Everyday AI Podcast – An AI and ChatGPT Podcast - EP 400: Anthropic Claude - Why Your Business Shouldn't Use It (Yet)

Episode Date: November 12, 2024

Anthropic recently announced Claude Enterprise. But, you shouldn't be using it. Yet. We'll tell you the 3 reasons that your company probably shouldn't be using Anthropic Claude.Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageJoin the discussion: Ask Jordan questions on Anthropic ClaudeUpcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: [e-mail] with Jordan on LinkedInTopics Covered in This Episode:1. Features of Claude Enterprise2. Criticism of Claude Enterprise3. Enterprise AI Adoption ConsiderationsTimestamps:02:00 Daily AI news05:45 What is Claude Enterprise?09:06 Discussing AI training and implementation for enterprises.13:53 Large language models unsuitable for most enterprises.15:06 Rogue users start, later enterprise formalizes use.19:25 Build websites, apps easily with Claude AI.21:05 Claude enables easy, no-code model customization.24:31 Claude missed the mark for enterprise strategy.28:07 OpenAI's limited rollouts vs. Claude's widespread releases.33:43 Claude for enterprise with upcoming GitHub integration.35:20 Microsoft 365 Copilot integration mostly limited to chat.39:27 Claude 35 no longer top chatbot model.42:29 Companies choose a large language model.Keywords:AI implementation, custom pricing, enterprise customers, pricing strategy, transparency, product launch, competition analysis, Microsoft 365 Copilot, GPT-4, ChatGPT Enterprise, Google Gemini, Anthropic Claude, real-time data, large language models, no-code tool, enterprise go-to-market strategy, third-party integrations, Enterprise product, enterprise pricing, release announcement, Everyday AI podcast, AI news, Safe Superintelligence Funding, Michael Dell, AI demand, token capacity, collaboration tools, team control, private beta.Send Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info) Start Here ▶️Not sure where to start when it comes to AI? Start with our Start Here Series. You can listen to the first drop -- Episode 691 -- or get free access to our Inner Cricle community and all episodes: StartHereSeries.com Also, here's a link to the entire series on a Spotify playlist. 

This is the Everyday AI Show, the everyday podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life. Meet Firefly AI Assistant, now live and Adobe Firefly, the all-in-one creative AI studio. Just describe what you want to create and the assistant handles the rest, orchestrating multi-step workflows across Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome. The assistant accelerates execution. Anthropic Claude just released its new product for Enterprise,

Claude for Enterprise. So I think a lot of people are going to be talking now. Should we be looking at Anthropic Claw? Maybe your company is on Microsoft 365 co-pilot. Maybe your team has been using ChatGPT for teams or Enterprise. And you might be thinking, okay, well, is Anthropic Clawed, now the large language model that we should be using as a company? Well, I'm going to go ahead and answer that today and say no and also give you three reasons

that businesses should not be using Anthropic Clawed, at least just yet. All right, what's going on, y'all? My name's Jordan Wilson, and this is Everyday AI. Welcome. Thank you for listening. Thank you for tuning in. This is a daily live stream podcast. free daily newsletter helping us all learn and leverage generative AI to grow our companies and to

grow our careers so if that sounds like you if you aren't already make sure you join that free newsletter go to your everyday a.i.com every single day we bring you the news the fresh finds from all across the AI world as well as exclusive insights breaking down our podcast every day whether it's me going solo or having world-class guests on the show you can find it all only in our our daily newsletter. All right, so I'm excited today to talk about the three reasons why I think businesses should not be using Anthropic Claude's enterprise plan just yet. But before we do, we got to start with what we do every single day with the AI news. All right. So first, what did Ilya see? One billion dollars in funding. All right. So safe superintelligence

has raised over $100 billion to advanced AI research. So the AI startup Safe Super Intelligence Inc., which was co-founded by former OpenAI, or sorry, was founded by former OpenAI co-founder and OpenAI chief scientist, Ilias Scriber. And they announced yesterday that they've raised $1 billion in funding, signaling a significant investment in the future of AI. safety and research. Investors in the funding round include notable firms such as A16 Z, Sequoia, DST Global, and SV Angel. The funding round has reportedly valued Safe Super Intelligence Inc. at $5 billion,

