Anthropic released Claude 3.7 Sonnet, a hybrid reasoning model that switches between ordinary responses and "extended thinking" that shows its reasoning, with API users able to set a thinking budget of up to 128K tokens. Pricing held at $3 per million input tokens and $15 per million output tokens, thinking tokens included. Alongside it came Claude Code, a limited research preview of an agentic tool that takes on engineering work from the terminal — searching code, editing files, running tests, and driving GitHub and command-line utilities. Handing over a task at the terminal, rather than offering completions inside an editor, was an unfamiliar shape at the time.