Max Levchin says that vibe coding will replace one kind of company, but others, like DoorDash, are safe

In the rapidly evolving landscape of artificial intelligence, certain businesses are at risk of becoming obsolete, according to Max Levchin, CEO of Affirm. During a recent episode of the 'Sourcery' podcast, Levchin highlighted that companies lacking robust software solutions are particularly vulnerable to the disruptive forces of what he terms 'vibe coding.' Levchin emphasized the urgency in phasing out subpar software, stating, "It's long overdue to get rid of bad software." As a co-founder of PayPal and a leader in the buy-now, pay-later sector, he underscored that businesses producing software devoid of unique data or added value will find themselves replaced. The demand for high-quality software is escalating rapidly. "The bar for quality of software is going up rapidly," he remarked, indicating that the days of tolerating poorly designed applications are coming to an end. However, not all companies are equally at risk. Levchin specifically mentioned that established players like DoorDash are unlikely to be easily undermined by AI coding tools. He dismissed the notion that DoorDash could be supplanted by solutions like OpenClaw, calling such suggestions "silliest." He pointed out that DoorDash's success hinges on its seamless integration with various restaurants, a complexity that AI currently cannot replicate. Levchin's insights come amid a broader discussion about the future of software, particularly following a significant downturn in tech stocks—a phenomenon some are referring to as the "software apocalypse." This downturn was triggered in early February when concerns arose about Anthropic's new AI tool, which can handle various clerical tasks in the legal sector. As a result, shares of major firms such as Salesforce, Snowflake, and Microsoft have experienced declines ranging from 18% to 38% this year, as investors grapple with the implications of AI's capabilities in creating proprietary tools.