Paytm loss widens and revenue shrinks as it grapples with regulatory clampdown

Image Credits: Sajjad Hussain/AFP (opens in a new window) / Getty Images

Indian fintech Paytm’s struggles won’t seem to end. The company on Friday reported that its revenue declined by 36% and its loss more than doubled in the first quarter as it continues to grapple with a regulatory clampdown that has significantly curtailed business at its payments bank subsidiary. 

Once the poster child of India’s startup ecosystem, Paytm’s loss widened to $100 million in the first quarter ended June, while revenue shrank to $179.5 million from $280 million a year earlier.

Paytm reported a loss of $42 million in the first quarter last year, and a loss of $65.8 million in the fourth quarter.

The decline in revenues is a direct result of the Reserve Bank of India (RBI) ordering the company earlier this year to cease most operations at Paytm Payments Bank, a subsidiary that processed much of the mobile payments that the company depended on. This is the first quarter where the full impact of RBI’s clampdown is visible on Paytm’s business.

The Indian central bank barred Paytm’s Payments Bank from offering many banking services, including accepting fresh deposits and credit transactions across its services, citing “persistent non-compliance” with rules.

The move forced Paytm to ink partnerships with other banks in India to continue offering some of its core services.

Shares of Paytm initially declined as much as 4.4%, but now have recovered and are up 2.2%, suggesting investors had already priced in the impact. Paytm had warned of the decline in revenue last quarter.

Paytm pioneered the mobile payments push in India, courting hundreds of millions of people to its wallet app, and enabling many of them to make their first digital transactions. But the firm’s fortunes have dwindled in recent years amid growing competition from Walmart-backed PhonePe and Google Pay.

PhonePe and Google Pay process more than 86% of all transactions on UPI, a government-backed interoperable payments network. UPI has become the most popular way Indians transact online, and accounts for more than 11 billion transactions each month. The surge in UPI’s popularity has hurt the relevance of wallet businesses and consumers’ reliance on card networks operated by Visa and Mastercard.

Paytm, which relies heavily on serving merchants, including issuing them credit, said that part of the business is recovering, “demonstrating our path to recovery.” 

A company spokesperson said in a statement: “This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders.”

Modern data center with racks of cabinets and colored lights.

Cloud infrastructure revenue approached $80 billion this quarter

Modern data center with racks of cabinets and colored lights.

Image Credits: IR_Stone / Getty Images

The cloud infrastructure market has put the doldrums of 2023 firmly behind it with another big quarter. Revenue continues to grow at a brisk pace, fueled by interest in AI. Synergy Research reports revenue totaled $79 billion for the quarter, up $14.1 billion or 22% from last year.

This marked the third consecutive quarter that year-over-year growth was 20% or more and AI was a big part of that growth, according to Synergy.

The bottom line is that the cloud, in spite of last year’s hiccups, is showing little sign of slowing down. Even with some element of political and economic uncertainty on the horizon, Synergy chief analyst John Dinsdale sees a market that will continue to grow, with the firm expecting the market to double again in four years’ time. It took 13 quarters to double from $40 billion to almost $80 billion (which it will surpass soon).

One surprise this quarter was Microsoft Intelligent Cloud, which includes Azure, missing analysts’ estimates. The company reported $28.52 billion versus analysts’ expectations of $28.68 billion, per CNBC; Azure still grew 30%, per Altimeter partner Jamin Ball, so it wasn’t all bad news.

Dinsdale says that it’s important, however, not to make too much out of the miss. “Microsoft’s Intelligent Cloud quarterly revenues came in within the guidance range provided by Microsoft three months ago. To be growing a $28.5 billion business by 19% a year is no mean feat. Azure is the largest chunk of Intelligent Cloud and it grew by 29% [for the quarter], which is actually rather impressive,” he told TechCrunch.

Amazon reported revenue of $26.3 billion for the quarter, up 19% over the prior year, as it seems to have settled into this growth rate range for the time being after dipping into the 12% and 13% range in early 2023.

Image Credits: Charts courtesy of Jamin Ball, partner at Altimeter Capital

Google Cloud had a nice quarter pushing over $10 billion for the first time, up 29% YoY, per Ball. But it’s important to note his number includes Google Workspace, as well as infrastructure services. More importantly, perhaps, the company gained a full percentage point of market share, according to Synergy, whose numbers don’t include Workspace.

