Latest news with #Windsurf
Yahoo
a day ago
- Business
- Yahoo
The Windsurf and Scale deals underscore a fragile reality for startup employees
When an employee joins a startup, there's a social contract of sorts. The employee takes a risk, joining a new company, in many cases one that doesn't have proven revenue or a secure future. They join for the mission, the chance to take a seat on a possible rocket ship, and to work with a founder or set of cofounders they believe are exceptional. And of course, they join for the upside—the belief that the equity in a company that they take on as part of their compensation will actually be worth something in the end, that the founders they've risked their careers for will advocate for as many of their people as possible in the event of an exit. 'If that social compact fails, the whole system fails,' said Daniel Dart, founder of Rock Yard Ventures. And this social contract has been under pressure in recent days and weeks, as multi-billion dollar acquihires take CEOs and cofounders away from the companies they've founded—leaving behind companies with uncertain futures and in many cases hundreds of employees or more. We've seen two notable cases in quick succession: Meta's $14 billion deal for 49% of Scale AI, which moved Scale CEO and cofounder Alex Wang to Meta, and Google's $2.4 billion acquihire of Windsurf, a deal that left many employees behind—who then soon would see the remains of their company acquired by Cognition. People are mad about Scale, sure—the company laid off about 200 staff members this week—but people are really incensed about Windsurf, a deal that excluded about 250 employees, fostering concerns not only about equity (in all senses of the word) but for what this means about the relationship between founders and their employees. 'I think the cascading net effect of this sort of situation is that it's actually going to change what those early conversations with employees are like at startups,' said Dart. To Amplitude CEO and cofounder Spenser Skates—who's conducted both acquihires and acquisitions really recently—the Windsurf deal stands out as egregious. He likens it to a captain abandoning ship, comparing the situation to Francesco Schettino, who in 2012 fled the capsized Costa Concordia, leaving behind passengers and crew. Thirty-two people died in the disaster. Incidents like Windsurf, Skates says, show why it's more important than ever for employees to think hard about the founder they're throwing their lot in with. 'I think employees should ask the CEO and founders straight up: Are you going to leave? It's crazy you have to do that,' said Skates. 'But I think the character and integrity of the founders matters way more than ever.' I asked Henry Shi, cofounder, if startup employees will start thinking differently about their hiring terms as deals like this happen more frequently. 'Yes, but unfortunately I'm not sure if they have many options or leverage,' Shi wrote via email. 'Especially given the market dynamic between labor and capital as we approach economic AGI, early employees may not have that much leverage—except by starting their own companies.' Because equity is what a founder makes it. We'll see more of this as the M&A marketplace continues at 'AI speed,' said David Shim, CEO and cofounder of via email. And we have, in fact, seen deals of this ilk before, from Microsoft's acquihire of Inflection to Amazon's of Adept. And, in the end, the fact that social media was so abuzz may actually be a good thing for startup employees. It means people still want the innovation economy to benefit all its participants. Given that antitrust regulators don't seem poised to police these kinds of deals anytime soon, the public reaction may indeed be one of the few guardrails. 'What we saw with the Windsurf deal was the ecosystem getting up in arms about the fairness for employees, which should create some sense of comfort,' said Yohei Nakajima, general partner at Untapped Capital. 'While breaking up companies isn't necessarily bad, it's important that everybody gets their fair share—and especially if these types of deals continue, I'd hope to see more standards around how these get treated.' See you Monday, Allie GarfinkleX: @agarfinksEmail: a deal for the Term Sheet newsletter here. Sara Braun curated the deals section of today's newsletter. Subscribe here. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
India Today
a day ago
- Business
- India Today
AI is now writing half the code at this company, and it is not Google or Microsoft
Robinhood, the trading platform known for its focus on retail investors, has revealed that artificial intelligence (AI) is playing a much bigger role in its software development than many expected. According to CEO Vlad Tenev, about 50 per cent of the new code written at the company is now being generated by AI, Business Insider made this claim during a recent episode of the 20VC podcast. While companies like Google and Microsoft have also begun using AI to assist with coding, Robinhood appears to be relying on it more heavily. Google and Microsoft recently said that around 30 per cent of their code is AI-generated. But, Robinhood's number is much explained that almost all of the company's engineers now use AI-based code editors. He said it's becoming harder to tell which parts of the code are written by humans and which are produced by AI. "We've moved from GitHub Copilot, which is an autocomplete system, to Cursor, and now things like Windsurf, where nearly all of the code is written by AI," he said. He also mentioned that it's difficult to estimate exactly how much code is human-written, but he believes it's now the smaller change isn't just helping Robinhood write code faster. It's also helping the company