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What are the current best options for sandboxed execution environments? HuggingFace seems to have a tie-up with E2B, although by default smolagents runs something ephemeral in-process. I feel like there must be a good Docker container solution to this that doesn’t require signing up to yet another SaaS. Any recommendations?

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Are you looking for an open-source sandboxing solution? Self hosting is available for E2B. You still have to subscribe to a SaaS for ephemeral cloud compute though.

Try gVisor

That sounds like a category error? An alternative OCI runtime is not what GP asked for.

Using gVisor to run a Docker container creates a sandboxed execution environment inside the Docker container

I am still not following. Where was OP talking about wanting to nest containers?

Slightly off-topic, on the topic of nesting containers: Have you run gVisor successfully in such a setup? I seem to remember using gVisor to run the child container is not that easy and gVisor might still need some syscalls(?) that the parent container might not allow. I might be misremembering, though.

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