Discussion on AI model development and application strategies (Part 2)

They have the right to build all the best applications that you kill Harvey by only using Claude Fable 6 legal right or it's hey you know what? Cursor, guess what we have. Well, you know, years ago we got the best model and we're not releasing it. So guess what? We're going to have the best coding agent because our model that's the most powerful isn't released publicly. And I do think it's why some of the leading application companies today are moving towards in housing their models. They want to control their own destiny. You need to. I think it's going to be really hard as an application company over the long haul to survive without a research team internally. It's one of the like an investment theses that I have that if you know, investing in applications. Like I want to believe there's two things really strong product org but also really strong research org and I also want to believe that they're aligned and as the research gets better, the product gets better. Which sounds counterintuitive but there are a lot of research orgs that are just doing research for the sake of research versus closing the loop and actually like having a positive cycle of product improvements with research improvements. I'm not, you know, I'm not an anthropic by the benefit of being friends with a fair amount of people anthropic. And I would say research is king in anthropic. Yeah, totally. Totally. By far. And so part of my whole thesis around model labs versus agent labs is model labs will, you know, respect the model and try to build AGI and products will be a final last mile. So the delivery mechanism. Whereas the agent labs will respect the customer the most and build whatever they need and they'll backwards integrate to models as and when, but they'll probably never be at the frontier for those things. And both can coexist. Yeah, totally. Both have a market. But yeah, maybe to your question. I do expect to see a much bigger push by both labs Anthropic and OpenAI into vertical applications and kind of like diversifying out of just delivering models. I think the actions of Anthropic so far have shown no serious intention because Claude design is just a tab inside of Claude. It's not like a whole Adobe replacement. Claude legal is a markdown. Markdown repos which that is the AGI pill. If research is king and one model does everything, that is what you do. Yeah, classic enterprise and org management. You have a cash king product that think your sales reps what do they want to sell the thing they know how to sell, that they've been selling, that is crushing it. What's harder to sell? Like, new things. New things, new skews. And it's so. It's inertia, it's momentum, and this is just classic, like.