Windsurf CEO Says Vibe Coding Doesn’t Mean Companies Should Hire Fewer Engineers: ‘This Actually Means You Hire More’
Varun Mohan, CEO and co-founder of Windsurf, believes that the rise of AI-powered coding tools doesn't necessarily mean companies should hire fewer engineers. In fact, he argues that many companies may actually benefit from hiring more engineers, despite AI’s increasing role in writing code.
Mohan shared his thoughts on “Lenny’s Podcast,” where he explained that AI’s ability to generate code does not automatically make engineers "10x as productive." Even if AI handles a significant portion of the coding, engineers still have various other responsibilities, such as reviewing, testing, debugging, designing, and deploying code. “Engineers spend more time than just writing code,” Mohan noted during the podcast. “They review code, test code, debug code, design code, deploy code, right?”
Windsurf, which was founded in 2021 as Codeium, offers an AI-powered development tool aimed at coders. The company has recently been caught up in the excitement surrounding "vibe coding." Windsurf is reportedly in talks to be acquired by OpenAI for approximately 3 billion dollars, and it previously raised 243 million dollars in venture capital funding, according to PitchBook.
Despite growing concerns that AI will reduce tech job opportunities, Mohan believes that many companies should focus on expanding their engineering teams rather than cutting back. He pointed out that companies are already seeing significant productivity improvements—up to 30 to 40 percent. “But even if I were to say the company in the long tail had 200 engineers, it’d probably be too low still,” Mohan explained. “So the question is, how much more productivity do you get per person?”
To further illustrate his point, Mohan used JPMorgan Chase as an example. He explained that with a massive budget for software, these kinds of companies will recognize the potential for increased productivity with additional engineers. “Her budget on software every year is 17 billion dollars, and there are over 50,000 engineers inside the company," he said. "If you told her, ‘Hey, each of these engineers are now able to produce more technology,’ that’s effectively what you’ve done. The right calculus that JPMorgan Chase, or any of these companies will make, is that the ROI of building technology has actually gone up.”
Mohan’s view is that, in the short term, companies could benefit from adding even more engineers to their teams. “The opportunity cost of not investing more into technology has gone up, which means that you should just invest even more,” he said.
However, Mohan also clarified that his view is not a one-size-fits-all solution. While some companies may benefit greatly from increasing their engineering staff, others may already be satisfied with their current technological output. “Now, that’s not true across the board. Some companies are happy with the amount of technology they’re building, and there’s a ceiling on the amount of technology they want to build,” he acknowledged. “But for companies that have a very high technology ceiling, this doesn’t mean you stop. This actually means you hire more.”
Mohan’s comments highlight the evolving role of engineers in a world where AI is increasingly becoming a tool for automation. While AI is improving productivity, the need for skilled engineers to oversee, manage, and implement these technologies remains crucial.