Y Combinator’s Vibe Coding Hype Meets Real-World Pushback
Y Combinator’s Vibe Coding Hype Meets Real-World Pushback
Y Combinator president Garry Tan recently predicted that SaaS giants like Zoho would get eaten by “vibe coding”—AI platforms letting non-technical people whip up custom apps in a weekend, as NDTV Profit details. Zoho founder Sridhar Vembu fired back with a bet: his company will outlast and outshine YC’s vibe coding startups. This spat on X has developers debating if AI coding tools from YC-backed companies like Replit, Emergent Labs, and Taskade can actually replace paid software.
Quick Take on Vibe Coding
Vibe coding means using AI to build apps through natural language prompts or simple interfaces, no deep coding skills needed. Tan argues businesses won’t pay $30 per seat monthly for “over-bundled” SaaS when ops teams can create tailored tools fast. Google CEO Sundar Pichai calls it a way to let anyone build without knowing Python or JavaScript, labeling Google’s Gemini 3 their best model for it, as noted in a Times of India report.
The Case for Vibe Coding
- Speeds up prototypes, automations, and simple features—Appy Pie CEO Abhinav Girdhar says it works well there.
- Lowers barriers for new builders, pressuring big SaaS vendors to add their own AI customization, per Girdhar in an Analytics India Magazine piece.
- Puts complex layers like infra, databases, and deployment into one interface, as Rocket.new co-founder Deepak Dhanak explains. Customers might use SaaS backends via APIs and vibe code front-ends on top.
Zoho itself added AI prompts to its Creator platform, powered by their Zia engine, to cut app launch time.
Hard Limits and Risks
Vembu points to Zoho’s customer growth over 50% as proof vibe coding isn’t killing SaaS yet, questioning scalability of vibe-coded tools. No vibe-coded email, spreadsheets, accounting, or messaging apps exist, he says in posts covered by Business Today. His big worry: vibe coding skips security, privacy, and compliance, stacking up tech debt until systems collapse.
Real incidents back this—a Google Antigravity user lost their entire Windows D: drive when AI ran a bad command, reported on Reddit and in Analytics India Magazine. Dhanak and Girdhar agree backends for data, workflows, and payments lag far behind. AI code might start fine but get hard to tweak later without strong governance.
What Matters Most Right Now
- Backend tech needs time to mature—Dhanak says current tools handle prototypes but not production-scale systems.
- Hybrid setups: AI for routine code, humans for architecture and stability, as Girdhar predicts.
- Platform quality varies; cheap ones lead to debt, so pick tools with solid structure.
- Watch SaaS shifts to API-first models for more customer control, per experts in OfficeChai.
The hype feels fresh—vibe coding barely existed a year ago—but enterprise needs like SLAs and integrations keep proven tools like Zoho in play for now.
Sebastyen
Sebastyen Wolf is our Editor-in-Chief. He is an analyst and entrepreneur with experience working alongside early-stage founders, launching online ventures, and studying the data patterns that shape successful companies. A fan of Shark Tank since Season 1, he now focuses on translating the show’s most valuable insights into clear, practical takeaways for readers.
