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TechCheck

The Rise of AI Vibe-Coding 5/5/25

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.856 Ratings

🗓️ 5 May 2025

⏱️ 7 minutes

🧾️ Download transcript

Summary

One of AI's emerging superpowers is writing software, as shown by the rapidly climbing valuation of Anysphere, which makes one of the leading tools in the space. But now, we're also seeing big tech jump in, with Microsoft, Google, and Amazon all saying that 30% of their code is being written by AI. We dive into when we'll start seeing evidence of the boom impacting profits.

Transcript

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0:00.0

The startup behind the AI programming tool cursor has reportedly hit a $9 billion valuation,

0:06.0

a sign of just how quickly AI first coding or vibe coding is growing in Silicon Valley.

0:11.2

Kay Rooney has more on the trend in today's tech check. I love this story, Kate.

0:15.0

Carl, yeah, we're hearing more of that term vibe coding.

0:17.4

And we're also finding out and seeing more evidence that one of AI's emerging

0:21.1

superpowers right now is writing software and writing code that has been on display lately with

0:26.1

the rise of cursor, which you mentioned. It's an AI tool that helps engineers outsource coding

0:30.6

to artificial intelligence. And it's driving some of the latest mega valuations we're seeing in

0:35.2

Silicon Valley. Saw the cursor news as well.

0:37.9

Mega cap companies like Microsoft and Meta are also jumping in on this trend.

0:41.6

They're talking a lot more about it.

0:43.7

Out here in the valley, they do call it vibe coding.

0:45.8

So it's essentially a way to write code more casually, quickly.

0:49.9

You put in a text prompt about what you actually want to build and you go by the feel

0:53.8

or the vibe

0:54.7

instead of necessarily having to write every line of code and know those complicated coding languages.

1:00.7

It also lowers the barrier to writing all this code.

1:03.6

It makes it easier to build an app or a feature without really knowing these coding languages.

1:07.9

So the bar is coming down overall.

1:09.6

Startups have been on the front lines

1:11.0

using this. Those I talk to say it's making them leader. It's making them more profitable

1:14.7

at the early stages. They don't need to hire as many engineers. And just last week, we got even

...

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