In the spring of 2025, Duolingo Inc., the popular language-learning app, found itself at the center of a firestorm when CEO Luis von Ahn sent an internal memo declaring the company would become “AI-first.” The announcement, which outlined plans to gradually replace contract workers with artificial intelligence for tasks like content creation and translations, ignited widespread backlash from users, employees, and industry observers. Social media platforms buzzed with criticism, as loyal users threatened to abandon the app, citing concerns over job losses and the potential dilution of human-touch elements that made Duolingo’s lessons engaging.

The memo, leaked and widely shared, painted a picture of aggressive AI integration, including grading employees on AI usage in performance reviews. According to reports from The Verge, von Ahn explicitly stated the company would “stop using contractors to do work that AI can handle.” This led to immediate fallout, with some users deleting the app after years of streaks, as highlighted in posts on X, where sentiment ranged from outrage over perceived corporate greed to calls for boycotts.

The Backlash Builds

The controversy escalated on platforms like LinkedIn and TikTok, where creators and former contractors voiced disappointment, accusing Duolingo of prioritizing profits over people. Fortune magazine detailed in a June 2025 article how von Ahn expressed surprise at the human backlash, noting that social media users “flocked to voice their disappointment.” This reaction wasn’t isolated; it reflected broader anxieties in the tech sector about AI-driven job displacement, especially in creative fields like education and content.

In response, Duolingo’s leadership scrambled to clarify. Von Ahn issued follow-up statements emphasizing that AI would augment, not replace, human roles. As reported by Fortune, he walked back initial comments, stating, “I do not see AI as replacing what our employees do.” The company even restored some contractor positions amid the uproar, a move that temporarily quelled internal unrest but didn’t fully stem the public tide.

A Misunderstood Message?

Fast-forward to August 2025, and von Ahn is doubling down on a narrative of miscommunication. In a recent interview with TechCrunch, published just hours ago, the CEO attributed the controversy to a lack of context in the original memo. “The real issue was that I did not give enough context,” he told the publication, suggesting that the announcement was intended to excite about innovation rather than signal mass layoffs. This clarification comes as Duolingo reports robust financials, with Q2 revenue surging 41% to $252 million, driven by AI-powered features like rapid course launches and personalized learning tools.

Yet, industry insiders question whether this is genuine reflection or damage control. Posts on X from the past day echo skepticism, with users reposting the TechCrunch piece alongside memes mocking corporate backpedaling. Von Ahn admitted in the interview that the backlash surprised him, revealing a disconnect between executive optimism and public perception—a common pitfall in AI hype, as noted in a May 2025 Business Insider analysis comparing Duolingo’s woes to similar missteps at companies like Shopify.

Revenue Amid the Storm

Despite the drama, Duolingo’s pivot has yielded tangible gains. The company raised its 2025 revenue forecast to between $288 million and $295 million in adjusted core profit, per Reuters, crediting AI for accelerating content creation—from 100 courses in 12 years to 148 in one. New features, such as AI-driven video calls and even a chess course, have boosted daily active users to 47.7 million, according to EdTech Innovation Hub’s coverage of the Q2 earnings.

This success underscores a delicate balancing act for tech firms: embracing AI to stay competitive while navigating ethical concerns. Von Ahn’s recent comments suggest lessons learned, including toning down “edgy” communications, as detailed in WebProNews reports on the pivot’s dual impact—backlash and growth. For insiders, the episode highlights how poor messaging can amplify AI fears, even as tools drive efficiency.

Implications for the Industry

Looking ahead, Duolingo’s experience may serve as a cautionary tale for other edtech and consumer-facing companies. Analysts point to Yahoo Finance’s analysis, which noted that customer growth, while strong, was “dampened” by the AI commentary. Von Ahn’s admission of flaws—holding himself accountable without excusing the memo’s tone—could rebuild trust, but lingering doubts persist on X, where users debate the accuracy of AI-generated translations versus human nuance.

Ultimately, the controversy reveals the human element in tech transitions. As Duolingo expands beyond languages into areas like chess, the challenge remains: integrating AI without alienating the very users and creators who built its charm. Industry watchers will be monitoring whether this “misunderstanding” leads to more transparent AI strategies or merely papers over deeper tensions in the push toward automation.