The overall market share numbers came out to 32% (around $25 billion) for Amazon; 23% (around $18 billion) for Microsoft; and 12% (around $9.5 billion) for Google. It’s worth noting that Microsoft lost approximately two percentage points of market share over last quarter, according to Synergy, yet continues to grow at a brisk rate — a point that Dinsdale acknowledged, attributing the drop to seasonality in the Azure sales cycle.

“There is some seasonality to Azure numbers and sequential growth is often weak in the April-June quarter after strong growth in the previous quarters. That happened again,” he said. “While Azure did not grow relative to the first quarter, both Amazon and Google did and their market shares both improved. If you take out the seasonality and look at rolling annualized growth rates, Azure actually grew more than either Google or Amazon. Azure is most definitely not in a trough.”

In the next tier of companies, Oracle nudged up to 3%, passing IBM and tying Salesforce for fifth place overall. While that might sound good, the Big 3 account for more than 73% of the market, but 3% is still good for over $2 billion in revenue.

It does get confusing looking at the different ways the companies and the firms that watch them count cloud numbers. Ball is looking at publicly reported information. Synergy looks at infrastructure as a service, platform as a service and hosted private cloud services. It does not count SaaS and includes some of its own market analysis in its numbers.

Cloud infrastructure revenue approached $80 billion this quarter

Modern data center with racks of cabinets and colored lights.

Image Credits: IR_Stone / Getty Images

The cloud infrastructure market has put the doldrums of 2023 firmly behind it with another big quarter. Revenue continues to grow at a brisk pace, fueled by interest in AI. Synergy Research reports revenue totaled $79 billion for the quarter, up $14.1 billion or 22% from last year.

This marked the third consecutive quarter that year-over-year growth was 20% or more and AI was a big part of that growth, according to Synergy.

The bottom line is that the cloud, in spite of last year’s hiccups, is showing little sign of slowing down. Even with some element of political and economic uncertainty on the horizon, Synergy chief analyst John Dinsdale sees a market that will continue to grow, with the firm expecting the market to double again in four years’ time. It took 13 quarters to double from $40 billion to almost $80 billion (which it will surpass soon).

One surprise this quarter was Microsoft Intelligent Cloud, which includes Azure, missing analysts’ estimates. The company reported $28.52 billion versus analysts’ expectations of $28.68 billion, per CNBC; Azure still grew 30%, per Altimeter partner Jamin Ball, so it wasn’t all bad news.

Dinsdale says that it’s important, however, not to make too much out of the miss. “Microsoft’s Intelligent Cloud quarterly revenues came in within the guidance range provided by Microsoft three months ago. To be growing a $28.5 billion business by 19% a year is no mean feat. Azure is the largest chunk of Intelligent Cloud and it grew by 29% [for the quarter], which is actually rather impressive,” he told TechCrunch.

Amazon reported revenue of $26.3 billion for the quarter, up 19% over the prior year, as it seems to have settled into this growth rate range for the time being after dipping into the 12% and 13% range in early 2023.

Image Credits: Charts courtesy of Jamin Ball, partner at Altimeter Capital

Google Cloud had a nice quarter pushing over $10 billion for the first time, up 29% YoY, per Ball. But it’s important to note his number includes Google Workspace, as well as infrastructure services. More importantly, perhaps, the company gained a full percentage point of market share, according to Synergy, whose numbers don’t include Workspace.

The overall market share numbers came out to 32% (around $25 billion) for Amazon; 23% (around $18 billion) for Microsoft; and 12% (around $9.5 billion) for Google. It’s worth noting that Microsoft lost approximately two percentage points of market share over last quarter, according to Synergy, yet continues to grow at a brisk rate — a point that Dinsdale acknowledged, attributing the drop to seasonality in the Azure sales cycle.

“There is some seasonality to Azure numbers and sequential growth is often weak in the April-June quarter after strong growth in the previous quarters. That happened again,” he said. “While Azure did not grow relative to the first quarter, both Amazon and Google did and their market shares both improved. If you take out the seasonality and look at rolling annualized growth rates, Azure actually grew more than either Google or Amazon. Azure is most definitely not in a trough.”

