This week, Anthropic released its legal plug-in and the market sent a message. Over one trillion dollars was wiped out from software and services stocks overnight. LegalZoom dropped sharply. Other legal tech powerhouses like Thomson Reuters, RELX, and Wolters Kluwer took a huge hit. If there were public tickers for private legal tech companies built on language models, you'd see the same rerating. At Eudia, we've built something different, an augmented intelligence platform specifically for in-house legal teams that turns institutional knowledge into defensible infrastructure. Here's why the $1 trillion wipeout in software stocks validates our approach. 

This isn't about Claude specifically. And it isn't really about legal. 

What just happened is the next phase of generative AI's evolution. One that challenges the core business models of a recent generation of AI-native companies. 

For the past two to three years, it made perfect sense to build a company wrapped around a foundation model. Take a general-purpose LLM, add a user interface, embed a little workflow logic and prompt engineering, and sell it as "ChatGPT for X." 

It worked. Companies like Jasper (marketing content), Cursor (coding assistant) and others raised billions with this approach. Customers were wowed by how quickly these tools improved, because the foundation models beneath them kept getting better. For industries historically underserved by software, including legal, finance, and compliance, these wrappers created real value fast and created an impression for the user that the LLM wrapper was magic when in fact the LLM was magic. 

But from day one, at Eudia, we bet on a different future. We knew the foundation model providers (OpenAI, Anthropic, Google) would eventually release their own vertical applications. And when they did, shallow wrapper companies would lose pricing power overnight. That's what we're watching unfold now. 

Augmented Intelligence for In-House Legal Teams

Eudia is an augmented intelligence platform designed specifically for in-house legal teams. Unlike traditional legal AI tools that simply provide access to language models, we capture and scale institutional legal judgment through proprietary knowledge infrastructure. 

The difference matters. Once foundation models enter a vertical directly, customers ask a very simple question: why am I paying a markup for a slightly customized interface when I can go to the source for 90% of the value, at a fraction of the cost? 

This move is a reset. And it's pointing to a deeper truth. 

Customers now understand that AI products built purely on access are structurally limited. The next wave of winners won't just deliver access to language models. They'll turn knowledge into infrastructure. They'll deliver concrete, defensible outcomes built on proprietary data, context, and trust. 

Why In-House Legal Teams Need Augmented Intelligence, Not Just Legal AI

At Eudia, this has been our focus from day one. We set out to understand what can't be automated, and what must be protected at all costs inside the enterprise. 

The answer is trust. And in the legal industry, the person who owns that trust, along with the ultimate data and the budget, is the Chief Legal Officer. So, we designed our platform for them. 

We didn't start by building a chatbot. We built a private and secure data and knowledge platform and realigned our incentives with the end customers by selling outcomes instead of seats or hours. 

Our thesis from the beginning was simple: the highest-leverage source of value in legal is institutional judgment. And for most organizations, that judgment is fragmented. It lives in a thousand undocumented places across backchannels, unstructured documents, internal tribal knowledge, and mental models no one has ever effectively codified. 

Foundation models don't have access to this. Public data doesn't include it. That's why so many legal AI tools built on public information are plateauing. They can mimic an answer, but they cannot mirror your organization's actual decision-making around managing risk. 

The Company Brain: How Eudia Works

Eudia is designed to solve this. The ‘Company Brain’ is our central knowledge platform that captures how your organization thinks, and the why behind it. That includes risk tolerances, exception logic, deal history, precedent, feedback loops, and context that lives outside of your legal databases. 

Here's what that looks like in practice: 

• For contract review, Eudia doesn't just flag standard clauses—it applies your company's specific risk framework and historical exception patterns 

• When evaluating M&A risk, the platform references your past deals, board risk tolerances, and undocumented precedents that exist nowhere else 

• For policy questions, it surfaces how your team has actually made decisions, not how a generic legal AI thinks you should 

We go deep. We do the data integration work most companies avoid, because this is needed to deliver successful outcomes at scale. Customers that invest in building the Company Brain that Eudia powers have achieved a step-change in quality, speed, and defensibility. 

They aren't stuck managing six disconnected tools that don't talk to each other. They're scaling judgment at the core of the business. And we don't sell them software seats. We sell outcomes. 

What Separates AI Platforms From AI Wrappers 

As AI-native companies get rerated by the market, a split is becoming obvious. The commodity tools are falling because customers know how to replicate 90% of their value using Anthropic alone. But the platforms focused on high-context data, deep institutional knowledge, and decision trust—those are ascending.

That's where value is accruing. And that's where we've staked our position. 

This shift has been coming for some time. Now it's fully visible. Wrappers are out. Context is the moat. And the companies bold enough to align with real customer outcomes, including economic models that build trust, will define the next decade of this market.