Engineers in Silicon Valley have been raving about Anthropic’s AI coding software, Claude Code, for months. However lately, the excitement feels as if it’s reached a fever pitch.
Earlier this week, I sat down with Boris Cherny, head of Claude Code, to attempt to perceive how the corporate is assembly this second.
“We constructed the best doable factor,” mentioned Cherny. “The craziest factor was studying three months in the past that half of the gross sales workforce at Anthropic makes use of Claude Code each week.”
AI-powered coding has advanced shortly. From 2021 to 2024, most instruments functioned as little greater than autocomplete, suggesting a couple of traces of code as builders typed. By early 2025, startups like Cursor and Windsurf started rolling out early “agentic” coding merchandise, which let builders describe a function in plain language and go away the remainder as much as an AI agent.
Claude Code launched round this time too. Cherny acknowledges that early variations of Claude Code usually stumbled, making errors or getting caught in pricey loops. Cherny says Anthropic constructed Claude Code for the place AI capabilities have been headed, fairly than the place they have been at launch.
That wager was prescient. A number of builders declare AI coding merchandise reached an inflection level in latest months, significantly across the launch of Anthropic’s newest AI mannequin, Claude Opus 4.5.
Kian Katanforoosh, an adjunct lecturer on AI at Stanford and the CEO of the startup Workera, says his firm lately converted to Claude Code after testing a number of AI coding instruments internally. In the end, he says, Claude Code labored higher for his senior engineers than instruments from Cursor and Windsurf.
“The one mannequin I can level to the place I noticed a step-function enchancment in coding talents lately has been Claude Opus 4.5,” says Katanforoosh. “It doesn’t even really feel prefer it’s coding like a human, you form of really feel prefer it has found out a greater means.”
Final 12 months, the enterprise of AI coding brokers took off. In November, Anthropic introduced that Claude Code had reached $1 billion in annualized recurring income, lower than a 12 months after its debut.
By the top of 2025, Claude Code’s ARR had grown by a minimum of one other $100 million, in keeping with an individual aware of the corporate’s financials. On the time the product accounted for roughly 12 % of Anthropic’s complete ARR, which stood round $9 billion. Whereas nonetheless smaller than Anthropic’s enterprise enterprise—which provides AI programs to complete firms—coding is among the firm’s fastest-growing segments.
Anthropic has additionally advised traders it goals to be cash-flow optimistic by 2028 and that Claude Code might play an vital function in its income progress. The corporate declined to touch upon its funds.
Whereas Anthropic feels dominant in AI coding, the excitement round Claude Opus 4.5 seems to be lifting a number of firms. Cursor, which lets customers code utilizing fashions from Anthropic and different AI labs, additionally mentioned its coding software reached $1 billion in ARR in November. In December, the corporate posted significantly sturdy month-over-month income progress, in keeping with an individual near the corporate. OpenAI, Google, and xAI are additionally racing to say a bigger share of the AI coding market, creating agentic merchandise of their very own powered by in-house AI fashions.
Now, Anthropic is attempting to make use of Claude Code’s momentum to create brokers for non-coding sectors. Earlier this month, the corporate launched Cowork, an AI agent that may handle recordsdata on a person’s pc and work together with software program—with out requiring any interplay with a coding terminal.
This interview has been edited and condensed for readability.
WIRED: There’s been pleasure round Claude Code for months. Why is it taking off now?
