Anthropic Unveils Code Mode to Cut Token Costs From AI Agent Tool Calls

Anthropic has introduced Code Mode to address the context burden created when AI agents connect to large numbers of tools. Conventional approaches such as MCP often load API definitions and tool descriptions into prompts, increasing token costs and latency as more tools are added. Code Mode instead has the model write code for execution in a runtime, eliminating the need to keep tool details permanently in the model’s context.

The latest reports say Code Mode can compress tool information from as much as about 150K tokens to roughly 2K, a reduction of about 98.7%. This can make agent API calls more efficient and offers a new approach to the debate over MCP and CLI-based tool integration. As of July 20, 2026, the provided information disclosed neither a formal release date nor any related investment amount.