Ben Bergman

AI vibe coding darling Lovable is racing toward $1 billion in revenue

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Lovable, a Swedish vibe coding startup valued at $6.6 billion, saw its torrid growth accelerate even as Anthropic’s Claude Code went viral over the past few months.

The Swedish startup says its annual recurring revenue has surged by more than 30%, from $300 million to $400 million in a single month, and could top $1 billion by year’s end, Lovable’s chief revenue officer, Ryan Meadows, told Business Insider in an exclusive interview. ARR refers to the predictable revenue a company expects to generate over a year from subscriptions or recurring contracts.

Lovable’s breakout growth comes amid a broader boom in AI-powered coding tools, which include Claude Code and startup Cursor, which was last valued at nearly $30 billion. In late 2025, Cursor said it had $1 billion in annualized revenue.

Lovable launched at the end of 2024 and reached $100 million in ARR just eight months later, doubling to $200 million by the end of 2025.

Vibe coding allows novices with limited programming expertise to create code using AI. Lovable, founded by Anton Osika and Fabian Hedin, aims to make coding even more user-friendly, enabling non-engineers to make software and applications. It was valued at $6.6 billion in a December funding round led by CapitalG and Menlo Ventures’ Anthology fund.

“It’s accelerating quite a bit,” Meadows said. “We’ve doubled the number of active users daily just in the last couple of months.” Lovable now boasts over 15 million daily active users and sees 200,000 new vibe coding projects created each day, according to Meadows.

The vast majority of Lovable users are still non-technical founders and entrepreneurs, but Meadows says the company is seeing its fastest growth from the enterprise business it launched in August.

Anthropic is a partner rather than a competitor

Lovable’s most recent growth spurt occurred after the release of Claude Code. But rather than eating into Lovable’s market share, Meadows says most customers use both tools. Professional software developers and engineering teams use Claude, while non-technical staffers prefer Lovable.

“It’s a rising tide,” he said. “We’ve been super happy with what we’re seeing.”

Lovable is powered by Claude, and when Anthropic launched its marketplace this week, it prominently featured Lovable.

“They’re pretty committed to working with us to pass business through,” said Meadows. “We’re going to keep investing in that partnership.”

A hiring spree

Lovable has rocketed to $400 million in ARR with a lean staff of just 146 employees, said Meadows. This year, the company will embark on a hiring spree, mostly in product and engineering roles, and will end the year with around 350 employees, he added.

Though its engineering team will continue to be based in Stockholm, the company will be opening its first US office this year in Boston to house go-to-market roles.

“We can’t hire fast enough,” Meadows said.

Have a tip? Contact Ben Bergman via email at bbergman@businessinsider.com or Signal at BenBergman.11




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Yann LeCun’s startup has a new CEO — and $1 billion

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Yann LeCun’s AI startup has raised more than $1 billion in seed funding and appointed a new CEO.

In a post on X on Tuesday, entrepreneur and former Facebook researcher Alex LeBrun said he is joining LeCun and the founding team of Advanced Machine Intelligence (AMI) Labs, also known as AMI Labs, as CEO.

“We have secured a $1.03 billion USD seed round to fuel our mission to build intelligent systems capable of truly understanding the real world—a long-term scientific endeavor,” LeBrun said.

AMI Labs said in an X post on Tuesday the round was co-led by Cathay Innovation, Greycroft, Hiro Capital, HV Capital, and Bezos Expeditions, alongside other investors.

The startup added it is building a team of researchers and engineers across Paris, New York, Montreal, and Singapore.

AI researcher and New York University computer science professor Saining Xie also said in a post on X on Tuesday that he has joined the founding team. Xie, who serves as cofounder and chief science officer, wrote that “AMI isn’t a conventional lab.”

“We don’t intend to become one,” he added.

AMI Labs is recruiting engineers, scientists, and researchers across its four global hubs, according to the company’s job postings.

LeCun revealed plans to launch the startup in November after departing Meta, where he spent 12 years leading its AI research efforts.

AMI Labs will focus on building world models, a type of AI system designed to better understand and reflect how the real world works. LeCun had said that the startup will be among the few frontier AI labs that are “neither Chinese nor American.”

Speaking at an event in Paris in December, LeCun said Meta would partner with the new venture, though it would not invest in the company.

