Duolingo recently reported better-than-expected quarterly revenue, experiencing a nearly 30% stock surge amidst criticism for prioritizing generative AI over human employees. CEO Luis von Ahn announced the company’s shift to an “AI-first” model, resulting in the launch of 148 new language courses, significantly expanding their offerings. He emphasized that AI is crucial for scaling their educational content efficiently, stating, “Without AI, it would take decades to scale.” Despite user feedback suggesting AI features could degrade app quality, Duolingo’s financial growth is undeniable, projecting over $1 billion in revenue for the year with a 40% increase in daily active users. However, the growth falls short of initial estimates, partially attributed to backlash regarding their AI stance. In response, Duolingo shifted its social media strategy to improve public sentiment. While user critiques persist on platforms like TikTok, Duolingo remains focused on its financial performance as a priority.
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