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AI Startups Revolutionize Coding Industry, Leading To Sky-High Valuations


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 ...

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. 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. 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.

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