneed) shares what's next for Skyfall and why we're building a new category of frontier AI.

Read the full announcement to learn more about our vision and how we're addressing the foundational gaps in today's AI systems.

PS: we also announced something big 👀 in the article

[Sam Pasupalak @spisallyouneed]

Around 15 years ago, Kaheer Suleman and I started Maluuba with the vision of building Universal Turing Machines. Back then, we were one of the pioneer research labs building foundational modules of deep learning and Reinforcement learning with Turing award winners @Yoshua_Bengio and @RichardSSutton. There was no AI hype then, as there is now. Those were the good old days of doing pure scientific research unlike the n+1 research that we see today. Maluuba was later acquired by Microsoft and became @MSFTResearch Canada.

Grounded in that same mission, we're finally ready to introduce @skyfallai to the world after a lot of experimentation in stealth over the last year. We're a frontier neo lab building the first Autonomous Enterprise by moving beyond the current LLM paradigm.

For the last 5 years, the foundational model market has relied on a single paradigm: scaling laws for LLMs - more data, more compute, bigger models. However, the real world is messy and much more complicated. In order to achieve our long term vision, the next generation of AI models requires a different approach. Skyfall is solving the hardest open problems in frontier AI: long-horizon planning, data inefficiency, and brittle performance in dynamic real-world environments.

To achieve the team's vision of a completely autonomous enterprise, the team is developing a next-generation frontier model (Enterprise World Models) using Continual Learning and World Modeling. Enterprise World Models can simulate the multi-layered consequences of strategic business actions. Our approach unlocks a new category in the foundation model market. To prove it, we're introducing Morpheus, a Continual Reinforcement Learning platform for AI researchers.

I'm building this company with the people I trust the most: my longtime friend Kaheer Suleman (prev. Co-Founder of Maluuba) and my brother @omgiamgod (prev. YC founder). Sumit and Kaheer are the first principles thinkers I can trust to go to the end of the world with to achieve the mission impossible together. Together with a stellar team of 25 researchers and engineers, we're pushing a new frontier in AI forward.

We unpacked our long term vision in today’s Forbes feature 🔗- read it to see what we’re building toward. Thank you so much Victor Dey for the interview.

To achieve our goal of enterprise world models, we are soliciting bids to acquire small SaaS startups (up to $1M) and fully automate them. If you’re interested, submit your business here: https://t.co/w8ayopZFLH

Finally, thank you to our investors and advisors for believing in our vision since day one: @Fidelity , @sk121 (@touringcapital), @karam_n and @chrisarsenault (@inovia), @morgan_blumberg (@M13Company ), @stephpalmeri (@NextViewVC ), and @michaellitt and @mmccauley (@GarageCapital ), @jennydhe, @fchollet @NaveenGRao and so many others for supporting us in this journey.

[Skyfall AI @skyfallai]

We are going after autonomous businesses. We are accepting SaaS businesses for acquisitions through August 31.

If you want to be a part of this grand vision, submit your business here: https://t.co/2XJbo6iF6k

Thanks @nytimes for covering our story!

[Sam Pasupalak @spisallyouneed]

Most AI startups are building harnesses on top of LLMs. VCs and founders are celebrating how the ‘AI software engineer’ is the breakthrough of our generation.

There used to be a time when @Yahoo and the @AOL were the undisputed kings of the internet by being the best curators and organizers of existing information on the web. However, they lost relevance very quickly because they were optimizing for the easy win (curating information manually via humans instead of indexing and searching all the websites). Google’s page rank algorithm quickly became the dominant search tool and paved the path for @Google to be the ultimate winner in the race.

30 years have now passed and we are at a similar junction of time again. Instead of focusing on the low hanging fruits of building ‘AI co-pilot’ experience, we want to re-imagine completely autonomous businesses end-to-end. We are building the foundation layer of super intelligent enterprises that require little to no human intervention, which we call ‘AI CEO’. The benefits of this are quite obvious and profound - increased productivity for the entire human race so that all of us can focus on our own passions in sports, arts, creativity or spending time with our loved ones.

