Figma Stock Sinks After Google's 'Vibe Design' Tool Gets an Update - Business Insider

Google's Stitch AI tool is the latest shot at software makers as AI companies implement functions that directly challenge their products.

- On Wednesday, Google updated its artificial intelligence software design tools Stitch.

- Users can now "design the atmosphere" or create a design using natural language instead of code, with their voice.

- Figma shares fell more than 7% after Google's announcement.

Coding Vibe took the AI ​​community by storm in 2025.Now Google is starting a new trend: "vibe thinking."

Google Labs kicked off the term on Wednesday while releasing a slew of new updates to Stitch, an AI-powered tool that uses simple commands.To create UI designs and front-end code"High precision"

It's the latest solution for software developers as AI companies continue to introduce features that directly challenge the products those companies make.

Shares of Figma, which makes a tool for designing and designing user experiences for websites and apps, fell about 8% on Wednesday after Google's announcement.The stock was down 5% on Thursday at 12:33 p.m.in New York.

Adobe shares also fell on Wednesday, about $2 at the close.

"When you 'design vibe' in Stitch, you can quickly explore many ideas that lead to higher quality results," the company said."Instead of starting with a wireframe, you can start by explaining the business goal you hope to achieve, what you want your users to feel, or even an example of what motivates you right now."

In addition to text, image and code prompts, Stitch now has voice capabilities, meaning users can use their voice to speak directly to the tool.

"The agent can give you real-time design critiques, design a new landing page by consulting you, and make real-time updates — like 'give me three different menu options' or 'show me this screen with different color palettes' — while you're talking," Google wrote in its announcement.

The tool also includes templates such as "SaaS dashboard" and other tools such as health, entertainment, tools and more.

Advances in AI have transformed many industries, including software development.Concerns that the technology could replace traditional software tools have spooked business people and left some engineers wondering if they will soon be out of a job.

However, AI industry leaders such as Nvidia CEO Jensen Huang reject the concept of "SaaS apocalypse."

"You can tell because there are software companies whose stock prices are under pressure because somehow AI is going to replace them," Huang said at a Cisco AI event."It's the most illogical thing in the world and only time will tell."

OpenAI CEO Sam Altman said the software industry is not dead, but change is coming.

“How you build it, how you're going to use it, every time you need it, how much you're going to write, versus what kind of UX you want — yeah, that's all going to change,” Altman told TBPN.

Figma CEO Dylan Field said in a February interview with CNBC that volatility can be good for companies.

"I think volatility is probably good for strengthening companies in the long run," he said.