Best of TechCrunch — August 2025

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   TechCrunch·39w

   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.

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   TechCrunch·39w

   Three weeks after acquiring Windsurf, Cognition offers staff the exit door

   Cognition laid off 30 employees and offered buyouts to remaining Windsurf staff just three weeks after acquiring the AI coding startup. The buyout includes nine months of salary, while employees who stay must work 80+ hour weeks and six days in office. This follows a turbulent period for Windsurf, which nearly got acquired by OpenAI before losing key leadership to Google in a $2.4 billion reverse-acquihire deal. The situation suggests Cognition was primarily interested in Windsurf's intellectual property rather than its talent.

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   TechCrunch·39w

   The computer science dream has become a nightmare

   Computer science graduates are experiencing unprecedented unemployment rates of 6.1% to 7.5%, significantly higher than other majors. Recent graduates struggle to find entry-level positions as AI tools eliminate junior roles and major tech companies continue layoffs. Many face an "AI doom loop" where both job applications and rejections are automated, creating a challenging job market for new developers.

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   TechCrunch·38w

   Sam Altman, OpenAI will reportedly back a startup that takes on Musk’s Neuralink

   Sam Altman is reportedly co-founding Merge Labs, a brain-computer interface startup valued at $850 million, with funding expected from OpenAI's ventures team. The company will compete directly with Elon Musk's Neuralink, which recently raised $600 million at a $9 billion valuation and is currently conducting trials with paralyzed patients. This development represents another front in the ongoing rivalry between Altman and Musk, who previously worked together at OpenAI before their relationship deteriorated.

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