Mercado Libre Scales AI Search
Part of the Whoβs Ready for Anything series, this episode features Mercado Libreβs Sebastian Yunge at NVIDIA GTC 2026. Learn how the team rebuilt search with AIβmoving from pilot to production quickly using CoreWeave infrastructure.
In this video:
- How Mercado Libre uses AI-driven query expansion to improve search relevance
- What to look for in an AI cloud provider, from GPU capacity to pricing transparency
- How to go from POC to production in weeks, not months
- Why starting small, measuring impact, and iterating quickly drives AI success
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Hey,
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welcome to CoreWeave's booth here in our podcast studio
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on the second Story of CoreWeaveβs booth at NVIDIA GTC 2026.
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I'm your host, Lisa Martin,
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and we're going to walk you through a great customer story.
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Sebastian Yunge is here with us.
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He is the senior staff software engineer at
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CoreWeave customer Mercado Libre.
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We're going to tell you a story
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through Sebastian's perspective of one of Latin America's
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most sophisticated and largest consumer technology companies.
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Sebastian is going to talk to us about how they evaluated,
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they piloted, and then moved into production with CoreWeave
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to really deliver this purpose built AI infrastructure
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for demanding scale and a huge volume of transactions.
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Sebastian, thank you so much for taking some time with us today.
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Thank you.
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So we did some research on Mercado Libre, but I want you to share with the audience
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a little bit about this organization is huge in Latin America.
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Yeah, yeah.
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I mean, if you could, if I could condense it
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and if you were to feel like Amazon people rolled into one, you know,
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because we do have Mercado Libre in, which is, as you know,
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akin to Amazon. Then we have Mercado Pago, which is akin to PayPal.
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Oh, okay. Fintech services.
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Okay. It's a pretty big company.
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We're already up to 120,000,
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I don't know, and 25.
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Wow. Huge. Across 18 countries.
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Yeah, we're we're really big in that.
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I learned and I was also reading that this is the sixth largest
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e-commerce platform in the world by gross merchandise volume, massive scale.
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We're also the biggest company Latin America by GMV.
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And you said e-commerce, payments, logistics,
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credit, logistical network in Latin America.
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That gives us a huge advantage over anyone that wants to enter into the regions.
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Excellent.
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So tell us about Mercado Libre.
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As are use case. What does that look like?
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So Duda doesn't fly all across the board, for instance, for prevention
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use a lot of public provision.
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Where I can speak both about is the search engine.
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Right now, we're in the process of rebuilding our search engine,
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and we're leveraging AI for different capabilities.
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Actually, one of the use
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cases that drove us to for we was actually one of the use cases
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we were right now building within search search 2.0, if you will.
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Okay. So,
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right now what we're trying to do is, well, we're rebuilding.
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But of course, you know,
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when you're doing the AI, you also want to start small. Yes.
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See what once was a little land and build something responsibly.
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See if there's any revenue.
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Is into this.
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You see all that?
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So one of the experiments that we wanted to go forward with
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was actually mechanism of query expansion,
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where you take the query that your user
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makes and enrich, and with all the context that you have put out, the.
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So after that, you can you create new rules
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and then merge them all together to get a more precise result
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on what they might be actually looking for.
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Talk us through what you were looking for in an AI
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cloud provider and what stood out with query.
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Sure.
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Well, first of all, we were looking for someone that had capacity, you know,
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because right now you only know looking for GPUs is a slugfest.
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Yes. Capacity, especially in the Virginia area
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where all the data centers are specialty scores. Gaffney.
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But core we actually had capacity there.
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And in fact, when we were doing the policy, they even told us.
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So you can use like, our 6200,
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which are very powerful GPUs in our class.
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And that was a huge surprise for us for
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having all the capacity of the platform at a below sea level.
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So that was huge for us, you know, to test out what Corwin was all about.
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Sounds like that what Corey was offering was kind of a tipping point.
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And why you said yes.
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Let's sign up for a PFC.
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Know for sure.
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And all the capabilities that we also heard from,
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you know, Slurm, just got south on the platform.
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The fact that it is run on bare metal.
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So you all do anything, you know, and performance wise,
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and also,
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a clear pricing structure.
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That was that was a huge runo as well.
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Transparency. Yes. Yes, yes.
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So you you made the decision to do the PLC.
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What were you mentioned?
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What were some of the core technologies, the key technologies of core waves
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that you put to the test?
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And how did they match up to your expectations?
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Well, obviously we tried, you know,
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the supernatants with the platform and that's where we are today, actually
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running all of our inference for the query expression that I mentioned before.
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I also got personally to, to be able
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to test the same capability.
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That becomes especially useful when you actually
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to times like deep and actually
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start prioritizing the to use it.
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Once you start to have a lot of compute there,
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you actually need to keep the Q fields because otherwise you're losing money.
