Base44 launches custom AI model to bolster defensibility
Base44 rolls out its own AI model to support users in creating apps with natural language, amid AI startup defensibility concerns.

Base44, the vibe coding platform acquired by Wix for $80 million just one year ago, has started rolling out its own AI model to support users in creating apps with natural language. The move comes as AI circles debate whether frontier models suit all use cases and whether businesses built on top of others' models are truly defensible long-term. Base44's custom LLM aims to outperform frontier models, with founder Maor Shlomo stating that owning the model allows for optimizations on latency, cost, and efficiency.
Base44's decision may be seen as a competitive move against Swedish startup Lovable, which relies on external LLMs. However, Shlomo expects others to train their own models, especially those with sufficient scale and velocity to gather enough data. According to Jonathan Userovici, a general partner at VC firm Headline, data, distribution, and tech stack are key ingredients of defensibility for AI startups.
Base44's LLM, Base1, was developed and trained on a dataset generated from tens of millions of real user interactions on the platform. This dataset will continue to grow, but so will its rivals'. The competition may not come from vibe-coding startups, but from frontier AI labs like Cursor, Grok's parent company xAI, and Claude Code.
Anthropic and other foundational AI providers may use this data and feedback loops to improve models for app creation. Shlomo believes specialization gives Base44 an edge, predicting that models will stay general in their capabilities. Userovici cautions against underestimating frontier models, citing the example of legal tech startup Harvey, which abandoned plans to train its own model.
Enterprise customers are now demanding cost-effective solutions, driving change in the AI infrastructure. Base44's decision to develop its own LLM was influenced by multiple factors, including cost reduction. The company expects ownership of the model to give it direct control over compute and inference spend, resulting in a structurally stronger margin profile over time.
Base44's parent company, Wix, recently announced layoffs, but Base44 has been growing in headcount since the acquisition and has passed $100 million in annual recurring revenue. Why this matters: The increasing demand for cost-effective AI solutions and the need for defensibility are driving AI startups to develop their own models. Base44's move sets a precedent for other startups to follow, potentially leading to a shift away from reliance on frontier models.
Source: TechCrunch