Garry Tan, CEO of Y Combinator, emphasizes the impact of 'vibe coding' on the startup ecosystem, allowing smaller teams to achieve significant revenues with AI's support in coding. Defined as utilizing AI to automate coding tasks, vibe coding permits teams to focus on innovation and efficiency, dramatically front-loading processes. In the current Y Combinator cohort, a notable 81% of startups are AI-centric, showcasing the trend's substantial influence. This new approach transforms how startups operate, allowing them to pivot quickly and thrive in competitive markets.
"I mean, the wild thing is people are getting to a million dollars to 10 million dollars a year revenue with under 10 people, and that's really never happened before in early stage venture," Garry Tan, CEO and president of Y Combinator, said in an interview with CNBC.
"You can just talk to the large language models and they will code entire apps," Tan said. "And if it doesn't do - if there's a bug, or if you want it to change... you don't have to... write the code yourself."
Tan says vibe coding makes the process of building software overall more efficient, and the current batch of startups that Y Combinator is incubating - which Tan says is composed of about "81%" AI companies themselves - is taking full advantage.
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