Is the AI bubble about to burst? Apparently, AI prompt-to-code tools like Lovable and v0 have peaked and are on their way down.
Alistair Barr writing for Business Insider:
The drop-off raises tough questions for startups that flaunted exponential annual recurring revenue growth just months ago. Analysts wrote that much of that revenue comes from month-to-month subscribers who may churn as quickly as they signed up, putting the durability of those flashy numbers in doubt.
Barr interviewed Eric Simons, CEO of Bolt who said:
“This is the problem across all these companies right now. The churn rate for everyone is really high,” Simons said. “You have to build a retentive business.”