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<v Scott>Hello and welcome to another Retro and React. We've got big news in the tech space industry.

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<v Matt>Yeah, this episode we want to talk about both some anthropic drama that happened about a week ago

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<v Matt>and also some tailwind drama. So we're covering both our bases. We're covering AI and we're

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<v Matt>covering front-end development, which is kind of where Bikeshed lives most of the time.

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<v Matt>Scott, where should we start?

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<v Scott>I think we're going to start with the Anthropic drama.

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<v Matt>Yeah.

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<v Matt>Yeah, for those that aren't terminally online, like Scott and I are, about a week ago or

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<v Matt>so, Anthropic basically put the kibosh on open source or third-party agent harnesses.

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<v Matt>So those are tools like Claude Code, like OpenCode, Clawdbot, like Pi.

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<v Matt>The list goes on and on and on.

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<v Matt>There's probably 20 more being made as we're recording this episode.

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<v Matt>But yeah, Anthropic basically said you should stop,

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<v Matt>or you can't use those tools if you're using one of the Claude subscriptions.

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<v Matt>So the Pro or the Max subscriptions.

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<v Matt>Previously, these tools were kind of doing some shady things to let users leverage those subscriptions and use them.

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<v Matt>We were talking just before the episode, but one example is I think I've seen a few snippets in some code bases that has a prefix prompt that these harnesses would send to Anthropic models and say,

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<v Matt>like you are a Claude Code like you're a great coding tool um and uh and that was like basically

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<v Matt>kind of the check that uh maybe the back end was doing for anthropic to determine if if this is

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<v Matt>actually coming from cloud code or not i think they would they were also like spoofing you know

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<v Matt>you can think of it kind of like you know maybe user agent or some headers on the requests uh to

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<v Matt>try to make it look like the user was using Claude Code but they were actually using something like

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<v Matt>open code.

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<v Matt>Yeah, so anyway,

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<v Matt>Anthropic basically said, nope, that's

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<v Matt>no longer happening. If you want to use those open

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<v Matt>harnesses, then you need to pay for

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<v Matt>the sort of the API billing,

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<v Matt>which is like kind of per token

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<v Matt>billing instead of using the monthly

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<v Matt>subscriptions that Anthropic

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<v Matt>offers.

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<v Scott>That totally covers it. I just want

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<v Scott>to break it down even further.

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<v Scott>So it sounds like

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<v Scott>for the most part, Anthropic has

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<v Scott>a suite of tools. They want you to,

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<v Scott>when you pay for pro or max accounts,

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<v Scott>you use those suite of tools.

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<v Scott>And it sounds like open code in this example

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<v Scott>was essentially, I guess, reverse engineering,

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<v Scott>but hitting the API and kind of saying that it was,

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<v Scott>I'm Claude Code with headers

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<v Scott>and also prompting it with that it's Claude Code

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<v Scott>and basically just using the API directly.

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<v Scott>And it seems like Anthropoc is trying

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<v Scott>to basically put their foot down and say,

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<v Scott>know you use our suite of tools. Something we had talked about, Matt and I, is when we worked

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<v Scott>together at an AI startup, it was really important that you get users sticky into your suite of tools.

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<v Scott>So you start creating multiple tools for users to get into your ecosystem and try to get them

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<v Scott>stuck in your ecosystem this is um a classic way to get people using your products and and get them

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<v Scott>ingrained with your products so you have these customers for a long period of time

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<v Matt>yeah and i

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<v Matt>think i mean i i think honestly with with um opus 4.5 it's maybe not the case but models prior to

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<v Matt>that the there wasn't that much stickiness so i think this is kind of like what you're getting

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<v Matt>at scott where it's like just using for example sonnet or haiku um from anthropic it's like okay

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<v Matt>okay, they're pretty good, but someone could easily switch to maybe GPT 5.2 or something

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<v Matt>and get maybe equal or better results.

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<v Matt>And so from that sort of perspective, Anthropic, I think, wants to or maybe sees and realizes

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<v Matt>that they can't compete just on the model.

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<v Matt>The model itself is not the thing that their customers care about.

