Y Combinator CEO Garry Tan Highlights AI's Impact on Startup Growth, Warns Against Deceptive Practices

San Francisco, CA – Garry Tan, President and CEO of Y Combinator, has recently underscored the transformative role of artificial intelligence in accelerating startup development while simultaneously issuing a stern warning against deceptive entrepreneurial practices. While the specific content of a tweet from Mr. Tan, shared via https://t.co/55QBPeenOV, remains unresolvable, his public statements consistently emphasize innovation and integrity within the startup ecosystem. Mr. Tan, a co-founder of Initialized Capital and former Y Combinator partner, recently noted the remarkable progress of the accelerator's Winter 2025 batch. He revealed that approximately 25% of the code for these startups was generated by AI, contributing to an aggregate weekly growth rate of 10%. "What that means for founders is that you don't need a team of 50 or 100 engineers," Tan stated, adding that "You don't have to raise as much. The capital goes much longer." This rapid growth, attributed significantly to AI integration, marks the fastest in Y Combinator's history, with companies demonstrating actual revenue generation. The accelerator, founded in 2005, invests $500,000 in early-stage startups in exchange for equity, providing a three-month program with guidance from partners and alumni. Tan asserts that Y Combinator's robust network provides a crucial edge in a competitive venture capital landscape. Conversely, Tan has vocalized strong criticisms against the "fake it till you make it" mentality often promoted in some entrepreneurship programs. Speaking at Y Combinator's AI Startup School, he cautioned students that such an approach, if taken to extremes, could lead to severe legal repercussions, citing the cases of Sam Bankman-Fried and Elizabeth Holmes. "That’s a waste of time — and you’re gonna go to jail," Tan warned, distancing Y Combinator's ethos from these high-profile scandals. Mr. Tan's strategic vision for Y Combinator focuses on empowering founders to build impactful companies by prioritizing genuine problem-solving and strong founding teams over superficial success. He continues to advocate for technology's capacity to foster prosperity and lift individuals into abundance, reinforcing Y Combinator's commitment to supporting earnest and innovative ventures.