Vibe-coding, using AI to turn natural language into software, is rapidly boosting startups like Lovable, which hit $100M in revenue and $1.8B valuation in eight months, with strong enterprise adoption despite AI reliability concerns.

Vibe-coding, an AI-driven development method letting non-technical users create software via natural language prompts, is accelerating startup growth and shifting tech innovation toward creativity over coding expertise. Lovable, a Swedish startup, hit $100M in annual recurring revenue in just eight months and is now valued at $1.8B, fueled by platforms like Replit, Cursor, and Vercel. Despite claims of declining traffic, Lovable reports rising daily project creation and user growth. Upgrades like Lovable AI and Lovable Cloud enable fully functional AI apps with no infrastructure setup. A16z data shows strong enterprise adoption of vibe coding, with AI-native tools dominating the top 50 app list, and companies like Visa and Meta now prioritizing AI coding skills. While funding surges—Cursor’s parent raised $900M at $9.9B—experts caution that AI code still has reliability issues.