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<v Matt>It's the sort of the integrations and the tooling and the capabilities that Anthropic can offer

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<v Matt>on top of it things like deep integration in terms of like the model being the best at calling tools

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<v Matt>for example like that's not just the model it's like also all the other stuff they do on top of it

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<v Matt>um and so i think that's the like the thing that they're trying to like accentuate is that

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<v Matt>their suite of software on top of their offering is what they see the value prop as and so that's

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<v Matt>what they're trying to like um you know maybe like get people more in line with is is like yes if

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<v Matt>you use if you're paying these subscriptions you should be using our software to get the best value

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<v Matt>out of it um i think also like i i don't i don't know if this is actually hard data or not like or

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<v Matt>like if i don't know where i've seen this but i have a sense that anthropic is losing money on

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<v Matt>these subscriptions um and maybe making their money more so on things like enterprise contracts

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<v Matt>which use API billing, I believe, under the hood instead of these subscriptions.

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<v Matt>I think it's just like the subscriptions allow you to get far more tokens out for what you pay

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<v Matt>than if you were to doing the equivalent on their API billing setup.

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<v Matt>And so from that lens, of course, they might be losing money on some people

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<v Matt>that are really pushing their limits to the max.

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<v Scott>Basically, the big thing is they're recognizing that the product is not the model itself.

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<v Scott>And both OpenAI and Anthropic have been kind of really pushing down this path now where, you know, I think it's OpenAI is working on a browser and Anthropic now has a Chrome extension.

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<v Scott>I haven't integrated that, but they have more products like the Claude app.

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<v Scott>So they're really trying to build out a suite of tools, like you're saying.

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<v Scott>But this also, it kind of reminds me a little bit of when we would talk about, like, what is the future of models?

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<v Scott>Is it like there's a lot of little models that do one thing really well or they orchestrate it into one big model?

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<v Scott>I don't understand how Opus is created.

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<v Scott>I haven't looked into that or any of the GPT models.

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<v Scott>I would suspect that maybe they take some of the best parts of smaller models and somehow route them into a larger one.

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<v Scott>But it is just interesting.

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<v Scott>I think we're seeing how these AI companies are trying to build out their product in real time and react to how they can best position themselves to be on top.

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<v Matt>Yeah, in terms of like the model architecture, I don't think Anthropic is doing sort of mixed mixture of agents or mixture of models or anything like that yet.

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<v Matt>it is interesting i feel like maybe every couple of days someone's like dude like like claude just

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<v Matt>dropped off like the quality that i'm getting back from my claude sessions is like terrible now

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<v Matt>they must have pushed some sort of hot fix in the background or whatever that changed it

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<v Matt>and every time i see someone tweet this like the you know the t i don't know i think it's like the

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<v Matt>team lead of Claude Code or at anthropic or something responds saying actually we haven't

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<v Matt>changed anything but share your feedback like we want to figure out like what's causing it um

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<v Matt>i so it's like i don't know it's interesting maybe they're pushing things in the background and like

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<v Matt>and maybe they're not trying to say that or maybe they're not actually and it's just like people

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<v Matt>being sort of delusioned by you know maybe opus had like a really good result on one problem and

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<v Matt>then they changed their prompt slightly and has like a really poorly poor result and it's like

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<v Matt>sort of you know problem exists between the keyboard and the chair kind of issue um i don't

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<v Matt>know but uh yeah i think that sort of covers it the the anthropic you know juicy news the drama

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<v Matt>i think what an interesting aspect of this is like open code i think even prior to this so open code

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<v Matt>for those don't know is like a very popular open source harness a lot like Claude Code but uh you

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<v Matt>know it's fully open source it's built on bun and um and they support a lot of different model

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<v Matt>providers they also offer some free model usage here and there i'm not sure how they do that or

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<v Matt>who they partner with to do that. But anyway, it's been sort of teased for a while now that

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<v Matt>they were going to offer this thing called OpenCodeBlack, which is like their own subscription

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<v Matt>service. I don't know who's backing their inference. As far as I know, they don't run