“This new architecture is a project that Mark Zuckerberg really likes. He thinks maybe that’s the future,” LeCun said.

In an interview with MIT Technology Review published in January, the AI pioneer said he disagreed with some of the decisions made by Zuckerberg, including the shutdown of the robotics team inside FAIR.

LeCun also took aim at Alexandr Wang, the former CEO of Scale AI, after Wang briefly became his boss following Meta’s AI reorganization.

“There’s no experience with research or how you practice research, how you do it. Or what would be attractive or repulsive to a researcher,” LeCun said in an interview with the Financial Times in January.

“You don’t tell a researcher what to do,” LeCun said. “You certainly don’t tell a researcher like me what to do.”




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Katherine Li, West Coast breaking news reporter at the Business Insider.

AI researchers rally in support for Anthropic as company says it risks losing $5 billion in Pentagon feud

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Employees at rival companies — including OpenAI — are rallying behind Anthropic as the startup warns its escalating dispute with the Pentagon could cost $5 billion in lost business.

More than 30 researchers from OpenAI and Google, including Jeff Dean, the chief scientist of Google DeepMind, filed a joint amicus brief on Monday supporting Anthropic in its legal battle with the government. The employees signed in a personal capacity and do not represent their companies’ official views.

Their filing argues that the Pentagon’s decision to label Anthropic a “supply-chain risk” could harm the broader US AI industry.

“If allowed to proceed, this effort to punish one of the leading US AI companies will undoubtedly have consequences for the United States’ industrial and scientific competitiveness in the field of artificial intelligence and beyond,” the employees wrote.

The dispute stems from a breakdown in negotiations between Anthropic and the Pentagon over guardrails around how its AI models could be used, particularly around mass domestic surveillance and autonomous lethal weapons.

Last month, Defense Secretary Pete Hegseth said that “no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic,” marking a dramatic expansion of the “supply chain risk” designation.

Anthropic has since sued the government in two courts, arguing the decision violates its First Amendment rights and unfairly retaliates against the company.

In court filings, Anthropic executives warned that the fallout is already hitting the company’s finances. Chief financial officer Krishna Rao wrote in a court statement that hundreds of millions of dollars in expected revenue tied to Pentagon-related work are at risk this year. If the government succeeds in discouraging companies from working with Anthropic more broadly, Rao added, the company could ultimately lose up to $5 billion in sales, which is roughly equivalent to its total revenue since commercializing its AI technology in 2023.

Anthropic’s chief commercial officer, Paul Smith, wrote in a separate court statement that the pressure from the government is causing business partners to take steps that “reflect deep distrust and a growing fear of associating with Anthropic.” Smith added that some customers have paused negotiations or demanded escape clauses, while others have canceled meetings entirely after the supply-chain designation.

The situation has also drawn criticism from industry leaders. OpenAI CEO Sam Altman, despite singing its own contract with the Pentagon after Anthropic’s fell apart, wrote on social media that enforcing the supply chain risk designation “would be very bad for our industry and our country.”

Major cloud providers like Amazon and Microsoft have said they will continue offering Anthropic’s Claude AI models to customers without ties to the Pentagon.

Anthropic is now seeking a temporary court order that would allow it to continue working with military contractors while the legal fight continues. The first hearing could take place in San Francisco as soon as Friday.

The Pentagon did not immediately respond to a request for comment outside normal business hours.




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Chong Ming Lee, Junior News Reporter at Business Insider's Singapore bureau.

The CEO of a $15 billion AI company says the biggest AI winners won’t be software — they’ll be mines, farms, and trucks

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AI’s biggest impact will likely happen far from laptops, says the CEO of a $15 billion AI company.

Qasar Younis, the cofounder and CEO of Applied Intuition, said on an episode of “Lenny’s Podcast” published Sunday that “the real impact of AI in the next 5 to 10 years” would show up in physical industries, like “in farming, in mining, in construction, in self-driving trucks.”

Applied Intuition develops software to test and power autonomous vehicles and other machines. The company said in June that it raised $600 million in a funding round, valuing it at $15 billion.

Software tools like Moltbook and OpenClaw may excite developers, but Younis said they touch only a small slice of society.

