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Video · 2026-07-26 · 1h 34m · 6 moments

How Anthropic builds products like Claude Code before the AI models are ready | Dianne Penn

✦ AI generated

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01
Anecdote

Anthropic's early identity was forged through bottoms-up, rapid experimentation — exemplified by the Golden Gate Claude feature, which was built in 24 hours and showed the company could create experiences different from competitors.

Diane Penn describes how the Golden Gate Claude experiment — a quirky feature dialed up in 24 hours by engineers and designers donating time — was a hidden inflection point where Anthropic started finding its identity through fast, different, authentic product experiences.

transcript

Diane Penn: Um so this this was actually up for about 24 hours or so. Uh we had just published one of our um early interpretability research in early 2024. And one of the examples was essentially you could have what's called like features of the model within the layers which uh express certain types of uh thematics. So one of the one of the themes that the researchers was able to identify was uh let's say bullet point writing. Another one was people and places. And one that really came up frequently that uh resonated was the Golden Gate Bridge. And so when you actually uh essentially dialed up that feature, Claude would obsess about the Golden Gate Bridge. So meaning in every one of its responses, it would come back and talk about the Golden Gate Bridge. So if you said like, "Give me a recipe for making spaghetti." Uh it would say, "Here is a recipe, and the orange color is just like international red that the Golden Bridge, Golden Gate Bridge looked like." Um, and so it was like really quirky and we we we very much wanted to in that situation just bring that user bring bring it to the masses and bring it to people who are starting to use claude and uh so the entire uh experience actually we spun up on our cloud.ai I website within 24 hours and that took like engineering, product, design, uh our like research teams all working together and we were really really proud of it. I think it maybe reach only 2,000 people to be honest. Uh but it it made us feel like oh we can actually bring new user experiences, showcase our research in a way that's different and authentic to us and in a very startupy like pace. That to me was like one of those like maybe hidden inflection points of we were starting to find our identity that we could build products, build experiences that were different for what our competitors had seen, what was already out there.

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02
Claim

Identifying coding as a key use case and training Opus 3 to be better at long-form code was a relatively small training change that became Anthropic's first major competitive differentiator.

Diane Penn explains that in 2023 nobody associated Anthropic and Claude with coding, but she saw users moving beyond autocomplete to write long-form code with models, so they trained Opus 3 to improve at it — a small change that unexpectedly became a major differentiator.

transcript

Diane Penn: And then I think there were things like identifying that coding was important. Right? In 2023 when I started um nobody said anthropic and claude and coding in the same sentence. I think competitor models like GPT4 at the time was used a bit for coding but it was one of many use cases. And one thing that for example I saw was people are starting to use code uh these models not just for code not just like code autocomplete but actually writing long form code and is that an opportunity for us to train you know opus 3 to be better at and it ended up being a relatively smaller change from a training perspective but it ended up helping us differentiate in the early days uh competitively for users. and actually bring a lot of the very early cla enthusiasts and developers because we were uh providing a value that they didn't really think was possible at the time.

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03
Claim

Frontier products and frontier models are mutually dependent — Opus 4.5 wouldn't have had its breakthrough moment without Claude Code, and Claude Code wouldn't have achieved rapid adoption without Opus 4.5.

Diane Penn describes the symbiotic relationship between Opus 4.5 and Claude Code: the model reached a level of intelligence where users could run agentic tasks end-to-end, but that moment was realized through a great product experience, and the product's adoption was accelerated by the model's capability.

transcript

Diane Penn: Um Opus 45 was definitely another large moment. I think what was magic about magical about Opus 45 is we also now not just had a model but a vehicle which is like a great product experience like cloud code. Um one thing we say a lot on the team is you need frontier products in order to have frontier models and for people to feel the magic of frontier models. And I think you know we felt the magic of cloud code for very for for uh for many months before that. Uh but the fact that the model essentially got to a level of intelligence where at a very broad level users can experience both frontier intelligence in new use cases allow it to run things end to end in an agent manner. I think that was the inflection. It was actually both. I I think Opus 45 wouldn't have had that moment without a product like Cloud Code and Cloud Code I think wouldn't have had that type of adoption accelerated without Opus45.

