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AI Revolution in Software Development: How OpenAI and Startups Are Transforming Coding

,   and  Jax
3 min read
Photo by Mariia Shalabaieva / Unsplash

Key Takeaways

  • AI systems from OpenAI, Anthropic, Google, and others have dramatically improved at generating code, with capabilities approaching or surpassing human programmers
  • The percentage of coding problems AI can solve jumped from 4.4% in 2023 to 69.1% in 2025 based on the SWE-bench industry test
  • OpenAI released new models (GPT-4.1, o3, o4-mini) and Codex CLI, enhancing programming capabilities through advanced reasoning features
  • 92% of US-based developers already use AI coding tools according to GitHub research
  • Coding-focused AI startups are attracting massive investments, with Reflection AI raising $130 million, Cursor valued at $2.5 billion, and Poolside valued at $3 billion
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