save money and improve how its teams work. Tenev said that AI has had a major impact on departments like engineering and customer support. "The impact that it's had on internal teams has been huge,' he noted. He also said the company has been quiet about how much AI it's using behind the scenes, but the results have been growing use of AI comes at a time when the company is performing well in the market. Its stock price has jumped over 170 per cent since the start of the year. This growth has been driven by several factors, including the company's push into crypto tokens based on private stocks, and new product rollouts like a prediction market feature for Robinhood is leading in terms of AI code generation, other big tech firms are also increasing their use of AI in similar ways. Microsoft CEO Satya Nadella said recently that AI writes up to 30 per cent of code in some projects. He also pointed out that the company is using AI to review code, making development more CEO Sundar Pichai gave a similar update during Alphabet's latest earnings call. He said over 30 per cent of new code at Google is AI-written, which is up from 25 per cent a few months ago. Meta's CEO Mark Zuckerberg has also said that he expects AI will soon handle half of the coding at the company, especially for projects like its Llama companies are even changing their hiring plans because of AI. Salesforce CEO Marc Benioff announced earlier this year that the company would pause new engineering hires in 2025 due to AI increasing developer productivity by 30 per cent. Stripe, a payments company, laid off hundreds of workers including some in engineering, partly due to the change toward AI-powered development. Only time will tell whether AI will benefit humans or not in a big way.- Ends
Geeky Gadgets
a day ago
- Geeky Gadgets
Windsurf AI Wave 11 Update Overview : Voice, Deeper Browser Integrations and More
After the turmoil of the last few weeks for Windsurf the company has, released its Wave 11 update to Windsurf AI's Cascade. With voice interaction that enables hands-free coding, deeper browser integration for seamless debugging, and JetBrains-specific enhancements that supercharge productivity, this release promises to transform the way developers approach their craft. It's not just an update—it's a leap forward in how we interact with AI to solve complex problems and focus on innovation. In the video below the official Windsurf development team provide more insights into the main features of the Wave 11 update, showcasing how they address the most pressing challenges faced by developers today. From context-aware AI that remembers your workflows to automated task planning that breaks down daunting objectives, each enhancement is designed to save time, reduce friction, and boost efficiency. Whether you're curious about how voice commands can transform multitasking or eager to see how JetBrains integration can streamline your projects, this update offers something for every developer. As you read on, consider how these tools could reshape not just your workflow, but the very way you think about coding. Wave 11 Update Highlights Voice Interaction: Hands-Free Coding Cascade now supports voice commands, allowing you to interact with the assistant without relying on manual input. This feature is particularly valuable in multitasking scenarios, allowing hands-free operation while coding or managing tasks. By simply speaking commands, you can trigger actions, retrieve information, or navigate workflows. This makes the development process faster, more intuitive, and less reliant on traditional input methods. Whether you're debugging, writing code, or managing project tasks, this feature ensures seamless integration into your workflow. Enhanced AI Context Awareness The update introduces improved context awareness, allowing Cascade to recall past interactions and maintain continuity in multi-step or complex tasks. This eliminates the need to repeatedly provide background information, as the assistant intelligently references previous conversations. By offering relevant suggestions and maintaining workflow consistency, this feature ensures that your interactions with Cascade are both efficient and productive. Developers working on intricate projects will particularly benefit from this enhancement, as it reduces interruptions and enhances focus. Windsurf AI Coding Assistant Update Watch this video on YouTube. Learn more about Windsurf with the help of our in-depth articles and helpful guides. Browser Integration: Streamlined Debugging and Research Cascade's deeper browser integration enables direct interaction with your open tabs, offering significant improvements in debugging and research processes. Using app mentions, you can instruct Cascade to collect data such as screenshots, console logs, or DOM elements from specific tabs. This feature simplifies the traditionally time-consuming task of manual data collection, allowing you to focus on solving problems rather than gathering information. By streamlining these processes, Cascade helps you save time and effort, making sure smoother project execution. Workflow Automation and Task Management The Wave 11 update introduces several features designed to enhance task management and workflow automation. These include automated task planning, JetBrains workflow enhancements, and conversation checkpoints, all aimed at improving clarity, precision, and efficiency. Automated Task Planning: Cascade now breaks down complex objectives into manageable steps, making sure clarity in your workflows. For those who prefer a more hands-on approach, this feature can be disabled, offering flexibility to adapt to your preferred working style. Cascade now breaks down complex objectives into manageable