What is Claude Code? A complete guide to Anthropic's coding agent
Claude Code is Anthropic's agentic coding tool that runs in your terminal, reads your codebase, edits files, runs tests and opens pull requests. This guide covers what it does, how it compares with Cursor, Codex and Copilot, how to install it, what it costs, and how to run it in an EU environment with policy and logging.
Claude Code is a tool you start in your terminal and give tasks in plain language: "Find out why the login test fails and fix it." The agent reads the codebase, plans, changes files, runs the tests and shows you the result. Since its launch in early 2025 it has become one of the most widely used coding agents, and for many companies the first place they meet agentic AI in production.
This is the starting point. It covers what Claude Code can do, how it compares with the alternatives, the key concepts, and what a company needs to know about data and governance. Installation and pricing have their own pages.
What Claude Code does
Unlike autocomplete in an editor, Claude Code works as an agent: it takes a goal and executes several steps on its own.
- Understands the codebase. Searches the project, reads relevant files, explains architecture or individual functions.
- Makes changes. New features, refactors, bug fixes across many files, with a diff preview before every edit.
- Runs and verifies. Tests, linters, build commands. If something fails it reads the output and corrects.
- Handles git. Branches, commits with sensible messages, pull requests, merge conflicts.
- Connects to tools. Through MCP servers it reaches GitHub, Jira, databases, browsers and internal systems.
- Loads know-how. Through skills and a
CLAUDE.mdfile in the repository it knows your team's conventions.
It runs in the terminal, as an extension in VS Code and JetBrains, as a GitHub Action in CI, and through an SDK inside your own agents.
Installation in brief
The fastest route is the native installer, which needs no Node.js:
# macOS and Linux
curl -fsSL https://claude.ai/install.sh | bash
# Windows (PowerShell)
irm https://claude.ai/install.ps1 | iex
Or via npm if Node.js 18 or later is present:
npm install -g @anthropic-ai/claude-code
Then run claude in a project folder and sign in on first launch. Step-by-step instructions, common errors and enterprise setups are in How to install Claude Code.
What Claude Code costs
Claude Code is not sold separately. It is included in Anthropic's subscriptions or billed per token through the API:
- Pro: the entry point for individuals, with a usage allowance.
- Max: much higher allowances in two tiers, for developers who use the agent all day.
- Team and Enterprise: seats with central administration; Claude Code is in the premium seats.
- API: per-token billing, right for CI pipelines and custom agents.
The amounts, what "allowance" means in practice, and how to control cost across a team are in Is Claude Code free? Pricing explained.
The key concepts
CLAUDE.md. A Markdown file in the repository, loaded at the start of every session. Build and test commands, conventions, and anything the agent must always know. /init drafts one from what it finds in the repo.
Permissions. Claude Code asks before it edits files or runs commands. You can allow specific commands permanently, keep the agent in a read-only plan mode, or let it run more freely in trusted environments such as a sandbox or CI.
MCP servers. Through the Model Context Protocol the agent gets access to external systems. Add one with claude mcp add; inside a session /mcp shows status and starts authentication. See What is an MCP server?.
Skills. Folders with a SKILL.md that teach the agent how a specific task is done in your team, loaded only when relevant. See Claude skills explained.
Hooks, subagents, plugins. Hooks run your own scripts before or after certain actions (a formatter after every edit, say). Subagents handle subtasks in their own context. Plugins bundle skills, commands, hooks and MCP servers for distribution to a team.
Claude Code compared
Claude Code vs Cursor. Cursor is an editor with AI built in. Claude Code is an agent that plugs into any editor and into CI. Cursor is stronger for interactive editing, Claude Code for longer multi-step tasks. Many teams use both, often with Claude models in both.
Claude Code vs Codex. OpenAI's Codex is the direct counterpart with GPT models: CLI, editor integration, cloud execution. The choice usually comes down to which models the company has approved. A gateway that serves both takes the heat out of the decision.
Claude Code vs GitHub Copilot. Copilot started as autocomplete and now has an agent mode with model choice, including Claude. It is tightly tied to GitHub. Claude Code is more ecosystem-independent and more deeply built for agentic work.
Data protection and running it in the EU
This is where most European rollouts stall, and it is solvable.
Default operation. With an Anthropic account, requests go through Anthropic's API in the US. Team, Enterprise and API usage fall under the commercial terms, under which data is not used for training, and a data processing agreement is available.
EU regions. Claude Code supports Amazon Bedrock, Google Vertex AI and Microsoft Foundry as backends, so model calls can run in an EU region such as Frankfurt or Sweden Central. The switch is a few environment variables; developers keep the same tool.
What a gateway adds. Even with an EU region, questions remain: who may use which models, with what budget? Which MCP servers are approved? Where do credentials live? What did the agent do yesterday at 14:32? A gateway between developer and model answers all of them: policy, budgets, approved servers and a full log in one place. Claude Code supports a configurable base URL, so every request can go through the gateway without the developer noticing.
Walma AI Hub is that gateway, running in the customer's own Azure tenant in an EU region, for Claude Code, Codex, Cursor and the MCP servers the company approves. Developers install one signed client and work with one key; there is no client-side switch to turn policy off. If you are rolling Claude Code out beyond a handful of developers, a 20-minute walkthrough is the fastest way to settle the open questions.
Further reading
- How to install Claude Code on macOS, Linux and Windows.
- Is Claude Code free? Pricing explained.
- What is an MCP server? How the agent reaches tools and data.
- Claude skills explained. Making team know-how reusable.
Frequently asked questions
What is Claude Code?+
Claude Code is a command-line tool from Anthropic that runs Claude as a coding agent in your terminal. It reads your codebase, plans changes, edits files, runs tests and commands, and creates commits and pull requests, in a conversation with you.
Is Claude Code free?+
No. Claude Code is included in the Pro, Max, Team and Enterprise plans, or billed per token through the API. There is no permanently free tier, though new API accounts sometimes get trial credits.
Does Claude Code work on Windows?+
Yes. Claude Code runs natively on Windows 10 and 11 (with Git for Windows), on macOS and Linux, and inside WSL. Install it with the native installer script or via npm.
Claude Code vs Cursor: which is better?+
They are different tools. Cursor is an editor with an AI assistant built in; Claude Code is an agent that works from the terminal, independent of your editor, and can be embedded in VS Code, JetBrains and CI. Cursor is stronger for interactive editing, Claude Code for longer multi-step tasks. Many teams use both.
Where is my code processed when I use Claude Code?+
By default at Anthropic in the US. Companies in the EU can run Claude Code through Amazon Bedrock, Google Vertex AI or Microsoft Foundry in an EU region, or through a gateway such as Walma AI Hub in their own Azure tenant.
The same tools, in your EU region, under your control
A 20-minute walkthrough with an engineer. We map it to your tools, your MCP servers and your budget model.