Duolingo reduced the cost of its interactive AI video calls from 30 cents to less than one cent per session. CEO Luis von Ahn attributed the savings to a shift toward efficient open-source AI models that maintain existing quality standards.
The cost reduction addresses investor concerns regarding AI expenses weighing on profit margins. Duolingo subsequently raised its full-year margin guidance following these efficiency gains.
The company is now expanding the previously exclusive Duolingo Max video feature to all Super subscribers. Management is reportedly reconsidering the future of the highest-priced Max subscription tier.