Lovable, the Swedish AI app-building startup, has crossed a major milestone by reaching $500 million in annual recurring revenue (ARR), a measure of predictable income from subscriptions. Yet the company's first detailed report on its user base reveals a paradox at the heart of the AI entrepreneurship boom: millions of people are building businesses and side projects with AI tools, but most haven't figured out how to make money from them yet.

The company released its findings on Tuesday, drawing from anonymized data spanning millions of projects and user interactions between January 2025 and May 2026, plus a survey of more than 14,300 users conducted in late May. The report paints a portrait of what Lovable calls the emerging "build economy," revealing who's actually using AI to create apps and websites, and what they're struggling with.

Who Is Actually Building Apps With AI?

The typical Lovable user doesn't fit the stereotype of a tech founder. Four out of five users come from non-technical backgrounds, according to the survey. What surprised CEO Anton Osika most was not just their lack of coding experience, but their depth of domain expertise. Over 37% of users have more than a decade of experience in their field, including consultants, marketers, designers, and salespeople.

The user base skews heavily male, with men accounting for 82.1% of users, compared with 14% who identify as women and the remainder identifying as nonbinary, self-described, or preferring not to say. This gender imbalance mirrors the broader technology industry.

Geographically, the United States accounts for 25% of activity, but some of the fastest growth is happening elsewhere. Lovable has at least one active user in every recognized country in the world except for 10 uninhabited or near-uninhabited dependent territories. Colombia and Mexico are growing especially quickly, alongside broader momentum in South America and Africa.

Why Are Most Builders Struggling to Monetize?

Despite the excitement around AI-powered entrepreneurship, the monetization picture remains murky. The data reveals a significant gap between ambition and income:

• Business Builders: 54.6% of users said they are building a business, indicating serious entrepreneurial intent.
• Side Project Creators: 24.6% reported working on side projects they hope to monetize in the future.
• Non-Monetized Work: 60.5% said they aren't making money from their projects yet, despite their efforts.

Osika remained optimistic about the trajectory, noting that recent payment data shows some builders have already reached five- and six-figure revenue milestones, though the company did not disclose how many users fall into those categories. He emphasized the broader pattern as evidence of a real shift.

"What gives me conviction is the pattern. More than half of users say they are building a business, and another quarter have side projects they're actively trying to monetize," said Anton Osika, CEO of Lovable.

Anton Osika, CEO of Lovable

How to Understand the Shift From Solo Builders to Teams

One notable trend emerging from Lovable's data is a gradual shift in how people are using the platform. Earlier this year, 88.8% of users were solo builders working independently. That figure has now dropped to around 80%, indicating that team and workplace usage are growing as the platform matures.

• Solo Builder Decline: The percentage of solo builders decreased from 88.8% to 80%, showing a shift toward collaborative work.
• Team Adoption Growth: More users are now building apps as part of teams or within workplace settings.
• Scaling Implications: This transition suggests that successful projects are moving from individual experiments to more structured, collaborative efforts.

Osika framed this evolution as evidence of a broader transformation in how companies get built. He argued that the traditional path to entrepreneurship is changing fundamentally.

"The next great company does not need a big team or a technical founder. It starts with someone who knows the problem firsthand and now has a way to build," said Osika.

Anton Osika, CEO of Lovable

What Does This Mean for the Future of AI-Powered Entrepreneurship?

Lovable's growth to $500 million ARR, up more than 25% from $400 million earlier in the year, signals strong market demand for AI-powered app building. However, the monetization challenge suggests that the "build economy" is still in its early stages. Most users have the tools to create, but fewer have figured out how to turn creation into sustainable income.

Osika emphasized that Lovable sees itself not as a code generation tool, but as a platform for product and company creation. This distinction matters because it suggests the company is betting on a longer-term vision where builders don't just generate code, but actually launch viable businesses.

"We're not in the business of code generation. We're in the business of product and company creation," said Osika.

Anton Osika, CEO of Lovable

The data paints a picture of millions of experienced professionals from non-technical fields who now have access to powerful tools to build software. Whether they can successfully navigate the gap between creation and monetization will likely determine whether the "build economy" becomes a lasting shift in how companies are founded, or remains a niche phenomenon driven by a small percentage of successful builders.