In short
Podcast Episode Summary: How To Get Rich Using Cloud Code
Podcast Overview Podcast Title: Marketing School - Digital Marketing and Online Marketing Tips Hosts: Neil Patel and Eric Siu Episode Focus: Exploring the impact of cloud code and AI coding tools like Claude Opus on software development and business growth.
Key Takeaways
- Empowerment Through Cloud Code: Cloud code allows non-coders to build real products, democratizing software development.
- Strategic AI Adoption: Implementing AI without a clear strategy can lead to wasted resources and low ROI.
- Future of Work: Companies require talent that embraces AI to drive innovation and efficiency.
Episode Chapters
- (00:00) Cloud code explosion
- (01:25) Building without coding
- (03:45) AI ROI vs hype
- (06:01) Enterprise AI strategy
- (08:20) Revenue per employee data
- (11:00) Hiring AI forward talent
- (17:20) Can AI replace teams
- (19:18) Why cloud code is different
Detailed Insights
- Cloud Code Explosion
- The recent advancements in cloud code, specifically with Claude Opus, have spurred excitement on platforms like Twitter.
- Personal Experience: Eric shares his personal journey of using cloud code to create a Slack bot, demonstrating the ease of building solutions without coding knowledge.
- Building Without Coding
- Cloud code enables individuals without programming skills to contribute to product development, significantly speeding up business processes.
- AI ROI vs Hype
- Organizations often rush to adopt AI technologies without a clear strategy, resulting in poor returns on investment (ROI).
- Balance is Key: The episode emphasizes the need for a balanced approach between rapid AI integration and strategic planning.
- Enterprise AI Strategy
- Companies are urged to focus on defining their AI strategies rather than blindly adopting every new technology.
- Revenue Metrics: Analyzing revenue per employee data to gauge the effectiveness of AI in a business context is crucial.
- Hiring AI Forward Talent
- Businesses are increasingly seeking employees who are skilled in AI and cloud technologies, as these talents are seen as essential for future growth.
- Core Values Connection: Eric shares his company’s core values that align with being AI forward, including being relentless learners and biasing towards action.
- Can AI Replace Teams?
- The discussion touches on the misconception that AI will entirely replace human roles in marketing and other fields.
- Need for Human Oversight: While AI can automate tasks, there remains a need for human creativity and critical thinking.
- Why Cloud Code is Different
- Cloud code is positioned as a transformative tool that offers advantages over traditional coding methods.
- Real-World Examples: The episode references a Google engineer who noted that cloud code could achieve tasks significantly faster than conventional methods.
Conclusion In this episode, Neil and Eric articulate a vision for the future of marketing and business operations shaped by cloud code and AI technologies. They encourage listeners to embrace these tools thoughtfully and strategically to leverage their full potential while avoiding the pitfalls of unplanned adoption.
Call to Action Listeners are invited to engage with the hosts on their journey with cloud code and explore its possibilities for innovation in marketing and business growth.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Rise of Cloud Code
0:45 to 2:00
Discussion on the increasing popularity and capabilities of Cloud Code.
“I walked straight over to this computer and I started, I just sat down on cloud code for like 30 to 45 minutes or so.”
Personal Experience with Cloud Code
2:00 to 4:00
Sharing personal anecdotes about using Cloud Code to enhance productivity.
“And so my thing is, you know, Neil, you and I are both very, very impatient people.”
Combining Data for Insights
4:00 to 5:30
Explaining how to leverage various data sources for actionable insights using Cloud Code.
“Like they think it'll be cool, but it really has no value.”
The Shift in Coding Landscape
5:30 to 6:00
Insight into the changes in the coding profession due to Cloud Code.
“because I think they've already been adopted by a lot of organizations.”
The Future of Work with AI
6:00 to 7:40
Discussing the balance needed between AI adoption and strategic implementation.
“and I've seen some organizations already talk about this, at least in marketing, the Sergey Brin model.”
Revenue per Employee and AI
7:40 to 9:40
Analyzing the impact of AI on revenue metrics in various companies.
“Revenue per employee, we're looking for efficiencies.”
