Insurance Startup Corgi Denies Stealing Open Source Code in Vibe Coding Dispute

Y Combinator-backed insurance tech startup Corgi is denying accusations that it used open source software from Papermark to build its product and presented it as its own. The dispute, which erupted earlier this week, has drawn attention to the growing practice of 'vibe coding' where developers rely heavily on AI tools to generate code from open source repositories.

Papermark, a company that provides open source document sharing software, publicly accused Corgi of copying its codebase without proper attribution or licensing compliance. Corgi CEO and co-founder Alex Torrenegra told TechCrunch that the company did not steal anything and that any similarities were coincidental or the result of using common open source libraries.

Papermark's Allegations and Corgi's Response

Papermark founder and CEO Alexander Isora posted evidence on social media showing what he claimed were identical code snippets and file structures between Papermark's open source repository and Corgi's proprietary software. Corgi countered that its development team used AI coding assistants that may have inadvertently generated code resembling existing open source projects, a phenomenon known as 'vibe coding.'

• Papermark's software is licensed under the Apache 2.0 license, which requires attribution and disclosure of modifications.
• Corgi raised $4.5 million in seed funding from Y Combinator and other investors in 2025.
• The startup offers AI-powered insurance policy management for small businesses.
• Papermark claims Corgi's codebase contains files with identical comments and variable names to its own.
• Corgi says it will conduct an internal audit and remove any code that violates open source licenses.

Implications for AI-Assisted Development

The controversy highlights a growing legal and ethical gray area in software development. As AI coding tools like GitHub Copilot and Cursor become more popular, developers may unknowingly incorporate code from open source projects without proper attribution. Legal experts say that while using open source code is generally allowed, failing to comply with license terms can lead to copyright infringement claims.

Corgi has not yet released the results of its internal audit. The company stated it is committed to open source compliance and will work with Papermark to resolve the dispute. Papermark has not indicated whether it will pursue legal action. The incident serves as a cautionary tale for startups relying on AI-generated code, as the boundaries between inspiration and infringement become increasingly blurred.