I coding companies had a good week.

Sweden-based Lovable, a startup that offers vibe-coding, is reportedly raising funds at a $6 billion valuation, Forbes reported on Friday. The funds would follow a $1.8 billion valuation it secured after its $200 million Series A in July.

The news comes on the heels of AI coding firm Cursor announcing a $2.3 billion funding round, which has skyrocketed its valuation to $29.3 billion, more than 12 times its January valuation. 

The popularity of these platforms extends beyond investor attention.

• Lovable has seen rapid growth in recent months, reaching $100 million in subscription sales since its launch in November. CEO Anton Osika said last week that it is nearing 8 million users and that 100,000 new products are built daily on the platform. 
• As for Cursor, the company said it surpassed $1 billion in revenue and has drawn in more than one million users.

These tools are popular for a simple reason: They make engineers work faster, Thomas Randall, research Director at Info-Tech Research Group, told The Deep View.

“These tools reduce cognitive load by integrating code generation, debugging, and refactoring into familiar environments like VS Code,” he said. “These tools succeed because they translate AI model advances into immediate, tangible workflow benefits for developers.”

And despite their popularity, the market is far from saturated, he said. Because these tools are making coding more accessible to non-software engineers, such as data scientists, IT professionals and low-code “citizen developers,” these companies are actively increasing their total addressable market just by the nature of their products.

But it might not remain that way forever, he noted. In the medium-term, these platforms may be forced to differentiate themselves to stand out with things like enterprise software integrations or compliance frameworks, he said. And in the long-term, sustainable profitability may require these companies to stop leaning on external model providers – especially as those companies push their own AI coding offerings.