Hiring Trends in Marketing
9:40 to 10:10
Revealing how companies prioritize AI skills in hiring practices.
“in the last few years, really seen a slowdown in marketers being hired.”
The Importance of AI Forward Thinking
10:10 to 12:00
Emphasizing the need for individuals to embrace AI in their careers.
“And what we're seeing is companies look at AI as from a marketing perspective that, oh, it's chat GPT and just getting mentioned on there drives a lot of revenue.”
Core Values in AI Adoption
12:00 to 14:01
Exploring the core values necessary for thriving in an AI-driven environment.
“that they've taken a couple of punches to the face.”
Employee Retention and Compensation Insights
14:01 to 15:10
Learn about the challenges of retaining employees and the importance of fair compensation.
“We're like, there's a point where it just doesn't logically make sense because we're already overpaying this person within their region.”
Show all 13 chapters
AI and Workforce Dynamics
15:11 to 16:56
Explore the misconceptions surrounding AI's impact on workforce size and efficiency.
“So when I say they're marketing, they're doing marketing for us at NP digital.”
Leveraging AI for Productivity Gains
16:57 to 19:15
Discover how AI tools can significantly enhance productivity and streamline workflows.
“Because I think people also have misconceptions on AI in which they're like, you don't need as many people in marketing.”
Navigating the Future of Work with AI
19:16 to 20:19
Understand the complexities of integrating AI into business operations and its implications.
“when you can't figure it out, hey, can you just do this for me?”
Transcript
Automatic transcript. May contain errors.0:00So I want to talk about how you can get rich using Cloud Code code. So Neil, this past week, I don't even think it's been a week, but this past week, everyone on Twitter has been going nuts about Cloud Code. And the reason for this, Neil, is because the Opus 4.5 model, it's gotten a lot stronger. And so imagine someone like you and me, you don't know how to code. I don't know how to code, right? So imagine anything that you want to build for yourself, okay, you're now able to do, right? And so I was just talking to my CTL. We had our creative strategist in the office. I just walked back from the office and we're just sitting there.
0:33I'm like, man, if I didn't have all these meetings all day, I would just be on cloud code. I'd be sitting there. Like usually what happens in the morning, Neil, when I wake up is I go, I'll do my morning stuff and I'll go to my Peloton bike. Right. I was, I was walking over to my Peloton bike. I actually made a U-turn. I walked straight over to this computer and I started, I just sat down on cloud code for like 30 to 45 minutes or so. Um, and so I want to give some practical examples of, of, of what's possible and where I think this is going. And then you can either ask questions, you can push back.
0:58Um, but I just think this is, this also ties on businesses. I think businesses are going to grow way faster, 10 to a hundred times faster using cloud code because Neil, what was unavailable to you and me before is now available. I'll give you an example. Last night, I was bored, right? I was like, oh, you know, we have all these sales transcripts, sales calls transcripts, you have customer transcripts, you have your HubSpot CRM, okay? You have your Ahrefs, you have your Google Analytics, you have Google Search Console. When you combine all this data, you can say, hey, based on all of our sales conversations, you know, what are the main, you know, challenges people are having or with customers, what are the main objections that they have or whatever it is exactly.
1:37And then you can run it through whatever's high converting for you on your website. And then from there, you can start to create briefs automatically from Slack. And so I basically, within an hour, Neil, I just created a Slack bot that allows me to do a very basic version of that. And it continues to compound. And we know how products compound, right? You continue to add more to it. You take more away from it. And it continues to get stronger and stronger. And so my thing is, you know, Neil, you and I are both very, very impatient people. Okay. And, and so what I would like, I was talking to my CTO this morning.
2:09He's like, yeah, a lot of this stuff we're going to build is garbage. Okay. But there's some stuff that everyone's going to start using and that can easily merge into our, our, our products. Right. And so a lot of people now on Twitter right now that used to be, they used to be coders. They spent tens of thousands of hours on this. A lot of people are like, man, like, I feel like I'm useless now. And my CTO is like, dude, I saw that coming two years ago. And so it's not to say that coding as a discipline is completely gone. But a lot of these people are like, dude, a lot of the code that's being written now is all written by code.
