Goodfire AI’s Bet: Interpretability as the Next Frontier of Model Design — Myra Deng & Mark Bissell @LatentSpacePod
Goodfire AI’s Bet: Interpretability as the Next Frontier of Model Design — Myra Deng & Mark Bissell  @LatentSpacePod
Uploaded February 2026 | Updated September 2026, 2 weeks ago
From Palantir and Two Sigma to building Goodfire into the poster-child for actionable mechanistic interpretability, Mark Bissell (Member of Technical Staff) and Myra Deng (Head of Product) are trying to turn “peeking inside the model” into a repeatable production workflow by shipping APIs, landing real enterprise deployments, and now scaling the bet with a recent $150M Series B funding round at a $1.25B valuation. (goodfire.ai/blog/our-series-b)

In this episode, we go far beyond the usual “SAEs are cool” take. We talk about Goodfire’s core bet: that the AI lifecycle is still fundamentally broken because the only reliable control we have is data and we post-train, RLHF, and fine-tune by “slurping supervision through a straw,” hoping the model picks up the right behaviors while quietly absorbing the wrong ones. Goodfire’s answer is to build a bi-directional interface between humans and models: read what’s happening inside, edit it surgically, and eventually use interpretability during training so customization isn’t just brute-force guesswork. (goodfire.ai/blog/on-optimism-for-interpretability)

We discuss:
• Myra + Mark’s path: Palantir (health systems, forward-deployed engineering) → Goodfire early team; Two Sigma → Head of Product, translating frontier interpretability research into a platform and real-world deployments
• What “interpretability” actually means in practice: not just post-hoc poking, but a broader “science of deep learning” approach across the full AI lifecycle (data curation → post-training → internal representations → model design)
• Why post-training is the first big wedge: “surgical edits” for unintended behaviors likereward hacking, sycophancy, noise learned during customization plus the dream of targeted unlearning and bias removal without wrecking capabilities
• SAEs vs probes in the real world: why SAE feature spaces sometimes underperform classifiers trained on raw activations for downstream detection tasks (hallucination, harmful intent, PII), and what that implies about “clean concept spaces”
• Rakuten in production (goodfire.ai/research/rakuten-sae-probes-for-pii-detection): deploying interpretability-based token-level PII detection at inference time to prevent routing private data to downstream providers plus the gnarly constraints: no training on real customer PII, synthetic→real transfer, English + Japanese, and tokenization quirks
• Real-time steering at frontier scale: a demo of steering Kimi K2 (~1T params) live and finding features via SAE pipelines, auto-labeling via LLMs, and toggling a “Gen-Z slang” feature across multiple layers without breaking tool use
• Hallucinations as an internal signal: the case that models have latent uncertainty / “user-pleasing” circuitry you can detect and potentially mitigate more directly than black-box methods
• Steering vs prompting (goodfire.ai/blog/feature-steering-for-reliable-and-expressive-ai-engineering): the emerging view that activation steering and in-context learning are more closely connected than people think, including work mapping between the two (even for jailbreak-style behaviors)
• Interpretability for science: using the same tooling across domains (genomics, medical imaging, materials) to debug spurious correlations and extract new knowledge up to and including early biomarker discovery work with major partners



Goodfire AI
• Website: goodfire.ai
• LinkedIn: linkedin.com/company/goodfire-ai
• X: https://x.com/GoodfireAI

Myra Deng
• Website: myradeng.com
• LinkedIn: linkedin.com/in/myra-deng
• X: https://x.com/myra_deng

Mark Bissell
• LinkedIn: linkedin.com/in/mark-bissell
• X: https://x.com/MarkMBissell

00:00 Introduction
00:45 Welcome + episode setup + intro to Goodfire
02:16 Fundraise news + what’s changed recently
02:44 Guest backgrounds + what they do day-to-day
05:52 “What is interpretability?” (SAEs, probing, steering and quick map of the space)
08:29 Post-training failures (sycophancy/reward hacking) + using interp to guide learning
10:26 Surgical edits: bias vectors + grokking/double descent + subliminal learning
14:04 How Goodfire decides what to work on (customers → research agenda)
16:58 SAEs vs probes: what works better for real-world detection tasks
19:04 Rakuten case study: production PII monitoring + multilingual + token-level scrubbing
22:06 Live steering demo on a 1T-parameter model (and scaling challenges)
25:29 Feature labeling + auto-interpretation + can we “turn down” hallucinations?
31:03 Steering vs prompting equivalence + jailbreak math + customization implications
38:36 Open problems + how to get started in mech interp
46:29 Applications: healthcare + scientific discovery (biomarkers, Mayo Clinic, etc.)
57:10 Induction + sci-fi intuition (Ted Chiang)
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Goodfire AI’s Bet: Interpretability as the Next Frontier of Model Design — Myra Deng & Mark Bissell

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