How Claude Code is Transforming Software Development and the Future of Anthropic

Engineers in Silicon Valley are increasingly excited about Anthropic’s AI coding tool, Claude Code, which has recently gained significant popularity. In a conversation with Boris Cherny, the head of Claude Code, it was revealed that the company has adapted quickly to this surge in enthusiasm.

Cherny shared insights into the development of Claude Code, stating that the team aimed to create an exceptionally straightforward tool. Remarkably, they discovered that about half of Anthropic’s sales team used Claude Code weekly, showcasing its growing integration within the company.

The evolution of AI-powered coding has been swift. Tools have evolved from basic autocomplete functions to more sophisticated “agentic” coding products that allow developers to describe features in plain language, which an AI then implements. Claude Code emerged during this transition, and although early versions faced challenges such as errors and looping issues, Cherny believes they built Claude Code ahead of where AI capabilities were at its inception.

The recent release of Anthropic’s latest AI model, Claude Opus 4.5, has contributed to a significant turning point in AI coding products. Kian Katanforoosh, a Stanford AI lecturer and CEO of the startup Workera, commented on his company’s switch to Claude Code after testing various tools, noting that it significantly enhanced the capabilities of his senior engineers.

In just under a year since its launch, Claude Code achieved $1 billion in annual recurring revenue (ARR), and by the end of 2025, it had increased by at least another $100 million. While still smaller than Anthropic’s core enterprise business, coding has emerged as one of its fastest-growing sectors. The company anticipates becoming cash-flow positive by 2028, with Claude Code playing a key role in that trajectory.

The competitive landscape around AI coding is intensifying as other companies like Cursor and major players like OpenAI, Google, and xAI are also developing their agentic products to capture market share.

To capitalize on Claude Code’s momentum, Anthropic recently introduced Cowork, an AI agent designed to manage files and interact with software without requiring coding skills, broadening the tool’s application beyond programmers.

Boris Cherny remarked on the excitement surrounding Claude Code, noting how its use has transformed significantly within large organizations. Early adopters are finding more complex uses for Claude Code and Cowork, utilizing its capabilities to manage multiple tasks simultaneously. The seamless integration of these AI tools appears to enhance productivity, allowing engineers to focus on more creative aspects of their work.

As Cherny reflected on the growth of Claude Code, he acknowledged that users no longer merely engage with the tool through chat; they leverage its agentic capabilities to interact meaningfully with other applications like Slack and Google Sheets. This evolution signifies a shift in the workforce’s reliance on AI, encouraging a focus on higher-level tasks rather than repetitive coding.

Looking forward, Cherny sees a future where AI agents will handle mundane tasks across various industries. This shift promises to elevate work satisfaction by allowing professionals to focus on what they enjoy most. Despite concerns about job displacement, he believes this change will be a natural evolution within the programming field, akin to past technological shifts.

Cherny’s own routine reflects the integration of Claude Code into daily work, as he routinely initializes multiple coding agents to streamline project management and task completion. He foresees continuous advancements in AI tools, allowing them to automate tedious tasks, thereby transforming the professional landscape for engineers and beyond.

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