2:36But now you and I get to participate. And I don't care if it's you or me, or I don't care if it's somebody listening to this and you're 18 years old or 15 years old or whatever. You now have a superpower that's in the palm of your hands. And if you don't take advantage of that right now, you're going to not only fall behind, but you're going to lose that on a chance to make generational money for yourself. That's how I see this. because it's not even me or you. It's like our creative strategist. When I walked in on Monday, he was already in the office, right? This is my first time meeting him.
3:06And he had Cloud Code pulled up. I'm like, what are you doing? He had Cursor pulled up and Cloud Code. I'm like, what are you doing? He's like, oh, dude, we should be doing 10x more, if not 100x more. I'm like, I like how you think. I'm like, does a team know that you're doing this right now? He's like, no. I'm like, why do they not know that you're doing this right now, right? And so we had a little conversation. He's going to speak up a lot more. but that's the reason like i've been tweeting about this or posting my story so much is because i genuinely now feel like i'm playing a video game like 17 years ago when i was addicted to world of warcraft this feels like that my only issue with clawed code or any of the solutions out there i do agree with you it's amazing what we're finding in organizations specifically in marketing departments because we mainly deal with marketing departments is people are using these tools to do more in marketing.
3:54But when we talk to the individuals, at least at enterprise companies, we're finding that maybe like 70, 80 % of the time, they're spending efforts creating stuff that doesn't need to be created. Like they think it'll be cool, but it really has no value. I think it was either TechCrunch or CNBC that had an article for 2026 when it comes to AI. you're having the cios pushing organizations really hard saying we need to adapt ai technology like this is a no-brainer let's go into it you have the cfos who are saying slow down you guys are moving too fast we're not seeing the roi we're just seeing increase in spent all right so i think there's some sort of a balance i don't agree with the cfo because some of it's the future and you just need to implement it if you're a believer i think you know you and i are in the camp of believers.
4:50I also don't agree with the CIO in which let's go, let's go, let's go. I think there's somewhere in between that's the reality. And especially in marketing departments, I agree people should be using this stuff. They can get so much more done, but getting so much more done that doesn't move the needle is just a waste of time and a waste of ROI. It's like you're paying someone and they just did a lot of useless work that does nothing. If you did that for a client and they're paying you. They'd be like, screw you. You just wasted a lot of the hours that I paid you for. I want them back. And I think what's going to happen in 2026, it's not the adoption of these tools because I think they've already been adopted by a lot of organizations.
5:33Maybe not percentage-wise that they're looking for per employee, but a lot of organizations are already using this tool, even if it's at a low-level basis or a high-integration basis. and what I believe that you're going to start seeing is companies are going to spend much more time on strategy in all departments, including marketing, to figure out what they should use these tools for versus just go and use these tools. Or I think they're going to start implementing, and I've seen some organizations already talk about this, at least in marketing, the Sergey Brin model. Hey, with 10 % of your time, you can do whatever you want.
6:10And then they can go and experiment or whatnot Eric Schmidt talked about how he was a brilliant mathematician. Eric Schmidt, the ex-CEO of Google, how Sergey Brin was a brilliant mathematician and came up with data on how if people spent 10 % of their time on whatever they wanted, it would make the company more money. I can see the 10 % of the time. I think for the other 90%, these tools will be integrated with the organization, but they'll be more structured on what they need to use them for. Yeah. So here's my take on it. So we've kind of said something, both you and I have said this maybe a week or two ago.
6:43So I'm saying in this last week, holy shit, right? Like literally in the last week, I feel like I've advanced like a couple of years. Like it's warp speed now, right? And so what Neil's saying is true. There are people even on X, let's use X as an example, right? So there are large enterprises that are actually blocking products like Cloud Code for being used because security, there's a lot of approvals and things like that. I will say because we're still on this recruiting push right now, what I'm talking to people right now, it's very much, and they're seeing the stuff I'm posting on AI and they're reaching out and I'm talking to these people.
