Three major AI agent platforms—Manus, OpenClaw, and Claude Code—store their memory in plain Markdown files instead of vector databases. The article breaks down how file-based context boosts token-cache economics, enables attention control, and layers optional semantic retrieval, plus when this approach starts to break down.

Karpathy proposes replacing on-the-fly retrieval with an LLM-maintained markdown wiki that ingests sources, compiles structured pages, and self-updates through ingest, query, and lint cycles. This approach builds a persistent, compounding knowledge base without vectors or re-retrieval, though it currently lacks enterprise controls.

This article compares two main options for setting up an AI agent: the user-friendly Claude and the customizable Hermes. It explains the differences between AI agents and chatbots, outlines the setup processes for each option, and emphasizes the importance of .md files for effective AI interaction.