Feed: Slashdot
Feed Link: https://slashdot.org/
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Title: AI Startups Revolutionize Coding Industry, Leading To Sky-High
Valuations

Link: https://developers.slashdot.org/story/25/06/0...

Code generation startups are attracting extraordinary investor interest two
years after ChatGPT's launch, with companies like Cursor raising $900 million
at a $10 billion valuation despite operating with negative gross margins.
OpenAI is reportedly in talks to acquire Windsurf, maker of the Codeium
coding tool, for $3 billion, while the startup generates $50 million in
annualized revenue from a product launched just seven months ago. These "vibe
coding" platforms allow users to write software using plain English commands,
attempting to fundamentally change how code gets written. Cursor went from
zero to $100 million in recurring revenue in under two years with just 60
employees, though both major startups spend more money than they generate,
Reuters reports, citing investor sources familiar with their operations. The
surge comes as major technology giants report significant portions of their
code now being AI-generated -- Google claims over 30% while Microsoft reports
20-30%. Meanwhile, entry-level programming positions have declined 24% as
companies increasingly rely on AI tools to handle basic coding tasks
previously assigned to junior developers.

Read more of this story at Slashdot.

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