Y Combinator faces criticism for backing an AI startup that openly admits to cloning a competitor.
PearAI, a Y Combinator startup, launched with an X post and YouTube video, sparking immediate controversy. The AI coding editor’s founder, Duke Pan, openly admitted that PearAI is a clone of another project, Continue, which itself is based on VSCode. PearAI initially applied a custom closed license, the Pear Enterprise License, written by ChatGPT, which violated the open-source principles of the original Apache license.
This misstep drew significant backlash, as altering licenses undermines the open-source community’s ethos of sharing and collaboration. Pan apologized on Monday, confirming PearAI would adopt the same Apache open-source license.
The launch went viral, drawing thousands of comments, many criticizing the project’s lack of originality. A community note added to the X thread accused PearAI of misleading users by rebranding Continue’s code as its own. Pan acknowledged that PearAI didn’t add many new features, leading to accusations of theft. However, the misleading community note was later removed. Pan admitted they failed to clearly communicate the project’s origins and the limited changes made.
On Sunday, Continue subtly criticized PearAI, warning that open-source projects depend on trust, respect for contributions, licenses, and intellectual property. Y Combinator CEO Garry Tan also defended PearAI, tweeting that the project used an Apache open-source license, though it was only adopted after public backlash.
Pan’s boast about quitting his $270,000 job at Coinbase for this unoriginal startup added fuel to the fire. PearAI faced stiff competition from Continue and Cursor, and critics noted that Y Combinator had already backed two other AI code editors, Void and Melty. Tan responded, “More choice is good… if you don’t like it don’t use it.”
Some questioned YC’s decision to select PearAI, with blogger Sven Schnieders calling it an example of YC’s decline, criticizing PearAI as “nothing more than a codebase copied from another YC-backed company.” Others, on platforms like Hacker News, criticized YC’s due diligence, suggesting VC firms are rushing to fund AI startups without proper oversight. YC’s expansion plans may exacerbate these concerns, reflecting broader VC enthusiasm for AI projects.
