AI for Business

The Next Big AI Bet Isn't Smarter Models - It's Making Them Work in Your Office

AI models keep getting more powerful, but the real puzzle for businesses is how to actually use them. That question has prompted major AI labs like Anthropic and OpenAI to launch separate ventures...

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AI models keep getting more powerful, but the real puzzle for businesses is how to actually use them. That question has prompted major AI labs like Anthropic and OpenAI to launch separate ventures aimed at sending engineers directly into client offices. The bet? Helping companies figure out how to deploy AI could become a trillion-dollar industry.

Anthropic's answer is Ode, a $1.5 billion joint venture backed by Blackstone, Hellman & Friedman, and Goldman Sachs. Ode was born after Blackstone struggled to find effective AI implementation help for its portfolio companies. The venture quickly acquired Fractional AI, a boutique engineering startup that had previously worked with OpenAI. Fractional's co-founders now lead Ode, which employs 100 engineers and operates on a "Claude-first" principle - but will use rival AI tools when needed.

Ode's CEO Chris Taylor says the company's ideal client is one where the CEO personally champions the project. "A lot of the work we're doing is the top priority for the CEO," he explains. The venture focuses on custom solutions rather than model selection, which chief technologist Eddie Siegel compares to choosing a programming language: important, but not the main event. Ode's engineers are described as elite generalists - many are former founders - who can handle complex problems end-to-end. The challenge ahead is scaling this boutique approach globally while competing with consulting giants like Deloitte and the similar venture from OpenAI. But Taylor is optimistic: "It's pretty easy to imagine this as a trillion-dollar company someday if we execute well."

Source: TechCrunch

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