indicating a apparently very robust market interest in AI safety initiatives, or maybe people just want to be involved with whatever Ilya Satskibber touches. So SSI plans to allocate the funds toward acquiring compute power and expanding its team of researchers and engineers with operations in both Palo Alto, California and Tel Aviv, Israel. And although specific research areas have not been disclosed, the company's focus is expected to align with general AI safety, a field that Stetskever has previously championed. All right, our next piece of AI news, Michael Dell has highlighted the strong AI demand at his company and others, and stated that there is no AI slowdown. So Michael Dell, maybe you've

heard of him, the founder and CEO of Dell Technologies, dismissed concerns about a slowdown in AI spending, asserting the current demand is robust in expanding across multiple sectors. So his insights reflect not only his prominence in the tech industry, but also this significant role Dell technology plays in shaping the future of AI infrastructure. So Dell said, this recently at a conference in New York City yesterday and the industry veteran emphasized that fluctuations in demand are normal during big tech transitions, comparing it to challenges faced when launching a rocket. Dell, the company, has reported $3.1 billion in AI server sales for the second quarter,

nearly doubling from the previous quarter reflecting a strong market response to AI solutions. All right. And then last but not least, our topic for today, Anthropic has launched Claude Enterprise to compete with OpenAIs, ChatGBTGBT Enterprise, and Microsoft 365 co-pilot. So Anthropic is stepping up its game in the AI chatbot market with the introduction of Claude Enterprise, aimed at enterprise customers seeking enhance administrative controls, security features, and a powerful large language model system for their company. This launch comes as a direct response to the growing demand for business-specific AI solutions. So that's actually a great just transition to just go ahead and kick the show off. And we will go into that in a lot more detail. So don't worry.

But got a shout out our audience. And hey, let me know, audience. What is your company using? Let me know. Is your company using chat GPT? is your company using Microsoft 365 co-pilot? Are you all using Google Gemini? Are you using Claude Anthropic?

Do you have your own model? I'm curious. I want to know. But let's just get straight into a quick recap here of what Cloud Enterprise even is, what it entails. And I'm going to tell you the three reasons why I don't think Enterprise companies should be using it. All right.

So Claude Enterprise, one of the biggest things here is it features an impressive context window of 500,000 tokens, enabling the processing of extensive data sets. As an example, that's 200,000 lines of code or a two-hour audio transcript in a single prompt. Yeah, that's wild. And that's obviously much larger than the current context window offered

by ChatGPT Enterprise and Claude's team plan, which are less than half the size. Yeah, we've done official, you know, we do consulting and front-end strategy for companies. So we tested chat GPT Enterprise. It's, they say it's 125,000 tokens. It's roughly about 118,000 tokens. So more than what, 3X that almost from Claude Enterprise. So pretty impressive in terms of the amount of data that it can work with. So the new enterprise offering obviously includes Claude's highlight features such as projects and artifacts, which serve as

collaborative work spaces for users to upload and edit content, making it ideal for long-term projects involving multiple data sources and team members. Also, a new announcement here from Cloud Enterprise, it does integrate or will be integrating with GitHub, allowing engineering teams to sync their repositories directly with the AI. And this feature is particularly beneficial for onboarding new engineers, developing new features, or troubleshooting bugs. The other thing here, it's obviously big with team control. So businesses can assign a primary owner for their workspace who can manage access levels and monitor the activity for security and compliance purposes, similar to that feature functionality found inside of OpenAIs, chat GPT Enterprise, or obviously in 365 Cloud. Or sorry, 365 co-pilot from Microsoft.

So here's the other thing, though. The price of Cloud Enterprise remains undisclosed. More on that in a bit. it is expected to be higher than Anthropics team plan, which costs $30 per user per month. So the increased costs obviously reflects the additional features and capabilities offered to enterprise clients. So Claude did or Anthropic did announce yesterday that they've been in a private beta with early adopters such as GitLab and Mid Journey, indicating a cautious but strategic rollout. All right. So and despite all these advancements, Anthropic is facing challenges and gaining broader adopt.

option in a competitive landscape where API pricing pressures are prevalent. The success of Claude Enterprise will depend on its ability to attract a significant user base to offset high inference costs. All right. And just so you guys know, when we are talking about these products for enterprise, we are talking about the front end systems. Okay, so we are not talking about backend development and, you know, your developers using the API and tapping into your own knowledge base. That's not what we're talking about. talking about here. We are talking about front end consumer products, right? So the everyday business person as an example, logging on a chat GPT enterprise, logging on to your, you know,

