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High costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
They’re absolutely abysmal,” said Nicholas Charriere, founder of Mocha, a vibe coding startup and backend hosting solution serving small and medium businesses (SMBs). Unlike Windsurf, Anysphere has been growing so fast that it intends to remain an independent company, having already turned down acquisition offers, including, reports say, from OpenAI. Additionally, if this extremely popular business sector, already generating hundreds of millions in revenue or more a year, has difficulty building on top of model makers, what might it mean for other, more nascent industries?
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