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Guests:

• Kostas Hatalis Ph.D – Co-Founder, Alexander Labs; Developer of GoCharlie
• Paul Gosselin – Co-Founder, Alexander Labs

In this episode of the Lehigh Valley with Love Podcast, host George Wacker sits down with Paul Gosselin and Kostas Hatalis of Alexander Labs, an AI incubator based in Allentown, Pennsylvania, that’s putting the Lehigh Valley back on the innovation map.

You’ll hear how this growing team is not only building on-premise AI systems and custom large language models, but doing it all from the region that produced the world’s first commercial transistors — long before the rise of Silicon Valley.

From community collaboration and tech talent to data privacy and enterprise-level solutions, Alexander Labs is working to make AI accessible, secure, and proudly local.

To learn more or get in touch, visit: https://alexanderlabs.ai

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🧠 Episode Recap

Alexander Labs and the Future of AI in the Lehigh Valley

“We built the first transistor here.”

Kostas Hatalis opens with a bold statement: the Lehigh Valley isn’t just a place with warehouses — it was the original Silicon Valley. The region manufactured the world’s first commercial transistors in the 1940s, and yet few in tech today give it credit. That legacy is exactly what inspired Alexander Labs, an AI incubator based in Allentown that’s trying to bring innovation back home.

From Empty Space to AI Lab

Paul Gosselin, co-founder of Alexander Labs, walks us through how the project started — with an empty room, a few whiteboards, and a wild idea. Paul had been running software companies when he met Kostas, a Lehigh Ph.D. who had already built his own large language model. They talked, they brainstormed, and soon they realized: “We need to create a lab. One that brings the community in and builds something real.”

That idea became Alexander Labs — an incubator not just for AI startups, but for a smarter, more connected Lehigh Valley tech ecosystem.

Meet GoCharlie: AI Built in Allentown

One of Alexander Labs’ most exciting projects is GoCharlie, a next-generation AI assistant that can write, analyze, and support business operations. But what makes it special isn’t just what it does — it’s where and how it was built.

GoCharlie’s models are developed right in Allentown using an approach Kostas calls “small language models.” Instead of billion-dollar infrastructure, these models run on a single GPU or CPU, making them affordable, fast, and customizable for real businesses.

In a world where companies send sensitive data into massive black-box systems like ChatGPT, GoCharlie offers something better: AI you can understand, control, and host locally.

On-Prem AI and the Power of Local

Alexander Labs is also building its own on-prem data center — allowing businesses to plug in directly and run GoCharlie inside their own walls. Paul calls it GoPrem — and it’s already helping companies avoid relying on Silicon Valley giants for AI tools.

“We’re really focused on enterprise,” he says, “but it’s more than that — we’re helping companies get their data in order, whether structured or unstructured, so they can actually use AI meaningfully.”

Cost, Control, and Trust

Throughout the conversation, privacy and autonomy come up again and again. Alexander Labs isn’t just building AI — they’re building trust. Kostas explains how big tech companies are scraping public data to train their models, while businesses are becoming increasingly wary of handing over proprietary information.

That’s why localized, on-premise AI is such a key differentiator. “You can’t just trust Microsoft or Google with everything,” Paul says. “We can offer the same kind of power — but right here in the Valley, with local partnerships and control.”

Making the Lehigh Valley a New Kind of Tech Hub

Despite the region’s rich tech history, the Lehigh Valley hasn’t been part of the AI conversation — until now. Alexander Labs is trying to change that. With support from Ben Franklin Technology Partners and other local initiatives, they’re helping seed the next wave of innovation.

“We’re trying to build culture here,” Paul says. “It’s not easy. But if we can keep talented students and young founders in the Valley, we can build something real.”

What’s Next?

Looking ahead, the conversation shifts to the future of AI. Kostas explains that the next wave isn’t just smarter chatbots — it’s AI agents: autonomous systems that can do real work across tools like Slack, Zoom, and WordPress. “If it’s a task that can be done remotely, AI is coming for it,” he says.

But for Alexander Labs, the goal isn’t replacing people — it’s empowering them. By creating scalable, local-first AI, they’re making sure small businesses can keep up — and even outpace the giants.

Final Takeaway

This episode isn’t just about AI — it’s about ownership. It’s about building technology that serves local communities, respects data privacy, and creates opportunity where it’s needed most. Alexander Labs is betting that the next big thing in tech doesn’t have to come from California — it can start in Allentown.

And if they’re right, the Lehigh Valley may just become the first Silicon Valley all over again.