Source: The Information
Summary
Some AI startups are using unconventional revenue metrics to demonstrate progress, and their investors are aware of this practice. These metrics may not accurately reflect the company’s financial health. According to the report, this trend is becoming increasingly common in the AI industry.
Our Reading
The announcement sounds ambitious.
AI startups are getting creative with revenue metrics, and investors are playing along. This isn’t the first time we’ve seen companies redefine “growth” to suit their narrative. Remember when “monthly active users” became the go-to metric for social media platforms? It’s like the industry is playing a game of “revenue metric whack-a-mole.” As soon as one metric gets too embarrassing, a new one pops up. Original observation: “Innovation” often means finding new ways to massage the numbers.
Author: Evan Null