Microsoft 365 co-pilot, logging on to now Claude Enterprise. All right, let me just skip to the end, y'all. I'm going to skip to the end. Here's three reasons. And we're going to dive into these more. I'm going to go over the pros and the cons. And if I'm being honest, this show, I'm doing it somewhat selfishly because I know that I'm going to. I'm going to be a lot. I'm going to be fielding a lot of calls because companies reach out to us when they want to learn prompt engineering, when they want to learn AI, when they want to, you know, implement Microsoft co-pilot, right? We just talked with a company earlier this week that wants us to train over the long term up to 70,000 employees. So we hear from a lot of enterprise customers because

that's what we do, right? Yeah, we bring you every day AI free every day, but companies pay us to help them implement tools like chat, GPT, like Claude, like Microsoft. Microsoft co-pilot. And I cannot recommend right now, if I'm being honest, I can't recommend Anthropic Claude to any enterprise clients. And here's why, and we're going to dive into these in a little bit. Here's the three reasons. Number one, no internet access. I can't, I can't stress this enough. Okay. You have to have real-time connectivity to the world if you are using a large language model. I understand. how large language models work, right?

I understand they're different than search engines, but when you look at the main competitors, right, because that's ultimately what this is about. Enterprise customers, they're shopping around, right? They're obviously building on top, you know, of these companies APIs because the price wars is bringing these down, you know, to compute too cheap to meter, right? But for front end users, you have to look at the competition.

And Google with its Gemini, Chat GP or OpenAI with chat GPD, Microsoft with copilot. They all offer some form of real time internet accessibility access, right? Claude doesn't. Zero as of today. Wild. I cannot underestimate from a business perspective, right? And you can say, oh, okay, well, you know, users should always know.

You should always just bring in the most up to date data. They're not going to do it, right? You have to work into account user error or sometimes user laziness, right? So if you are not connected to the internet, a large language model, yes, that is not for enterprise, period. And I will continue to say that. I don't know why Claude hasn't implemented real-time internet accessibility or access, right? They have a $4 billion in funding from Amazon, one of the leaders in the internet.

We do know they announced, you know, Amazon's going to be using Claude for its future versions of Alexa, its AI smart assistant. So we know the capabilities to marry the Claude technology with real-time information must exist, right? And it exists in the other products. So I don't care. I don't care what your reasoning or rationale is. Oh, Jordan, you know, you can just upload all the documents you need. Okay, well, documents change, right? Information change, changes.

weekly, daily, hourly, a real enterprise business needs a large language model that has access to information real time, period, hard stop. If I'm being honest, I'm not going to recommend Anthropic Claude to literally any enterprise client that pays us to be like, hey, Jordan, help us with an AI strategy. We want a front end large language model. Claude's not in the consideration. It's not. You can't.

It is dangerous for a company. I'm saying it right there. It is dangerous because employees do not check. They do not verify. They take, unfortunately, what comes out of a large language model as copy and paste truth. All right? Yes, there's still obviously problems with, you know, chat GPT and co-pilot and Gemini in terms of retrieving real-time information.

And yes, there's still likelihood for hallucinations and things that are just wrong. But you got to, like, you got to have that to play. It's like the minimum height for a roller coaster, right? It doesn't matter how effective the real-time internet accessibility is. If you don't have it, you don't get to play in the enterprise, period. Reason number two, limited third-party integrations, right? There's one right now. There's one.

And it's not even for everyone. GitHub, right? More on that in a second. But you have to bring integrations. that enterprise companies use daily, right? That's the whole thing, right? And I talk about how right now, chat GPT and technically by proxy Microsoft co-pilot,

they're business operating systems, and I think Google Gemini is getting there, although there's some problems with connectivity, but you have to bring in all of the tools and software and processes that your employees are already using. If a large language model can't fit into a workflow, it shouldn't be a part of the workflow. So with such limited integrations,

