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Wanderloots

Build Your First Local AI Agent? 🧠 Hermes Agent Setup (Free & Private)

Oct 17, 2026

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Build Your First Local AI Agent? Hermes Agent Setup (Free & Private)

Set up Hermes, a free, private AI agent with persistent memory that grows with you. Install it, run local models like Gemma 4 on your own computer, and test it.

Hermes is an open-source AI agent that can run entirely on a personal computer. Its chats stay on the local machine, and it stores memory that improves with use. The latest Hermes update adds a guided onboarding process and one-click installation of local models and runtimes. This article covers the installation process on Windows, the onboarding flow, the configuration of a local model, the built-in memory system, key settings, and advanced features for later exploration.

Overview of Hermes

Hermes includes several core capabilities:

  • Persistent memory: Hermes remembers projects and user preferences across sessions.
  • Automatic skill generation: Hermes creates its own skills and workflows. After it solves a problem, it stores the solution so it can repeat the approach.
  • Tool and automation support: Hermes connects to external tools and runs automations.
  • Web research: Hermes browses the web to gather information for research tasks.
  • Sandboxing: Hermes can run in an isolated environment to protect the rest of the computer.

Hermes is developed by Nous Research. The company works on the open-source movement. It trains models, builds agents, and develops infrastructure to accelerate the adoption of open intelligence globally.

Installation on Windows

The installation process includes two components:

  1. The agent, installed directly on the computer.
  2. The desktop application, which provides the interface for using the agent.

The installation took about 4 to 5 minutes. After launch, Windows displayed a security prompt asking whether to allow private network access. The author allowed access because he planned to connect this computer to another computer in a later setup. The prompt may also appear on macOS.

Onboarding

On first launch, Hermes presents an onboarding system. Users can complete the process or skip it.

The onboarding runs on a free trial model built into Hermes. This model allows users to complete setup before connecting their own models. Users who prefer to run a local model from the start can bypass the connection to this free model during installation.

The onboarding includes the following elements:

  • Connectors: Hermes suggests connections to installed apps and developer tools. Users can review this list later under capabilities and connectors.
  • Quick tour: Hermes explains its own structure. The tour covers the following areas:
    • Sessions: Stored chats, shown in the side panel.
    • Chat input: The field for sending messages.
    • Model picker: The control for selecting the model that answers. If the computer can run a model locally, the picker directs the user to settings, providers, and local models.

During the tour, Hermes generated an animated HTML guide that explains how it works. The guide used several skills, including the Hermes agent skill, a design skill, and a p5.js skill.

Agent Loop

The generated guide describes the agent loop. In this loop, a model:

  1. Runs terminal commands.
  2. Extracts information from the web.
  3. Uses skills.
  4. Produces a graphical user interface tour.
  5. Returns the result as a tool result, which passes back into the conversation.

The model is the component the user controls. Hermes provides the surrounding system that operates on top of the model.

Skills

Skills are recurring workflows that Hermes consolidates. Hermes loads them automatically when they become useful. Four skills loaded during onboarding: the Hermes agent skill, a design skill, the p5.js skill, and a humanizer skill.

Memory Files

Hermes includes two built-in memory files. One stores the work in progress. The other stores how the user prefers to work.

After the onboarding, Hermes suggested running a local model. The suggestion was Qwen 3.6 35B, with 3 billion active parameters. The model requires 22 GB and runs on the author's hardware. The user can decline the paid Nous Research account, which provides access to models such as Claude, ChatGPT, and Gemini.

Configuring a Local Model

Local model setup involves three components: a model, a runtime, and a connection to Hermes.

Model Sources

Hermes supports several provider types. Under Settings > Providers, users can:

  • Connect to cloud providers, such as a ChatGPT or Codex subscription.
  • Connect to custom endpoints. These endpoints run a model on the same computer or on another device. Examples include Ollama, LM Studio, and Lemonade.
  • Use the local model section, which provides model recommendations.

The local model section suggests a model that fits the computer's hardware. Users can select Let me choose to view all compatible models and their fit assessments.

Runtime Installation

A runtime, or inference engine, runs the model and connects it to Hermes. Earlier versions required manual setup of the engine, download of the model, and manual connection to Hermes. In the current version, users can select Install runtime to install llama.cpp directly within Hermes. In the author's test, installation took about 3 seconds.

Model Selection and Memory Fit

The model must fit within the available GPU memory, with additional headroom. The headroom allows the model to retain context as the conversation grows. A model that exceeds available memory cannot run. For example, a 16 GB RAM system cannot run Qwen 3.6 35B, which requires 22 GB.

The author's test computer has 64 GB of unified memory shared between the GPU and RAM.

Model selection involves these concepts:

  • Quantization: A method of compressing a model. The letter Q in a model name indicates quantization. A lower-precision version uses less memory. For example, the Q6 version of Gemma 4 12B requires 9 GB, compared with 22 GB for the full version.
  • Active parameters: The number of parameters activated during each step. Gemma 4 26B A4B has 26 billion total parameters and activates 4 billion at a time.

