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The perils of vibe coding

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A new OpenAI model arrived this month with a glossy livestream, group watch parties and a lingering sense of disappointment. The YouTube comment section was underwhelmed. “I think they are all starting to realize this isn’t going to change the world like they thought it would,” wrote one viewer. “I can see it on their faces.” But if the casual user was unimpressed, the AI model’s saving grace may be code.

Coding is generative AI’s newest battleground. With big bills to pay, high valuations to live up to and a market wobble to erase, the sector needs to prove its corporate productivity chops. Coding is loudly promoted as a business use case that already works. 

For one thing, AI-generated code holds the promise of replacing programmers — a profession of very well paid people. For another, the work can be quantified. In April, Microsoft chief executive Satya Nadella said that up to 30 per cent of the company’s code was now being written by AI. Google chief executive Sundar Pichai has said the same thing. Salesforce has paused engineering hires and Mark Zuckerberg told podcaster Joe Rogan that Meta would use AI as a “mid-level engineer” that writes code.

Meanwhile, start-ups such as Replit and Cursor’s Anysphere are trying to persuade people that with AI, anyone can code. In theory, every employee can become a software engineer. 

So why aren’t we? One possibility is that it’s all still too unfamiliar. But when I ask people who write code for a living they offer an alternative suggestion: unpredictability. As programmer Simon Willison put it: “A lot of people are missing how weird and funny this space is. I’ve been a computer programmer for 30 years and [AI models] don’t behave like normal computers.” 

Willison is well known in the software engineering community for his AI experiments. He’s an enthusiastic vibe coder — using LLMs to generate code using natural language prompts. OpenAI’s latest model GPT-5 is, he says, his new favourite. Still, he predicts that a vibe coding crash is due if it is used to produce glitchy software.

It makes sense that programmers — people who are interested in finding new ways to solve problems — would be early adopters of LLMs. Code is a language, albeit an abstract one. And generative AI is trained in nearly all of them, including older ones like Cobol.

That doesn’t mean they accept all of its suggestions. Willison thinks the best way to see what a new model can do is to ask for something unusual. He likes to request an svg (an image made out of lines described with code) of a pelican on a bike and asks it to remember the chickens in his garden by name. Results can be bizarre. One model ignored his prompts in favour of composing a poem.

Still, his adventures in vibe coding sound like an advert for the sector. He used Anthropic’s Claude Code, the favoured model for developers, to make an OCR (optical character recognition — software loves acronyms) tool that will copy and paste text from a screenshot. He wrote software that summarises blog comments and has plans to build a custom tool that will alert him when a whale is visible from his Pacific coast home. All this by typing prompts in English. It’s sounds like the sort of thing Bill Gates might have had in mind when he wrote that natural language AI agents would bring about “the biggest revolution in computing since we went from typing commands to tapping on icons”.  

But watching code appear and knowing how it works are two different things. My efforts to make my own comment summary tool produced something unworkable that gave overly long answers and then congratulated itself as a success.

Willison says he wouldn’t use AI-generated code for projects he planned to ship out unless he had reviewed each line. Not only is there the risk of hallucination but the chatbot’s desire to be agreeable means it may say an unusable idea works. That is a particular issue for those of us who don’t know how to edit the code. We risk creating software with inbuilt problems.

It may not save time either. A study published in July by the non-profit Model Evaluation and Threat Research assessed work done by 16 developers — some with AI tools, some without. Those using AI assumed it had made them faster. In fact it took them nearly a fifth longer.  

Several developers I spoke to said AI was best used as a way to talk through coding problems. It’s a version of something they call rubber ducking (after their habit of talking to the toys on their desk) — only this rubber duck can talk back. As one put it, code shouldn’t be judged by volume but success in what you’re trying to achieve.

Progress in AI coding is tangible. But measuring productivity gains is not quite as neat as a simple percentage calculation.

elaine.moore@ft.com



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AI and jobs; Oklahoma and towers; India and retailers; AI and cybercrime; Norway and elections



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Trump Intel deal designed to block sale of chipmaking unit, CFO says

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The Trump administration’s investment in Intel was structured to deter the chipmaker from selling its manufacturing unit, its chief financial officer said on Thursday, locking it into a lossmaking business it has faced pressure to offload.

The US government last week agreed to take a 10 per cent stake in Intel by converting $8.9bn of federal grants under the 2022 Chips Act into equity, the latest unorthodox intervention by President Donald Trump in corporate America.

The agreement also contains a five-year warrant that allows the government to take an additional 5 per cent of Intel at $20 a share if it ceases to own 51 per cent of its foundry business — which aims to make chips for third-party clients.

