Stockholm’s fast-rising AI coding platform is growing rapidly, adding users, funding, and focus — but can the “vibe coding” boom sustain its momentum?

AI startup Lovable is showing no signs of slowing down. The Stockholm-based coding platform, founded just a year ago, is nearing 8 million users, CEO Anton Osika revealed during a conversation at the Web Summit in Lisbon. That’s a massive jump from the 2.3 million users it reported in July — signaling explosive growth in a crowded AI coding market.

Osika added that more than 100,000 new products are now being built on Lovable every single day, underscoring the startup’s accelerating global reach.

Rapid growth and billion-dollar backing

Founded in 2023, Lovable has already raised $228 million in total funding, including a $200 million Series B this summer that valued the company at $1.8 billion. Reports suggest new investors are eager to join at a $5 billion valuation, though Osika downplayed fundraising talks, saying the company is “not capital constrained.”

Earlier this year, Lovable revealed it had reached $100 million in annual recurring revenue (ARR), but the CEO sidestepped fresh figures — leaving analysts wondering how sustainable the “vibe coding” wave truly is.

The vibe coding question

Industry observers have noted some cooling interest in the sector. A Barclays report showed traffic to popular AI coding tools like Lovable and Vercel’s v0 has dipped since summer peaks — down as much as 40% by September, according to analysts.

Still, Osika insists user retention remains strong, boasting over 100% net dollar retention, meaning users spend more over time. Lovable has also passed the 100-employee mark and is bringing in new leadership talent from San Francisco to strengthen its European base.

From viral idea to global platform

Lovable began as an open-source project called GPT Engineer, which went viral among developers. But Osika quickly saw a broader opportunity.

“I realized the real potential was helping the 99% of people who don’t know how to code,” he said. “We’re reimagining how software gets built — making it as intuitive as possible.”

That simplicity is paying off. Lovable’s users range from Fortune 500 companies to hobbyists — including an 11-year-old who built a Facebook clone for his school and a Swedish duo earning $700,000 annually from an app created on the platform. “What I hear most from people is, ‘It just works,’” Osika noted, crediting the company’s Scandinavian design ethos.

Security and competition

The AI coding industry isn’t without growing pains. Following a recent data leak involving a vibe-coded app, Osika acknowledged the need for stronger safeguards.

“The fastest-growing part of our engineering team right now is security, and we want Lovable to be more secure than human-written code,” he said. The platform now performs multiple security checks before deployment, particularly for sensitive applications like banking and finance.

When asked about competition from OpenAI and Anthropic, whose models power Lovable, Osika remained upbeat. “If we can unlock more human creativity and agency — that’s something worth celebrating, no matter who does it.”

A people-first philosophy

Despite the startup’s breakneck pace, Osika emphasizes balance and mission-driven culture over Silicon Valley’s “always-on” mindset.

“The best people on my team have kids, and they really care about what we’re building,” he said. “We’re not here to burn out — we’re here to build something that lasts.”

As Lovable grows beyond hobbyist developers into the corporate world, its challenge will be to maintain that ethos — while proving that AI coding can deliver long-term business value, not just viral hype.

Conclusion

Lovable’s rise from a viral project to a billion-dollar AI startup captures the energy — and the uncertainty — of today’s tech renaissance. With millions of users, major funding, and a bold vision for accessible software creation, the company sits at the crossroads of innovation and sustainability.

If it can keep its “vibe coding” magic alive while scaling securely, Lovable could well define the next generation of how we build software.