I don't think, again, I don't think that this should be used for the most part. All right. And when I'm what I'm saying this, y'all, I'm talking about 90%. I'm talking about 90% of enterprise businesses or enterprise companies. Are there going to be 10% where Anthropics Claude is an absolute no-brainer for sure? But I'm talking top to bottom implementation, right? So yeah, like as an example, developers, developer development teams this is great right i'm talking about for an entire enterprise company here

reason number three the other tiers are too limited to test okay hey someone from anthropic if you're listening you guys should know this this is how it happens all right this is how large language model implementation at the enterprise happens usually very early on a couple of rogue users are going to start to use a large language model probably before they have official permission to do it. Okay. They're going to find some great productivity gains. They're going to, you know, start using a department wide. Maybe it starts to become a little more official. And then eventually, you know, board signs off, C-suite signs off, AI, you know, ethics and guardrails, safety, AI policy, all that falls into place. And then it becomes an enterprise offering,

right? And then essentially companies will offer, you know, enterprise accounts to, you know, sometimes a couple hundred test users, a couple thousand test users. And then they kind of figure it out, right? But right now, the free and even the base paid plan for Anthropic Claude is so limited in terms of the messaging limit. Y'all, I kid you not. We have, and we've had since it launched, the paid, the baseline paid plan for Claude. The rate limit, especially when using some of its more powerful features that have come out, which I love and I'm going to get to 20 to 20 to 30 minutes, tops. And then you're locked out for four hours.

Come on. You can't be serious. You can't be serious. If you want adoption from enterprise companies, you got to give them a taste, right? And you can say, oh, well, yeah, Jordan on the free. plan, you can even do a couple messages. Okay, well, you can't figure out hardly anything in a couple of messages. You can't, right? Literally, we've burned through our paid, our paid account in less than 20 minutes. That's not serious. That's not serious. That's like if you want adoption, if you want to

compete in the enterprise game, you have to give people enough on a basic paid plan. to see if it works for their needs. You can't do that right now. It's, you know, if you go search, go read online forums, Quora, Reddit, Twitter, et cetera. It's probably the number one complaint about Claude is people are like, hey, as soon as, you know, we started testing it, we're locked out. The limits are comically low. All right. So, what's everyone using?

Hey, Brooke, first time, first time listener, says we don't use any of it. Monica says co-pilot. Dennis says chat GPT for teams. Yeah, so let me know. Is anyone using, you know, anything at the enterprise level? So, I know that might have sounded a little harsh, but if you tune into everyday AI, I want you to have the reality, okay? I want you to have the truth.

No holds barred. But don't get me wrong. Claude is good. Anthraic Claude is super impressive. All right. The artifacts feature, which we've covered many times on the show, we've, we've, on our YouTube channel, we've shown you some amazing, some amazing ways to use artifacts. Artifacts is by far the most underutilized and probably, if I'm being honest, one of the most

impressive features of any large language model bar. none. The artifacts feature, right? And so if you haven't used it, essentially what happens is you can chat with Claude. And on the right hand side, it can render code, right? That's amazing. So you can, you know, go into chat, GPT or copilot or Gemini and you can write code, right? But then what you have to do is you have to copy and paste it. You have to go into something like Replit, you know, run it, do some troubleshooting or use a tool like GitHub, right? So you have to use kind of a more developer focused large language model or AI power tool. Cloud with artifacts, it's mind blowing. You can literally create entire websites with a single prompt, render them, see how they look,

play around with them. You can build little, little apps, you know, in Python, JavaScript, if you want to go old school, you know, CSS, HTML, et cetera. In a single prompt, you can build anything, even on your phone. Don't get me wrong. That is mind-boggling. And that is why I said, for maybe 10% of companies, right, if you are essentially a development company, or if you're looking at this on a team's level, right,

Claude is great, but top to bottom, no. But the artifacts feature is unmatched, right? We got to highlight what's good out of Claude, because it's amazing. The context window, even with the paid version, the context window is better than chat GPT. And y'all, 500,000 tokens, 500,000 token context window for the enterprise version. That's nuts, y'all.

That's nuts. So, yeah, I talked about that. That's 200,000 lines of code that you can have a conversation with. Or as an example, a two-hour audio transcript in a single prompt, right? It's like you can speak with your company's entire knowledge base in many cases without having to float between multiple products, multiple GPs. The context window is great. Projects. Projects are powerful.

Claude, Claude Anthropics, power projects. Great tool. Very similar to, as an example, custom GPTs from OpenAI. Also what Google is trying to do with gems. We cover that last week. There's some shortcomings there, right? But essentially, Claude as well has a very easy way, no code, drag and drop.

