Jason Lemkin

They've been the premium product there for the enterprise for a long time.

Because you're, quote unquote, just an API, there's always a risk that as an ISV is building on top of your product, they might try and use cheaper open source models for some of the more commodified stuff.

But to the extent that you need the high-end part of the product, that's been the business that Entropiq slash Claude has been able to get.

And that's where they started, obviously, at the API level.

And one of the biggest customers for that was the coding companies like Cursor and that.

So then the second thing they've done within the last year is they've said, hey, coding is probably the single largest use case for what we make.

Let's build a coding product.

So they have Cloud Code.

That's allowed them to, quote unquote, win at the... I'm taking your win at the enterprise comment.

Now they're winning not just by being the API, but being the app for coders.

And it's not 100% win.

They're kind of competing with Cursor.

They're competing with GitHub.

But, you know, you're grabbing more money instead of maybe being 50% of the revenue of a coder because you've got a gross margin of 50, you're getting 100% of the revenue because you're selling the product.

So that's the second category in which they're clearly, quote unquote, the winner.

I mean, my sense is their enterprise share of coding revenue is plus or minus comparable to Cursor and GitHub, maybe a little lower, but growing nicely.

And then the third thing is they announced the product yesterday and caveat, I haven't had to use, been able to use it yet because I'm actually here on an outside, but it's early in the morning.

My coffee hasn't kicked in.

The product is basically, it's clawed for non-coders.

It's the ability, it's kind of an ability, clawed workspaces, I think it's called.