From Side Project to Powerhouse: How Claude Code Fueled Anthropic’s Rise

What began as an experimental internal tool has transformed into one of the most influential AI coding platforms in the world. Anthropic’s Claude Code, once a side initiative, is now a multibillion-dollar business that has helped position the company as a major force in the fast-growing AI software development market.

According to a report by a famous publication even Anthropic’s CEO Dario Amodei did not initially anticipate the overwhelming enthusiasm the tool would generate inside the company. Developed by Boris Cherny as part of an experimental division likened to Bell Labs, Claude Code quietly began attracting engineers across Anthropic without any mandate from leadership.

“I remember Dario asking, like, ‘Hey, are you forcing engineers to use this? Why is everyone using it?’” Cherny recalled in a recent interview. Actually, Cherny explained, all he had to do was give his co-workers access, and everyone voted with their feet.”

That organic adoption foreshadowed what would soon unfold publicly. When Claude Code was released commercially a year ago, it rapidly gained popularity among developers worldwide. The tool entered a competitive field that already included products like Microsoft Copilot and Cursor, both known for their intuitive interfaces and developer-friendly features. However, Claude Code distinguished itself by offering more autonomous code writing and debugging capabilities—reducing the need for constant human intervention.

Its impact was swift and substantial. Within six months of launch, Claude Code reached $1 billion in annualised run-rate revenue. Since then, that figure has climbed to $2.5 billion, underscoring the surging demand for advanced AI-assisted programming tools.

Initially embraced by AI-native startups, the platform has since expanded its footprint into mainstream enterprise environments. Engineering teams at Fortune 500 companies are now incorporating Claude Code into their workflows. At the same time, the tool has attracted hobbyists and aspiring developers with limited technical backgrounds who are eager to build applications of their own.

The range of use cases has been strikingly diverse. Developers have relied on Claude Code for everything from optimising the growth of a tomato plant to assisting with route planning for a NASA Mars rover. Such examples highlight how AI coding assistants are no longer confined to writing simple scripts—they are becoming collaborative partners in complex problem-solving.

On social media platforms, enthusiasm for the product has reached cult-like levels. Users frequently describe themselves as “Claude-pilled,” a tongue-in-cheek way of expressing deep loyalty to the platform.

Claude Code’s meteoric rise has also reshaped the competitive landscape. Rather than playing catch-up, Anthropic now finds itself setting the pace, prompting rivals—including OpenAI—to accelerate their own AI coding innovations.

In just one year, Claude Code has evolved from a quiet internal experiment into a defining product for Anthropic—and a symbol of how quickly AI tools can scale from curiosity to cornerstone in the digital economy.