Models are downloaded from Hugging Face, a repository of local models. Gemma 4 is one of the most popular models, with 1.6 million downloads.

The author downloaded a smaller Gemma 4 variant that fits within 16 GB of RAM. Users should review each model's hardware requirements before download.

Starting the Model

To start the model:

  1. Select Turn on in the local runtime section to start the engine.
  2. Select Use next to the installed model. Hermes sets the model as the default.
  3. Choose the reasoning setting.
  4. Send a message.

On the first message, Hermes loads the model into memory. Loading time depends on model size. After loading, the model keeps running in the background. The author's test loaded 11 GB of the model into RAM.

Exceeding available RAM substantially reduces performance.

Performance

The test model response was produced entirely on the local machine. The model averaged 13 tokens per second. Local models generally run more slowly than frontier cloud models such as Claude Code or ChatGPT. Smaller models often run faster. Quantization level and model size both affect speed and output quality.

Operating Mode and Data Privacy

Local models keep chat content on the computer. Data leaves the machine when the user uses the browser or connects to external tools. Users determine how they structure workflows with local agents.

Use cases for a local agent include:

  • Answering questions about private notes.
  • Analyzing sensitive company data.

Memory System

Hermes stores information it learns during conversations. In the demonstration, the author asked Hermes to remember that he works on a tutorial YouTube series and prefers short, concise, pragmatic responses. Hermes confirmed that it would save the information to memory.

In a new session, the author asked, "What project am I working on?" Hermes answered that the user works on a tutorial YouTube series that teaches people how AI agents work.

The memory system accumulates information over time. The author states that this allows less powerful models to become more effective for a specific use case, because the stored memories shape each response. The memory functions as a portable profile that can connect to any model.

Key Settings

The author recommends reviewing three settings:

  • Memory and context: Confirm that persistent memory and the user profile are enabled. Custom memory providers are available as plugins. For example, users can search for Hindsight under Browse and install it as a memory provider. Honcho is another memory provider option.
  • Advanced terminal execution back-end: This setting determines where the agent runs code. Users can run code in Docker. Docker isolates the agent, which protects the rest of the computer if the agent malfunctions or is compromised.
  • Messaging gateway: Hermes can connect to Telegram, Discord, or Slack. This connection allows users to communicate with an agent running on their computer from another device.

Additional configuration options include:

  • Cloud and local switching: Users can move between local and cloud models.
  • Profiles: Users can create profiles with separate configurations. For example, a researcher profile can use settings that differ from the default profile. Profiles are similar to bot mode.
  • Bot mode: Multiple bots can communicate with one another.

Advanced Features

The author describes several advanced capabilities covered in other videos on his channel. The following table summarizes them.

FeatureFunctionPurpose
Telegram integrationConnects Hermes to TelegramRuns a daily news digest
OllamaRuns models through a dedicated engineProvides control over model variations
DockerIsolates the agent in a containerProtects the computer from errors or malicious behavior
Obsidian and LLM WikiConnects notes to the agentBuilds world knowledge; keeps note content local when a local model is used
Agentic LibrarianAdds human reviewRequires the user to approve entries before they enter the wiki
Memory providers (Themasini, Hindsight, Honcho)Extract key information from chatsForm operational memory systems
Shared memory across agentsConnects one memory system to multiple toolsEnables Claude Code, Codex, Antigravity, Cursor, and other coding tools to share memory
Profiles (bots)Structure agents with separate skills, tools, and contextAllow bots to communicate; the author uses a researcher bot with additional tools as an example
KanbanOrchestrates agents into graphsEnables agents and sub-agents to coordinate

The author notes that the memory layer combines Obsidian, chat history, and memory providers into a context stack.

Access to Obsidian can be limited, which restricts the agent's visibility into notes and files. This restriction also uses Docker.

Next Steps

The Hermes setup described in this article uses a local model with a built-in memory system. The author plans future work on:

  • Tiers of local models and their fit with specific workflows.
  • Hardware requirements for each tier.
  • Obsidian integration.
  • Advanced memory workflows.
  • Bot and profile structures that use these tools with local models.

Introduction

The presenter, Callum (Water Loupe), introduces the goal: a free, private, local AI agent that grows with the user through persistent memory.

  • Hermes can run local models for free, and chats stay on the user's computer
  • Persistent memory lets the agent remember projects and improve with use
  • The latest Hermes update adds one-click local model install and onboarding that can teach Hermes itself
  • Hermes is made by New Science Research, which works on open source models, agents, and infrastructure

Installing Hermes on Windows

Hermes is installed on Windows as both a background agent and a desktop app. The presenter allows private network access so a later video can connect two computers.

