The Economist: AI startups soar on hype, not revenue

The Economist: AI startups soar on hype, not revenue

Unless superintelligence is just around the corner
Published on

Key topics:

  • AI startups land huge valuations despite lacking revenue or clear strategy

  • Traditional metrics like ARR give way to "experimental run rate" (ERR)

  • Fierce AI competition fuels rapid growth but threatens long-term stability


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From The Economist, published under licence. The original article can be found on www.economist.com
© 2025 The Economist Newspaper Limited. All rights reserved.

The Economist

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