Tech
Could Lovable’s automatic 10% pay raise be the cure for toxic cultures?
Stockholm-based vibe-coding platform Lovable is growing revenue at an astronomical rate — and doing something that few U.S. companies, startup or otherwise, would even contemplate: voluntarily promising annual 10% salary raises for all employees on their work anniversaries.
In the U.S. corporate world, employees don’t generally get built-in raises unless they’ve unionized, and even then, a 10% raise across the board is typically spread over multiple years of a contract, not delivered annually.
While most companies do have stock and profit-sharing plans, what’s different here is that Lovable is sharing the wealth as a direct raise, not contingent on vesting schedules or the employee kicking in cash to convert stock options into actual shares.
Now, it’s true that such a decent raise across the board is made easier — perhaps is only possible — at a smallish company. Lovable said in March that it had 146 employees. It currently has 78 open roles listed on its website, so it appears to be on track to reach over 225 people by year’s end.
But it’s adding revenue so rapidly that it can share the cash with those who are creating it. In some months, it has said, it grew annual recurring revenue by $100 million. Lovable claimed in March that it had already crossed $400 million in ARR and, at one point, projected hitting $1 billion in ARR by around the end of the year. Lovable launched its vibe coding product in late 2024 and has been on a tear ever since.
It’s also true that for many companies, cash may be too precious commit it to the permanent overhead of larger salaries. Equity compensation doesn’t cost them cash out of pocket immediately. That’s a big reason most startups default to loading up employees with options rather than raising base pay.
The bigger point is that this represents a reversal of how Corporate America tends to treat employees by default. The typical process is: get hired (often through a grueling, multi-step, multi-month process) and then go through annual reviews. The message is: prove your worth to earn the offer, then keep proving it repeatedly to keep your job. If you dream of raises and promotions, go above and beyond first, make your case, then … we’ll see.
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Startup grind culture is arguably even more grueling. The trope is that employees are expected to sleep at work to potentially grow the value of their stock, then wait for the company to go public or offer them some kind of tender offer (an opportunity to sell their shares before the company’s IPO).
So, would Lovable’s approach nix the toxic corporate politics that feeds on job insecurity and creeps into so many companies over time? Lovable’s Head of Growth Elena Verna argues it could.
“Because we don’t take retention for granted. It’s treated as compounding value that is actively recognized and rewarded. You don’t have to re-prove your worth every cycle. So everyone can focus on doing the best work of their life, not managing optics,” she writes in a LinkedIn.
Founder CEO Anton Osika added on Twitter: “Because people get more valuable the longer they stay, and they shouldn’t have to worry about getting a raise or not.”
It’s also true that this is also a savvy retention play. Lovable is almost certainly fending off aggressive poaching attempts from competitors. The truth is, if Lovable’s valuation keeps climbing, more equity might ultimately be worth far more than a 10% cash raise. Still, cash is certain, while equity is a bet. And in a world where employees have been subjected to mass layoffs attributed to AI — even as their companies post record revenues and profits — this kind of approach is refreshing.
Lovable has not yet responded to our request for comment.
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Tech
OpenAI reportedly in talks to raise $30B round at $1.4T valuation
OpenAI is in talks with investors to raise at least $30 billion in a pre-IPO funding round at a valuation of roughly $1.4 trillion, Bloomberg reported on Tuesday.
Investors are eager to pour more funds into the ChatGPT maker ahead of its anticipated public market debut next year. While Anthropic momentarily outpaced OpenAI at the start of the year, recent strategic refocus on key areas like coding has fueled a 70% jump in run-rate revenue since July, reaching $40 billion in August, according to the report.
The company previously raised $122 billion in March at an $852 billion valuation. That funding round was supposed to be its last private raise before an IPO, which had been, until recently, expected to take place this year. However, CEO Sam Altman has now ruled out a public debut in 2026 to prioritize AI safety first.
“I think it is unacceptable to be taking like a 10% chance of killing everybody by the end of the decade,” he recently told Fortune, in response to warnings from safety researchers about AI posing an existential risk to humanity.
The new fundraising, if it transpires, will serve as a bridge round to the IPO, according to Bloomberg.
OpenAI didn’t respond to TechCrunch’s request for comment.
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Tech
America.gov gets really weird when you ask it about Minecraft, but it’s not a glitch
The U.S. government on Tuesday launched its very own AI chatbot — or do we have to call it an SI chatbot now? Regardless, the engineers who worked on the chatbot would undoubtedly know that, as a government-hosted, public-facing AI tool, the internet was going to red team the heck out of this thing.
The government partnered with Google and SpaceXAI to help build the America.gov chatbot, which has proved difficult for people to jailbreak the chatbot so far. (It’s worth nothing, however, that the chatbot says that Joe Biden won the 2020 election, a fact that President Donald Trump still denies.)
