Common mistake: choosing models based on cost per token. Correct approach is to measure cost per task. Models vary not just in quality but verbosity and efficiency in token usage.
A few months back the LLM was something to delegate fully specified tasks to (intern). Then it evolved into a junior thought partner to bounce ideas with and collaborate on work (chief of staff). Now, I often find myself relying on its judgement and assessment (peer).
Raghavendra Prabhu retweeted
It's a weird time. I am filled with wonder and also a profound sadness.
I spent a lot of time over the weekend writing code with Claude. And it was very clear that we will never ever write code by hand again. It doesn't make any sense to do so.
Something I was very good at is now free and abundant. I am happy...but disoriented.
At the same time, something I spent my early career building (social networks) was being created by lobster-agents. It's all a bit silly...but if you zoom out, it's kind of indistinguishable from humans on the larger internet.
So both the form and function of my early career are now produced by AI.
I am happy but also sad and confused.
If anything, this whole period is showing me what it is like to be human again.
Raghavendra Prabhu retweeted
Every single dev and product team I speak to in the last 30 days has moved from Cursor to Claude Code.
1. Is this permanent?
2. If so, what happens to Cursor?
A few thoughts to add to @karpathy's great post:
1. AI coding (specifically Claude Code with Opus 4.5) does seem to have reached an inflection point in Dec 2025. Not only does it write nearly 100%+ of my code now, it is actually doing more e2e software engineering work. This week, for example, I had Claude Code debug a tricky production issue and it did so in like ~1 hour, using me as a copilot to run tasks like SQL queries against the prod db, reviewing application logs etc. I was just the messenger. It likely would have taken me at least 2 hours to figure it out due to time to ramp up on the relevant code written by other team mates. It was mind blowing.
2. The implications of this seem quite profound for the software engineering profession. For the first time, I feel I can 'see the exponential' and where this goes in the next year or so. There is line of sight to tools like Claude Code actually passing a Turing test for software engineering. Modest model improvements + a lot of surrounding software and tools feels like it can get us there, no huge breakthroughs needed.
3. However, this is a massive adoption gap. Lots of engineers/companies are still not using AI at all or only basic auto-complete. I see bridging this adoption gap as the biggest challenge today.
4. As companies figure this out, I'd worry about a phase of 'hiring pauses' while they adjust to a radical new level of SWE productivity. The transformation and expectation resetting will take time and it could be a rough couple of years.
5. Eventually though I predict SWE roles evolve into 'product builders' or 'system builders' where each human engineer is paired with a swarm of AI agents and building whole products single-handedly.
A few random notes from claude coding quite a bit last few weeks.
Coding workflow. Given the latest lift in LLM coding capability, like many others I rapidly went from about 80% manual+autocomplete coding and 20% agents in November to 80% agent coding and 20% edits+touchups in December. i.e. I really am mostly programming in English now, a bit sheepishly telling the LLM what code to write... in words. It hurts the ego a bit but the power to operate over software in large "code actions" is just too net useful, especially once you adapt to it, configure it, learn to use it, and wrap your head around what it can and cannot do. This is easily the biggest change to my basic coding workflow in ~2 decades of programming and it happened over the course of a few weeks. I'd expect something similar to be happening to well into double digit percent of engineers out there, while the awareness of it in the general population feels well into low single digit percent.
IDEs/agent swarms/fallability. Both the "no need for IDE anymore" hype and the "agent swarm" hype is imo too much for right now. The models definitely still make mistakes and if you have any code you actually care about I would watch them like a hawk, in a nice large IDE on the side. The mistakes have changed a lot - they are not simple syntax errors anymore, they are subtle conceptual errors that a slightly sloppy, hasty junior dev might do. The most common category is that the models make wrong assumptions on your behalf and just run along with them without checking. They also don't manage their confusion, they don't seek clarifications, they don't surface inconsistencies, they don't present tradeoffs, they don't push back when they should, and they are still a little too sycophantic. Things get better in plan mode, but there is some need for a lightweight inline plan mode. They also really like to overcomplicate code and APIs, they bloat abstractions, they don't clean up dead code after themselves, etc. They will implement an inefficient, bloated, brittle construction over 1000 lines of code and it's up to you to be like "umm couldn't you just do this instead?" and they will be like "of course!" and immediately cut it down to 100 lines. They still sometimes change/remove comments and code they don't like or don't sufficiently understand as side effects, even if it is orthogonal to the task at hand. All of this happens despite a few simple attempts to fix it via instructions in CLAUDE . md. Despite all these issues, it is still a net huge improvement and it's very difficult to imagine going back to manual coding. TLDR everyone has their developing flow, my current is a small few CC sessions on the left in ghostty windows/tabs and an IDE on the right for viewing the code + manual edits.
Tenacity. It's so interesting to watch an agent relentlessly work at something. They never get tired, they never get demoralized, they just keep going and trying things where a person would have given up long ago to fight another day. It's a "feel the AGI" moment to watch it struggle with something for a long time just to come out victorious 30 minutes later. You realize that stamina is a core bottleneck to work and that with LLMs in hand it has been dramatically increased.
