tech
Grindr's AI spend is paying off and its pricey new tier has had some surprises, CEO says
Grindr says AI is boosting engineering productivity, supporting a new $350-per-month premium tier and driving stronger subscriber growth and retention.
TL;DR
- Grindr is implementing AI throughout its operations to improve the dating app experience and software development efficiency.
- The company's AI strategy is reportedly yielding positive financial results, with second-quarter revenue up 33% year-over-year.
- Engineering output has increased approximately 2.5 times with AI, saving an estimated $60 million annually in potential costs.
- Grindr is testing a premium AI companion called Edge, priced as high as $350 per month in select markets, attracting a wider range of users than expected.
- The company has not eliminated jobs due to AI adoption, but has increased the use of coding assistants and software development tools.
- Subscriber retention remains strong, and paying user count grew by 16% in the second quarter.