The speaker says a compaction model can be used as an additional model to manage long-context information and reduce the risk of losing track of it.

“you know goofy in that sense that always remember the first four percent and the last four percent and everything in between they kind of forget so if you have a return policy right in the middle of that context it's very likely it'll hallucinate so you have to do more smart things and that's where you have like more models come in you can have a compaction model like we're all using coding agents now right so you know like”