In the next tier of companies, Oracle nudged up to 3%, passing IBM and tying Salesforce for fifth place overall. While that might sound good, the Big 3 account for more than 73% of the market, but 3% is still good for over $2 billion in revenue.

It does get confusing looking at the different ways the companies and the firms that watch them count cloud numbers. Ball is looking at publicly reported information. Synergy looks at infrastructure as a service, platform as a service and hosted private cloud services. It does not count SaaS and includes some of its own market analysis in its numbers.

Paytm loss widens and revenue shrinks as it grapples with regulatory clampdown

Image Credits: Sajjad Hussain/AFP (opens in a new window) / Getty Images

Indian fintech Paytm’s struggles won’t seem to end. The company on Friday reported that its revenue declined by 36% and its loss more than doubled in the first quarter as it continues to grapple with a regulatory clampdown that has significantly curtailed business at its payments bank subsidiary. 

Once the poster child of India’s startup ecosystem, Paytm’s loss widened to $100 million in the first quarter ended June, while revenue shrank to $179.5 million from $280 million a year earlier.

Paytm reported a loss of $42 million in the first quarter last year, and a loss of $65.8 million in the fourth quarter.

The decline in revenues is a direct result of the Reserve Bank of India (RBI) ordering the company earlier this year to cease most operations at Paytm Payments Bank, a subsidiary that processed much of the mobile payments that the company depended on. This is the first quarter where the full impact of RBI’s clampdown is visible on Paytm’s business.

The Indian central bank barred Paytm’s Payments Bank from offering many banking services, including accepting fresh deposits and credit transactions across its services, citing “persistent non-compliance” with rules.

The move forced Paytm to ink partnerships with other banks in India to continue offering some of its core services.

Shares of Paytm initially declined as much as 4.4%, but now have recovered and are up 2.2%, suggesting investors had already priced in the impact. Paytm had warned of the decline in revenue last quarter.

Paytm pioneered the mobile payments push in India, courting hundreds of millions of people to its wallet app, and enabling many of them to make their first digital transactions. But the firm’s fortunes have dwindled in recent years amid growing competition from Walmart-backed PhonePe and Google Pay.

PhonePe and Google Pay process more than 86% of all transactions on UPI, a government-backed interoperable payments network. UPI has become the most popular way Indians transact online, and accounts for more than 11 billion transactions each month. The surge in UPI’s popularity has hurt the relevance of wallet businesses and consumers’ reliance on card networks operated by Visa and Mastercard.

Paytm, which relies heavily on serving merchants, including issuing them credit, said that part of the business is recovering, “demonstrating our path to recovery.” 

A company spokesperson said in a statement: “This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders.”

A bank of electric car chargers

No impact without revenue? That's ArcTern's climate tech thesis

A bank of electric car chargers

Image Credits: Jon Challicom (opens in a new window) / Getty Images

Much of the intriguing climate tech that crosses our desks is theoretical or only just coming to market — think, tech that sucks carbon out of the sky, emerging lithium-ion battery alternatives and bioplastics that’ve yet to seriously scale. These aren’t the sorts of things ArcTern wants to fund, managing partner Murray McCaig told TechCrunch. 

The Toronto-based venture firm just announced the close of a $335 million fund (USD) — its third and largest to date. ArcTern plans to pump this capital into climate-focused startups that can deliver super quick returns.

“If you’re not making money, you’re not having impact,” McCaig told TechCrunch. “You might in the future at some point,” the VC conceded in a nod to firms like Bill Gates’ Breakthrough Ventures, which makes longer-term bets on emerging tech. However, McCaig said ArcTern is aiming for “impact that happens over the next 10 years, because the next decade is the most critical time for decreasing our global carbon emissions.” 

The investor appears to be referencing the Intergovernmental Panel on Climate Change here. The UN environmental group has said nations must halve greenhouse gas emissions by the end of the decade to limit warming to a global average of 1.5°C. Sticking to that target may help humanity avoid the most disastrous climate scenarios, but really that warming figure should be as low as possible, as soon as possible. 