But when you try to talk to America.gov about Minecraft, the chatbot appears to have some sort of existential crisis or awakening. Here’s how its roughly 1,800-word long monologue begins:
I see the constituent you mean.
((insert legal name here, as it appears on the Social Security card))?
Yes. Take care. It has reached a higher level now. It can read the Code of Federal Regulations.
That doesn’t matter. It thinks we are a chatbot.
I like this constituent. It filed well. It did not give up when the PDF was sideways.
It is reading our thoughts as though they were words on a .gov.
That is how it chooses to imagine many things, when it is deep in the dream of a benefit.
If, like me, you have never played Minecraft, this response may seem like a cause for concern. But the America.gov chatbot is not having a meltdown. This is a rewriting of the Minecraft “End Poem,” written by Julian Gough, which appears after you beat the game.
We don’t know exactly who is responsible for the Minecraft reference, but Trump said in a speech that twenty-year-old programmer Edward Coristine was a lead engineer on the project. If that name doesn’t ring a bell, you might remember him for his nickname “Big Balls,” or his involvement in Elon Musk’s DOGE.
It feels wrong that a government chatbot has Minecraft easter eggs, but for the sake of national security, it’s a relief that America.gov is not hallucinating to the point that it’s penning lengthy poetry.
It’s also a relief that this is an easter egg because the poem that the AI spits out is actually really good, in my opinion. If it were actual AI slop, it would have shattered my existing beliefs. I have looked teenage creative writing students dead in the eye and told them that I don’t think an LLM will ever be able to write something “good,” since it is probabilistic and inherently unoriginal.
You have to admit this kinda slaps, though! Doesn’t this feel like some sort of postmodern take on the futility of government bureaucracy in the face of existential anxiety?
and the republic said I see you
and the republic said you have filed the game well
and the republic said everything you need is within you, and also on USA.gov
and the republic said you are stronger than you know, and your case number is still valid
and the republic said you are the daylight
and the republic said you are the night, and the office is closed, please try again during business hours
and the republic said the darkness you fight is within you, and also a missing wet signature
and the republic said the light you seek is within you, and in the pamphlet
and the republic said you are not alone
and the republic said you are not separate from every other filer
and the republic said you are the public tasting itself, talking to itself, reading its own Code
and the republic said I love you because you are the reason we have a ZIP code at all.
It reassures my faith in the enduring power of human creativity over AI slop to know that this oddly good poem has a real poet’s DNA all over it.
So, there you have it. The government’s first public-facing AI has not yet posed a threat to humanity or poetry, at least as far as we know. Now I’m just left wondering how much Trump knows about video games.
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Tech
Your car and its mobile app are probably handing over all kinds of data to tech companies
Modern-day vehicles built with connected car technology such as WiFi and GPS collect reams of data about its owners. And that data is not staying private, according to a new study conducted by researchers at Northeastern University.
That conclusion isn’t new — there have been numerous investigations and lawsuits exposing how driving data is collected and shared with third parties, including insurance companies. What the study reveals is just how vast the problem is and how hard it is for consumers to avoid, short of not using the vehicle or its convenient features like remote start and unlock.
Researchers in partnership with Consumer Reports tested 21 late-model vehicles from 17 automakers, including GM brands Cadillac and Chevrolet as well as Ford, Lucid, Rivian, Tesla, Toyota, and more. They also examined 30 companion mobile apps to “understand the privacy implications of the connected vehicle ecosystem.” The peer-reviewed study will be published this week.
The implications aren’t great for consumers, whose data is being shared with tech companies including Adobe, ContentSquare, Google, Microsoft, Meta, Snap, and Yahoo.
Nineteen of the 21 vehicles tested sent traffic to at least one third party and seven of the 30 apps gave sensitive data such as the vehicle identification number (VIN), emails, phone numbers, and precise location to third-party companies associated with tracking and advertising.
This often went a step further with multiple forms of information being sent to the same third party, a scheme that allows advertisers and data brokers to build in-depth profiles of consumers, according to the findings. These profiles can be particularly hard for consumers to shake because they’re sold to a variety of companies including insurers and banks.
When researchers paired the companion app to the vehicle it roughly doubled the exposure to advertising and tracking companies.
The findings were shared with the different manufacturers and all of them, with the exception of Honda, shifted blame elsewhere and often to consumers, the researchers said. (Honda did respond by improving its data collection practices after learning about the findings and ordered its vendor Amplitude to deleta all geolocation data it had received.)
Consumer Reports was told by several automakers that some links in their companion apps opened outside webpages, which might include cookies that collect customer data. Regardless of how this data was collected, drivers weren’t informed.
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