Overview

• Vibe coding, coined by Andrej Karpathy, relies on AI tools like Cursor AI to generate most of the code, reducing manual effort by developers.
• Approximately 25% of Y Combinator's Winter 2025 startups used 95% AI-generated code, highlighting the method's growing adoption.
• Startups leveraging vibe coding have achieved unprecedented revenue milestones, with some earning $1–10 million annually with fewer than 10 employees.
• Challenges persist as developers struggle with debugging and risk losing deep technical understanding due to heavy reliance on AI.
• The trend offers opportunities for young engineers to create standalone businesses in a competitive job market, while cultural reactions, including memes, reflect both enthusiasm and skepticism.