Speedups. It's not clear how to measure the "speedup" of LLM assistance. Certainly I feel net way faster at what I was going to do, but the main effect is that I do a lot more than I was going to do because 1) I can code up all kinds of things that just wouldn't have been worth coding before and 2) I can approach code that I couldn't work on before because of knowledge/skill issue. So certainly it's speedup, but it's possibly a lot more an expansion.
Leverage. LLMs are exceptionally good at looping until they meet specific goals and this is where most of the "feel the AGI" magic is to be found. Don't tell it what to do, give it success criteria and watch it go. Get it to write tests first and then pass them. Put it in the loop with a browser MCP. Write the naive algorithm that is very likely correct first, then ask it to optimize it while preserving correctness. Change your approach from imperative to declarative to get the agents looping longer and gain leverage.
Fun. I didn't anticipate that with agents programming feels *more* fun because a lot of the fill in the blanks drudgery is removed and what remains is the creative part. I also feel less blocked/stuck (which is not fun) and I experience a lot more courage because there's almost always a way to work hand in hand with it to make some positive progress. I have seen the opposite sentiment from other people too; LLM coding will split up engineers based on those who primarily liked coding and those who primarily liked building.
Atrophy. I've already noticed that I am slowly starting to atrophy my ability to write code manually. Generation (writing code) and discrimination (reading code) are different capabilities in the brain. Largely due to all the little mostly syntactic details involved in programming, you can review code just fine even if you struggle to write it.
Slopacolypse. I am bracing for 2026 as the year of the slopacolypse across all of github, substack, arxiv, X/instagram, and generally all digital media. We're also going to see a lot more AI hype productivity theater (is that even possible?), on the side of actual, real improvements.
Questions. A few of the questions on my mind:
- What happens to the "10X engineer" - the ratio of productivity between the mean and the max engineer? It's quite possible that this grows *a lot*.
- Armed with LLMs, do generalists increasingly outperform specialists? LLMs are a lot better at fill in the blanks (the micro) than grand strategy (the macro).
- What does LLM coding feel like in the future? Is it like playing StarCraft? Playing Factorio? Playing music?
- How much of society is bottlenecked by digital knowledge work?
TLDR Where does this leave us? LLM agent capabilities (Claude & Codex especially) have crossed some kind of threshold of coherence around December 2025 and caused a phase shift in software engineering and closely related. The intelligence part suddenly feels quite a bit ahead of all the rest of it - integrations (tools, knowledge), the necessity for new organizational workflows, processes, diffusion more generally. 2026 is going to be a high energy year as the industry metabolizes the new capability.
Claude Code is one of the most poorly named tools ever. It is not just a coding tool for engineers, it is a powerful AI that has access to your computer, files and browser. And happens to know how to code if needed for a task. It is really a general purpose work assistant.
We talk of AI intelligence as evolving on the same track as human i.e. AGI -> super human. My observation is it on a different evolutionary track altogether - after all, no human was ever trained with all of humanity's knowledge. AI just thinks differently from humans.
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Conventional wisdom often defies common sense. I've wondered why that is, many times convention develops simply because one person did it that way at some point and everyone else followed suit since. Not always well thought out.
"You can go off the rails completely when you are hyping yourself with the supply-side, versus really understanding how to translate that into real value to customers."
Exactly. It takes a lot of skill and effort to take AI and deploy it towards a meaningfully differentiated vertical agentic application. This is a nuanced point that is often lost to commentators who aren't or haven't been builders.
Satya is Out
TLDR: MSFT doesn’t believe in AGI, wary of overinvestment, OpenAI partnership is over
A. AI and AGI are overhyped
- “Us self-claiming some AGI milestone, that's just nonsensical benchmark hacking to me. The real benchmark is: the world growing at 10%.”
B. Very negative on more capex spend from MSFT
- “[If you look at the Industrial Revolution] there was a lot of money lost”
- “…countries are going to deploy capital… I'm so excited to be a leaser… I build a lot, I lease a lot.“
C. Value in AI is in infra where there is overbuild, and B2C apps which OpenAI has won, negative on model layer
- “in consumer, in some categories, there may be some winner-take-all network effect. ChatGPT is a great example [of a] at-scale consumer property that has already got real escape velocity”
- “[in enterprise] buyers will not tolerate winner-take-all. … where the buyer is a corporation, an enterprise, an IT department, they will want multiple suppliers.. That is what will happen even on the model side.”
- “In the model layer, one is models need ultimately to run on some hyperscale compute.”
Opinion
————
1. Satya is calling the bubble in buildout. The crazy people like govts are entering the game. He’s happy to lease from them when they overbuild. His own capex spend is capped
2. He’s disappointed in the OpenAI partnership - he sees them as having built a great consumer app for themselves with dominance in the category, but models for enterprise usage have gotten commoditized.
3. He’s sooo done with the AGI talk. If you can’t get to 10% global growth your AGI talk is meaningless to him
4. He’s backing MSFT from the capex precipice. It’s funny because he certainly did make Google dance, and now they’re committed to insane capex. But he’s outta here
One of the most meaningful @dwarkesh_sp interviews so far