In any case, ArcTern has drawn a line in the proverbial sand. The investment firm is focused on startups that utilize proven tech in new ways, while researchers and investors with longer-term appetites focus on stuff that’ll take a while to potentially pan out. Of course, there are plenty of ways to decrease emissions that typically have little to do with startup profits, such as reducing air travel and improving public transit.

Materially, one of the areas ArcTern is focused on is decarbonizing mobility. Though electric vehicle sales have slowed lately, McCaig sees this as a “blip.” The VC believes North America is about to reach a tipping point where EV adoption takes off like a rocket, as it has in Norway.

ArcTern’s recent transportation bets include Seattle-based battery analytics company Recurrent. Another is Los Angeles–based battery-electric commercial vehicle maker Harbinger Motors. (Of course, not everyone will perceive the same tipping point in a given sector. Take, for example, hydrogen passenger vehicles; are they a pipe dream, or will we soon see hydrogen fueling stations popping up just around the corner?)

Along with Toronto, ArcTern has teams in San Francisco and Oslo. “Climate tech tends to be fairly distributed around the globe, more so than AI and software, which tends to concentrate in California,” added McCaig.

Investors in ArcTern’s newest fund include TD Bank and Credit Suisse. The venture firm’s second fund clocked in at $150 million (USD), while its first — a seed fund — totaled $30 million.

Twitch Coin warp

Twitch announces 60/40 revenue split in expanded Plus Program

Twitch Coin warp

Image Credits: Bryce Durbin / TechCrunch

Twitch is introducing a new tier to its premium revenue share program — currently known as the “Partner Plus Program” — that would grant a 60/40 revenue split and has lower qualification requirements than the existing tier, expanding access to smaller creators.

The program, launching in May, will be open to both Affiliates and Partners and is rebranding as the “Plus Program.”

The Amazon-owned company also announced that effective Wednesday, it will lift the $100,000 annual cap on 70/30 splits for qualifying partners. Under the existing program, Partner Plus streamers receive 70% of the first $100,000 of net subscription revenue, and then 50% of any revenue after that. In a blog post, Twitch acknowledged that the cap “limited the earnings and growth opportunities” for streamers and “served as a disincentive.”

“We know that streamers have been quite clear, it’s a priority for them to have access to higher revenue shares, so we launched the Partner Plus program in its initial form,” Mike Minton, Twitch’s chief monetization officer, told TechCrunch ahead of the announcement. “There was some feedback to say, ‘Hey, I gotta be a really large streamer [to qualify],’ but this update changes that in a big way.”

The update not only lowers the qualification criteria for the 70/30 split, but also establishes an intermediate tier so that streamers “have a clear path forward.”

To qualify for the new 60/40 revenue split, streamers must maintain 100 Plus Points for three consecutive months. The update also lowers the requirement to qualify for the 70/30 split from 350 Plus Points to 300 Plus Points. Each paid monthly subscription counts toward the point total, but some subscriptions are assigned higher point values than others.

“These are not permanent numbers and we will continue to work to serve the needs of the community by changing them in the future,” he continued.

The announcement also comes with disappointing news for some streamers. Effective June 3, Prime Gaming subscriptions — which are included with an Amazon Prime membership — will be paid out as a fixed rate based on the country of the subscriber, rather than being paid out at the same revenue share as regular monthly subscriptions.

The streamers most likely to be affected by this change, Twitch CEO Dan Clancy said in the blog post, are those who qualify for the 70/30 split, and eliminating the annual cap will offset the impact on monthly income. The company plans to publish and update the rates each year.

Many streamers argued that the Partner Plus Program excluded the majority of creators because the qualification criteria was so high. The program launched after Twitch cut the 70/30 sweetheart deal that it had offered individual streamers in favor of prioritizing ad revenue.

When the program began rolling out, smaller streamers complained that the 350 monthly subscriber minimum was unattainable, especially because gifted and Prime subscriptions didn’t count toward the total. Twitch then introduced a point system to account for tiered subscriptions, so that high-tiered subscriptions — which cost more to purchase — are weighted. Tier 1 subscriptions ($4.99) are valued at 1 point, Tier 2 ($9.99) subscriptions are valued at 2 points and Tier 3 subscriptions ($24.99) are valued at 6 points.

