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AI News from ET - AI 'vibe coding' startups burst onto scene with sky-high valuations

Vishwadeep Khatri
in AI News & Two Lenses

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Founders of code-gen startups and their investors believe they are in a land grab situation, with a shrinking window to gain a critical mass of users and establish their AI coding tool as the industry standard. But because most are built on AI foundation models developed elsewhere, such as OpenAI, Anthropic, or DeepSeek, their costs per query are also growing, and none are yet profitable.

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