IT'S TIME TO EXPOSE A HUGE SCAM IN AI STARTUPS: CONTRACTED ARR

Summary from the TLDR Founders newsletter

Many AI startups are crushing revenue records because they are using a dishonest metric. Companies are reporting inflated ARR due to long-term enterprise deals they can report now but also opt out of after 12 months. On top of this, some companies are bundling full-time forward-deployed engineers into deals that massively reduce margins and sometimes produce negative margins. A wave of enterprise AI companies will collapse if customers start triggering their opt-out clauses or aggressively negotiate down long-term pricing.