Duolingo's Wild Ride: AI's Double-Edged Sword

Language learning platform Duolingo saw its stock surge 30% after a strong quarter, only to plummet after OpenAI's GPT-5 demonstrated the ability to create a language-learning app with a simple prompt. This highlights AI's double-edged sword: it can fuel growth, but also bring disruptive competition. While Duolingo embraces AI, its advantages proved fragile against GPT-5, serving as a warning to software companies about the rapid disruptive potential of AI.