What AI Can (and Can't) Do

There are hundreds of AI companies right now. You need to care about maybe four of them.

I'm going to save you hours of reading breathless tech coverage and give you the landscape in five minutes. Here's who's building what, why it matters to you, and what you actually need to know.

OpenAI (ChatGPT)

The one everyone knows. They kicked off the current wave when they launched ChatGPT in November 2022. They have the biggest user base, the most brand recognition, and arguably the most polished consumer product.

ChatGPT is the Swiss Army knife. It's good at almost everything, great at many things. Writing, analysis, coding, brainstorming, conversation. The free tier is solid. The paid tier ($20/month for Plus) gives you their latest models and extra features like image generation, file uploads, and custom GPTs (we'll cover these in Week 4).

If you only try one AI tool, this is the safe bet.

Anthropic (Claude)

The quieter competitor that a lot of power users actually prefer. Claude (their AI model) tends to be better at long, nuanced writing, handling large documents, and following complex instructions. Many people find it produces less "AI-sounding" output.

Claude is free at claude.ai with generous limits. The Pro tier is also $20/month. It's particularly strong if your work involves a lot of writing or document analysis.

My honest take: try both ChatGPT and Claude. Most people develop a preference, and it's different for everyone.

Google (Gemini)

Google has been in the AI game longer than almost anyone, and Gemini is their answer to ChatGPT. It has the advantage of being integrated into Google's ecosystem. If you live in Google Workspace (Docs, Sheets, Gmail), Gemini is increasingly baked into the tools you already use.

As a standalone chatbot, it's solid but not yet the leader. Where Google wins is integration. AI suggestions in your Gmail drafts, AI analysis in your Sheets, AI summaries in your Docs. If you're a Google shop, this matters.

Meta (Llama / Open Source)

Meta (Facebook's parent company) took a different approach. They released their AI models as open source, meaning anyone can download, modify, and use them for free. You won't interact with Llama directly the way you use ChatGPT, but it matters for a different reason.

Open source models are driving prices down across the industry. When a good-enough AI model is free, it forces everyone else to compete harder on quality and price. This is great for you as a buyer. The practical result: AI tools are getting better and cheaper, fast.

Why competition matters to you

Here's the thing. Eighteen months ago, ChatGPT was essentially the only game in town. Now there are multiple world-class options. That means:

Prices are dropping. What cost $20/month a year ago now has a competitive free tier somewhere.

Quality is skyrocketing. Each company is pushing the others to improve. The best model today will be the average model in six months.

Options are multiplying. You're not locked into one ecosystem. If ChatGPT raises prices or degrades quality, you switch to Claude. Or Gemini. Or whatever comes next.

This is a buyer's market, and it's getting better every quarter.

What you should actually do with this information

Don't overthink it. You don't need to pick a winner. You don't need to "invest" in an ecosystem. The best approach right now is to try two or three, find what works for your specific needs, and stay loosely aware of the landscape.

AI models are commoditizing fast. The model matters less than how you use it. That's what we'll focus on for the rest of this course.

You don't need to pick one AI tool. But knowing the landscape helps you make smarter choices and avoid overpaying for what's becoming a commodity.