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AI News from ET - Silicon Valley’s hottest AI metric is also its least trusted

Vishwadeep Khatri
in AI News & Two Lenses

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Cluely's co-founder admitted to fabricating ARR figures, sparking debate about the metric's reliability for AI startups. Experts note ARR's ambiguity allows for interpretation, especially with fluctuating usage-based models and trial periods. While transparency is advised, imposing strict audits on early-stage companies could stifle innovation.

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