How GPT-5's language-learning app threatens Duolingo
Duolingo's shares dropped 38% from their peak this summer, following OpenAI's GPT-5 demo—a new AI that built a working language-learning app in just minutes with a single prompt.
Even though Duolingo recently increased its subscriber base and improved gross margins, this demo has everyone questioning how long the company can stay on top.
Investors are worried about AI's impact on apps
Investors are suddenly worried that powerful AI like GPT-5 could make specialized apps like Duolingo less relevant.
The sharp stock drop erased recent gains from Duolingo's own AI upgrades, highlighting how quickly things can change when new tech arrives.
Google's AI threat looms large
Google is also testing AI-powered Translate tools with similar features, which could end up preloaded on billions of devices.
With big players moving fast, the future looks a lot tougher for standalone language apps like Duolingo.