What Is Claude Code? And Why Everyone Is Talking About It
In 2025, agentic coding tools dominated tech headlines. Among them, Claude Code, Anthropic’s terminal-native coding agent, captured the imagination of developers worldwide.
Launched as a research preview in February 2025 and made generally available in May 2025, Claude Code rapidly grew from a niche experiment to a billion-dollar product. In the final months of 2025, it reached a $1 billion annualised run rate within just six months of launch and may already be approaching $2 billion.
So why has this tool created such a buzz, and what does it mean for the future of software development?
From coding assistant to agentic developer
Traditional AI coding assistants like GitHub Copilot provide autocomplete suggestions within your IDE. Claude Code, however, takes a radically different approach.
It runs in the terminal and interacts directly with the file system and command-line tools.
According to Anthropic, Claude Code can search and read code, edit files, run tests, and even commit and push code to GitHub.
The goal is not to replace your existing tools, but to hand off entire workflows—triaging issues, writing code, running tests, and submitting pull requests—all through natural-language commands.
Unlike traditional assistants, the agent maintains state across sessions, remembering architectural decisions and to-do lists.
In effect, Claude Code behaves more like a junior developer than a simple autocomplete tool.
Launch timeline and explosive growth
Anthropic introduced Claude Code as a limited research preview in February 2025. Within three months, by May 2025, it reached general availability.
Adoption was swift:
By November 2025, Claude Code had surpassed $1 billion in annualised revenue.
By early 2026, analysts estimate the run rate is closer to $2 billion.
Anthropic’s overall annualised revenue jumped from roughly $1 billion at the start of 2025 to $5 billion by August.
The company reached 300,000+ business customers by August 2025, up from fewer than 1,000 two years earlier.
This growth highlights both the demand for agentic coding tools and Anthropic’s enterprise-first strategy.
How Claude Code Works: Terminal Architecture and Memory
Claude Code’s terminal-native architecture sets it apart from traditional AI coding assistants. Instead of acting as a chat window, it executes commands directly on your local machine, reading and writing files and leveraging familiar tools like grep, sed, and git.
It stores information in “memory files” to build context over time.
This persistent memory enables Claude Code to handle multi-day tasks, such as large refactors or cross-repository upgrades.
Engineers surveyed by Anthropic reported using Claude for about 60% of their work, enjoying a 50% productivity boost.
Most could fully delegate only 0–20% of tasks; the rest still required human review.
Teams with strong test-driven development practices see the greatest benefits, while those using agents as shortcuts often struggle.
Why Developers Love Claude Code
Beyond raw productivity, developers value Claude Code for its ability to tackle complex problems:
At a Seattle meetup in January 2026, a Google principal engineer noted that Claude replicated a year of architectural work in one hour.
Microsoft reportedly adopted Claude Code internally across major engineering teams.
Benchmark results show that the underlying models—Claude 4, Sonnet 4.5, and Opus 4.5—excel at real GitHub issues and command-line tasks.
Developers also appreciate that the agent works in their existing environment and uses familiar UNIX commands.
The design encourages collaboration, rather than replacing human judgment.
Shawn’s Perspective: Leveraging AI to Elevate Human Creativity
I see tools like Claude Code as creative amplifiers, not threats. AI is exceptionally good at handling repetitive and complex tasks, which frees humans to focus on architecture, design, and strategic thinking—where real differentiation happens.
I often encourage software teams to adopt strong test-driven development and collaboration practices when working with coding agents. Just as with any AI initiative, discipline matters. Without it, agents become shortcuts; with it, they become force multipliers.
In my workshops, I invite developers to pair-program with Claude Code—using the agent to explore new approaches while still applying human judgment. For me, the real value of tools like this lies in augmenting human creativity, not replacing it.
Conclusion
Claude Code demonstrates how agentic tools will reshape software development.
Its terminal-native design, persistent memory, and ability to execute complex workflows have propelled it from a research project to a billion-dollar product in less than a year.
As more enterprises integrate these tools, the role of developers will increasingly involve orchestrating AI agents and focusing on higher-level design.
Leaders should view Claude Code not as a replacement, but as a powerful partner—one that, combined with strong engineering discipline, can unlock new levels of productivity and innovation.
Frequently Asked Questions
Q1. How is Claude Code different from GitHub Copilot?
Copilot offers autocomplete and chat-based assistance within the IDE, whereas Claude Code runs in the terminal, directly interacts with files and commands, maintains state across sessions and can handle entire workflows.
Q2. When did Claude Code become generally available?
Anthropic launched Claude Code as a research preview in February 2025 and made it generally available in May 2025.
Q3. How much revenue does Claude Code generate?
By November 2025 Claude Code reached $1 billion in annualised revenue, and analysts believe it neared $2 billion by January 2026.
Q4. Does Claude Code replace human developers?
No. Engineers still need to verify outputs and provide guidance. Surveys show that developers delegate only up to 20% of their work fully to the agent; the rest requires collaboration and human oversight.
Q5. Can Claude Code be used for non-coding tasks?
Yes. Users have leveraged Claude Code for tasks like research, data analysis and even controlling home appliances via APIs. Anthropic’s subsequent “Cowork” launch demonstrates that the architecture extends beyond software development to other knowledge-work domains.
About the Author
Shawn Kanungo is a globally recognised disruption strategist and keynote speaker who helps organisations adapt to change and leverage disruptive thinking. Named one of the “Best New Speakers” by the National Speakers Bureau, he has spoken at some of the world’s most innovative organisations, including IBM, Walmart and 3M. His expertise in digital disruption strategies helps leaders navigate transformation and build resilience in an increasingly uncertain business environment.