The backlash against Duolingo going ‘AI-first’ didn’t even matter

Duolingo's shift to an AI-first strategy, which involved phasing out contract workers and using generative AI to create 148 new language courses, faced significant public backlash on social media. Despite the criticism, the company exceeded quarterly revenue estimates, saw stock prices rise 30%, and expects over $1 billion in revenue this year with 40% growth in daily active users. CEO Luis von Ahn acknowledged the backlash affected growth metrics but emphasized that financial performance remained strong, demonstrating that negative public sentiment didn't translate to business impact.