“I love the stuff that’s happening on these platforms, but it’s still segregated to, like, frankly, developers,” he added.

Instead, he said the biggest shift will come from adding intelligence to machines already embedded in the physical economy.

“More pragmatically, it’s actually just putting intelligence into things that already exist all around us.”

Industries like trucking and farming urgently need that kind of autonomy, he said.

“People are not fighting for those trucking jobs,” Younis said. The average farmer is already in their late 50s, meaning many will retire in the coming decade, potentially worsening labor shortages.

AI is more likely to help fill labor shortages in these industries than replace them entirely, he added.

The company has tested autonomous trucks in Japan, where an aging workforce means a driver shortage, and it’s working on AI in mining safety and efficiency.

AI’s impact on blue-collar industries

Earlier this year, Wall Street grew worried that new AI tools and agents could replace some software products entirely.

A research paper by Citrini, an investment firm focused on thematic equity investing, triggered a global stock sell-off last month after researchers outlined a scenario in which the AI boom wipes out white-collar jobs and ultimately slows economic growth.

Against that backdrop, some industry leaders say physical industries could end up benefiting from the technology.

For instance, robots could help address labor shortages in manufacturing. Daniel Diez, the chief business officer of Agility Robotics, told Business Insider in a report published on Sunday that manufacturers globally “simply can’t find the people to do this work.”

Ford CEO Jim Farley said last year that AI-powered augmented-reality tools are helping technicians repair trucks more efficiently, though he warned that automation could still reshape jobs across the broader economy.

Business Insider reported last year that some Gen Z workers are increasingly considering trade and blue-collar careers as automation and AI create uncertainty around traditional white-collar professions.




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A $5.7 billion AI startup wants to help cut government benefit fraud. Experts aren’t so sure.

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An AI startup in SF focused on identity verification has set a lofty goal: securing government contracts.

Daniel Yanisse, the CEO of Checkr, told Business Insider that the company wants to help the government reduce “fraud and waste” by not only screening new employees but also verifying people’s eligibility for benefits such as Medicare and Social Security.

Though Yanisse said the company isn’t ready to make any product announcement yet, he said a frictionless government assistance system may be just years away.

AI and safety experts, however, told Business Insider that there are legal and technical hurdles for any company to undertake the task of automating benefit and welfare systems with AI.

Checkr primarily uses AI to run background checks and surface information such as criminal records and motor vehicle reports. The company has major contracts with Uber and Lyft to screen new drivers, and is valued at more than $5.7 billion after raising $120 million in funding in 2022. In 2025, Checkr reported over $800 million in revenue and surpassed 120,000 customers.

When asked what Checkr wants to do for the government, Yanisse said that for Medicare and other programs, “there’s a lot of fraud happening and just bad actors getting the government dollars instead of the right people who need help,” adding that it’s very hard for the government to actually verify people’s employment status and income.

The Medicare Fee-for-Service program estimated that there were $28.83 billion in “improper payment” in 2025 at a rate of 6.55%, though not all such cases are the result of intentional fraud. Payments made to individuals who did not submit sufficient documentation and have unverified income levels are also considered improper by Medicaid.

“With AI, unfortunately, there’s going to be even more fraud, identity theft, and scams,” said Yanisse. “It’s a lot of friction, it’s a lot of repetition, and now there are also deepfakes.”

Checkr’s spokesperson told Business Insider that the company’s potential involvement in government is “still conceptual at this point.”

The company also pointed toward a study by Middesk, a business identity verification platform, that out of $1.09 trillion in Medicaid payments that went to around 1.6 million providers between 2018 and 2024, $563 million in payouts went to providers that are blacklisted from federal healthcare programs for criminal activity or misconduct.

Automating identity verification can be challenging

Stuart Russell, professor of computer science at UC Berkeley and an AI pioneer, told Business Insider that he is “not optimistic” that the plan to use AI to determine benefits eligibility will work as advertised.

“An AI system of this kind, some version of an LLM, is incapable of producing veridical explanations of its decisions, making it impossible to challenge false decisions,” Russell said.

Russell also cited the General Data Protection Regulation in the European Union, which bars decisions with significant legal effects on individuals from being made entirely by automated systems.