“I don’t think there’s a high likelihood that we would take our stake below the 50 per cent, so ultimately I would expect [the warrant] to expire,” CFO David Zinsner told a Deutsche Bank conference on Thursday.

“I think from the government’s perspective, they were aligned with that: they didn’t want to see us take the business and spin it off or sell it to somebody.”

Intel has faced pressure to carve off its foundry business as it haemorrhages cash. It lost $13bn last year as it struggled to compete with rival TSMC and attract outside customers.

Zinsner’s comments highlight how the deal with the Trump administration ties the company’s hands.

Analysts including Citi, as well as former Intel board members, have called for a sale — and Intel has seen takeover interest from the likes of Qualcomm.

Intel’s board ousted chief executive Pat Gelsinger, the architect of its ambitious foundry strategy, in December, which intensified expectations that it could ultimately abandon the business.

White House press secretary Karoline Leavitt told reporters on Thursday the deal was being finalised. “The Intel deal is still being ironed out by the Department of Commerce. The T’s are still being crossed, the I’s are still being dotted.”

Intel received $5.7bn of the government investment on Wednesday, Zinsner said. The remaining $3.2bn of the investment is still dependent on Intel hitting milestones agreed under a Department of Defense scheme and has not yet been paid.

He said the warrants could be viewed as “a little bit of friction to keep us from moving in a direction that I think ultimately the government would prefer we not move to”.

He said the direct government stake could also incentivise potential customers to view Intel on a “different level”.

So far, the likes of Nvidia, Apple and Qualcomm have not placed orders with Intel, which has struggled to convince them it has reliable manufacturing processes that could lure them away from TSMC.

As Intel’s new chief executive Lip-Bu Tan seeks to shore up the company’s finances, the government deal also “eliminated the need to access capital markets”, Zinsner explained.

Given the uncertainty over whether Intel would hit the construction milestones required to receive the Chips Act manufacturing grants, converting the government funds to equity “effectively guaranteed that we’d get the cash”.

“This was a great quarter for us in terms of cash raise,” Zinsner added. Intel had also recently sold $1bn of its shares in Mobileye, and was “within a couple of weeks” of closing a deal to sell 51 per cent of its stake in its specialist chips unit Altera to private equity firm Silver Lake, he noted.

SoftBank also made a $2bn investment in Intel last week. Zinsner pushed back against the idea that it had been co-ordinated with the government, as SoftBank chief executive Masayoshi Son pursues an ever-closer relationship with Trump.

“It was coincidence that it fell all in the same week,” Zinsner said.



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Nuclear fusion developer raises almost $900mn in new funding

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One of the most advanced nuclear fusion developers has raised about $900mn from backers including Nvidia and Morgan Stanley, as it races to complete a demonstration plant in the US and commercialise the nascent energy technology.   

Commonwealth Fusion Systems plans to use the money to complete its Sparc fusion demonstration machine and begin work on developing a power plant in Virginia. The group secured a deal in June to supply 200 megawatts of electricity to technology giant Google.

The Google deal was one of only a handful of such commercial agreements in the sector and placed CFS at the forefront of fusion companies trying to perfect the technology and develop a commercially viable machine.

CFS has raised almost $3bn since it was spun out of the Massachusetts Institute of Technology in 2018, drawing investors amid heightened interest in nuclear to meet surging energy demand from artificial intelligence.

“Investors recognise that CFS is making fusion power a reality. They see that we are executing and delivering on our objectives,” said Bob Mumgaard, chief executive and co-founder of CFS. 

New investors in CFS’s latest funding round, which raised $863mn, include NVentures, Nvidia’s venture capital arm, Morgan Stanley’s Counterpoint Global and a consortium of 12 Japanese companies led by Mitsui & Co.

Nuclear fusion seeks to produce clean energy by combining atoms in a manner that releases a significant amount of energy. In contrast, fission — the process used in conventional nuclear power — splits heavy atoms such as uranium into smaller atoms, releasing heat.

CFS is also planning to build the world’s first large-scale fusion power plant in Virginia, which is home to the largest concentration of data centres in the world.

BloombergNEF estimates that US data centre power demand will more than double to 78GW by 2035, from about 35GW last year, and nuclear energy start-ups already have raised more than $3bn in 2025, a 400 per cent increase on 2024 levels.

But experts have warned that addressing the technological challenges to the development of fusion would be expensive, putting into question the viability of the technology.

No group has yet been able to produce more energy from a fusion reaction than the system itself consumes despite decades of experimentation.

“Fusion is radically difficult compared to fission,” said Mark Nelson, managing director of the consultancy Radiant Energy Group, pointing to the incredibly high temperatures and pressures required to combine atoms.

“The hard part is not making fusion reactors. Every step forward towards what may be a dead end economically, looks like something that justifies another billion or a Nobel Prize.



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