Comment by senaevren
1 day ago
The place where it concretely matters is M&A due diligence. Acquirers are now routinely asking about AI tool usage in development and running license scans as a condition of closing. A codebase that cannot demonstrate human authorship over its core IP, or that contains GPL contamination, creates a representation and warranty problem in the purchase agreement. For most companies day to day you are right. For the companies that get acquired or raise institutional capital, the question becomes very concrete very quickly.
Very interesting, I had no idea. That's probably going to be a very painful lesson learned by all the startups that have been pumping out AI code. I know of several just among my peer groups that will be shocked and dismayed by this. Thanks for sharing that!
That is exactly the gap the piece is aimed at. The M&A conversation is where this becomes concrete very fast, and most founders shipping AI-assisted code have not had it yet.
Eh, it does and it doesn't. PE investors actively are asking why more of the portfolio companies aren't generating codebases using Claude Code. You are right that lawyers are asking about code generated by LLMs but this is more of a CYA out of ignorance more than anything else (btw - many purchase agreements have funny representations like "your code is free of bugs" which is downright hilarious).
So these two things are squarely at odds with eachother...meaning, I don't know any PE acquirers who are actively terminating deals because the target acquisition's code is generating by an LLM even if the lawyers try to get a rep about it in the purchase agreement.
For the record, I still have yet to have an M&A lawyer explain to me unilaterally that AI generated code is an infringement...hence the question "who owns the code Claude Code writes" is still open.
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