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But you actually need to know the inventory of
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who wants to win one on one time frame.
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So having that,
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and as recently as sunk is,
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is really a great feature to have because everyone will know something about them.
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Customer on your own is it's it's not a simple task.
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It can take a while, but you have the visibility now.
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Yeah, yeah, it's one click. It's done.
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You have a Slurm cluster running right beside your Kubernetes infra.
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It's really, really, really easy.
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So how long was the POC and what were some of the
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the benefits that you immediately saw.
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So if I recall correctly, the PLC ran around three weeks.
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Okay.
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And we were surprised that
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they even left us the infrastructure over that period of time.
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It's a hot commodity.
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Things that we saw.
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Well, yes, of of durability, you know, of operations.
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There was no feature created whatsoever.
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So from the get go, we were able to see how that meshed with our operations.
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Because sometimes you get
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they give you this platform demos and you get to give your tires around for a bit.
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And, you know, the performance is there,
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but then how does that mesh on a day to day basis?
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Right.
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You kind of do, the way that the PLC was handled.
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We were from day zero, be able to see, okay,
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this is how we would interact from scratch.
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It was the giveaways to see that Ames was really well,
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and we would like to move forward with this contract.
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You said from scratch, and I've heard that a number of times this week from Corps.
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We've engineers, leaders that they built
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the platform from scratch to be purpose built for AI.
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We've heard that from partners as well, like the Aston Martin Formula
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One team that they that built that team from scratch.
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Core is a part of that.
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You're in early production, I understand. Yeah.
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Talk about how that's going
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and what are some of the things that you are gleaning or learning so far?
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the team on for week has a ton of expertise in a lot of areas.
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So sometimes, I mean, we have our own experts as well,
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but sometimes we may be drawing a blank or seeking out an opinion.
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So for we've is obviously a cloud provider.
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So they can get information for other use cases
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and actually see what sticks and whatnot.
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So having that support there is it's a blessing.
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What our day to day operations like right now in early production.
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So it's it's not I can't say a lot to that.
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Basically we just
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throw our inferencing, you know workloads and everything works well.
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So far so good.
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We haven't had an issue yet. That's nice.
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So from an efficiency a productivity perspective it sounds like
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it's made a pretty big impact already.
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Yeah, it's been transparent.
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Basically
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you're working with other cloud providers who are running these workloads.
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Another stacks.
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And we just, you know, make the click and
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on running, you know, like we were never switching in the first place.
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Or most places like in your past experience, kind of like
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features are locked down used to give us access to the GPUs.
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Every feature was available and that's not normal or common.
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I wouldn't know if it's coming or not,
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but I've run into a few instances where features were gated.
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Features did not work the same way in the field, and then the final version,
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stuff like that happens.
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I, I'd like to say it's not common, but I've seen it time and time again.
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Yeah, well, maybe a refreshing experience that you've had with Huawei.
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You know, we were talking yesterday,
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with the Aston Martin F1 team and three things.
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The CMO Jean English as performance about core performance.
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Piece and partnership.
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And it sounds like that's what you're getting from this that partnership angle,
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the word transparency I think that's one of the words I,
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I think of when I think of core, we've and how they operate,
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because a lot of companies have trouble doing that.
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They don't.
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How is the the performance, the pace, the partnership really helped define
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your decision to choose core to your leaders.
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I think it's important that,
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or we miss our organization
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show from the get go any time we've had any issue,
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I don't think more than a couple of hours fast and feel we get a response.
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Whenever there was an issue, they did not try to hide what the issue was.
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They told us, hey, like this, this, that happened here, you know, like,
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a document detailing what actually happened, how they solved it.
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And you know, what to look out for in the future.
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So, right from the get go, everything is transparent.
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There's no like, oh, let me talk to my team,
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and they'll like, I'm in the corner and see what's what.
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No, no, no.
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We have a live one on one chat with everyone on slack.
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They tell us everything.
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24, seven and so far.
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And that's the way that we've been operating.
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So you have access
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to their direct to expert engineering team.
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You said slack, for example.
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Really getting, getting collaborating with you on the channel or with or with,
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you know, on organization.
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So whenever we need to chat
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with someone, you know, an expert on X, Y, and Z technology, they're there.
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You have I mean, there is a time difference, I'm sure.
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There we go. Yep.
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But they answer as soon as possible.
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From a user, a customer perspective.
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You know, we think of Mercado Libre, we think of Amazon.
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And and as consumers, we want to find whatever we want right away.
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We want them to show us relevant products and services.
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And, and the consumer is just becoming more and more demanding
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that that experience is seamless.
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So how what are some of the business outcomes in that context
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that you expect Mercado Libre to be able to deliver to those
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demanding customers because of the partnership with what we've.
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That's a great question.