Although the Plus Program will be open to Affiliates, qualifying for either tier doesn’t guarantee Partner status. Partners must pass Twitch’s “editorial judgement” in addition to meeting viewership requirements, which are based on consistency.

“We wanted objective, clear criteria for monetization,” Minton said. “So we removed the Partner requirements while maintaining the sub requirements to ensure more creators could have access to it. There are certain creators that don’t stream with that level of consistency but still have built large communities. It’s a good example of how they’re eligible for Plus. They may not be eligible for Partner, but we wanted to ensure that we are supporting all kinds of creators, whether they wanted to be Partners or not.”

Minton acknowledged that streamers have been vocal about their discontent with Twitch. Some have turned to other livestreaming platforms, such as YouTube and Kick, which offer higher revenue splits with lower qualification criteria. When evaluating the streaming community’s input on monetization opportunities, Minton and Clancy agreed that lifting the $100,000 cap on 70/30 revenue splits would incentivize staying on the platform.

“Streamers were, at least anecdotally, providing examples where they were shifting their priorities, where they were changing their behavior as a consequence,” Minton said. “It just became really clear to both of us that we really wanted to uncap that opportunity and ensure that streamers felt like our interests were aligned, they were motivated to continue using our revenue products, and didn’t change behavior.”

The updates, he clarified, are “not reactive changes,” but a deliberate part of establishing a more transparent framework for monetizing on the platform. “Competitive pressures,” such as streamers threatening to leave for other platforms, are “not a decision making criteria” for the company.

Twitch has made sweeping cuts in the last year, but still struggles to turn a profit. The company laid off 35% of its workforce, or roughly 500 employees, earlier this month. It was Twitch’s second mass layoff in less than a year. Last month it announced plans to shut down service in South Korea over “prohibitively expensive” network fees.

Minton denied any implication that Twitch’s recent efforts to cut costs were tied to expanding monetization options for streamers. One is informed by the other, he said, but changes to Prime subscription payouts and the Plus Program have been in the works for months. Increasing sponsorship opportunities, he added, also remains a priority.

“I’m not going to sit here and say that these things aren’t related, but they’re independent, right? How we manage the company, or as Dan often talks about making sure we’re here for the next 50 years and beyond, is an ongoing long-running thread, and of course revenue shares are a part of that,” Minton said. “It’s independent from our other, really important focus on increasing the size of the pie for streamers.”

Twitch is laying off another 500 employees

Twitch’s money guy talks about the revenue split controversy and its monetization long game

Twitch to shut down in Korea over ‘prohibitively expensive’ network fees

The introductory page for Telegram app arranged on a smartphone in Sydney, New South Wales, Australia, on Wednesday Jan. 20, 2021.

Telegram is launching ad revenue sharing next month using toncoin

The introductory page for Telegram app arranged on a smartphone in Sydney, New South Wales, Australia, on Wednesday Jan. 20, 2021.

Image Credits: Brent Lewin/Bloomberg / Getty Images

Telegram CEO and founder Pavel Durov announced today that the company is launching its ad platform next month, allowing channel owners to receive financial rewards. The company will pay out rewards using toncoin on the TON blockchain. Channel owners will start receiving 50% of all revenue that the company makes from displaying ads in their channels.

Telegram channels allow users to broadcast public messages to large audiences. Durov says that while broadcast channels on Telegram generate one trillion views every month, only 10% of these views are monetized with Telegram Ads, its promotion tool. In March, the Telegram Ad Platform will open to channel owners in nearly one hundred countries, marking a major shift toward content monetization.

The company told TechCrunch that it isn’t ready to share criteria for revenue sharing yet.

“To ensure ad payments and withdrawals are fast and secure, we will exclusively use the TON blockchain,” Durov wrote in his announcement post on Telegram. “Similar to our approach with Telegram usernames on Fragment, we will sell ads and share revenue with channel owners in Toncoin. This will create a virtuous circle, in which content creators will be able to either cash out their Toncoins — or reinvest them in promoting and upgrading their channels.”

The TON token soared nearly 40% to over $2.92 following the immediate release of the news, and is sitting at $2.65 at the time of writing.

