diff --git a/.vscode/settings.json b/.vscode/settings.json
new file mode 100644
index 0000000..41cbc83
--- /dev/null
+++ b/.vscode/settings.json
@@ -0,0 +1,4 @@
+{
+  "typescript.tsdk": "node_modules/typescript/lib",
+  "typescript.enablePromptUseWorkspaceTsdk": false
+}
diff --git a/gadget-drone/src/services/agent.ts b/gadget-drone/src/services/agent.ts
index a1b48de..aef5149 100644
--- a/gadget-drone/src/services/agent.ts
+++ b/gadget-drone/src/services/agent.ts
@@ -16,7 +16,6 @@ import {
 import {
   IChatSession,
   IChatTurn,
-  IProject,
   IUser,
   ServerToClientEvents,
   ClientToServerEvents,
@@ -26,15 +25,7 @@ import {
 import AiService from "./ai.ts";
 
 import { GadgetService } from "../lib/service.ts";
-import { AiToolbox } from "../../../packages/ai/dist/toolbox.js";
-
-export interface IToolCall {
-  name: string;
-  params: string;
-  call_id?: string;
-  response?: string;
-  error?: Error;
-}
+import { AiToolbox } from "@gadget/ai";
 
 export interface IAgentWorkOrder {
   createdAt: Date;
@@ -50,8 +41,6 @@ interface IAgentWorkflow {
 type DroneSocket = Socket<ServerToClientEvents, ClientToServerEvents>;
 
 class AgentService extends GadgetService {
-  private toolbox: AiToolbox | undefined;
-
   get name(): string {
     return "AgentService";
   }
@@ -60,7 +49,6 @@ class AgentService extends GadgetService {
   }
 
   async start(): Promise<void> {
-    this.createAgentToolbox();
     this.log.info("started");
   }
 
@@ -72,18 +60,12 @@ class AgentService extends GadgetService {
     workOrder: IAgentWorkOrder,
     socket: DroneSocket,
   ): Promise<void> {
-    assert(this.toolbox, "service uninitialized");
-
     const { turn } = workOrder;
     const task: IAgentWorkflow = {
       chatOptions: {},
       context: [],
     };
 
-    async function aiCallTool(name: string, args: string) {
-      return "[all tool calls are stubbed out]";
-    }
-
     const onStreamChunk = async (chunk: IAiStreamChunk): Promise<void> => {
       this.log.debug("stream chunk received", { chunk });
     };
@@ -94,7 +76,7 @@ class AgentService extends GadgetService {
         systemPrompt: turn.prompts.system,
         context: task.context,
         userPrompt: turn.prompts.user,
-        tools: Array.from(this.toolbox.getModeSet(turn.mode) || []),
+        tools: this.getToolsForMode(turn.mode),
       };
     } catch (cause) {
       socket.emit(
@@ -108,56 +90,43 @@ class AgentService extends GadgetService {
     }
 
     try {
-      let keepProcessing = true;
-      do {
-        const response = await AiService.chat(
-          turn.provider,
-          {
-            modelId: turn.llm,
-            params: {
-              reasoning: false,
-              temperature: 0.8,
-              topP: 0.9,
-              topK: 40,
-            },
+      const response = await AiService.chat(
+        turn.provider,
+        {
+          modelId: turn.llm,
+          params: {
+            reasoning: false,
+            temperature: 0.8,
+            topP: 0.9,
+            topK: 40,
           },
-          task.chatOptions,
-          onStreamChunk,
-        );
+        },
+        task.chatOptions,
+        onStreamChunk,
+      );
 
-        // Emit thinking content if present
-        if (response.thinking) {
-          socket.emit("thinking", response.thinking);
-        }
+      // Emit thinking content if present
+      if (response.thinking) {
+        socket.emit("thinking", response.thinking);
+      }
 
-        // Emit response content if present
-        if (response.response) {
-          socket.emit("response", response.response);
-        }
+      // Emit response content if present
+      if (response.response) {
+        socket.emit("response", response.response);
+      }
 
-        keepProcessing = (response.toolCalls?.length ?? 0) > 0;
-        for (const toolCall of response.toolCalls ?? []) {
-          const result = await aiCallTool(
-            toolCall.function.name,
-            toolCall.function.arguments,
-          );
-          task.context.push({
-            createdAt: new Date(),
-            role: "tool",
-            callId: toolCall.callId,
-            content: result,
-          });
-
-          // Emit tool call event
+      // Emit tool calls if present
+      if (response.toolCalls && response.toolCalls.length > 0) {
+        for (const toolCall of response.toolCalls) {
           socket.emit(
             "toolCall",
             toolCall.callId,
             toolCall.function.name,
             toolCall.function.arguments,
-            result,
+            response.toolCallResults?.find(r => r.callId === toolCall.callId)?.result || "",
           );
         }
-      } while (keepProcessing);
+      }
     } catch (cause) {
       socket.emit(
         "workOrderComplete",
@@ -248,7 +217,7 @@ class AgentService extends GadgetService {
     // TODO
   }
 
-  createAgentToolbox(): void {
+  private getToolsForMode(mode: ChatSessionMode): any[] {
     const aiEnv: IAiEnvironment = {
       NODE_ENV: env.NODE_ENV || "develop",
       services: {
@@ -260,16 +229,16 @@ class AgentService extends GadgetService {
         },
       },
     };
-    this.toolbox = new AiToolbox(aiEnv);
-
-    let tool = new GoogleSearchTool(this.toolbox);
-    this.toolbox.register(tool, [
+    const toolbox = new AiToolbox(aiEnv);
+    const googleSearchTool = new GoogleSearchTool(toolbox);
+    toolbox.register(googleSearchTool, [
       ChatSessionMode.Plan,
       ChatSessionMode.Build,
       ChatSessionMode.Test,
       ChatSessionMode.Ship,
       ChatSessionMode.Develop,
     ]);
+    return Array.from(toolbox.getModeSet(mode) || []);
   }
 }
 
diff --git a/packages/ai/.gitignore b/packages/ai/.gitignore
index 53c37a1..5c62e6e 100644
--- a/packages/ai/.gitignore
+++ b/packages/ai/.gitignore
@@ -1 +1,5 @@
-dist
\ No newline at end of file
+dist
+*.js
+*.js.map
+*.d.ts
+*.d.ts.map
\ No newline at end of file
diff --git a/packages/ai/src/index.ts b/packages/ai/src/index.ts
index cb0dac0..18c260c 100644
--- a/packages/ai/src/index.ts
+++ b/packages/ai/src/index.ts
@@ -24,6 +24,7 @@ export {
 } from "./api.js";
 
 export * from "./tools/search/google.ts";
+export { AiToolbox } from "./toolbox.js";
 
 export { OllamaAiApi } from "./ollama.js";
 export { OpenAiApi } from "./openai.js";