‘There’s so much pressure to be the company that went from zero to $100 million in X days’: Inside the sketchy world of ARR and inflated AI startup accounting

FortuneSunday, September 28, 2025 at 10:00:00 AM
‘There’s so much pressure to be the company that went from zero to $100 million in X days’: Inside the sketchy world of ARR and inflated AI startup accounting
The article delves into the controversial realm of annual recurring revenue (ARR) in the startup world, particularly among AI companies. While VCs and founders often celebrate inflated ARR figures, critics argue that these exaggerated numbers contribute to a dangerous bubble in the industry. This matters because it raises questions about the sustainability of these startups and the potential risks for investors and the market as a whole.
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