Stockholm-based AI coding startup Lovable is in discussions to raise new funding at a valuation of about $12 billion, according to people familiar with the matter. If completed at that price, the round would nearly double the company’s last known valuation of $6.6 billion from December.
The talks are not yet final, and the terms could still change, one source said. A company spokesperson declined to comment on a possible financing.
Lovable has quickly become one of the most closely watched companies in the fast-growing market for so-called vibe coding tools, which let users build apps and websites from plain-language prompts instead of writing code manually. The startup said earlier this year that it had surpassed $400 million in annual recurring revenue, a figure that underscored how rapidly demand for AI-assisted software creation has grown.
That pace of expansion is especially notable because the company is still less than two years old. Lovable first gained traction with a tool called GPT Engineer, which could generate codebases from prompts and briefly topped GitHub’s trending page. The product later evolved into a more visual platform aimed at people without technical backgrounds, eventually becoming Lovable in late 2024.
Today, the company says about 8 million people use its software to turn ideas into working products. Its customer base includes hobbyists, founders and small teams, alongside enterprise users at companies such as Uber, HubSpot and Microsoft. Even so, enterprise sales remain a relatively small part of the business. One source told Forbes that those customers account for about $20 million in annual recurring revenue.
Lovable’s rapid rise has already created substantial paper wealth for its founders. After a $330 million financing in December, cofounders Anton Osika and Fabian Hedin were each estimated by Forbes to be worth about $1.6 billion, based on an approximate 24% stake in the company. The pair have also said they plan to donate half of their exit proceeds to charity.
The company’s growth comes amid a broader surge in interest around AI coding products. Rival startups such as Cursor, Replit and Cognition have all drawn major investor attention as software development shifts toward natural-language interfaces and autonomous agents. Larger players, including Anthropic and OpenAI, have also pushed deeper into the category with their own coding tools.
Lovable has been expanding the infrastructure behind its service as usage grows. In June, it signed a multi-year agreement with Google Cloud to use Gemini models and additional computing capacity. The deal is intended to help the company scale and make its platform available to more businesses.
Lovable was founded by Anton Osika, who previously worked at CERN, and Fabian Hedin, a serial entrepreneur. Their product’s momentum reflects a broader bet among investors that AI can lower the barrier to software development and reshape how applications are built.
For now, the company remains in fundraising talks rather than at a completed deal. But even the prospect of a $12 billion valuation highlights how quickly the market’s expectations for AI coding startups continue to rise.