Google declares 'vibe design' is here as Figma's stock price sinks

• Google updated Stitch, its AI-native software design tool, on Wednesday.
• Users can now "vibe design," or create designs using natural language rather than code, with their voice.
• Figma's stock dropped more than 7% following Google's announcement.

Vibe coding took the AI community by storm in 2025. Now, Google is trying to start a new trend: "vibe designing."

Google Labs introduced the term on Wednesday while unveiling several new updates to Stitch, an AI-powered tool that uses simple prompts to generate "high-fidelity" UI design and front-end code.

It's the latest shot across the bow of software makers, as AI companies continue to roll out features that directly challenge the products made by those companies.

Shares of Figma, which creates a tool for interface and user experience design for website and apps, fell around 8% on Wednesday following Google's announcement. The stock was trading down 5% on Thursday as of 12:33 p.m. in New York.

"When 'vibe designing' in Stitch, you can explore many ideas quickly leading to a higher quality outcome," the company said. "Instead of starting with a wireframe, you can start by explaining the business objective you're hoping to achieve, what you want your users to feel, or even examples of what's currently inspiring you."

In addition to written, 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 interviewing you, and make real-time updates — like 'give me three different menu options,' or 'show me this screen in different color palettes' — as you speak," Google wrote in its announcement.

The tool also includes templates such as a "SaaS dashboard" and various apps with themes such as health, entertainment, utility, and more.

Advancements in AI have transformed many industries, including software development. Concerns that the tech could replace traditional software tools have spooked traders and left some engineers wondering if they'll be out of a job soon.

However, AI industry leaders like Nvidia CEO Jensen Huang have pushed back against the notion of a "SaaSpocalypse."

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

OpenAI CEO Sam Altman said the software industry isn't dead, but change is coming.

"How you create it, how you're going to use it, how much you're going to have written for you each time you need it, versus how much you'll want sort of a consistent UX —yeah, that's all going to change," Altman told TBPN.

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

"I think volatility is probably good at strengthening companies long-term," he said.