7:14I'm like, why are you looking to leave this company right now? It's like, some of them are coming from publicly traded companies. I'm like, why leave? Like, it's so stable. It's a good job. It's like, we're moving too slowly, right? It's implementation is too slow. I talked to someone else just on Monday and he's at this agency. Let's say they have like 200 people or so. And I'm like, why are you looking to leave? He's like, we said we're going to move quickly on AI, but we're talking about safety and all these things and I'm just not interested, right? And then all this to say is I think if you're going to run an AI fluency program, I think we at least were focused on revenue per employee.
7:47Okay, that's one piece of it. Revenue per employee, we're looking for efficiencies. I don't want this theater BS. And so that's why we have a weekly office hours for AI. We have hackathons that we're going to be doing quarterly and we're going to take up probably three days and we're just going to drop everything and do that. And I got that from the Zapier founder. And what I want to bring your attention to, Neil, is I was just talking about revenue per employee, right? Take a look at this. So if you look at the revenue per employee here, this is the ARR, so annual recurring revenue per full-time employee of leading AI versus non-AI software companies, right?
8:22And obviously, this is a very small sample size. So in this graph, on the very left side, or this chart, I should say, on the very left side of this chart, Neil, you see Cursor. Cursor has$6.1 million in annual recurring revenue per FTE, okay? Lovable is number two at$3.4 million. OpenAI is$1.5 million. Anthropics at 1.2. Now, Atlassian's at 0.46, so let's just call it 460 grand. Datadog's at 510k. ServiceNow, 490k. Salesforce, 540k. Obviously, these are very big companies. Some of them are cursor-lovable. Revenue size is not comparable to a Salesforce, right? So scale takes into account here as well.
8:58But my expectation here looking at this graph, if I'm Salesforce, is I hope this number starts to slowly move up 0.54 to 0.55 to 0.56 over time. There has to be some guardrails and some discipline around this. Otherwise, everyone's just going to YOLO and build whatever they want. And you can't let that happen. Yes. And AMD's Lisa Su, who funny enough, I believe is a cousin of the NVIDIA founder and CEO. She said that AI isn't replacing people, but changing who gets hired. And with AMD specifically, and we're seeing this in most marketing departments because we haven't really seen a slowdown and other than the bad economy, right?
9:34For three years, yes, we haven't seen marketing be as bullish, but we haven't really, in the last few years, really seen a slowdown in marketers being hired. It's more so similar to what AMD is saying. They're prioritizing candidates who truly embrace AI. And as Sue said, we're hiring people who are AI forward. And I think that's what you're seeing in organizations. a lot of companies, at least when it comes to marketing, they're not saying, oh, AI is going to replace all these people. They're more say of saying we need people. We may not need as many people in the long run, but for now we want people who are really AI forward.
10:10And what we're seeing is companies look at AI as from a marketing perspective that, oh, it's chat GPT and just getting mentioned on there drives a lot of revenue. That's one aspect of it. And although chat GPT is improving a lot. There's not a ton, I would say, that it's going to improve in the next 12 months from a user like Eric and I or you typing in a question into ChatGPT and getting a prompt. It already does a really good job at that. Would you agree with that, Eric? Yeah. I would say that real ROI with AI is things like cloud code that not enough marketers are leveraging. So instead of focusing too much on, hey, ChatGPT and how can I get mentioned?
10:53And you should still do that because that's a great way to generate ROI. You need to start thinking about how can you use these tools to make your marketing better. Yeah. And by the way, Neil, I didn't tell you about this, but I'm going to do a cloud code for business meetup type of thing, whether they're small happy hours or dinners. And so send me, I have an Instagram post on this. A bunch of people left a comment. You can DM me on Instagram or DM me on Twitter. And who knows, maybe you'll get to hang out with Neil and myself. I just want to start doing these things because when you see something moving like this so quickly, community goes a long way.
11:24We'll just put it that way. The last thing I want to call it, Neil, is maybe some how-to around these AI forward people. I'll just say this. When I find myself talking to someone during an interview process, what have you built with AI? Show me the workflows you built. Show me this. When I find that I can riff with them, and I find that myself enjoying the strategic conversation, I know that they got it. And this is important for us. So our four core values are, and I'm actually curious if this aligns with your core values too, if you think about it, Neil, watch. So one core value is we want people who are relentless learners.
