A quarter of startups in Y Combinator's Winter 2025 batch have 95% of their codebases generated by AI, YC managing partner Jared Friedman said. "Every one of these people is highly technical, completely capable of building their own products from scratch. A year ago, they would have built their product from scratch -- but now 95% of it is built by an AI," Friedman said.

YC CEO Garry Tan warned that AI-generated code may face challenges at scale and developers need classical coding skills to sustain products. He predicted: "This isn't a fad. This is the dominant way to code."

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