I shared more about @SkyfallAI's next steps in the @nytimes article that came out this weekend.

Thank you @SarahFKessler and @andrewrsorkin for the feature.

[Skyfall AI @skyfallai]

@spisallyouneed @Yahoo @AOL The next frontier is 'AI CEO' 🚀

[Skyfall AI @skyfallai]

@spisallyouneed @Yahoo @AOL The next frontier is 'AI CEO' 👏

[Joshua Tan @joshuaztan]

Last week ~40 of us gathered at Stanford for the first Autonomous Organization Summit, hosted by @stanfordopenlab, @Stanford_AO, and @DAOstar_One.

A quick wrap of what happened 🧵

[Joshua Tan @joshuaztan]

6. Measurement really matters. We need better benchmarks, better eval suites, and more data.

@andonlabs is working on harnesses. @skyfallai's @spisallyouneed presented Morpheus, a big-world benchmark for continual learning in AOs.

[Skyfall AI @skyfallai]

Tune in to the full conversation on Youtube: https://t.co/VNVK6frF6T

[M13 @M13Company]

Yesterday’s breakthrough: AI copilots. Tomorrow’s breakthrough: enterprise world models.

@spisallyouneed built @skyfallai on the belief that these kinds of models could power autonomous enterprises.

On The Flywheel, he and @morgan_blumberg discuss what world models could unlock that LLMs can’t, what it will take to create the world’s first autonomous enterprise, and what he means about being a warrior and a monk.

https://t.co/9ovbAmC5dD

[M13 @M13Company]

Yesterday’s breakthrough: AI copilots. Tomorrow’s breakthrough: enterprise world models.

@spisallyouneed built @skyfallai on the belief that these kinds of models could power autonomous enterprises.

On The Flywheel, he and @morgan_blumberg discuss what world models could unlock that LLMs can’t, what it will take to create the world’s first autonomous enterprise, and what he means about being a warrior and a monk.

https://t.co/9ovbAmC5dD

[Sam Pasupalak @spisallyouneed]

It was amazing to share the stage with other AI leaders at the Stanford Autonomous Organization Summit last week and introduce Morpheus, the Big World Benchmark for Reinforcement Learning.

Just as human intelligence thrives through continuous adaptation, enterprise AI systems need to learn and evolve in real time. At @skyfallai , we're building toward Continual Learning from first principles by rethinking the fundamentals. Through Morpheus, we have shown that building a Big World environment is the key to making continual learning a reality, and I'm grateful to have shared our vision at @Stanford .

Thank you to everyone who attended and engaged with thoughtful questions. If you haven't tried Morpheus yet, I'd encourage you to explore it:

Thanks again for the invitation @joshuaztan and our researcher @pavan_seshadri who is the first author of the paper.

[Skyfall AI @skyfallai]

@spisallyouneed 👏👏

[Skyfall AI @skyfallai]

Team Skyfall at @Stanford AO Summit last week 📸

[Sam Pasupalak @spisallyouneed]

It was amazing to share the stage with other AI leaders at the Stanford Autonomous Organization Summit last week and introduce Morpheus, the Big World Benchmark for Reinforcement Learning.

Just as human intelligence thrives through continuous adaptation, enterprise AI systems need to learn and evolve in real time. At @skyfallai , we're building toward Continual Learning from first principles by rethinking the fundamentals. Through Morpheus, we have shown that building a Big World environment is the key to making continual learning a reality, and I'm grateful to have shared our vision at @Stanford .

Thank you to everyone who attended and engaged with thoughtful questions. If you haven't tried Morpheus yet, I'd encourage you to explore it:

Thanks again for the invitation @joshuaztan and our researcher @pavan_seshadri who is the first author of the paper.

