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Revolution in Startups: How AI is Changing Coding

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by Giorgi Kostiuk

3 hours ago


The world of startups is undergoing significant changes due to advancements in artificial intelligence. A quarter of startups in the current Y Combinator cohort use AI to craft their codebases, potentially altering the future of technological progress.

The Rise of AI-Generated Code in YC Startups

Y Combinator, known for successful startups like Airbnb and Dropbox, is witnessing a unique trend. In the Winter 2025 batch, 25% of startups have codebases composed 95% of AI code. These processes are initiated by technically proficient founders capable of independently creating products, yet choosing to use AI as the primary developer. This leads to unprecedented efficiency.

The Concept of 'Vibe Coding'

The notion of 'vibe coding' is linked to the use of AI to generate code. Developers can describe applications in natural language, and powerful AI models translate instructions into functional code. This allows focusing on the logic of the application, leaving the syntactical part to AI.

Challenges and Features of AI Coding

Using AI in coding brings benefits as well as challenges. Security vulnerabilities and errors may require human intervention. Reading and debugging code skills become necessary even with AI. Garry Tan emphasizes the importance of classical programming in creating sustainable products.

A quarter of Y Combinator startups are built on AI-generated code, indicating a technological revolution. Challenges remain, but the benefits of increased efficiency and accelerated development are evident. The impact of AI on software creation continues to intensify, promising to transform our approach to technology.

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