AI valuations are verging on the unhinged

Vibe coding, or the ability to spin up a piece of software using generative artificial intelligence (AI) rather than old-school programming skills, is all the rage in Silicon Valley. But it has a step-sibling. Call it vibe valuing. This is the ability of venture capitalists to conjure up vast valuations for AI startups with scant regard for old-school spreadsheet measures.

This article appeared in the Business section of the print edition under the headline “Vibe valuations”