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<v Matt>their own inference. So I'd be curious to see more details there. But I think they started to open up

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<v Matt>the wait list for that. So if people are looking to move off of Claude Code or move off their Claude

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<v Matt>subscription, that might be the place to go to. I think they have a lot of good positive energy

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<v Matt>and ecosystem at the moment. Let's dig into Tailwind a little bit. I think, Scott, you probably have

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<v Matt>the best perspective of this. I think maybe I stumbled across the thread and shared it your

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<v Matt>way, but then you were doing maybe more digging into it. I'm curious to, for those that aren't

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<v Matt>aware, give us a brief background on what this is. What is this drama? What's happening now?

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<v Scott>You're way too kind.

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<v Scott>On probably seven or nine days ago now,

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<v Scott>Matt sent me a GitHub thread that was kind of going viral on Twitter.

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<v Scott>But essentially someone wanted to add, and I didn't rehash this,

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<v Scott>but basically someone wanted to add a feature that was AI related.

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<v Scott>I think it would allow them to see all of their tokens

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<v Scott>or let the AI know exactly like what they wanted the tailwind output

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<v Scott>to be for something.

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<v Scott>And Adam, is it Waltham?

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<v Scott>Well, Adam, I apologize if I mispronounce his last name,

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<v Scott>but Adam of Tailwind,

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<v Scott>I think he's a co-creator of Tailwind, works there.

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<v Scott>He had a pretty strong response

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<v Scott>about not adding it in at the time,

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<v Scott>which that PR creator was like a little bit taken back,

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<v Scott>but he eventually went on to explain that,

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<v Scott>Hey, we, Tailwind laid off 75% of the company about seven to nine days ago.

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<v Scott>And the way they saw it is because of AI, their traffic website was down about 40%.

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<v Scott>And their overall revenue they saw was down about 80%.

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<v Scott>And their model as an open source software is to drive traffic to their website, their doc site,

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<v Scott>to get people interested in their product

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<v Scott>and then to reach out about their product

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<v Scott>to make their money.

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<v Scott>That's how their open source software

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<v Scott>gets funded essentially,

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<v Scott>which I'm sorry, it's just crazy to me

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<v Scott>that maybe I'm a Tailwind Stan.

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<v Scott>I'm a shill for Tailwind.

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<v Scott>I think it's probably the best CSS solution out there.

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<v Scott>It's hands down and clearly, I got a blog post about it.

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<v Scott>The approach you should take

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<v Scott>in a modern architecture,

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<v Scott>there's almost,

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<v Scott>there's few reasons.

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<v Scott>If you're building something small,

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<v Scott>you don't need the overhead, I guess.

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<v Scott>There's almost no reason

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<v Scott>if you're using Next.js

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<v Scott>or one of these things

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<v Scott>that bundles with it, Waku.

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<v Scott>But essentially,

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<v Scott>it's crazy for me to see

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<v Scott>such a popular,

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<v Scott>it's the most popular CSS solution

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<v Scott>on the web right now,

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<v Scott>have this problem.

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<v Scott>Basically, can't get funding.

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<v Scott>I mean, there's maybe a better way

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<v Scott>for it to get funded.

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<v Scott>people were already talking about how it could essentially get bought and they should be looking

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<v Scott>to get acquired i'm sure the folks there have been looking to get acquired and that's not something

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<v Scott>that they haven't thought about but i was also reading down some reddit threads and they were

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<v Scott>saying uh it's unclear but there there's definitely less than 50 people at at um working on tailwind

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<v Scott>their LinkedIn, I apparently said two to 10 people, but some folks were saying there were literally

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<v Scott>four engineers on it. So it might've just been three engineers are now gone. And there's,

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<v Scott>there's just a single engineer working on it, which is really sad to the best open sourced

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<v Scott>CSS front end solution on the, on the web might have one engineer working on it.

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<v Scott>Got to show Tailwind some love. Got to say, it's like crazy how many things have migrated to it.

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<v Scott>And like, this is the situation.

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<v Scott>It's unfortunate.

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<v Scott>It shows that the open source software model is a difficult model to be, to make money on.

