Bringing On-Device AI to <$200 Devices: Edge AI has lately meant Macs and PCs, but the edge is mostly cheap hardware: over 21 billion connected IoT devices against roughly 1.5 billion PCs, and in emerging markets most phones ship under $200. Count budget phones, Raspberry Pis, microcontrollers, wearables, small robots like Reachy Mini, and connected home devices, and roughly four in five edge devices cost under $200. That is the hardware Needle targets: no GPU, no NPU, a few hundred MB of RAM.

Function Call & Device Use: Turning on a light does not need a frontier model. A watch, a home, a robot: each already exposes its abilities as functions with typed parameters, so the only hard part is mapping a messy sentence onto them: which function, with which values. Framed that way, the problem needs no world knowledge and no open-ended prose, which is why 45M parameters suffice where chat needs billions. That smaller formulation is the bet everything else follows from.

Extraction & Structured Outputs: The schema is the interface, and the same formulation covers documents: a schema plus a paragraph returns typed fields, an enum field is a classifier, an array field collects a list in one call. We enforce this with a contract, not a convention: every turn is answered with a call envelope, the empty call is the refusal, and a byte-level grammar compiled from the declared schemas constrains every token. The grammar carries the syntax, so all 45M parameters go to choosing functions and grounding arguments in the user's words.

Edge-Cloud Collaboration: No small model covers everything, so Needle says so instead of guessing: every response carries a learned confidence score, and off-topic requests return the empty call. Above your threshold, act; below it, re-ask or escalate to the cloud. Most device requests are routine control, so escalation stays rare and the default path stays private, instant, and free.

Lossless 2bit Quantization: Small models break under post-hoc quantization, so we never quantize post-hoc: Needle 2 trains against Cactus Quants from pretrain through post-train, weights, activations, and KV cache alike. The 2bit model you deploy is the model that was trained. That is what fits 45M parameters into 14MB with nothing lost on our battery.

Co-designed Model & Inference: Every architectural choice was benchmarked on the target hardware before it earned its parameters, and the deliverable is the pair, not the weights: a single dependency-free C++ binary that probes the CPU at startup and picks its kernels, with the model, tokenizer, and grammar compiler sealed inside. One artifact runs from Cortex-M to x86 to WebAssembly. There is nothing to install and nothing to download.

Fine-tune on your Mac/PC: Every product has its own tool vocabulary, and a 45M model is small enough to retrain where it runs: the repo and python package tune and test on your own computer in minutes to a few hours. Ship a Needle that speaks your device's tools, not a generic assistant.