Any user out there can create a kind of customized bespoke version of the big model. You can give it custom instructions, upload your files, and then, you know, essentially, you can create a ton of different versions of Anthropics Claude, right? You can do something for, you know, customer success. You can do something for marketing copy. You can do something for specific coding and upload your, you know, companies repositories, et cetera, right? So great, great features that we get from Anthropic.

And also the content, the actual content writing out of the box is much better than chat GBT, right? And I think people, and I'm going to get to that here in a second, when we talk about the competitive landscape. But I think people just think, oh, you know, when I talk to Anthropic Claude, it sounds more natural. It sounds more like a human. It sounds less robotic. So people think that just that means anthropic Claude is better.

No, it's not. But Anthropic Claude is great in terms of giving you more realistic, human-sounding content. And when you're working with a large language model, because I'd say so many, you know, I'd say more than half of use cases that we see are ultimately creating written content, right, whether that's marketing copy, uh, emails, SOPs, uh, templates for contracts, et cetera, right? So you want something that writes well, but that is again, y'all using, uh, or thinking a large language model is for writing content. I think is like, you know, using a, a Lamborghini as an umbrella, right? Oh, it's raining, better go get in a Lamborghini to stay to stay dry. No, if a Lamborghini, it's meant to go

fast, it's meant to take you places, right? That's what like an analogy I use sometimes when people think a large language model, oh, we don't need help writing content. It's like, no, that's, you know, it can literally automate probably 80% of the manual knowledge work tasks that your company does. literally that's why so many you know companies are going all in on large language models because they understand that you can get probably about 80% of the work done in 20% of the time it's not just writing but you got to tip your hat to claude anthropic for or sorry anthropics clawed for its ability to write great content out of the box so yeah don't get me wrong it's not all bad there's a lot of good but let me also cut it to you straight

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You know what? We did actually have the holiday this weekend, so read the news on Tuesday. So yeah, maybe I got some hot takes still in the tank. And y'all, let me know. Let me know. It seems like we're having audio problems again. I'm sorry, y'all. But also let me know what questions do you have?

If you have questions, I'm going to try to get to them at the end. But let me just cut it to you straight. I think Claude completely missed their enterprise go-to-market strategy here. All right. Are there things I don't understand? Absolutely. Are they going to improve the enterprise product? Yes, obviously they're going to improve the enterprise product.

You only have one shot. You get one shot at a first impression. And the first impression, if you know what you're talking about, if you investigate top to bottom, very few enterprise companies have a actual reason, I think top to bottom, again, to choose Anthropics Claude over what's already out there in chat GPT, in Microsoft co-pilot,

and in Google Gemini and, you know, Google's Gemini across workspace. Okay. Those three flaws that I mentioned, they're, they're just, just too great. All right. You can't, if I'm being honest, right now, you go to market. You go to market with those three flaws. Number one, no internet access. Number two, such limited third party integrations.

And number three, the tiers. are too restrictive for even paid users. So how are you going to give people a taste of what it can do for their entire enterprise? And it's actually a little difficult to get the enterprise account more on that in a second. But I think those three flaws are too great. I think they whiffed it from being honest.

And like I said, Claude is not some unnamed startup here, right? It's founded by former OpenAI execs. They have $4 billion in support just from Amazon alone. And they should have figured out. They should have figured these things out. Those three flaws at the minimum, they should have figured that out, y'all. And my biggest one, my biggest gripe, like I said, not having real-time internet access.

You have a partnership with Amazon that kind of quite literally runs the internet, right? Probably whatever social media platform you're listening to now or whatever podcast platform, my live streaming platform, they're all probably powered by AWS, Amazon Web Services. So the fact that Anthropic Claude couldn't get what I think is a bare minimum, bare minimum, real-time internet access, it's mind-boggling to me. I'm sure they're going to release it any week, any month now. I mean, they have to, right?

But the fact that they are going to market to the enterprise, right? That's your grand opening. That's your grand opening to the business world. Hey, we're open for Enterprise. Missed it. All right. And I will say this. Normally, Claude has nailed its go-to-market, its rollouts, right?

And let me just go ahead and give you guys the quick. And we're going to talk competitive landscape here in a second. I think Google has been kind of notorious, right? Especially with AI. They put out some great marketing videos. They tease a bunch of stuff. And then we have to wait many months. Right? As an example, Google Gems just came out last week. It was announced five months ago, four and a half months ago, right? It's not good. You get not as bad, but similar with Microsoft. And, you know, they've had some delays in some of their features for privacy concerns. So I get that piece. And I think Open AI has also fallen victim to this like, oh, we're announcing things and rollout's not really going to happen, right?