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04
Mechanism

AI capabilities emerge discontinuously — models jump from being unable to do something to reliably doing it at unpredictable thresholds — which makes adaptability essential and safety testing inherently harder because you cannot predict exactly when a capability will appear.

Diane Penn references the original scaling law papers, noting that while loss decreases smoothly, capabilities emerge as discontinuous jumps — a model may go from unable to calculate 1+1 to reliably doing so — and this unpredictability is why evals and safety testing are critical yet difficult.

transcript

Diane Penn: I think um there's some really interesting graphs in the original scaling law papers and I think folks are very familiar with the scaling loss in in the lens of um as you add in more compute and data what's called loss aka the loss from next token prediction uh goes down. And so it's a very smooth linear curve of like the models get more intelligent as you scale them up. What's actually also interesting uh in that paper is there are these like very uh different emerging capability graphs. And so for example uh as you add in more data and you train the models with more compute you essentially see these actually discontinuous emerging capabilities jump. So the models go from 1 + one being a thing that it can't calculate to a thing that it can reliably calculate. And so these emerging capabilities, this like some nature of like predictability is is is not necessarily everyone knows the exact moment like you need the evals to be able to assess that has actually always been a part of uh how this technology works and also what makes like things like safety harder because unless you have the eval unless you have the systems to test um these jumps might actually happen and you don't know

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05
Claim

In AI product management, evals are the new PRDs — the way to drive user value is to turn deep user feedback into measurable eval sets that researchers can act on, requiring PMs to sweat tokens as much as pixels.

Diane Penn explains that for her research product management team, writing PRDs has been supplanted by building evals: understanding the nuance of user failures, turning pain points into reproducible eval sets, and using those to give researchers actionable, measurable signals for model improvement.

transcript

Diane Penn: I think one example is I think you think of a product manager as I own product strategy and delivering user value as but I demonstrate day-to-day by writing a PRD or writing a product vision doc. And for for my team as like research product managers, the way to drive user value is to figure out the right user feedback, the evals, right? That then can be a personification of that user need. So like we do write some product documents and PRDs, but we actually have a saying on the team of evals are the new PRDs, right? because in order to deliver that user value uh it's not that exact artifact that people used to write in the last like one to two decades it's a new way of working and so the first think principal thinking would be let me figure out what is the thing I should do to achieve my goals rather than here is a set of activities that I've done and therefore I will continue to do

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06
Claim

To avoid cognitive atrophy from AI overreliance, people should form their own point of view first and use AI as a thinking partner that pushes back and sharpens ideas, not as a replacement for their own thinking.

Diane Penn describes her approach to using AI: she comes up with her own perspective first, then uses Claude to augment and challenge her thinking. A thinking partner should not just agree — it should push back and help arrive at better conclusions, which is where alignment research becomes a feature, not a bug.

transcript

Diane Penn: A lot of actually thinking process and writing process are tied together for me personally. And so I think there are ways where I use claude to augment my thinking. But what I want to make sure and maybe this is what you're describing is Claude doesn't take over all of my thinking for me. And so I think depending on the situation, depending on how much more personal judgment I want to have in a situation, I might uh um come up with my own POV first and then work with Claude through that. Um and making sure that like I maintain my sense and tone throughout... And I think this is where things like actually our alignment research and safety research is helpful because it what you don't want is like a AI that just agrees with you, right? What you want is this technology to actually augment and grow and like get to a better outcome. And so sometimes it's having Claude push back makes me better. And so that's great. like a co-worker, I want somebody to push back when my ideas are not fully formed... If you have a AI that can be a thinking partner, a thinking partner doesn't just agree with you. It should add to you and you should come away at the end of the day having better ideas because you worked with Claude. That should be the hero goal, not just making your ideas 10% better.

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