This joke tweet shows why ARR is the wrong metric in the age of AI.
- This joke tweet shows why ARR is the wrong metric in the age of AI.
- "I'm excited to announce that I'm starting my next company ๐
- We give customers $100 and they give us $10 back
- We're going to be the fastest company in history to hit $100M ARR
- Just need to raise $1B
- Who's in?"
- ARR being the most important metric assumes zero marginal cost.
- That was a good assumption in the world of Saas.
- But it's a bad assumption in AI!