AI-Native Engineering: 100% adoption, 5x search throughput, unlimited tokens — Mikhail Parakhin @LatentSpacePod
AI-Native Engineering: 100% adoption, 5x search throughput, unlimited tokens — Mikhail Parakhin  @LatentSpacePod
Uploaded April 2026 | Updated September 2026, 3 weeks ago
From running one of the most aggressive internal AI rollouts in tech to building systems that simulate customers, optimize ML pipelines, and rethink search latency from first principles, Mikhail Parakhin is pushing Shopify far beyond “add AI to ecommerce.” In this episode, Shopify’s CTO joins swyx to unpack what actually changed inside the company after the December 2025 model inflection, why nearly everyone at Shopify now uses AI tools daily, and what happens when code generation outpaces the rest of the software delivery pipeline.

We go deep on Shopify’s internal AI stack: Tangle for reproducible ML and data workflows, Tangent for auto-research loops that keep iterating toward better results, SimGym for customer simulation and theme optimization, and Liquid AI for ultra-low-latency and long-context workloads. Mikhail also reflects on PR review in the age of coding agents, the future of CI/CD, Sidekick Pulse, UCP, hiring at Shopify, and the untold story behind Sydney at Microsoft.

We discuss:
• Why Shopify’s AI usage effectively reached company-wide adoption
• The December 2025 inflection when model quality suddenly changed behavior
• Why token budgets matter, but only if paired with strong critique and review loops
• The real bottleneck in AI coding: PR review, CI/CD, and deployment stability
• Why more AI-written code can still mean more bugs in production
• Tangle: Shopify’s reproducible workflow system for ML and data experimentation
• Tangent: auto-research loops for optimizing pipelines, prompts, throughput, and infra
• Why auto-research is democratizing ML experimentation beyond researchers
• SimGym: simulating customers using Shopify’s historical data and browser-based agents
• Why customer simulation is hard to copy without years of real merchant behavior
• HSTU, counterfactuals, and modeling merchants and buyers over time
• UCP and Shopify’s product catalog as runtime infrastructure for agents
• Why Shopify is using Liquid AI for low-latency search and long-context distillation
• Sidekick Pulse, recsys, and where Shopify’s AI platform is heading
• Hiring areas at Shopify across ML, data science, and distributed systems
• The backstory of Sydney, personality shaping, and the early Bing chatbot era

—

Mikhail Parakhin
• LinkedIn: linkedin.com/in/mikhail-parakhin
• X: https://x.com/MParakhin

Timestamps
00:00:00 Introduction
00:02:05 Mikhail Parakhin, Shopify, and Microsoft
00:03:20 Shopify’s AI Adoption and the December 2025 Inflection
00:10:07 Why Token Count Alone Is a Bad Metric
00:12:59 Why Shopify Built Its Own AI PR Review System
00:16:16 Why Git, PRs, and CI/CD May Break in the Agent Era
00:20:29 Tangle: Shopify’s System for Reproducible ML Workflows
00:28:19 Tangent: Auto Research for Optimization and Experimentation
00:34:58 The Limits of Auto Research
00:38:40 Why Tangle, Tangent, and SimGym Compound Together
00:39:24 SimGym: Simulating Customers with Shopify’s Historical Data
00:44:51 The Infra Behind SimGym
00:48:04 Why Shopify’s Data Gives SimGym a Moat
00:49:34 Counterfactuals, HSTU, and Modeling Merchant Trajectories
00:55:34 UCP, Shopify Catalog, and Identity Linking
00:57:11 Liquid AI: Why Shopify Uses Non-Transformer Models
01:01:17 Real Shopify Use Cases for Liquid
01:05:04 Can Liquid Scale Into a Frontier Model?
01:06:52 Sidekick Pulse, Recsys, and Shopify’s AI Stack
01:09:29 Hiring at Shopify: ML, Data Science, and Databases
01:10:43 Sydney at Bing: Personality Shaping and AI Character
01:13:32 Closing Thoughts
AI-Native Engineering: 100% adoption, 5x search throughput, unlimited tokens — Mikhail ParakhinMistral: Voxtral TTS, Forge, Leanstral, & Mistral 4 — w/ Pavan Kumar Reddy & Guillaume Lample[State of AI Papers 2025] Fixing Research with Social Signals, OCR & Implementation — Team AlphaXiv‘You guys are so inefficient’ #substack #shortsWhen AI Agents Run Businesses — Lukas Petersson and Axel Backlund of Andon LabsWill AI Kill Language LearningOptimizing Hyperparameters TogetherDreamer: the Agent OS for Everyone — David SingletonThe Truth Behind Cursors Biggeset Model LaunchLeveraging Strengths for Model SuccessFPV Drones -The Next War Is Already Here — Yaroslav Azhnyuk, The Fourth Law & Noah Smith, NoahpinionDylan Patel Explains the AI War While Cooking | In-Context Cooking
Latent Space |

AI-Native Engineering: 100% adoption, 5x search throughput, unlimited tokens — Mikhail Parakhin

SHARE TO X SHARE TO REDDIT SHARE TO FACEBOOK WALLPAPER