Two years ago, the fastest way to build a small piece of software was to hire a developer. Now, at companies including Microsoft, Nvidia and Deutsche Telekom, employees are increasingly describing what they want in plain language and watching a machine assemble the product. The startup behind that shift says it has crossed a revenue line that would have seemed implausible when it launched.
Lovable, the Stockholm-based company that makes an AI app builder, said on Thursday its annual run-rate revenue has passed $600 million, up from roughly $500 million in June. Co-founder Fabian Hedin disclosed the figure on stage at the HumanX summit in Amsterdam. He said two-thirds of Fortune 500 companies now use the product, often after employees found it on their own rather than through a corporate mandate.
The company’s pitch is built on a term the industry has come to call “vibe coding,” popularized by the former Tesla and OpenAI engineer Andrej Karpathy in early 2025. A user types a description of an app in everyday language, and Lovable produces a working product, not just code. Hedin drew the distinction directly: tools like Codex or Claude output code, while Lovable outputs a product, and increasingly a business.
That difference is more than rhetorical. Lovable handles hosting, deployment and scaling, which means the software a user describes can go live without that user touching a server. Hedin said apps created on the platform together attract close to a billion visits a month, an order of magnitude more traffic than Lovable’s own website receives. The company, founded in 2023 by Hedin and Anton Osika, has built that reach in barely three years.
The revenue figure is the clearest sign yet that AI-assisted software creation has moved from developer curiosity to corporate standard issue. Analysts said the jump from $500 million to $600 million in roughly a single quarter points to accelerating enterprise adoption rather than a one-time surge, and the two-thirds figure suggests the product has spread well beyond startups and into the largest companies in the world.
Lovable has raised more than $700 million across two rounds just eight months apart. In December it took $300 million from Menlo Ventures and CapitalG at a $6.6 billion valuation; in August it raised $400 million from Menlo Ventures and the Scaleup Europe Fund at a $13.3 billion valuation. The valuation doubled in eight months, a pace that reflects the speed at which revenue is compounding, and Menlo Ventures, an early OpenAI backer, anchored both rounds.
The company is part of a broader movement of AI-native software builders that includes Replit, Bolt and Vercel’s v0, all chasing the same promise: lower the cost of producing software until it approaches the cost of describing it. Where they differ is in how far they take the output. Lovable’s bet is that customers want a finished, hosted product, not a code editor with a smarter autocomplete, and its hosting business is what turns a prompt into something a company can actually ship.
That bet carries risks. The companies now using Lovable are entrusting a startup with internal tools that touch real data and real processes, and the security and compliance requirements of a Fortune 500 buyer are far heavier than those of a hobbyist building a side project. Hedin said the company has focused deliberately on the enterprise business, which suggests it is spending to meet those requirements rather than relying on self-serve growth alone.
The growth also invites competition from the largest software companies. Microsoft, a Lovable customer, is itself pushing AI coding tools through GitHub Copilot, and Google, Amazon and OpenAI are all racing to let users turn prompts into working software. Lovable is growing quickly, but it is growing inside a field where every major platform wants the same job, and where the giants control the distribution channels the startup must reach.
The revenue mix behind the number is also changing. Lovable began as a tool for individuals and small teams, but Hedin’s comments suggest the growth now comes from large organizations buying seats by the thousands. That is a different business than the one Lovable started with: sales cycles lengthen, procurement gets involved, and security teams ask questions a startup that simply answered prompts never had to face. Hedin acknowledged the shift, saying the company has concentrated deliberately on its enterprise business.
For now, the numbers favor the startup. A run rate that rose by $100 million in a quarter, a Fortune 500 reach of two-thirds, and a valuation that doubled in eight months together describe a company that has found product-market fit before its competitors have settled the category. Whether Lovable can hold that position as the giants arrive is the question the next year will answer. The answer will depend as much on distribution as on technology: whichever company makes describing software feel as ordinary as typing an email will likely keep the customers the others are chasing.