The features exist because they're going out and, you know, alpha rollouts or very limited beta access for some of their products like search GPT, for some of their features like advanced voice mode, right? So some users are getting access to some of these features with OpenAI, but I'd venture to guess it's less than 1%. Very limited rollout, right? But I think up until this point, Claude has been the opposite. it. I've loved the way that Anthropic has gone to market, right? We've seen that with our last kind of three big, you could say with Claude 2, with Claude 3 or 3.5 sonnet, and then with some of

their features like projects and artifacts, right? They essentially just dropped them. They announced them and they said, oh, available for everyone today. So I don't think they nailed this world out because, number one, it's not ready. It's not ready for the enterprise. Number two, Not even all the features are ready. And even access is a little cloudy. Ah, cloudy. I didn't mean to do that. I'll say, I'll say I did.

So let's talk about this. Pricing is confusing. Y'all, that's one of the first things enterprise companies are going to want to look for. And the pricing is confusing, right? Doesn't say on their website, which isn't, y'all, that's, let me say this. That's not abnormal.

not have enterprise pricing on a website, right? People want to get your company to sign up for a demo, they want to sell it to you, et cetera, right? But usually once that happens, they tell you, right? So as an example, Chad GPT Enterprise has a flat rate. That's what they charge. Claude, we're not sure what you got to pay. So this is from CIO dive. So the website, shout out to them for getting this scoop. So I'm going to read this from their website, but it's quoting a product manager at Anthropic. Here we go. Pricing for the tool is customized to each organization's scale of use and depth of

integration with company systems. Scott White, product manager at Anthropic, said in an email to CIO drive. Organizations will work with our sales team to understand their unique use case and tailor a plan that offers the best value for their specific AI implementation goals. Oh, gosh. Podcast audience, you can't see this. I'm literally facepalming. That's not how technology should work because I'm already telling you this. That right there is going to turn off so many enterprise companies. Like, oh, there's not even a rate. It depends on what we use. Y'all, it's yes or no. Do you get a seat? How many seats?

50, 100, 10,000, and you get access to everything. All right. I'm sure there's reasons why they're trying to have this, you know, per company pricing doesn't make sense. Maybe it's based on usage. That's, you know, that's definitely a possibility there. But it, okay, put a tier on it. Okay, enterprise level one is this.

Enterprise level two, if you have crazy, you know, if you're going to be using it a lot, here's what it is. Don't base it on a per company. That's wild. That's, y'all, makes zero sense. Again, that is going to scare away so many enterprise customers. At least say, oh, starts at, you know, $30 per seat per user per month, whatever, right? I don't know.

Is it going to be 50 for one company? Is it going to be 120 for another company? is it going to fluctuate, is it going to be a variable rate? Y'all, Anthropic, you only have one shot. This is not good. This is not good.

If you don't control the narrative, the narrative is going to be controlled for you. So what the narrative is probably going to be is, hey, no one knows anything about this anthropic enterprise. They're not being forthcoming, right? Not saying they're trying to hide anything. but if you're not being forthcoming,

and the fact that you put out a statement like this saying pricing for the tool is customized to each organization's scale of use and depth of integration with company systems, that's bad. It's a bad look. At least say, hey, we have three different tiers. And depending on a company's use, we place them on one of those three tiers.

To me, this is like, don't touch it. Don't touch it. If you are literally, if you're an enterprise company, this is the hottest space right now. Companies want large language models for their users. Yes, they want to build on the back end with their APIs, but they want front end. If you can't say here's our pricing system, don't like it. And remember that one integration, that one integration, that's one of my gripes. It's not even live for everyone, apparently.

So this is from someone at Anthropic, Alex Albert. All right. So he said, today we introduce Claude for Enterprise the best way to securely work with Claude within your org. We're also launching a beta GitHub integration for early enterprise users. We plan to make this more broadly available to Claude.A.I. users later this year. So there we go again with the rollout, right? The go-to-market enterprise rollout. So number one, who is this available for?