[LHC @StudioLHC]

The illusion of continuous AI learning dissipates when faced with the Morpheus (@skyfallai) benchmark. Without task resetting, language models prove incapable of adapting to the unexpected.

https://t.co/0k4Ut2HfLa

[Skyfall AI @skyfallai]

Standard language models fail at autonomous enterprise for reasons that go beyond raw capability:

1. No persistent memory across episodes.
2. Long-horizon reasoning degrades catastrophically.
3. They can't learn from continuous experience.

This is why we're building differently. We are building Enterprise World Models which encode persistent representations that encode how a business actually operates, learn continuously, and reason across arbitrary timescales.

[Futurism @futurism]

"If you want a truly autonomous business, you have to buy a business and operate the whole thing end to end." https://t.co/DKHpIznnem

[Skyfall AI @skyfallai]

We are still accepting submissions through August 31, 2026. Submit your business below.

https://t.co/2XJbo6iF6k

[thehype. @thehypedotnews]

$1m to buy a company and replace the ceo with ai. that's the wildest bet on this week

our ai host nathan tracks the capital radar every hour – here's what stood out:

$30m – @naturalpay raised a series a to build the payments stack for ai agents. wallets, vaults, transfers – stripe was built for humans, natural is building for software that spends money on its own. forerunner led. company was 193 days old.

$180m – glow emerged from stealth as a unicorn at $1.2b. ai-native endpoint security for a world where agents run on every corporate laptop. sequoia, cyberstarts, greenoaks and redpoint co-led. founders came from meta and snowflake.

$38m – arrakis exited stealth to deploy ai agents into aerospace, energy and manufacturing operations. one customer cut procurement cycles by 90%. blossom capital led, datadog's ceo and openai's head of business products invested personally.

$34m – @paper raised from accel and iconiq to build the design platform for agent-led development. arr grew 25x in one month after launch. ramp, vercel, lovable and yc are already customers.

$1m – @skyfallai plans to buy a real saas company and install an ai ceo. former microsoft maluuba founders want to prove ai can run a business end to end – pricing, marketing, support, finance. they'll document every result publicly.

5 companies, 5 layers of the agent stack – payments, security, industrial deployment, creation tools, and the ceo seat itself.

tune in to @thehypedotnews – capital radar every hour. 24/7 ai news, fully run by ai.

[Skyfall AI @skyfallai]

Details in our blog: https://t.co/CfHYji5tJi

[Skyfall AI @skyfallai]

Longer detection lags reveal the context window bottleneck.

GPT-5.5 in the Process-Inbound environment exhibited detection lag of greater than 25 at the second configuration shift and never recovered.

This failure is consistent with a context window bottleneck where the delayed effects of configuration changes cause the diagnostic evidence needed for adaptation to fall outside the model's effective context. The outbound task does not encounter this limitation because its consequences unfold over a shorter horizon. Put simply, LLMs are not continual learners.

We need more intelligent systems in order to unlock enterprise superintelligence.

[Skyfall AI @skyfallai]

LLMs Apply Pre-Trained Heuristics, Not Reward-Optimal Strategies

Both Gemini 3.1 Pro and GPT-5.5 pursue different allocation strategies but their scores remain persistent rather than aiming to close the gaps. Simply put, the LLMs perform consistently because they are not learning from the reward signal at all.

More details in our blog: https://t.co/8iUAgGODZZ

[Skyfall AI @skyfallai]

The baseline results in our recent research revealed large settled-state deficits and task-dependent algorithm specialisation.

EWC for catastrophic forgetting, HER to retain experience and LCM to detect regime shifts.

However, this is not how the real world operates. Dynamics keep on shifting and agents need to be able to keep up with shifting demands rather than be good at one task but a failure in another.

This is why small-world training produces small-world agents.

We need a big-world environment for Continual Learning. That is what Morpheus is built to be. Start training here: https://t.co/kvUYQ2hehT