AI startups revolutionize coding industry, leading to sky-high valuations Code generation startups are commanding sky-high valuations as they disrupt the software industry. As corporate boardrooms look to use AI to aid, and sometimes replace, human software engineers, code generation or 'code-gen' startups are commanding sky-high valuations, though none are yet profitable. San Francisco code-gen startup Cursor raised $900 million at a $10 billion valuation in May. And ChatGPT maker OpenAI is in talks to acquire Mountain View-based startup Windsurf for $3 billion. The rapid growth of these startups is coming despite competing on big tech's home turf. Microsoft’s GitHub Copilot grew to over $500 million in revenue last year, a source said. But as #ai revolutionizes the industry, many jobs – particularly entry-level coding positions – may be eliminated (source: Signalfire). New hires with less than a year of experience fell 24% in 2024, according to a firm that tracks tech hiring. That's as the leaders of firms like Google, Microsoft and Amazon say they're using AI to generate code. Microsoft laid off 6,000 workers globally in May, with over 40% being software developers. https://www.youtube.com/watch?v=hbMIRgx2FpU&feature=youtu.be