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Explore the evolution of LLM applications and learn how to build a self-hosted AI agent service using open-source tools in this 35-minute conference talk by Michael Yuan from Second State. Discover the advantages of running open-source LLMs and agents on personal or private devices, including enhanced privacy, customization options, cost control, and value alignment. Gain insights into the narrowing gap between open-source and proprietary LLMs, with examples of open-source models outperforming SaaS-based alternatives. Learn about the benefits of open-source LLMs for AI agents, including cost-effectiveness, privacy, and the ability to customize through fine-tuning and RAG prompt engineering using private data. Follow a step-by-step demonstration on building a complete AI agent service using an open-source LLM and a personal knowledge base. Understand the implementation of the WasmEdge + Rust stack for fast and lightweight LLM inference, which offers cross-platform compatibility and native performance across various operating systems, CPUs, and GPUs.