AI Breakdown AI App Crisis, OpenAI Does Math, Big Nvidia Deal
Mar 11, 2026
They dig into why AI-powered apps lose users quickly and what retention data reveals. They compare which app categories are fastest to adopt AI and how monetization stacks up against long-term value. They explore new interactive visuals that let users manipulate math and science concepts. They also unpack a massive Thinking Machine Labs and Nvidia compute deal and its industry implications.
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One Shot To Wow Users Determines Retention
- AI apps saw a rapid hype cycle that inflated expectations and made first impressions decisive for retention.
- Jaeden Schafer notes developers get one shot to wow users because trial-and-error leads people to abandon underwhelming tools.
Early Runway Experience Led To Permanent Churn
- Jaeden recounts trying early AI video tools like Runway and never returning after poor results despite their first-mover advantage.
- He contrasts that with newer tools (Suno, Higgs Field) he prefers today because they deliver better outcomes.
RevenueCat Data Shows Monetize Fast But Churn Faster
- RevenueCat's analysis across $11B in annual developer revenue shows AI apps monetize fast but struggle to retain users long-term.
- Only 27% of apps were classified as AI-powered, indicating most subscriptions still come from non-AI products.