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<v Scott>But also, this is one that really wanted to get, prove usability and gain traction with folks.

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<v Scott>And they definitely have done that.

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<v Scott>But they don't have any gated features that I know of that will stop you from getting more out of them or having a reason to partner with them other than being like a big fan, really believing in the product and wanting to help it grow.

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<v Matt>As you were kind of saying or sort of alluding to,

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<v Matt>one of the other things that they make money from,

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<v Matt>so I think primarily they have two revenue streams as I understand it.

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<v Matt>One is through sponsorship and that you go to GitHub

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<v Matt>or I don't know, whatever service they're partnering with

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<v Matt>and you can say, oh, my company uses this

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<v Matt>and so I want to give you some money to support it.

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<v Matt>But the other revenue stream I think they still offer

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<v Matt>is sort of a paid bundle of custom components

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<v Matt>or pre-made components that are using Tailwind.

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<v Matt>I don't know was it Tailwind Labs was it I don't know I think they offered like sort of a suite of

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<v Matt>components and like sort of different pre-made templates and whatnot I'm blanking on the name

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<v Scott>Tailwind Plus maybe

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<v Matt>yeah something like that and so I think that that was what they're also

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<v Matt>hoping to drive traffic towards in terms of like you go to the Tailwind dock site and you see this

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<v Matt>big banner saying oh like are you trying to build this component like actually like we have one

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<v Matt>pre-made for you and you can buy it here um i think really this is like again you know not to

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<v Matt>make this whole episode about ai but like the cost of code is extremely low now right like

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<v Matt>and uh someone can like an agent can easily write the component you're talking about and you give it

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<v Matt>a screenshot or you could say like i want to design something that looks like this that that's over

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<v Matt>here on this other website like just do it and it could do that now so like offering a bundle of

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<v Matt>pre-made components is not that um competitive anymore right like 10 years ago yes right 100

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<v Matt>in a sense of like it it took a lot of effort to try to write really good high quality components

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<v Matt>accessible components things like that um but obviously you know ShadCN is because like really

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<v Matt>eaten up the market there um but then just generally like these agents are really good at generating

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<v Matt>those writing components. And so I think that's just like, it's hard for them to, yeah, it's hard

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<v Matt>for them to compete on that front anymore.

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<v Scott>Yeah, really well put. I would like to say,

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<v Scott>and I'm in agreement with you, I don't, there's little, I don't want to say there's little value.

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<v Scott>The problem, if you're going to make UI nowadays and you want some value from it, the only way you

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<v Scott>can is to use bleeding edge technology that might not be available in all browsers that

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<v Scott>that all the AI models might not know about yet or it is so intricate and maybe use case specific

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<v Scott>like if you if you prompt AI to build you the perfect button or modal or component you know

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<v Scott>first it probably skips accessibility then you have to tell prompt it to do that that's not too

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<v Scott>much more effort, right? But my point is, um, there are, there are maybe very niche use cases

00:15:59.780 --> 00:16:04.340
<v Scott>where you can get the perfect thing. Uh, and, but there are things also like shot CN out there that

00:16:04.460 --> 00:16:08.920
<v Scott>might just give you that, uh, and you have to like configure it a little bit. So there is like, uh,

00:16:09.260 --> 00:16:14.000
<v Scott>uh, there are some pros to still building some things. There are some pieces that you can still

00:16:14.220 --> 00:16:18.920
<v Scott>add to it. I remember there was a big fad about six, eight months ago where it's like, oh, uh,

00:16:19.160 --> 00:16:21.640
<v Scott>AI can't do 3D things yet.

00:16:21.920 --> 00:16:23.420
<v Scott>Like if you write your CSS in 3D,

00:16:23.860 --> 00:16:25.280
<v Scott>like make 3D buttons,

00:16:25.760 --> 00:16:26.620
<v Scott>AI can't handle it.

00:16:26.920 --> 00:16:27.900
<v Scott>Yeah, but most websites

00:16:28.140 --> 00:16:29.040
<v Scott>don't have 3D buttons, right?