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The results that we're trying to achieve is,
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as you mentioned, for the experience, the buying experience of our customers
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to actually be better, to actually get to what they're trying to buy.
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Sometimes not by asking the question, but by us
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knowing our customer can see all this talk about
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AI is capturing the context and truly knowing that customers
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to get deep down into what they actually mean.
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Yes, when they search for something and that's what we're trying to get it.
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It's something really easily measurable, you know,
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basically circumcision rate whenever we do something.
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And if they buy something, hey, back to what they were looking for, right?
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So in the next like 6 to 12 months, AI is moving so incredibly quickly.
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GTC, as you can see behind us this
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amazing time square, but the vibe is still great since day three.
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What are some of the things you're hoping
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in the next 6 to 12 months from an energetic perspective?
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To really help continue this business transformation, what's on your wish list?
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Honestly, I want to continue to see the
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the performance.
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For what better chance to introduce this whole new product for inferencing,
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where we can get a lot more tokens, more bang for our buck account?
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Yeah, because we are seeing some barriers, on the trading front.
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Okay, so once we get better inferencing performance,
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then we can really start doing better work on.
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On production for inferencing is real time.
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It's when the user is actually using your platform.
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And having better performance there allows us to think
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for more time to write more on what their needs are.
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So I'd really like to see that trend to continue to go further.
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It's exciting if there are any AI pioneers out there,
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and we know there are, and they're maybe embarking on a similar journey
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that you've done in the last year or so, what would you
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what's your three key takeaways be to advise them you got this. So
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I think the
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first one would be to try out something
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that is very near to your best to a non use case
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like try to work with something where you truly have a ton of metrics
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so that when you actually do something with the AI,
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you know, in a few seconds, if there's a good return, right?
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Yeah.
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Because otherwise you're just burning money, right?
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So having that use case really well established.
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And when you talk to your business,
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you can actually start seeing right away if there's any return there.
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So that's one of the things that we got started to actually send out
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where we,
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another one.
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there's a lot of hype around the AI and so much not unfounded,
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but really try to take a breath.
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There's a lot to learn and you can get started with simpler mechanisms.
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You do not need a full blown, you know, frontier model
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training with skill training on the fly with real time data.
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You do not need all of that from the get go.
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Know, patience and truly getting to know what you actually need.
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I think might be the best advice I can give at this point.
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I think that's fantastic advice because, you know, the speed with
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which air is accelerating is just can't even quantify it.
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And there's so many companies that are under pressure,
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as I mentioned, to move so fast.
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But you bring you bring up a great point like start small, identify
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the business processes where you're going to have
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metrics, measurable metrics where you can see the needle moving.
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And if it's not moving, start from scratch.
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Go somewhere else.
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Very start up minded in that way.
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Yeah. Failure.
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Yes. You're going to fail. Failure.
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So that you spend a as little as possible and move on to the next item
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and just iterate.
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Do you think that the culture of Mercado Libre
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is was important to have that startup
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small, fail fast mentality too, right. Yes.
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You create a lot of startups
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working in conjunction, so that fail fast.
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I mean, we call it continues beta.
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I love that continuous manner. Yeah.
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Oh yeah.
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That's how we interact with the future and every single day of how we work.
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That's a great continuous.
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That's a great approach.
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Last question for you, Sebastian GTC
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2026 30,000 plus people.
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People are calling this the AI Super Bowl.
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A carnival, the heartbeat of AI.
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What are your takeaways when you board a plane to go home to Chile
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that you've learned this week from, from NVIDIA, from its partner ecosystem,
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from core? We've.
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Well, first of all, I learned that the ecosystem is huge.
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And it was bigger than I actually
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is to.
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Right. Yeah. And it's on the growing. Yeah it's yeah.
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And the thing that I take to heart the most
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is that I've seen a lot of talks that I've engaged with the speakers
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is that the open source movement is especially prevalent nowadays,
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like everybody is trying to open source so that we can continue to grow
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as a business and not hiding behind closed doors especially.
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I talked to Jensen, Gabe, about open sourcing, a lot of the wall stuff
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and working through the engage
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with companies to be able to push the new forward path.
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Yeah, that spirit of the ecosystem is is only going to get bigger.
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I can't even imagine what we'll see at GTC 2027.
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I mean, the I think the possibilities are limitless.
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Well, Sebastian, thank you for
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joining us on the podcast today and sharing the Mercado Libre story.
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Your air use case, why you went to Core Weave
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and what it's enabling you to do so far,
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and also for sharing that really wise advice for those out there
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who are struggling with how do I deal with the pressure and the speed?
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Start small, fail fast.
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Really be prescriptive in your processes.
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We thank you so much for your insights. Glad to be here.
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All right. For Sebastian Yunge, I am Lisa Martin.
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We are coming to you live GTC day three.
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CoreWeave booth. Thanks for watching guys.
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