Tech Insider

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  • Vibe coding companies are picking up big money and even some controversy.
  • Lovable and Replit are seeing valuations soar even as competition grows. Cursor just sold to SpaceX for $60 billion.
  • The space has seen lots of deal activity and interest from Big Tech.

The tech world is both in awe of and fearful of vibe coding.

On one hand, tech giants are all in on these AI-assisted coding tools. They're touting efficiency gains, listing it as a need-to-have in job descriptions, buying their employees subscriptions, and even investing in vibe-coding startups themselves.

In the latest news from the vibe-coding bonanza: SpaceX said on Tuesday that it was officially acquiring AI coding startup Cursor for $60 billion. The deal strengthens SpaceX's position in the AI coding race by helping it compete with top labs building advanced coding tools.

That deal is just the latest in a broader wave of acquisitions and partnerships sweeping through the vibe-coding space.

In July, AI startup Cognition snatched up Windsurf after OpenAI's $3 billion deal to acquire the vibe coding tool maker fell through. Just one month earlier, web design platform Wix bought Base44, a six-month-old startup bootstrapped by a solo founder, for $80 million.

These entrants are competing with far bigger and better-funded players, including OpenAI, Anthropic, and Microsoft, that make their own AI-powered coding tools.

Yet, the rise of these tools is also rattling the broader market: Some tech giants saw their shares take a hit as investors dumped legacy software stocks over concerns that AI and vibe coding will allow companies to build their own software rather than buy.

Both narratives are driving the valuations of vibe-coding startups such as Lovable and Replit, now well into the billions.

"Our mission has always been that every human with an idea and an internet connection should be able to build any app they want," Amjad Masad, the CEO of Replit, said in a release in March, announcing his company's $9 billion valuation.

Business Insider compiled a list of the startups riding the vibes, detailing their latest valuations, fundraises, and what they're best known for.

Lovable
Lovable CEO Anton Osika.
Lovable CEO Anton Osika.

Based in Stockholm and launched in 2024, Lovable is among the biggest players in the vibe coding world and one of the fastest-growing startups.

In March, Business Insider reported that the Swedish startup's annual recurring revenue had surged by more than 30%, from $300 million to $400 million in a single month. ARR, a key metric used to gauge startup performance, refers to the predictable revenue a company expects to generate over a year.

Lovable, founded by Anton Osika and Fabian Hedin, was valued at $6.6 billion in a December funding round led by CapitalG and Menlo Ventures.

Lovable's chief revenue officer, Ryan Meadows, told Business Insider that the company plans to more than double its head count by the end of the year, from 146 to 350 employees.

He added that Lovable, which specializes in making coding user-friendly, now sees 200,000 new vibe-coding projects created each day.

Replit
Replit CEO Amjad Massad.
Replit CEO Amjad Massad.

Replit, founded in 2016, touts itself as an all-in-one platform that not only generates code but also builds, hosts, and deploys applications in one place.

Over the past few years, Replit has pivoted from a collaborative coding environment to the Replit Agent that can turn plain-English descriptions into working applications, lowering the barrier to entry for beginner coders.

In March, the startup announced it had raised a $400 million Series D round at a $9 billion valuation, led by its previous investor, Georgian Partners. Other investors include Coatue, Andreessen Horowitz, Craft Ventures, Accenture Ventures, and angels Shaquille O'Neal and Jared Leto.

On May 28, Visa announced it had invested an undisclosed amount in Replit as part of a partnership.

Emergent
Emergent cofounders Mukund Jha (left) and Madhav Jha

Emergent, founded out of Y Combinator's startup class of 2024 by twin brothers Mukund Jha and Madhav Jha, is one of the newest but fastest-growing vibe coding platforms. Similar to Replit, Emergent says it allows users to "build full-stack, production-ready applications using just natural language prompts."

The startup said in February that it had 6 million users and had reached $100 million in ARR in eight months.

Its latest funding round, raised in January, raised $70 million in Series B funding from Khosla Ventures and SoftBank Vision Fund 2, with participation from Prosus, Lightspeed, Together, and Y Combinator. The startup's valuation was not disclosed.

Emergent's $23 million Series A round closed in September, signaling how eager investors are to get in on the growing pie.

