Lovable, a Swedish AI startup, reported ongoing rapid growth, CEO Anton Osika said.

Osika stated that the company is adding between US$8 million and US$15 million in annualized recurring revenue each month and expects to reach US$250 million in annualized sales by the end of 2025.

Osika also said Lovable aims to hit US$1 billion in annualized sales in the next 12 months.

Founded in late 2023, Lovable provides no-code tools for building apps and websites and uses underlying models from firms like OpenAI, Anthropic, and Google.

Osika said Lovable has about 250,000 paying customers and was valued at US$1.8 billion after a July funding round.

OpenAI recently released its GPT-5 model, which can generate websites and debug code, and Lovable was an early testing partner.

Osika said he does not expect OpenAI’s product launches to threaten Lovable’s growth, citing additional features like quality assurance and security.

He added that Lovable is not currently seeking new funding but may consider raising more capital next year.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ AI startups are surfing an unprecedented funding wave that explains rapid valuations

Lovable’s $1.8 billion valuation achieved within months of launch reflects a broader AI funding boom that has transformed startup economics.

AI companies captured over $100 billion in venture funding during 2024, representing approximately 33% of all global venture capital investment 1.

This surge has created a valuation premium where seed-stage AI startups command 42% higher median valuations compared to non-AI startups 2.

The funding concentration helps explain how Lovable could achieve such a massive valuation so quickly, as investors are paying premium prices for AI companies with strong growth metrics, even those founded as recently as late 2023.

Late-stage AI startups captured nearly 50% of all venture capital raised in 2024, indicating investors’ preference for backing AI companies with demonstrated traction rather than traditional software firms 2.