Creating Value in Open Source: Lessons from VSCode's $96 Trillion Impact

The tweet from Harrison Kinsley highlights an extraordinary statistic: VSCode, Microsoft's open-source code editor, has generated an estimated $96 trillion in value through its forks. With 32,000+ forks on GitHub, this represents one of the most successful open-source projects in history.

The Real World of AI Startups

Many VCs who criticize AI startups as "simple GPT wrappers" fundamentally misunderstand how value is created in the modern tech ecosystem. These critics—often individuals who've never built a startup themselves—fail to recognize that iteration, community engagement, and shipping consistently are what truly matter.

The most successful tech companies today didn't start as revolutionary products. They began as simple forks or iterations of existing ideas that gained traction through consistent improvement and community building.

GitHub Forks: The True Measure of Impact

Projects with substantial GitHub forks demonstrate several critical factors:

• Active developer community

• Code that solves real problems

• Adaptability to diverse use cases

• Foundation for innovation

VSCode's 32,000+ forks aren't just copies—they represent thousands of developers building upon a solid foundation, each creating their own value streams.

The Windsurf Example

Consider Windsurf, essentially another fork of VSCode that's reportedly being acquired for approximately $3 billion. This exemplifies how tremendous value can be created by building upon existing open-source foundations.

Windsurf took VSCode's core functionality and optimized it for specific workflows and use cases, demonstrating that you don't need to invent something completely new to create billions in value. Instead, they focused on solving specific pain points for developers and creating a better experience in targeted areas.

Value Creation in the AI Era

In today's AI-powered development world, the barriers to entry have been dramatically lowered. AI coding assistants mean that a small team can accomplish what previously required dozens of engineers. This democratization of development means:

1. Small teams can ship products faster than ever

2. Value can be created through smart implementations, not just novel ideas

3. User experience and community engagement often matter more than technical innovation

Don't Wait for Permission

The most important takeaway: you don't need VC funding or external validation to build something valuable. The most successful founders simply started building and shipping, focusing on solving real problems rather than chasing fundraising rounds.

When you're building, remember:

• Ship consistently, even if imperfect

• Listen to users, not critics

• Let GitHub metrics (stars, forks, contributions) guide you more than VC opinions

• Value is created through solving problems, not raising capital

Beyond Funding

The tech ecosystem's obsession with fundraising often overshadows what truly matters: building products people want. Microsoft acquired GitHub for $7.5 billion, and now VSCode—which is free and open-source—has projects built on top of it potentially worth more than GitHub itself.

This demonstrates that in software, particularly open-source, value compounds in ways traditional business models struggle to comprehend. A project that started as "just code" now powers a significant portion of the world's development workflow.

Take Action Now

Instead of waiting for the perfect funding round or VC validation, focus on:

• Shipping consistently

• Building in public

• Contributing to existing ecosystems

• Creating value for users

The VSCode example shows that the most valuable companies of tomorrow might start as simple forks today. The key is to start building now and let your GitHub metrics—not VC opinions—validate your direction.