AI Coding Tool Valuation Frenzy

AI coding startups are seeing massive valuations and rapid growth. Lovable raised $400M at $13.3B valuation ($500M ARR), Cognition AI in talks at $40B ($1B revenue run rate), CodeRabbit valued at $1.5B (2M reviews/week), Blacksmith's valuation jumped 10x to $550M. This signals extreme froth in the application layer, with validation tools also benefiting.