Figma has acquired the team behind Bud, a vibe-coding and AI agent platform, signaling a strategic shift to compete across the entire software creation pipeline. The deal marks Figma's effort to move beyond static design mockups into working applications, as the market for AI-powered app builders has exploded from novelty to a multi-billion-dollar gold rush in less than two years.

What Is Vibe Coding and Why Does It Matter?

Vibe coding refers to a development approach where users describe what they want an application to do in natural language, and AI systems generate functional code and interfaces based on that description. Bud, which began as a platform called Orchids, let users spin up applications for web, mobile, Slack, and browsers by describing their vision rather than writing code line by line.

The category has grown at a remarkable pace. Lovable, a Stockholm-based prompt-to-app platform, reached $400 million in annual recurring revenue early this year and was reported in June to be in talks to raise at a $12 billion valuation. Replit tripled its valuation to roughly $9 billion in March and is targeting $1 billion in annualized revenue by year-end. Vercel's v0, Wix-owned Base44, which crossed $100 million in annual recurring revenue this spring, and Bolt.new round out an increasingly crowded field.

Why Is Figma Making This Move Now?

Figma faces pressure from two directions. Below, prompt-to-app startups are capturing users who want to build without writing code. Above, AI coding agents from major model labs are handling the complex work of turning prototypes into production-ready software. Anthropic's Claude Code, the professional-grade tool from the company behind the Claude AI model, crossed a $2.5 billion revenue run-rate in early 2026, roughly nine months after its public launch. A February survey of 15,000 developers found that 71 percent of those who regularly use AI agents rely on Claude Code as their primary tool.

The acquisition also arrives amid tension between Figma and Anthropic. In April, Anthropic launched Claude Design, a standalone design tool positioned directly against Figma, Adobe, and Canva. The move blindsided product teams at both Figma and Adobe, who had no advance notice. Only Canva, whose design engine powers Claude Design, was in the loop. Figma's stock dropped roughly 7 percent on announcement day and continued sliding.

"Not consistently candid in their communications," said Dylan Field, Figma's CEO, when asked about Anthropic at an industry event days after Claude Design's launch.

Dylan Field, CEO at Figma

Field's comment echoed the language OpenAI's board used when it fired Sam Altman, signaling the depth of frustration. Since then, Field has softened his tone, telling Stratechery that Anthropic's strategy echoes OpenAI's earlier phase of building everything before pulling back. Still, the Bud acquisition reads as a defensive hedge. If AI labs are coming for design, Figma intends to own the coding layer they need.

How Figma Plans to Integrate Vibe Coding Into Its Platform

• Web App Generation: Figma Make, launched over the past year, generates functional web applications directly from design specifications, bridging the gap between mockup and working code.
• External Agent Support: Figma added support for external coding agents including OpenAI's Codex and Anthropic's Claude Code, allowing users to leverage best-in-class AI tools within the design canvas.
• Native AI Assistant: Figma rolled out its own AI assistant on the canvas, enabling designers to request code generation and automation without leaving the platform.

The Bud team will help Figma accelerate this vision. Bud CEO Kevin Lu framed the exit as a natural fit, calling Figma one of the "defining product companies of our time" and the obvious home for this new era of building.

What Happens to Bud Users?

Under the deal, both Bud and Orchids will shut down on July 18, giving users just under two weeks to migrate their projects off the platform. This timeline is tight, and users who have built applications on either platform will need to act quickly to preserve their work.

There is one notable concern. Earlier this year, the BBC reported, citing a security researcher, that apps created on Orchids were susceptible to cyberattacks. To be fair, that problem is endemic to the entire vibe-coding category. Independent audits of AI-generated apps this year have repeatedly found that the vast majority ship with at least one security vulnerability. Vibe coding is fast, but it still is not safe by default.

Figma's acquisition of the Bud team reflects a broader consolidation in the AI app-building space. As the market matures and valuations climb, larger platforms are moving to own more of the creation pipeline. Whether Figma can successfully integrate vibe-coding capabilities while managing its fractured relationship with Anthropic remains an open question. What is clear is that the moment before code exists has become the most contested battleground in software development.