Anthropic’s AI coding tool, Claude Code, has rapidly become indispensable in Silicon Valley, with adoption soaring in recent months. The tool isn’t just another autocomplete feature; it’s a full-fledged agentic system capable of writing entire blocks of code based on simple language prompts. This shift marks a turning point in how software is created, and Anthropic is at the forefront of this transformation.
The Rise of Agentic Coding
Early AI coding tools (2021-2024) offered limited assistance, mostly suggesting code snippets. By 2025, startups like Cursor and Windsurf began experimenting with agentic coding, where developers describe features, and the AI handles the implementation. Anthropic’s Claude Code launched around the same time, initially struggling with errors but quickly evolving due to strategic development.
The real breakthrough came with the release of Claude Opus 4.5, which delivered a step-function improvement in coding abilities. Developers report that the latest model doesn’t just mimic human coding; it seems to have found better ways to solve problems. Workera CEO Kian Katanforoosh notes that his engineers switched to Claude Code after testing alternatives, finding it superior to Cursor and Windsurf.
Financial Momentum
The business side of AI coding exploded in late 2024. In November, Anthropic announced Claude Code had hit $1 billion in annualized recurring revenue (ARR) less than a year after launch. By the end of 2025, ARR grew by at least another $100 million, accounting for roughly 12% of Anthropic’s total $9 billion revenue. While still smaller than its enterprise business, coding is now one of Anthropic’s fastest-growing segments.
Anthropic aims for cash-flow positivity by 2028, with Claude Code playing a key role in its growth. The company is now expanding into non-coding sectors with Cowork, an AI agent that manages files and interacts with software without requiring coding terminals.
The Changing Workflow
Anthropic’s head of Claude Code, Boris Cherny, describes the change: “If you look at the code that I write, 100 percent is written using Claude Code.” Engineers now run multiple agents simultaneously, bouncing between tasks while the AI handles the heavy lifting. This new workflow isn’t about deep focus; it’s about efficient task switching and leveraging AI for speed.
Anthropic employees have adopted Claude Code at an astonishing rate, with Cherny claiming that nearly 100% of technical staff use it daily. The company’s internal culture of “dog-fooding” (using its own products) drives rapid feedback and improvement.
The Future of Work
The impact extends beyond coding. Anthropic plans to apply agentic AI to broader knowledge work, automating tasks like form filling, data transfer, and email management. This shift will be disruptive, but also freeing, allowing workers to focus on more creative and strategic activities.
The evolution from punch cards to machine code to high-level languages mirrors the current transition toward AI agents. The learning curve will smooth, making tools like Claude Code and Cowork increasingly accessible.
As Cherny puts it, “This is the most fun I’ve ever had as an engineer because I don’t have to do all the tedious work.” This sentiment is likely to spread across industries as AI agents become more capable.
In conclusion: Claude Code isn’t just improving software development—it’s redefining how work itself is done. Anthropic’s agentic AI is poised to accelerate automation across multiple sectors, promising increased efficiency but also raising questions about the future of skilled labor.
