STORY: :: Code generation startups are commanding sky-high valuations as they disrupt the software industry:: As corporate boardrooms look to use AI to aid, and sometimes replace, human software engineers:: code generation or ‘code-gen’ startups are commanding sky-high valuations, though none are yet profitable :: San Francisco code-gen startup Cursor raised $900 million at a $10 billion valuation in May:: And ChatGPT maker OpenAI is in talks to acquire Mountain View-based startup Windsurf for $3 billion:: The rapid growth of these startups is coming despite competing on big tech’s home turf:: Microsoft’s GitHub Copilot grew to over $500 million in revenue last year, a source said:: But as AI revolutionizes the industry, many jobs – particularly entry-level coding positions – may be eliminated:: Source: Signalfire:: New hires with less than a year of experience fell 24% in 2024, according to a firm that tracks tech hiring:: That’s as the leaders of firms like Google, Microsoft and Amazon say they’re using AI to generate code:: Microsoft laid off 6,000 workers globally in May, with over 40% being software developers