Figma cuts profit margins to invest heavily in AI features
Business
Figma is choosing to make less profit right now so it can invest heavily in artificial intelligence.
At its Config conference in Bengaluru, CFO Praveer Melwani shared that margins have dropped from above 90% to the mid-80% range because it is pouring money into AI features.
The idea is to make Figma more useful and keep up with powerful tools from companies like OpenAI and Anthropic.
Figma shifts to usage-based AI credits
To handle investor concerns about lower profits, Figma has switched to a usage-based pricing model for its AI credits.
Even though the company's stock is down 43% this year, Melwani says growing the user base comes first.
Figma believes these AI upgrades will help it reach way more people as software keeps changing fast.