Obsidian + Claude Code. The File-System AI Setup That Changes Everything

Claude Code hit $1B in six months by doing what ChatGPT can't: reading your files directly. Paired with Obsidian, it transforms years of accumulated notes into an AI-powered research system. Here's how to set it up.

Claude Code + Obsidian: The AI Knowledge Work Setup Guide

Teresa Torres runs her entire business from two terminal windows. One sits open to her writing projects. The other monitors her task management system. Both connect to the same Obsidian vault, a folder containing years of notes, outlines, and client research. When she needs to prepare a client briefing, she doesn't search through files. She types a sentence into the terminal: "Compile all notes related to healthcare market sizing and produce a briefing document with timeline."

Claude Code reads her folder structure, identifies relevant notes through tags and semantic understanding, synthesizes information across dozens of documents, and produces a draft linked back to source materials. The same task through a standard AI chat interface would require manually selecting and uploading files until she hit context limits. She'd lose the thread between sessions. She'd spend more time feeding the machine than thinking.

Torres writes 35,000 words a month now. She used to write 8,000. The difference isn't that Claude writes for her. The difference is friction. The ten minutes she spent hunting for that relevant note from last year? Gone. The context she lost between chat sessions? Preserved. The formatting and organizational busywork that used to eat her mornings? Automated.

This is the story of what happens when AI stops being a hotel guest and becomes a roommate with keys to every drawer.

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