"A lot of the other platforms, they're great for prototyping, they're great for demos, but when it comes to really managing the entire lifecycle of software development, they fall short," CEO Mukund Jha told Business Insider. "That's a gap we are trying to fill in the market right now."

Poolside AI
Dutch Co-Founder and Chief Technology Officer of Poolside, Eiso Kant poses during a photo session in Paris on July 7, 2025.
Co-Founder and Chief Technology Officer of Poolside, Eiso Kant .

San Francisco-based Poolside was cofounded in 2023 by former GitHub head of tech Jason Warner and software entrepreneur Eiso Kant. The company focuses on selling to enterprises and public sector organizations. It builds models that can write computer software and coding applications.

In October, Bloomberg reported that the company was in discussions to raise $2 billion at a $12 billion valuation, with a potential $500 million to $1 investment from Nvidia.

The company closed a $500 million Series B in 2024, led by Bain Capital, with participation from Nvidia, a Poolside representative told Business Insider. It is raising a Series C, and Nvidia has committed at least $500 million to anchor the round.

Correction: March 13, 2026 — An earlier version of this story misstated Poolside's headquarters. The company is based in San Francisco, not Paris.

StackBlitz's Bolt
StackBlitz cofounders Albert Pai (left) and Eric Simons (right) moving out of a hacker house they ran in Palo Alto
StackBlitz cofounders Albert Pai (left) and Eric Simons (right).

StackBlitz, founded in 2017 and headquartered in San Francisco, credits its survival to Bolt, a vibe coding platform the company launched in 2024 when it was struggling with dwindling revenue.

Bolt, which uses Anthropic's models to let users build what they want with plain English, generated about $1 million in ARR in the first week it came out, cofounder Eric Simons told Business Insider last year. The week after, it added another $1 million in ARR, and then another.

"I had slept three hours a night for a week straight to get the release out with our team," Simons told Business Insider about Bolt's release. "After seeing it live, and people loving it — beyond anything I had ever created before — I cried, alone at my desk in my backyard shed office."

In January 2025, Bloomberg reported that StackBlitz was in talks with investors to raise $83.5 million at a $700 million valuation.

Cognition
Scott Wu
Scott Wu cofounded Cognition in 2023.

Cognition was founded in 2023 by former competitive programmers Scott Wu, Steven Hao, and Walden Yan. The company is best known for Devin, an autonomous AI software engineer that can plan, write, test, and deploy software.

Devin is an AI teammate capable of managing the entire software development lifecycle, unlike tools that focus only on code generation, said Emily Cohen, who heads people and operations at the AI startup.

The San Francisco-based company has attracted backing from investors including Founders Fund, 8VC, Lux Capital, Khosla Ventures, Elad Gil, and Pear VC. In May, the company raised more than $1 billion at a $26 billion post-money valuation, making it one of the most valuable AI coding startups globally.

Cognition acquired AI coding platform Windsurf in 2025. It established offices in London and Singapore earlier this year.

Kilo

Kilo Code is a San Francisco-based AI coding startup founded in 2025 by Scott Breitenother, Emilie Schario, and Sid Sijbrandij, the cofounder and former CEO of GitLab.

The company offers an open-source AI coding agent that helps developers write, edit, and manage software using natural-language prompts, while supporting access to hundreds of AI models.

"What do you do if Anthropic has a down day? Do you say, 'Hey folks, everybody take Friday off.' I mean, you can't," Breitenother, Kilo's CEO, said in an interview with Business Insider. "That's where Kilo comes in. Sure, you can buy Anthropic, but also buy OpenAI and use them both through Kilo."

In December, Kilo raised an $8 million seed round led by Cota Capital, with participation from Breakers, General Catalyst, Quiet Capital, Tokyo Black, and others.

Elon Musk posted on X in June that Kilo's tools were "not bad for version 0.1" and "good value for money."

SkipLabs

AI infrastructure startup SkipLabs was founded in 2022 by Julien Verlaguet, the creator of Facebook's Hack programming language.

In June, the company launched Skipper, a closed-loop coding agent for back-end services aimed at professional developers.

In March 2025, SkipLabs raised an $8 million seed round led by Amplify Partners, with participation from Tapestry VC and angel investors including Yann LeCun, Spencer Kimball, and Olivier Pomel.

Read the original article on Business Insider