How much does it cost? Not sure. Number two, seems like there's a lot of features that aren't there that should be there. Number three, you know, they're really pumping the GitHub feature, the GitHub integration, which I love, especially for development teams, but it looks like we're not getting it. Why not wait? Claude, Anthropic. Why not wait?

I don't know. All right. Let's look at the, yeah, Marie says loss of transparent. C loses trust. I agree with that. Cyber here from YouTube said, agree with Jordan's points. Pay for chat, GPT, and perplexity,

won't pay for Claude due to the limits. Yeah, the limits are mind-boggling. I don't understand it. All right. Let's quickly talk about the competitive enterprise landscape. Before this announcement, right? So now obviously Claude is in the fold. But Microsoft 365 co-pilot is the leader,

bar none, right? If you don't know, they use the GPT40 technology from OpenAI. All right. So if you have 365 co-pilot enabled, it's not even close, right? That brings the most powerful model to your desktop, right? It brings it to your outlook, to your, to your Excel, to your PowerPoint. And all of those Microsoft programs can talk to each other and work with each other. and work with each other with your data up to date in real time.

However, and I don't know why so many companies don't aren't enabling it at the, you know, at the quote unquote Microsoft 365 copilot level. They're only enabling kind of co-pilot chat, right? So with that, you know, it's like, oh, your company's data is secure and safe, but you're really just using it in the chat window and you're not getting access to co-pilot across their enterprise. of tools, which kind of, you know, I'm not saying it defeats the purpose. It doesn't because then it's still, you know, kind of, in theory, on par with using, you know, chat GPT or using the tool in a web

interface in a safe environment. All right, but, you know, Microsoft 365 copilot, when it is enabled across the enterprise, there's no competitor. There's no competitor. It's not close. All right. I'll say number two, chat, GPT enterprise. fantastic tool y'all. And like one thing I love about chat GBT Enterprise that I don't think we talk about, you know, you can essentially, right,

you have essentially a store, right? So that's just for your company. So everyone can go on there and create different GPs for different purposes. And you can literally go on there as a chat GPT enterprise user, see what all of your teammates have built and instantly start clicking it and using it. Think it's like, let's say you have.

10,000 coworkers from all over the world. And I love when companies are doing this. And this is something that we work with companies on. We encourage them, build the GPTs for everything. Put them in the store. Have little 30 minute standups once a week that talk about GPTs that you're building, the problems they solve, et cetera, right? And then go in there, right?

People, smart companies are doing this. And you can go in there and see what other coworkers in your organization are building, the problems they solved and start saving time. immediately, right? Love that. I love that future out of chat GPT enterprise, but also with working with other GPDs, the integrations are essentially unlimited, right?

They are, right? Especially in the enterprise environment. And then you have Google Gemini. So I am hard on Google Gemini, yes, because I think for front end users, it's not quite there. On the back end, it's amazing, right? Gemini 1.5 Pro, it's context window,

some of the features, I mean, it can, the multi-modality inputs, mind-boggling, right? Front end, not quite there, right? And especially there's some, I think some problems in the workspace when you're using it kind of at the company or organization, organizational level. But that's kind of the competitive landscape right now. And then last but not least, right, when we look at the competitive landscape, got to call this out. And this, again, I think go-to-market strategy doesn't make sense. I would have waited if I was anthropic.

You know they're going to be dropping a new model sometime in the coming months, right? Why not wait for that new model to drop? Why not wait to get this internet connectivity thing figured out? It's a must, bare minimum, bare minimum to play in the enterprise. You got to offer some level of real-time data, everything that we work on. literally requires up-to-date information, working with, you know, information in a knowledge cutoff

that's many months old, many quarters old, wildly, wildly dangerous for how people use it. All right, but here's the other thing. Claude right now is not a top model, right?

You always want to work with the best. Don't be wrong. When Claude, or sorry, when Anthropic released Claude 3-5 saw it a couple of months ago, it held kind of the top model standing on the on the chatbot arena leaderboard right so the LMSYS chatbot arena leaderboard we talk about that a lot here on the show it's essentially a

fair way to see what the best model is people rank them blindly across different categories and you'll see right now Claude is not a top technically not a top three model right you have chat GPT 40 latest as the powerful model, not even close. You have Gemini 1.5 Pro. That's just the version that's available on the back end. So not for the front end. Then you also have out of nowhere, Grock 2 came out. That's also above, right?