steps, making sure clarity in your workflows. For those who prefer a more hands-on approach, this feature can be disabled, offering flexibility to adapt to your preferred working style. JetBrains Workflow Enhancements: Developers using JetBrains tools benefit from targeted improvements, such as file-based scoping rules and turbo mode for terminal commands. These updates streamline workflows and improve consistency across team projects. Developers using JetBrains tools benefit from targeted improvements, such as file-based scoping rules and turbo mode for terminal commands. These updates streamline workflows and improve consistency across team projects. Conversation Checkpoints: Named checkpoints within conversations allow you to revisit specific points in your interactions. This is particularly useful for managing long or intricate discussions, making sure you can return to critical moments without losing context. These features collectively enhance the way developers plan, execute, and manage their tasks, making sure a smoother and more efficient workflow. JetBrains Workflow Enhancements: Precision and Efficiency JetBrains users will notice significant improvements in how Cascade integrates with their development environment. Key updates include: File-Based Scoping Rules: This feature allows you to define specific files or directories for task execution, making sure Cascade focuses only on relevant areas of your project. This is especially valuable in large projects, where maintaining focus on critical files is essential for efficiency and accuracy. This feature allows you to define specific files or directories for task execution, making sure Cascade focuses only on relevant areas of your project. This is especially valuable in large projects, where maintaining focus on critical files is essential for efficiency and accuracy. Turbo Mode for Terminal Commands: Automate repetitive terminal tasks, such as builds or deployments, reducing manual input and accelerating processes. This feature minimizes time spent on routine tasks, allowing you to focus on higher-value activities like debugging or feature development. These enhancements are designed to improve precision and efficiency, making Cascade an indispensable tool for JetBrains users. Advanced Features for Seamless Development The Wave 11 update introduces several advanced features that further enhance Cascade's capabilities, making sure a seamless development experience: Secure Authentication for MCP Servers: Expanded support for MCP servers now includes secure authentication options, reinforcing Cascade's commitment to protecting sensitive data. This ensures that your interactions remain secure, even in environments requiring high levels of confidentiality. Expanded support for MCP servers now includes secure authentication options, reinforcing Cascade's commitment to protecting sensitive data. This ensures that your interactions remain secure, even in environments requiring high levels of confidentiality. Auto-Continue for Complex Queries: The auto-continue feature allows Cascade to deliver uninterrupted responses to complex queries or tasks. This minimizes the need for follow-up prompts, making sure that your interactions are efficient and comprehensive. These updates demonstrate Cascade's ability to adapt to the evolving needs of modern software development, providing tools that enhance both security and efficiency. A Step Forward for Developers The Wave 11 update for Windsurf AI's Cascade delivers meaningful advancements across voice interaction, browser integration, JetBrains functionality, and workflow automation. By addressing key developer needs, these enhancements simplify daily tasks, improve collaboration, and boost productivity. Cascade continues to evolve with the demands of modern software development, solidifying its position as a valuable tool for developers seeking to optimize their workflows and achieve greater efficiency. Media Credit: Windsurf Filed Under: AI, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Yahoo
2 days ago
- Business
- Yahoo
Robinhood CEO says the majority of the company's new code is written by AI, with 'close to 100%' adoption from engineers
Robinhood CEO Vlad Tenev estimates that "a minority" of the company's new code is written by humans. On the 20VC podcast, Tenev said that it's become difficult to distinguish human-written from AI-generated code. He said the company has used tools like GitHub Copilot, Cursor, and Windsurf, and nearly 100% of his engineers use an AI editor. At Robinhood, nearly all of the engineers are vibe coders. That's according to Robinhood CEO Vlad Tenev, who said on the 20VC podcast that the company's human-written code was hard to distinguish from AI-generated code. Among the company's engineers, "close to 100%" are using AI code editors, he said. When asked what percentage of Robinhood's new code is AI-generated, Tenev said that it was around 50%. That's a higher percentage than what Microsoft and Google have previously said, with CEOs Satya Nadella and Sundar Pichai estimating around 30%. Tenev acknowledged that the 50% metric was imprecise, thanks to the upgrowth of "agentic" code editors. "We've moved from GitHub Copilot, which is an autocomplete system, to Cursor, and now things like Windsurf, where nearly all of the code is written by AI," Tenev said. "It's hard to even determine what the human-generated code is." Taking a guess, Tenev estimated the "minority" of new code at Robinhood was written by humans. Robinhood's stock price has been on a tear, trading up over 177% since the start of the year, with multiple factors driving its recent rally. Robinhood expanded its crypto venture by launching US private-stock tokens. Retail investors on Robinhood remain active, and the company continues to roll out new products like a predictions-market hub. On 20VC, Tenev said AI had contributed to the company's cost and efficiency stabilization, he said. "We have been pretty mum on how much we've been using it internally," Tenev said. "The impact that it's had on internal teams, ranging from software engineering to customer support, the really big internal teams, has been huge." Read the original article on Business Insider