00:16:29.120 --> 00:16:29.880
<v Scott>Like it's cool.

00:16:30.200 --> 00:16:30.860
<v Scott>It's a good point.

00:16:31.340 --> 00:16:33.120
<v Scott>But my point being here,

00:16:33.880 --> 00:16:35.140
<v Scott>there are like these niche cases

00:16:35.680 --> 00:16:37.420
<v Scott>where AI might not be able

00:16:37.420 --> 00:16:38.480
<v Scott>to do it right off the bat.

00:16:38.500 --> 00:16:39.820
<v Scott>You could maybe prompt it.

00:16:39.860 --> 00:16:40.760
<v Scott>It might be more effort.

00:16:41.360 --> 00:16:44.700
<v Scott>But for 95% of the majority,

00:16:45.280 --> 00:16:46.220
<v Scott>AI is going to cover it

00:16:46.220 --> 00:16:47.320
<v Scott>or ShadCN's got you covered

00:16:47.400 --> 00:16:48.340
<v Scott>or there's something out there.

00:16:48.560 --> 00:16:53.160
<v Scott>So you really have to find a niche to make what you're building more valuable.

00:16:53.820 --> 00:16:58.960
<v Matt>Yeah, I think, and yeah, like Tailwind certainly, or like their component offering certainly

00:16:59.320 --> 00:17:00.620
<v Matt>wasn't competing in that niche.

00:17:00.620 --> 00:17:03.480
<v Matt>It was just, you know, as I understand it, again, I've never paid for it.

00:17:03.600 --> 00:17:09.160
<v Matt>So I've only like sort of perused their offerings online or what they sort of market as available

00:17:09.209 --> 00:17:09.560
<v Matt>for sale.

00:17:09.760 --> 00:17:14.100
<v Matt>But it's sort of run-of-the-mill setup and components.

00:17:14.410 --> 00:17:17.979
<v Matt>And like obviously also some like pre-made templates in terms of like landing pages and

00:17:18.000 --> 00:17:23.699
<v Matt>dashboards and things like that but um it uh yeah certainly it's stuff that you could sort of

00:17:24.300 --> 00:17:29.220
<v Matt>uh you know ask claude to do in the background for uh 30 minutes and then you have your dashboard

00:17:29.340 --> 00:17:34.900
<v Matt>built out for example i'm not trying to say that what happened to tailwind is is good obviously it

00:17:35.040 --> 00:17:40.860
<v Matt>sucks that people are getting laid off but um i think it's just like pointing that it's a

00:17:41.620 --> 00:17:45.879
<v Matt>i think it's just a really hard thing to do is try to monetize an open source product

00:17:46.600 --> 00:17:54.480
<v Matt>it's very difficult to do that you know either you you start to split and bifurcate like what

00:17:54.480 --> 00:17:59.840
<v Matt>you're offering and and you offer a free open source thing and then you offer a paid thing and

00:18:00.640 --> 00:18:05.220
<v Matt>you know obviously that's what kind of what they were doing already but i think they also are just

00:18:05.280 --> 00:18:09.719
<v Matt>like sort of so they're both like competing in a very difficult market in terms of offering a paid

00:18:09.760 --> 00:18:16.020
<v Matt>like sort of paid but also free and open source thing but then also competing where these these

00:18:16.280 --> 00:18:22.140
<v Matt>models and these agents are are really really good at being able to replicate what they're they're

00:18:22.240 --> 00:18:25.560
<v Matt>offering for sale uh you know it's like someone came into the market and said actually the thing

00:18:25.740 --> 00:18:30.420
<v Matt>that everyone else was selling at that market is now basically uh you know cents on the dollar to

00:18:30.450 --> 00:18:35.219
<v Matt>buy and so obviously everyone's gonna flee all the other stalls and and go to this new new vendor

00:18:35.540 --> 00:18:40.280
<v Matt>that's maybe a terrible metaphor but um yeah i don't know it's just like a they're in a you know

00:18:40.410 --> 00:18:40.410
<v Matt>stuck between a rock and a hard place

00:18:40.411 --> 00:18:40.411
<v Scott>i just want to piggyback on like calling out um the the tailwind