  • Installation took about 4 to 5 minutes
  • The installer sets up the agent on the computer and then the desktop app
  • A Windows security pop-up asks whether to allow private network access; the presenter allows it
  • Mac may show a similar pop-up

Onboarding and Quick Tour

On first launch, Hermes runs an onboarding flow powered by a built-in free trial model. The presenter explains the sessions, chat input, and model picker, then runs a quick tour and an explanation of how Hermes works.

  • Onboarding can be completed or skipped; it uses a free trial model built into Hermes
  • Connectors are found under capabilities, then connectors
  • The model picker shows 'Chooses which model answers you' and points to settings, providers, and local models
  • Hermes built an animated HTML field guide explaining how it works, loading the Hermes agent, Claude design, and p5.js skills
  • Skills are recurring workflows stored in the capabilities section; the loaded skills were Hermes agent, Claude design, p5.js, and humanizer
  • Hermes has two built-in memory files that store current work and user working preferences

How the Agent Loop Works

The agent loop has a model that uses terminal commands, web extraction, skills, and tool results. The user controls which model is used, and Hermes operates on top of it.

  • The agent loop: model calls terminal commands, extracts web content, uses skills, and produces a GUI tour returned as a tool result
  • The model is swappable; Hermes is the layer on top
  • Token usage is shown at the bottom of the interface
  • Hermes can schedule automations, connect to tools, and message it from other devices

Setting Up a Local Model

Hermes suggests a local model after onboarding. The user declines the paid New Research account and sets up a local model through settings, providers, and local models.

  • Hermes suggested Qwen 3.6 35B with 3 billion active parameters, about 22 GB, which fits the presenter's hardware
  • Paid New Research accounts give access to Claude, ChatGPT, Gemini, and other major models; the presenter chose 'not now'
  • Settings > providers includes cloud models (for example ChatGPT or Codex subscriptions) and custom endpoints such as Ollama, LM Studio, or Lemonade
  • The local model section offers a 'let me choose' list of models filtered by what fits the device
  • Install runtime installs llama.cpp directly into Hermes in about 3 seconds

Choosing and Downloading a Model

The model must fit within GPU memory with headroom for context. The presenter shows model search on Hugging Face, quantization, and the Gemma 4 options, then starts the download.

  • The presenter has 64 GB of unified memory shared across GPU and RAM
  • A 16 GB RAM machine cannot run a model larger than its RAM
  • Gemma 4 12B at full size is about 22 GB; the Q6 quantization is about 9 GB and fits 16 GB RAM
  • Gemma 4 26B A4B has 26 billion total parameters and activates 4 billion at a time
  • Models are pulled automatically from Hugging Face, which showed 1.6 million downloads for the popular Gemma 4 model
  • Quantization compresses the model; Q stands for quantization

Running and Testing the Local Model

After download, the presenter turns the engine on, sets the local model as default, and sends a first message. The model loads into RAM, and the speed is measured.

  • Steps: turn on the engine, click use to set the local model as default, choose reasoning, then send 'Hi, who are you?'
  • The model loaded 11 GB into RAM; overloading RAM slows performance dramatically
  • Hermes answered 'I am Hermes agent built by News Research' fully locally
  • Speed averaged about 13 tokens per second; smaller models and quantizations run faster

Demonstrating Persistent Memory

The presenter demonstrates Hermes memory by saving user preferences and a project. In a new session, Hermes recalls the project, showing how memory accumulates over time.

  • The user said they are working on a tutorial YouTube series and prefer short, concise, pragmatic responses
  • Hermes responded that it would save this to memory
  • In a new session, asked 'What project am I working on?', Hermes replied it was a tutorial YouTube series teaching people how AI agents work
  • Memory builds over time, so a less powerful model can become more effective for a specific use case

Important Settings

The settings screen has key options for memory, the terminal execution back-end, and advanced features such as Docker sandboxing, cloud and local switching, messaging gateways, and profiles.

  • Memory and context settings: keep persistent memory and user profile enabled; custom memory providers now live in plugins
  • Browse can find memory providers such as Hindsight and Honcho
  • Under advanced, the terminal execution back-end sets where agent code runs; Docker is recommended to protect the computer
  • Messaging gateways include Telegram, Discord, and Slack
  • Profiles allow separate configurations, for example a researcher agent, similar to bot mode

Advanced Features and Workflows Map

The presenter maps advanced features and workflows covered on the channel: daily news digests, Ollama, Docker, Obsidian with an LLM Wiki, memory providers, shared memory across coding tools, profiles, and Kanban.

  • Daily news digest via Telegram is covered in a previous video
  • Ollama is used to run and control local models, and the next video covers other tools
  • Docker isolates the agent from errors or malicious behavior
  • Context is provided through Obsidian and an LLM Wiki; the Agentic Librarian adds a human review step before items enter the wiki
  • Memory providers such as Mem0, Hindsight, and Honcho extract key information from chats; a related improved AI memory video exists
  • One shared memory can connect Claude Code, Codex, Antigravity, Cursor, and other coding tools
  • Profiles (bots) can be upgraded with tools, for example a researcher bot; Kanban orchestrates agent graphs and sub-agents