Business Times
2 days ago
- Business
- Business Times
Big Tech ‘acquihiring' is an ugly but useful trend
IF YOU'RE a venture capitalist, you dream of backing the next billion-dollar startup to one day feast on the returns of a sale. The buyer? A gargantuan tech company, of course. But these days, Big Tech isn't buying so much as 'acquihiring' the most promising artificial intelligence firms, specialised deals that scoop up the industry's hottest talent while avoiding antitrust scrutiny, often by leaving behind business operations, aka the husk of a company. The phenomenon has been great for tech giants which can remove potential rivals more cheaply, but it's left venture capital investors in a rut with fewer returns than they would have expected from a traditional sale or even an initial public offering (IPO). How they react could set the whole industry on a different path and if we're lucky, a better one. One reaction to the trend has been to grumble. 'I dislike this phenomenon,' says Ali Ojjeh, chairman of Northgate Capital, a venture capital firm with US$5 billion of committed capital. Ojjeh was an early personal investor in Inflection AI, whose 70-strong team was acquihired by Microsoft Corp last year. Inflection promised its investors would be made whole, and they were, but with modest returns. Much the same happened with Scale AI, when Meta Platforms bought a 49 per cent stake in the firm for US$14.3 billion and hired its chief executive officer, Alexandr Wang, to head Mark Zuckerberg's new Superintelligence Labs division. Another recent example: Google paid US$2.4 billion for the senior leadership team and licensing rights of Windsurf, an AI coding assistant. Acquihires are nothing new. For well over a decade, large tech firms such as Alphabet's Google, Microsoft and Meta typically paid a few million dollars to hire talented engineers and product teams from small, early-stage startups, leaving their investors with modest or no returns. But the generative AI arms race supercharged that strategy, beginning with Microsoft's Inflection deal in 2024, and it has deflated the blockbuster returns that venture investors count on to drive their portfolios. The venture capital industry's so-called power-law model means payoffs for investors usually come from just one or two runaway successes such as Inflection or Scale AI. But if a hot startup like Scale gets a US$14.3 billion investment instead of a US$29 billion sale in a traditional acquisition, the difference means a fund returns just two times its investors' money instead of four times. Acquihires are 'hitting the outlier companies', Ojjeh says. 'It's favouring founders over shareholders and employees.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Board members of these startups are similarly boxed in, lacking alternatives and sometimes worried about burning bridges with tech giants for whom their most high-profile startups are the only realistic acquirers. What if the acquihiring trend becomes a permanent fixture? The mergers and acquisitions teams at tech giants are no doubt exploring all manner of hybrid deals that could help this new playbook keep working over the coming years, especially as antitrust regulators show no sign of softening. More acquihires would further entrench their dominance and be bad for the industry. But what if in the long term it led to a healthier market? Instead of pushing startups to get the highest possible valuation for a sale, venture capitalists (VCs) in an acquihiring market would prefer firms with a greater chance of running a long-term business and floating on the public markets. Strategic sales to Big Tech have always offered a premium over IPOs, but when such sales are less likely, going public becomes the more viable option. That could put venture investors on the hunt for startups with more sustainable businesses, not just those with a pitch deck promising hockey-stick growth and a total addressable market the size of Canada. That would be better than today's market dynamics. For all the money the power-law model has made for renowned firms like Sequoia Capital and Greylock Ventures, it has led to a cascade of negative outcomes for the public and wider market. VCs have pushed startups to move fast and break things, to blitzscale so they can dominate a market before competitors catch up. The costs have been high for both the market and public, from social media addiction to poorly treated workers and vanishing competition, as the book The World Eaters by Catherine Bracy vividly lays out. Venture firms, in one way, have brought these latest frustrations on themselves by relying for so long on just a couple of big exits to drive their fund returns. That model has helped extend Big Tech's financial dominance, such that nearly half of the S&P 500's earnings growth in 2025 comes from a handful of tech giants. But sometimes actions lead to unintended consequences. In her quest to strengthen antitrust oversight of Big Tech, former Federal Trade Commission chair Lina Khan may have inadvertently led tech companies to avoid scrutiny with just another flavour of anticompetitive behaviour. Yet, while their new acquihire trend may be an ugly one for the industry, it could also paradoxically spawn something better for everyone. Let's hope that's the case. BLOOMBERG
