Fast Company‘s “AI Decoded” newsletter makes the case that the first “killer app” for generative AI… is coding.
Tools like Cursor and Windsurf can now complete software projects with minimal input or oversight from human engineers… Naveen Rao, chief AI officer at Databricks, estimates that coding accounts for half of all large language model usage today. A 2024 GitHub survey found that over 97% of developers have used AI coding tools at work, with 30% to 40% of organizations actively encouraging their adoption…. Microsoft CEO Satya Nadella recently said AI now writes up to 30% of the company’s code. Google CEO Sundar Pichai echoed that sentiment, noting more than 30% of new code at Google is AI-generated.
The soaring valuations of AI coding startups underscore the momentum. Anysphere’s Cursor just raised $900 million at a $9 billion valuation — up from $2.5 billion earlier this year. Meanwhile, OpenAI acquired Windsurf (formerly Codeium) for $3 billion. And the tools are improving fast. OpenAI’s chief product officer, Kevin Weil, explained in a recent interview that just five months ago, the company’s best model ranked around one-millionth on a well-known benchmark for competitive coders — not great, but still in the top two or three percentile. Today, OpenAI’s top model, o3, ranks as the 175th best competitive coder in the world on that same test. The rapid leap in performance suggests an AI coding assistant could soon claim the number-one spot. “Forever after that point computers will be better than humans at writing code,” he said…
Google DeepMind research scientist Nikolay Savinov said in a recent interview that AI coding tools will soon support 10 million-token context windows — and eventually, 100 million. With that kind of memory, an AI tool could absorb vast amounts of human instruction and even analyze an entire company’s existing codebase for guidance on how to build and optimize new systems. “I imagine that we will very soon get to superhuman coding AI systems that will be totally unrivaled, the new tool for every coder in the world,” Savinov said.