Baobao Zhang, the Maxwell Dean associate professor of the politics of AI at Syracuse University, told Business Insider that though she cannot assess exactly how good Checkr’s verification system is right now, past government attempts to mix people’s benefits with an automated system are cautionary tales.

“If the federal government or other state governments are trying to contract with a vendor to automate welfare fraud detection, they need to have a serious evaluation in the real world before they deploy it, because the stakes are high, as history has proven,” said Zhang.

In Indiana, an attempt to streamline and automate its welfare eligibility system by outsourcing a contract to IBM ended in a legal battle in which the state sued the company for $1.3 billion for the scrapped project in 2010. Based on court records, the Indiana Family and Social Services Administration said that processing errors from IBM led to faulty benefits denials that brought harm to the needy.

In Australia, an automated government plan called Robodebt, designed to detect fraud, told welfare recipients to repay benefits and sent letters claiming they owed thousands of dollars in debt, based on an incorrect algorithm. A royal commission, which is Australia’s highest form of public inquiry, found that at least three people died by suicide after being falsely told to pay back debt they don’t owe by Robodebt. The system was ruled illegal by a court in 2019.

Ifeoma Ajunwa, the founding director of the AI and the Future of Work Program at Emory University, told Business Insider that if any government agency is to adopt AI, there should be an advisory council made up of technologists and social scientists, and affected constituencies should be given a say.

“I think we need to move cautiously when delegating governmental functions to AI technologies,” said Ajunwa. “While these tools are touted to increase efficiency and lower costs, we also need to establish guardrails for their use to protect citizens.”




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Microsoft-backed Wayve raises $1.5 billion to take its robotaxis global and take on rival Waymo in London

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Wayve is revving up its global robotaxi ambitions with fresh funding as it prepares to take on Waymo in London.

The UK-based autonomous vehicle software startup announced early Tuesday in the UK that it had raised $1.5 billion from a host of Big Tech giants and major automakers.

The funding round, which values the startup at $8.6 billion, includes $1.2 billion from investors including Microsoft, Nvidia, and Uber, as well as Mercedes-Benz, Nissan, and Stellantis.

It also includes additional capital from Uber, which is tied to deployments of Wayve-powered robotaxis across the globe. The two companies have a deal to launch self-driving vehicles on Uber’s app in over 10 markets worldwide, starting with London this year.

“We’ve been learning to drive on British roads for the last eight years, and so this is our home turf,” Alex Kendall, CEO of Wayve, told Business Insider in an interview.

The CEO said the latest funding round is key to pursuing the company’s ambition to license its software to major automakers and robotaxi fleet platforms like Uber.

Unlike Tesla or Waymo, Wayve is solely focused on developing software for other companies looking to deploy self-driving cars. It is not building its own fleet of robotaxis.

Kendall said owning a fleet is expensive, and Tesla’s approach to building its own car can be a constraint since it limits the company to one vehicle platform.

“Everyone wants autonomy, but not everyone wants to buy a Tesla,” he said.

Kendall added that Wayve’s AI driver is designed to be generalizable — the same way a human can quickly learn to drive different cars and in new cities.

That allows Wayve’s technology to quickly adapt to new driving environments and learn new road rules, from switching to the opposite side of the road to right turns at a red light, without relying on high-definition mapping and sensors, the approach taken by rivals like Waymo. It also allows the AI driver to be adapted by different automakers, which may have different sensor configurations on their cars, such as lidar or cameras.

“Because that’s what we’ve built, it enables us to take this business model that enables high-margin software revenues,” Kendall said.

Wayve says that over the past year, its fleet of Ford Mach-Es outfitted with its AI driver has driven in more than 500 cities across Europe, North America, and Japan without being trained on city-specific data.

The company is also planning to license its technology to carmakers as an advanced driver-assistance system like Tesla’s Full Self-Driving, which handles most driving tasks with human supervision. Wayve has a deal with Nissan that will see its AI tech power the Japanese carmaker’s ProPilot driver assistance system from 2027.

The UK-based startup has been testing its tech in London since 2017, and its public debut comes as the city’s robotaxi scene gets increasingly crowded.

Waymo is aiming to begin operating its autonomous vehicles in London, its first international location, this year, while Wayve vehicles will be joined on the Uber app by robotaxis from Chinese tech giant Baidu, which is also partnering with Lyft.




