The Rise and Quiet Demise of Lobe.ai: Why Microsoft's No-Code AI Tool Vanished

Ever wondered what happened to Lobe.ai, the promising no-code AI tool that Microsoft acquired in 2018? Despite generating excitement for its user-friendly approach to machine learning model training, the platform quietly faded into obscurity, officially discontinued by early 2023. But why?

Did Microsoft intentionally shelve it? Did the technology become redundant? Or was it simply a strategic decision to focus on web-based AI tools? Let's break it all down.

What Was Lobe.ai?

Lobe.ai was a machine learning tool designed to make AI model creation accessible to non-programmers. Its standout feature was a simple drag-and-drop interface that allowed users to train AI models—especially for image classification—without writing a single line of code.

Key Facts About Lobe.ai

• Founded: 2015
• Founders: Mike Matas, Adam Menges, and Markus Beissinger
• Acquired By: Microsoft in September 2018
• Goal: Democratize AI development by offering an intuitive desktop app
• Killer Feature: Local desktop processing for machine learning models, allowing users to train models without cloud dependency

At the time of Microsoft's acquisition, Lobe was positioned as a game-changer for newcomers to AI. But within a few years, it disappeared.

Why Did Lobe.ai Fail?

Short Answer:

Lobe.ai was silently phased out because Microsoft pivoted towards integrated, web-based AI tools—making the standalone desktop application redundant.

Long Answer:

A combination of strategic shifts, technological redundancy, and competition sealed Lobe's fate. Here’s how:

1. Microsoft’s Strategic Shift to Web-Based AI Tools

One of the biggest factors behind Lobe’s shutdown was Microsoft's pivot away from standalone AI apps in favor of integrated, cloud-based solutions like AI Builder.

• In early 2021, Lobe's GitHub page acknowledged that the desktop app was no longer in development, hinting at its eventual end.
• By January 2023, Microsoft officially deprecated Lobe's image classification model, stating it was "not aligned with other models in AI Builder", which was a fully web-based AI training tool.

Essentially, Microsoft decided that web-based AI tools were more scalable and easier to maintain than standalone desktop applications.

2. Technological Obsolescence: Shift to Cloud AI

When Lobe gained traction, local model training was a selling point. Users loved the ability to train AI models on their computers without relying on cloud-based servers.

However, by the early 2020s, cloud AI services were the industry norm. Startups and enterprises were moving towards collaborative, real-time AI training environments hosted in the cloud.

Lobe suddenly looked outdated compared to competitors like:

• Google's AutoML (cloud-based AI model training)
• Microsoft’s own Custom Vision and AI Builder
• Amazon SageMaker (cloud-first machine learning)

Rather than invest in keeping Lobe relevant, Microsoft likely absorbed its best features into its other AI products.

3. Market Competition Made Lobe Expendable

The no-code AI space became crowded with players like:

• Edge Impulse – focused on low-code AI for embedded systems
• Google’s Teachable Machine – similar drag-and-drop AI with broader use cases
• Apple's Create ML – offering machine learning model training for macOS users

Unlike Microsoft’s enterprise-scale AI tools, Lobe lacked a clear path to profitability. It appealed more to hobbyists and small businesses rather than large companies willing to pay for AI solutions—making it an unlikely priority for Microsoft.

4. Microsoft's Resource Allocation Post-Acquisition

Microsoft acquires companies for two main reasons:

1. To integrate their technology into Microsoft products
2. To acquire talent for internal research and development

Post-acquisition, the Lobe team likely merged into Microsoft's AI projects, helping improve platforms like Azure AI, AI Builder, and Custom Vision.

Meanwhile, maintaining a standalone Lobe-branded product cost Microsoft resources that it could allocate elsewhere. Rather than maintain an isolated desktop app, Microsoft prioritized enterprise-ready cloud offerings.

5. Lack of Monetization Strategy

At its core, Lobe was a free tool with no clear business model.

• Microsoft never introduced a premium version or subscription tiers.
• Without a revenue stream, continuing development likely became financially unviable.
• The return on investment was likely too low to justify maintaining the standalone app.

A tool like Lobe primarily served as an “onboarding” experience for AI development, but Microsoft already had a suite of AI platforms. Lobe simply didn’t fit into the larger Microsoft ecosystem in a way that generated revenue.

Could Lobe.ai Have Survived?

Possibly, but it would have required:

• A pivot to cloud-based AI training rather than a desktop-only model
• Integration with Azure AI services rather than existing as a separate entity
• A strong monetization model (e.g., premium features for enterprise users)

Since Microsoft already had Custom Vision, AI Builder, and Azure ML, continuing Lobe as a separate project made little financial sense.

Final Thoughts: Lessons from Lobe’s Shutdown

Lobe.ai was a brilliant concept that fell victim to the rapid evolution of AI development tools.

Key Takeaways:

• Strategic alignment matters: If a product doesn’t fit into a company's bigger picture, it won’t last.
• Cloud-first AI won: Cloud-based AI modeling became the industry standard, leaving Lobe's desktop approach obsolete.
• Monetization is critical: Free tools need a long-term way to sustain themselves—or risk discontinuation.
• Acquisitions don’t always mean success: Getting bought by a tech giant doesn’t guarantee survival—sometimes it signals an eventual phase-out.

While Lobe is gone, its core mission—making AI model creation accessible to everyone—lives on in other Microsoft AI products.

FAQ Section

Who founded Lobe.ai?

Lobe.ai was founded in 2015 by Mike Matas, Adam Menges, and Markus Beissinger.

When did Lobe.ai shut down?

Lobe’s desktop app was no longer under development by early 2021 and its image classification model was officially deprecated in January 2023.

Why did Microsoft shut down Lobe.ai?

Microsoft likely discontinued Lobe because it was redundant next to web-based AI tools like AI Builder and Custom Vision. Maintaining a desktop app no longer aligned with Microsoft’s AI strategy.

Did Microsoft integrate Lobe's technology into other products?

While Microsoft didn’t publicly announce it, Lobe’s AI tech likely influenced updates to AI Builder, Azure AI, and Power Platform tools. Many of its no-code AI principles live on in Microsoft’s broader AI ecosystem.

What were Lobe.ai's main competitors?

Similar no-code AI tools include:

• Google’s Teachable Machine
• Edge Impulse
• Apple's Create ML
• Microsoft’s own Custom Vision & AI Builder

Can I still use Lobe.ai?

No, Lobe is no longer available for download or use. Microsoft deprecated its core functionality in January 2023.

Though Lobe.ai is no more, its legacy in no-code AI democratization continues to influence AI education and accessible machine learning tools today.

Would Lobe have survived if it had pivoted to cloud-based AI? Maybe. But in the fast-moving tech world, great ideas don’t always guarantee long-term sustainability.