Stockholm-based startup Lovable, which develops AI tools that allow people to spin up apps and websites through prompts, is in talks to raise funding at a $12 billion valuation, four sources told Forbes. The fresh cash injection would almost double the fast growing company’s valuation, up from $6.6 billion in December. The round is not final and the valuation could change.
“We’re not here to discuss rounds that haven’t happened yet,” Lovable spokesperson Senka Hadzimuratovic said.
The company crossed $400 million in annual recurring revenue in February, less than a year after becoming the fastest growing software startup, hitting $100 million in annualized revenue within just eight months of launch. Today 8 million people—from hobbyists to budding entrepreneurs—use Lovable to turn their ideas into working software without needing to code. Teams at enterprises like Uber, HubSpot and Microsoft use Lovable’s software, but enterprise customers account for only $20 million in ARR, one of the sources told Forbes.
After a $330 million fundraise in December, Lovable’s cofounders Anton Osika, 36, and Fabian Hedin, 25, became billionaires, each worth about $1.6 billion with an estimated 24% stake in the company, Forbes reported. The two have pledged to donate 50% of their earnings from an exit to charity.
Lovable is part of an expanding cohort of startups changing the way software is built. The vibe coding boom has birthed a string of companies like Cursor (SpaceX secured rights to acquire it for $60 billion; $9 billion-valued Replit which expects to hit $1 billion in ARR before year end; and AI agent company Cognition, which was valued at $26 billion with a revenue run rate of about $490 million. They’re all dwarfed by $965 billion AI titan Anthropic, whose marquee AI coding tool Claude Code saw a wild surge in popularity, generating $2.5 billion in annualized run-rate revenue as of February 2026. OpenAI launched its own AI coding agent Codex in May 2025, which now has 5 million weekly active users.
Osika, a physicist who worked at the world’s leading particle physics laboratory CERN, founded Lovable with Hedin, a serial entrepreneur. In June 2023, he launched GPT Engineer, an AI tool that could generate entire codebases from simple prompts which shot to the top of GitHub’s trending page overnight— an early sign of AI’s promise. The pair converted it into a visual tool that was more accessible for non-coders and could produce games and websites, which later became Lovable in November 2024.
In June, Lovable signed a multi-year contract with Google Cloud to use the search giant’s Gemini models and computing power to scale capacity and allow more businesses to access Lovable.
Iain Martin contributed reporting.
MORE FROM FORBES