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Alice Tecotzky

JPMorgan will spend almost $20 billion on technology this year

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JPMorgan plans to boost its technology budget by almost $2 billion this year, to $19.8 billion — a roughly 10% increase compared to 2025.

Speaking at the firm’s 2026 company update on Monday, CFO Jeremy Barnum said “technology remains a major driver of our expense growth,” which is up around $9 billion for the year. The bulk of the tech expenses comes from $1.2 billion in investments, including some AI-related projects.

Later in the presentation, CEO Jamie Dimon said that returns on AI are difficult to quantify initiative by initiative. Answering a question from Wells Fargo analyst Mike Mayo, who pressed him on the bank’s technology spend on a recent earnings call, Dimon said that time saved is often “too vague” to measure concretely.

“I think the hardest thing to measure has always been tech projects,” Dimon said. “That’s been true my whole life.”

When it comes to where the firm is investing, Barnum said it’s focusing on “the highest impact areas,” such as customer service in call centers, personalized insights for clients, and technology for software engineers. GenAI is, Barnum told investors, growing as a proportion of the bank’s AI usage.


JPMorgan Company Update

A slide from the company update presentation breaks down technology spending.

JPMorgan



Some of the $2 billion increase is due to inflation hitting everyone, including higher AI hardware costs. Technology head count growth isn’t a major driver — Barnum said the bank has budgeted in some additional head count in the area to work on new products, but that the culture generally discourages hiring more people whenever a new opportunity arises.

Despite JPMorgan’s status as a tech-forward firm — and No. 1 ranking on Evident AI’s index of AI maturity at banks — executives didn’t brush off competition. Marianne Lake, in response to an earlier question from Mayo, said the bank has some strategic assets, including in data.

“Only the paranoid survive,” Lake, the CEO of consumer and community banking, said. “We aren’t walking around thinking we have the divine right to success, we are walking around thinking about how to optimize the value that we give to our customers, how to perfect our processes and our systems.”

JPMorgan isn’t the only bank spending big on technology. Its rivals are also rapidly integrating AI throughout trading floors, back offices, and more to create efficiencies and improve customer experiences. Bank of America said it plans to spend around $14 billion on technology this year.

Dimon has previously asked investors to “trust him” on his bank’s spending, saying he is trying to keep the company from falling behind during its January earnings call.

“We need to have the best tech in the world,” he continued. “That drives investment, it drives margin, it drives competition.”




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$20 billion Perplexity is making a big bet on ditching ads

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Perplexity is going full steam ahead with subscriptions and business sales and plans to focus more on monetization than it has in the past, executives said at a roundtable with reporters on Monday.

The AI search startup, based in San Francisco, is the latest to publicly distance itself from putting ads in chatbot answers, with one executive saying it isn’t exploring any ad deals at the moment. That’s a contrast to OpenAI, which is going all in on ads, while arch-rival Anthropic has publicly touted the opposite.

One Perplexity executive said the startup is increasingly targeting large businesses. The company has only five people on its enterprise sales team and plans to ramp that up, the executive added. It also wants to serve high-powered users such as finance professionals, doctors, and CEOs.

The focus on selling to businesses positions Perplexity more directly as a competitor to startups like Glean, which lets employees search internal files and data more efficiently with AI.

The move comes amid some VC skepticism about Perplexity’s prospects, with Silicon Valley investors voting it the company they’d most like to bet against in an informal poll at an AI conference last year, amid back-to-back funding rounds and talks of a wider AI bubble.

Perplexity will focus more on revenue and revenue retention than on other metrics, such as the number of questions it answers, the executive said. Perplexity also pledged to keep allowing people to use the product for free, with rate limits.

At the roundtable, the company declined to share specific financials and shared that revenue grew 4.7 times last year. Perplexity generated over $150 million in annual recurring revenue by mid-last year, its head of communications Jesse Dwyer told Business Insider in August. It hit $200 million in ARR in October, Alex Heath of Sources reported.

The news comes after several months of the AI startup lying low, as Perplexity said in a press invite. The company’s leaders said it was busy building and not focusing on AI-related drama.

Perplexity had announced in 2024 that it would start experimenting with ads. That effort stalled, with the top ads leader, Taz Patel, quietly leaving last year. One consistent issue with ads in AI-generated answers is that users won’t believe them, the Perplexity executive said.

