Give Your Agent a Computer — Nico Albanese, Vercel
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A live workshop walkthrough by Nico Albanese from Vercel demonstrating how to build an AI agent with a persistent computer/sandbox using the Vercel AI SDK. The session covers setting up a Next.js app with the AI SDK's ToolLoopAgent, adding web search via provider-executed tools, integrating Vercel Sandbox (beta) for persistent file system access, and implementing agent memory via a markdown file stored in the sandbox. Key concepts include the three types of tools (custom, provider-defined, provider-executed), call options and runtime context for passing sandbox instances to tools, context window management strategies, and how a file-system-backed agent dramatically improves task completion and reduces hallucination. The talk concludes with a demo of a production coding agent system using sub-agents, durable workflows, and a 91% cache token read ratio.