Technology3/17/2026•TechCrunch

Why Garry Tan's Claude Code setup has gotten so much love, and hate | TechCrunch

Why Garry Tan's Claude Code setup has gotten so much love, and hate | TechCrunch

Last day to exhibit your breakthrough to 10,000+ tech leaders at Disrupt is on Oct 2. Book Exhibit Table Now. Disrupt doors open Oct. 13. Get your pass and bring someone with you at 50% off. REGISTER NOW. Y Combinator’s famed CEO Garry Tan told a SXSW audience that he’s got “cyber psychosis” and is barely sleeping because he’s so excited to be working with AI agents. “I sleep, like, four hours a night right now,” he told his interviewer, fellow VC Bill Gurley, during an onstage interview Saturday. “I have cyber psychosis, but I think a third of the CEOs that I know have it as well,” he joked about his current AI obsession. (Tan’s assistant confirmed to us that he was joking. AI-induced psychosis can actually be a dangerous condition.) “Once you try it, you’ll realize: It’s like I was able to re-create my startup that took $10 million in VC capital and 10 people, and I worked on that for two years, and I took anti-narcoleptics — I remember, you know, sort of being on modafinil,” he described, referencing the sleep-preventing drug that’s popular with the startup hustle-culture crowd. (Tan sold his Y Combinator-backed blogging startup Posterous to Twitter back in 2012.) But now, his p

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