11:55So people who like to learn all the time. Number two is we want people who are biased to action. Three is we want people who are unreasonably resilient, meaning that they've taken a couple of punches to the face. The last one is we want people who make bold long-term bets. Now, when you look at those four things, those actually tie, if you're AI forward, you got all four of those things, right? You're making bold long-term bets. You're trying to figure this stuff out. You're getting punched in the face all the time. You're trying to learn. You have a bias to action. So at least for us, someone who's AI forward actually captures all four of those values.
12:23How about for you guys? What are your three values? Have fun. We have more than three values, but it's like think big, own it. I don't know all our values. I should have fun's in there. I think you have fun's in there. Just have fun in there. I know your values more than you do. What is this, dude? have fun could be in there. I know the big ones that we really focus on are think big and own it. And the reason I say own it is I hate when people just make excuses. Yeah. But doesn't this kind of tie in with being AI forward? Yeah. And if you're having fun with AI, all three of those tie in. Dude, so I had someone leave our organization this week where they put in their notice.
13:07And they're not executive, but close enough to being executive. They're in marketing and there's an exit interview. So I want to know why people are leaving. And when people are leaving, they can tell me whatever they want to tell me. So I don't want to be the one interjecting, trying to correct them or disagree with them. I just let them riff. And I've known this person for a very long, long time. Is this the person we talked about earlier this week? Yeah. So they're in a different country. They're not in the US. They're in Latin America. they got paid more than they would in the US for their job.
13:45We already pay them really well. In their country, they're not even in the 1%. They're a fraction of a percent. What we pay them a year, they can buy a house in a year and a half in a nice neighborhood. Someone was pretty much willing to double that. We're like, there's a point where it just doesn't logically make sense because we're already overpaying this person within their region. And we were paying them almost to what someone would be getting in the United States. Someone offered them more than the average person for that role would be getting in the United States. And when I was talking on the exit interview, they were telling me, one of the reasons they left was they're like, I just wanted to make more and you didn't pay me what I believe I can get elsewhere.
14:29And I knew they were looking around talking, but they worked with us for a very, very long time. they weren't able to find anyone to pay them more other than just now. And this is probably over 10 years, right? So that was a long time I was able to keep them. It was also because I was paying them well for where they live. It's like Microsoft, if you live in India, Microsoft doesn't pay you US rates to work for them in India. They pay you India rates. And the second thing, and this wasn't as big, but this ties into AI. They're like, your company needs to remove, this was just their feedback, 40 % of your employees, 30 on the low end, and just embrace AI more and just get rid of all these people and you'll have higher margins.
15:10Okay. So keep in mind they're in marketing and they're not client facing. So when I say they're marketing, they're doing marketing for us at NP digital. They're not doing marketing for our customers. And we have a lot of different divisions from SMB division to enterprise division to software divisions. So they don't, they don't talk much at all with the team that is working on the customer facing side. And they don't know what we've done or haven't done on the AI side, but we've actually done quite a bit. We have a whole team that's building workflows and automations and systems to help us provide more for our customers.
15:47But they were just like, use no AI, which the first one was wrong. But again, I don't try to correct people on the exit interviews. And then the second one was, You just need to eliminate a ton of people and have higher margins. This is the only way to compete in the new world of marketing is to just have very little people and have AI do everything. And then they're quoting some of these AI legends who are multi-billionaires on the Forbes list. And I'm like, look, that's great and dandy. I wish we can do everything that they're saying. The technology isn't here where I can just cut 40 % of my staff.
16:21If I did that, majority of my clients would leave tomorrow. and I did ask him one thing. I said, you do marketing for us like we do marketing for a customer. To some extent, it's different, but it's similar. Like, yeah. I'm like, you've been using AI, right? Yeah. Your team's grown over the last few years, right? Because you've been requesting that you need more and more people, right? They're like, yeah. So I'm like, question for you. How have you been able to implement AI to automate all the marketing where we could potentially redo our marketing team and cut 30 to 40 %? I know we already can.
