My guess is that the telemetry data they can collect from interacting with claude code is the "secret sauce" behind a lot of the improvements we're seeing with coding models right now. Look at cursors Composer-2 release today. Clicking "accept" during plan mode, committing changes and pushing to a remote repo, etc. is a really strong reward signal.
Can't collect telemetry from applications you don't control.
Yup, agreed with this as well. Probably also why they've been investing so heavily in the desktop Claude Code experience; very hard to gather great telemetry from a terminal app.
You mean their tool (I use it daily) is so bad despite all the data they collect?
Yep, I suspect this is the rationale/driver too.
Yeah but they're not owed the telemetry. It's a privilege (if you convince your users to interface with your service via their client), not a right.