Perplexity also launched a product for enterprises in 2024 that uses internal and external data to generate research reports, among other features.




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Sales reps at $11 billion AI startup ElevenLabs have to bring in 20 times their base salary, or they’re out — VP says

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At $11 billion AI startup ElevenLabs, the message to sales reps is simple: Hit 20x your base salary, or you’re out.

Speaking on the 20VC podcast on Friday, Carles Reina, VP of sales at the voice-cloning startup, talked through its “ruthless” quotas.

“So if I pay you $100,000 a year, your quota is $2 million. That’s it. If you don’t achieve your quota, then you’re going to be out, right?” Reina said. “And we’re ruthless on that end.”

ElevenLabs — which was recently valued at $11 billion after closing a $500 million funding round — operates in micro-teams of five to ten people each, according to CEO and cofounder Mati Staniszewski, who spoke on a separate 20VC podcast episode in September.

Reina said he prefers to operate in smaller teams that hit their quotas, and pay them more.

Small teams have become a growing trend in tech, with AI startups touting their ability to scale with far fewer employees by working alongside AI agents.

LinkedIn cofounder Reid Hoffman wrote in January that a team of 15 people using AI can rival a team of 150 who aren’t.

Meanwhile, Mark Zuckerberg said on a Meta earnings call in July that he has “gotten a little bit more convinced around the ability for small, talent-dense teams to be the optimal configuration for driving frontier research.”

Reina said the “ruthless” quota has been successful at ElevenLabs, saying on the 20VC podcast that more than 80% of reps hit their sales quota.

ElevenLabs did not respond to a request for a comment.

He added that the firm compensates both the account executive and customer success manager if they upsell a company within the first 12 months.

“I’m paying double, but I don’t care,” Reina said. “It makes perfect sense because then I have these two people busting their ass to make sure that they actually can make more money, which is fantastic for me as a company.”

The push for higher performance isn’t limited to AI startups.

In April, Google said it was restructuring its compensation structure to increase rewards for top performers. “High performance is more important than ever,” Google’s head of compensation told staff at the time.




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Amazon’s $8 billion Anthropic investment balloons to $61 billion

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Talk about return on investment. Amazon’s bet on Anthropic looks like an enormous win, at least on paper.

The cloud giant disclosed on Friday that it holds $45.8 billion of convertible notes and $14.8 billion of nonvoting preferred stock in the AI startup. Taken together, the figures show that Amazon’s Anthropic stake is now worth $60.6 billion.

Amazon has invested $8 billion in Anthropic since late 2023, indicating a seven-fold increase in value. If borne out, that would rank among the most lucrative strategic technology investments the company has ever disclosed.

The two companies have a deep commercial tie-up. Anthropic has committed to buy 1 million of Amazon’s Trainium chips, binding one of the leading AI labs closely to Amazon Web Services.

Anthropic last raised $13 billion in September at a $183 billion post-money valuation, following a $3.5 billion round in March that valued the company at $61.5 billion. The AI startup is in talks for another funding round that would push its value to $350 billion.

The convertible notes held by Amazon convert to preferred stock as Anthropic raises additional capital. So every time the startup closes a round, Amazon gets valuable new stock in one of the hottest AI companies on the planet.

Some of the upside has already flowed through to Amazon’s earnings. Conversions in 2025 generated about $5.6 billion in recognized gains, and Amazon booked a further $7.2 billion upward adjustment to its “other income” in the third quarter as Anthropic’s valuation climbed.

An Amazon spokesperson told Business Insider that the value of the company’s Anthropic stake rose from $38.5 billion in the third quarter to $60.6 billion in the fourth. The company expects to book a further $15 billion gain in first-quarter “other income” as some of the notes convert to nonvoting preferred stock, the spokesperson added.

Amazon also disclosed that these valuations relied on “significant judgment.” The company classified the convertible notes as “Level 3” assets, meaning their values are based on unobservable inputs and Amazon’s own assumptions rather than market prices, the company disclosed.

That’s common with stakes in startups, which don’t have securities that trade regularly on liquid public markets. That’s what IPOs are for — and Anthropic is reportedly eyeing a listing this year.

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