#43 — Claude 3.7 Sonnet and Claude Code
March 8, 2025•2 min read
Why it matters: Anthropic's new "hybrid reasoning" model and terminal-based coding assistant could reshape how founders build products and manage development workflows.
The big picture
Anthropic released two major products last week:
- Claude 3.7 Sonnet: The market's first "hybrid reasoning" model that automatically switches between quick responses and in-depth thinking
- Claude Code: An agentic coding tool that operates directly in your terminal and integrates with GitHub
Between the lines
The new releases have impressed tech insiders but come with distinct advantages and limitations:
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Power vs. control: "3.7 is great, but not yet ready to get work done—it's too wild. But for new projects, Claude Code is very impressive," notes Cora GM Kieran Klaassen
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Coding optimization: Sonnet 3.7 appears specifically optimized for coding tasks, likely because Anthropic observed that over one-third of all requests involved math or code
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Competitive advantage: Some founders are already implementing mandatory employee training on Claude Code, viewing it as a strategic edge
By the numbers
- Pricing: Same as previous models - $3 per million input tokens and $15 per million output tokens
- Cost concerns: Some developers estimate Claude Code will cost roughly the same as competing tool Devin or "about the same amount as a developer"
The bottom line
For founders, these tools offer unprecedented capabilities for rapid prototyping and development, but require thoughtful implementation:
- Boundary setting is crucial: The model's increased agency means less prompting but more time spent redirecting it
- Context prevents hallucinations: Providing proper documentation and allowing web access significantly improves output quality
- Use cases extend beyond coding: The tools can build entire products from vague prompts, create infographics, and even transform notes into interview questions
Founders who master these tools could dramatically accelerate development cycles while reducing engineering costs—if they can effectively harness the power without getting lost in the "chaos."
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