00:18:47.690 --> 00:18:52.860
<v Scott>uh design system maybe maybe it wasn't promoted even enough uh because we weren't 100 sure of the

00:18:52.860 --> 00:18:57.960
<v Scott>name but um it probably had great tailwind integration but unfortunately like that's not

00:18:57.960 --> 00:19:05.200
<v Scott>a differentiator when ShadCN like it also does right and um like you said you could just prompt

00:19:05.260 --> 00:19:10.200
<v Scott>claw to do that work for you. And like, basically what Tailwind gives you out of the box is like,

00:19:10.380 --> 00:19:15.880
<v Scott>all right, you know, build me, like customize me really simply. So they, they almost are like,

00:19:16.440 --> 00:19:20.120
<v Scott>so good. I don't want to say that they shot themselves in the foot, but, but they're so,

00:19:20.360 --> 00:19:25.580
<v Scott>it's so sad to see something that is such a good open source solution struggle to make money when

00:19:25.880 --> 00:19:31.980
<v Scott>it basically is like, it's almost like too good that it's caused, I don't want to say it's caused

00:19:32.000 --> 00:19:37.120
<v Scott>its own collapse. Like it's so good. Everyone uses it. They're just going to have AI solve the

00:19:37.370 --> 00:19:44.040
<v Scott>problem. And then, um, the folks building it, uh, are in a tough place. It's just hard to see that

00:19:44.140 --> 00:19:49.460
<v Scott>it's a victim of its own success. I think is what I'm, um, the words I'm looking for. Awesome.

00:19:52.100 --> 00:19:57.560
<v Matt>Great. Um, yeah, I think that covers the news that we have for today. Curious to hear, you know,

00:19:57.740 --> 00:20:01.960
<v Matt>for other folks thoughts on these topics and, uh, and let us know if there's something that's

00:20:01.980 --> 00:20:03.860
<v Matt>that we maybe haven't caught on yet

00:20:03.950 --> 00:20:05.740
<v Matt>and we should cover in our future

00:20:06.150 --> 00:20:06.900
<v Matt>retro and react episode.

00:20:07.350 --> 00:20:08.540
<v Matt>Any closing thoughts, Scott?

00:20:08.780 --> 00:20:09.660
<v Matt>Otherwise we can wrap it up.

00:20:10.490 --> 00:20:11.020
<v Scott>Keep coding.

00:20:13.240 --> 00:20:13.780
<v Matt>Keep coding.

00:20:14.340 --> 00:20:14.580
<v Matt>All right.

00:20:15.040 --> 00:20:16.240
<v Matt>Thanks everyone for tuning in this week.

00:20:16.600 --> 00:20:17.780
<v Matt>Remember to leave a review for the episode

00:20:18.040 --> 00:20:19.500
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00:20:19.830 --> 00:20:21.880
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00:20:22.220 --> 00:20:24.860
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00:20:25.080 --> 00:20:26.160
<v Matt>when we see those come through.

00:20:26.920 --> 00:20:28.260
<v Matt>And if the system isn't letting you do

00:20:28.350 --> 00:20:29.160
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00:20:30.020 --> 00:20:31.680
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00:20:32.060 --> 00:20:32.740
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00:20:33.400 --> 00:20:34.720
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00:20:35.320 --> 00:20:37.740
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00:20:38.400 --> 00:20:39.840
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00:20:39.990 --> 00:20:42.040
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00:20:42.760 --> 00:20:44.940
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00:20:45.430 --> 00:20:48.100
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00:20:48.660 --> 00:20:50.760
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00:20:51.160 --> 00:20:52.020
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00:20:52.900 --> 00:20:54.300
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00:20:54.430 --> 00:20:55.020
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00:20:57.580 --> 00:20:59.400
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00:20:59.700 --> 00:21:00.780
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00:21:01.660 --> 00:21:03.480
<v Matt>Great. Thanks, everyone, for tuning in.

00:21:04.030 --> 00:21:05.600
<v Matt>See you next week. Peace out.

