A16Z partner says that the theory that we'll vibe code everything is ' wrong'

Source: Hacker News

Main Takeaways

• A16z general partner Anish Acharya argues that AI‑assisted coding (often dubbed “vibe coding”) is not worth applying to every business function.
• AI should be focused on core product development rather than rebuilding enterprise software such as ERP, CRM, or payroll systems.
• Software stocks that suffered a sharp decline last week are, according to Acharya, oversold.

Podcast Discussion

On the “20VC” podcast (released Monday), Acharya explained:

• Software expenses typically represent 8 %–12 % of a company’s total costs. Using AI to rewrite internal tools (e.g., resource planning, payroll) would only shave off roughly 10 % of those expenses.
• Relying heavily on AI for code generation carries significant risk.
• “You have this innovation bazooka with these models. Why would you point it at rebuilding payroll or ERP or CRM?” he asked, referencing major providers like Salesforce, Microsoft, Oracle, and SAP.
• Instead, firms should leverage AI to grow their core businesses and optimize the remaining 90 % of costs.
• “The general story that we’re going to vibe‑code everything is flat wrong, and the whole market is oversold software,” he concluded.

Market Context

Acharya’s comments come after a turbulent week for software stocks, which dragged down both the tech sector and broader markets. The sell‑off was triggered by investor anxiety over Anthropic’s new AI tool that automates clerical tasks for legal professionals.

Related Commentary

• Vinod Khosla echoed a similar sentiment, urging investors to ignore stock prices when assessing the long‑term prospects of tech companies.
• In a recent podcast, Khosla dismissed the notion of an AI bubble, emphasizing that API call volume—a key metric of AI usage—remains high.

  “If that’s your fundamental metric of what’s the real use of your AI, you’re not going to see a bubble in API calls. What Wall Street tends to do with it, I don’t really care. I think it’s mostly irrelevant.”

Source

Read the original article on Business Insider.