What is the defining characteristic of "Server Tools" in the Anthropic ecosystem?	They are declared by the user but run entirely on Anthropic's infrastructure.
How does using server tools simplify the process compared to traditional agent loops?	Anthropic executes the tool and returns the result directly within the same response, eliminating the need for the user to manage an agent loop or push results back.
Name three core server tools provided by Anthropic.	Web search, Code execution, and Web fetch.
Where do "Client Tools" execute, and what does the SDK provide for them?	They run where the user's code runs (client-side); the SDK provides the schema and a sensible runner.
What is the primary difference in execution location between Server Tools and Client Tools?	Server Tools run on Anthropic's hosted infrastructure; Client Tools run on the user's local or client environment.
When processing a server tool response, what block type signals the tool call, and what block type signals the code output?	The tool call is signaled by `servertooluse`, and the code output is signaled by a specific tool result block (e.g., `bashcodeexecutiontoolresult`).
What is the main benefit of using server tools in a production application?	It provides a fast path to complex features (like fact-checking) that would otherwise take significant development time.
Give two examples of client tools mentioned in the transcript.	Memory and Bash.