16:56And, you know, I stumped them and they weren't able to answer that question. Because I think people also have misconceptions on AI in which they're like, you don't need as many people in marketing. You can just replace all of them with AI. It's just like, but why haven't you done that if you're running a lot of the areas in marketing? You know what's interesting, Neil? So after I drank this pill, and I'm somehow going to get you to onboard this. Because once you onboard, you're going to be the same as me. You're going to be like, oh, yeah, you're going to be on the whole time. I find that I'm working harder than I have before.
17:26I can't help myself. I need to be on it, right? Because you're just constantly making progress and you know it's compounding. So I've been texting our mutual friends. I've sent a text message. Who's on this right now? How are you using it? Just like all over the place. I'm posting everywhere. Let me show you something real quick. And then I want to come back to your part about the losing people piece because I had a debate with my team this morning. And I think we should talk about this too because I think a lot of people are torn. It's like, well, what do you do with the people? So we should talk about that.
17:52But let me share my screen real quick. Check this out. So let me read the bottom. It's a little complex to read this. It starts at the bottom here. So it says here where I'm highlighting. So Yuchen Jin. Okay, so Yuchen. Yeah, Yuchen. So he says, Cloud Code built in an hour what took a Google team a year. That part isn't shocking. What is shocking is that Google allows their engineers to use Cloud Code instead of enforcing Gemini command line interface or anti-gravity. So this is a Google engineer down here, Yana Dogen. And then it says, I'm not joking and this isn't funny. We have been trying to build distributed agent orchestrators at Google since last year.
18:25So Google has really smart engineers, right? Some of the best models in the world. There are various options. Not everyone is aligned. I gave Claude Code a description of the problem. It generated what we built last year in an hour. Okay. So then you have this guy up here who used to, I think he helped build Gemini. So he's like, I used to be a Google engineer too. I leveled up all the way and feel if I had agentic coding and particularly Opus, so Claude's Opus, I would have saved myself first six years of work. compressed into a few months, right? So he was an ex-Google and Meta Distinguished Engineer, Google co-author.
18:57So my point of bringing this up right now is we've been talking about this for a while, Neil, but I'm telling you, in the last week, it's been a step change and you and I have been able, we're able to enter the arena now. And this is what these people are seeing right now. And I'm telling you, the moment I get you to feel this, you'll be like, okay, yeah. Yeah, because you can just describe what you want and it creates it. Yeah, and then, by the way, when you can't figure it out, hey, can you just do this for me? That's what I keep doing. Can you just do this for me? Can you just solve it for me?
19:21Yeah. No, we have a big WhatsApp thread on this internally. And what we're finding is it is amazing. You still need an engineer to help fix bugs and stuff like that, but it is amazing. That's what we're finding internally on our WhatsApp. And like, we're seeing messages on this, like literally, you know, a few times an hour and people are sharing what they're doing. Yeah. So I was, so at lunch, I was talking to Sean on my team and I was like, yeah, he's like, I don't know what's going to happen. I'm like, no, we don't know anything about infrastructure. We don't know anything about security. We don't know anything about anything.
19:51Okay. We don't know anything about these bugs that compound. Okay. And, you know, we're all kind of just YOLOing it right now. And so there's going to be a lot of use. And like, in fact, you're going to help scale the entire organization. So one thing, Neil, you kind of just brought up. So he was mentioning cutting 30 to 40 % of people. I don't think it's as easy as that. So that being said, we will catch you later.
20:18out над
From the publisher
Discover how cloud code and AI coding tools like Claude Opus are changing who can build software, grow businesses faster, and unlock massive leverage without traditional coding skills. Neil and Eric break down why cloud code feels like a superpower, how marketers and operators can actually drive ROI, and why strategy matters more than random AI experiments. From revenue per employee data to real enterprise examples, this episode explains what AI adoption should really look like and how individuals can stay ahead in the next wave of AI-driven growth.
Key takeaways:
Cloud code unlocks non-coders to build real products
AI adoption without strategy destroys ROI
AI forward talent wins the future
Chapters:
(00:00) Cloud code explosion
(01:25) Building without coding
(03:45) AI ROI vs hype
(06:01) Enterprise AI strategy
(08:20) Revenue per employee data
(11:00) Hiring AI forward talent
(17:20) Can AI replace teams
(19:18) Why cloud code is different
