A16z partner says that the theory that we'll vibe code everything is 'flat wrong'
Hacker News
February 20, 2026
AI-Generated Deep Dive Summary
A16z partner Anish Acharya has dismissed the idea that AI-assisted coding, or "vibe coding," will dominate every aspect of business operations, calling the theory "flat wrong." Speaking on the *20VC* podcast, Acharya argued that while AI is a powerful tool, it should be reserved for core business development and optimizing costs rather than rebuilding entire enterprise software systems like payroll or CRM tools. He emphasized that while such efforts might save only about 10% of costs, the risks and inefficiencies outweigh the benefits.
Acharya pointed out that software already accounts for 8-12% of a company's expenses, making it a relatively small portion of overall costs. Instead of using AI to overhaul existing systems, businesses should focus on leveraging AI to enhance their core operations or optimize the remaining 90% of expenses. He also noted that while some business models will struggle as a result of these shifts, the idea that AI will revolutionize every aspect of software development is overhyped and unsupported by current market conditions.
The comments come amid a challenging week for software stocks, which have been hit hard by investor concerns about the practical applications of AI. The sell-off was partly fueled by fears surrounding Anthropic's new AI tool, which threatens to disrupt legal clerical work. Acharya echoed other prominent investors like Vinod Khosla in suggesting that stock prices should not be the primary metric for assessing the future of tech and AI.
Acharya's remarks highlight a broader debate in the tech community about the realistic applications of AI and its potential impact on established industries. While some see AI as a transformative force capable of reshaping every sector, Acharya and others argue that its value lies in targeted, strategic use rather than indiscriminate application. This nuanced perspective is particularly relevant for startups and investors looking to navigate the complexities of AI adoption without falling into market overhyping.
For tech enthusiasts and professionals, Acharya's comments underscore the importance of critical thinking when evaluating AI's potential. While the technology holds immense promise, its effective implementation requires careful consideration of cost-benefit analyses and long-term strategic goals. As the market continues to evolve, such insights will be
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Originally published on Hacker News on 2/20/2026