So technically it's fourth when you look at, you know, what else is out there. So we know probably that whatever anthropic releases next, presumably they'll be coming out with a 3.5 haiku and a 3.5 opus. right? So Sonnet was technically their middle model. They upgraded Sonnet from 3.0 to 3.5.5. So that's technically their best model is the middle model. So we've known that Anthropic any month now is going to update and, you know, bring out a 3.5 opus and a 3.5 haiku. And presumably when they do, it's, I'm guessing it's going to take over the leaderboard. So why not do that all in one swoop, right? Why not say we have the world's most powerful model? We now have a

access to the internet and we are bringing it to the enterprise to me that no-brainer then every company out there has to give Anthropic Claude's Enterprise a serious look but right now nope you can't all right here's here's the end takeaway y'all cloud Claude is fantastic all right 3.5 sonnet I love using it for certain use cases artifacts and projects, especially artifacts, game-changing features that I think all other large language models are obviously going to have to copy. Claude is great. It's not ready for the enterprise right now.

They miss the go-to-market. And when presumably, you know, in the coming weeks, we do this all the time, you know, companies hire us to, you know, help them figure out their AI strategy. And they, you know, say, hey, what are the best tools? What are the best large language models? What should we be using? Can't. Still can't recommend Anthropic Claw.

Don't get me wrong. I want to. I want to recommend Anthropic Clawed Enterprise. But they mess this up, y'all. It's not ready right now. Again, for the majority. Will it fit certain teams? Absolutely.

Will it fit certain companies? Absolutely. But your average enterprise company that wants a large language model, their large language model of choice, right? In the same way that you have to select an operating system, right? You say, are we Mac or PC, right? Are we, you know, what's our CRM?

You choose one. Most companies are going to be choosing, if they haven't already, a large language model, right? What's our email service provider? What's our operating system? When we give phones out, what system, right? You make a decision. You make a decision. What is our in-house large language?

language model that we're giving to our company for the front end. Not talking about building on the back end. What are we giving our users to use on the front end? Claude Enterprise across the board today. It's not it. All right. Let's see. I think I saw one or two questions, maybe a comment as we as we wrap it up here.

So Monica says love perplexity, using it more for personal life, but should integrate it professionally too. Everyone should use it as the best. Yeah, big perplexity fan, right? Answers engines, that's why, you know, Google has shifted toward that way. That's why chat GPT, open AI, coming out with search GPT. So Jay is asking, still blows my mind, models aren't connected to the internet. Is there a good reason? Jay, I'm sure there, I'm sure there is, right? I'm sure to maintain a certain level of output, having the kind of an internet connected large language model, I'm sure brings along risks, right? Risk that I don't technically understand from, you know, being a multi-billion dollar company, an AI startup. But for consumers, consumers need it, right?

Enterprise leaders are demanding it. We talk to them all the time, right? One of the things companies love about chat GPT enterprise is it's connected to the internet when you need it to be. Right. And you want to bring your workflow all within that kind of AI chatbot window. You want to be able to work with your files. You want to be able to work in a secure environment. And you want to be able to quickly bring in real time information.

You don't want to be working with information that's five, six, seven, eight months old. Because like I said, it is dangerous in terms of the output. right? More hallucinations, less likelihood to be true or up to date or accurate if you're working with old information. Simple as that. And the pricing, yes, Fred, the pricing. Not a fan of that. Not a fan of that. I don't think you can base pricing on how a company is going to use it. And maybe that's not the truth, right? Maybe there are three tiers, but to put out a statement that essentially says, pricing depends on how a company is going to use it. That doesn't give me a lot of certainty, right?

Say, hey, here's the three tiers we have. Depending on usage, you know, this many tokens or this many messages, one, two, and then three is unlimited. You know, your company of 5,000 users can use it to their heart's content. Sure, if you got to pay, I don't know, a couple hundred dollars, sure, whatever. But you can't put out statements that it looks like, oh, pricing is an unknown. it's going to scare away more people than are going to fill out that form. All right. That's it, y'all.

I hope this was helpful. Like I said, the three reasons businesses I don't think right now should be using Anthropic Clause's new enterprise company. Maybe four with the pricing, but number one, no internet access. Number two, very limited third party integrations. And number three, the free and even the baseline paid tier are so limited that companies. companies can't even give it a real test drive. All right. I hope this was helpful, y'all.

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