With this latest announcement, Telegram will be joining the likes of YouTube and X (formerly Twitter), both of which offer ad revenue sharing with users. YouTube offers a 55% share of ad revenue to creators in the YouTube Partner Program, while X started offering revenue sharing to users in July 2023. Meta also has been testing a new payout model for its Ads on Reels monetization program.

Telegram has more than 800 million monthly active users around the world.

Telegram is rolling out ‘view-once’ voice and video messages

Two Canoo EVs drive on a road in Bentonville, Arkansas.

Canoo spent double its annual revenue on the CEO’s private jet in 2023

Two Canoo EVs drive on a road in Bentonville, Arkansas.

Image Credits: Canoo

Tucked inside Canoo’s 2023 earnings report is a nugget regarding the use of CEO Tony Aquila’s private jet — just one of many expenses that illustrates the gap between spending and revenue at the EV startup.

Canoo posted Monday its fourth-quarter and full-year earnings for 2023 in a regulatory filing that shows a company burning through cash as it tries to scale up volume production of its commercial electric vehicles and avoid the same fate as other EV startups, like recently bankrupt Arrival. The regulatory filing once again contained a “going concern” warning — which has persisted since 2022 — as well as some progress on the expenses and revenue fronts.

The company generated $886,000 in revenue in 2023 compared to zero dollars in 2022, as the company delivered 22 vehicles to entities like NASA and the state of Oklahoma. And it did reduce its loss from operations by nearly half, from $506 million in 2022 to $267 million in 2023. The revenue-to-losses gap is still considerable though: The company reported total net losses of $302.6 million in 2023. 

Still, one only needs to look at what Canoo is paying to rent the CEO’s private jet to put those “wins” into perspective. Under a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for use of an aircraft. In 2023, Canoo spent $1.7 million on this reimbursement — that’s double the amount of revenue it generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for use of the aircraft.

Separately, Canoo also paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared services support in its Justin, Texas, corporate office facility, according to regulatory filings.

This could be chalked up to small monetary potatoes if Canoo reaches its revenue forecast for 2024 of $50 million to $100 million.

We’ve asked Canoo for comment and will update this post if we hear back.

Vista Equity to take revenue optimization platform Model N private in $1.25B deal

Model N Team Photo (2019)

Image Credits: Model N (opens in a new window)

Model N, a platform used by companies such as Johnson & Johnson, AstraZeneca, and AMD to automate decisions related to pricing, incentives, and compliance, is going private in a $1.25 billion deal with private equity firm Vista Equity Partners. The acquisition underscores how PE firms continue to scoop up tech companies that have struggled to perform well in public markets in the last couple of years.

Vista Equity is doling out $30 per share in the all-cash transaction, representing a 12% premium on Friday’s closing price, and 16% on its 30-day average.

This is Vista Equity’s fifth such acquisition in the past 18 months, following Avalara ($8.4 billion); KnowBe4 ($4.6 billion); Duck Creek Technologies ($2.6 billion); and EngageSmart ($4 billion).

Founded in 1999, Model N’s software integrates with various data sources and internal systems to help companies analyze trends, pricing efficacy, market demand, and more. The platform is typically used in industries such as pharmaceuticals and life sciences, where there may be complex pricing structures, and where regulatory or market changes can impact business.

The San Mateo-headquartered company went public on the New York Stock Exchange (NYSE) in 2013, and it has generally performed well in the intervening years — particularly since around 2019, when its market cap steadily started to increase, hitting an all-time high of $1.6 billion last year. However, its valuation has generally hovered below the $1 billion market for the past six months, sparking Vista Equity Partners into action today.

Vista said that it expects the transaction to close in the middle of 2024, though it is of course subject to the usual conditions, including shareholder approval.

Poe introduces a price-per-message revenue model for AI bot creators

Bot creators now have a new way to make money with Poe, the Quora-owned AI chatbot platform. On Monday, the company introduced a revenue model that allows creators to set a per-message price for their bots so they can make money whenever a user messages them. The addition follows an October 2023 release of a revenue-sharing program that would give bot creators a cut of the earnings when their users subscribed to Poe’s premium product.

First launched by Quora in February 2023, Poe offers users the ability to sample a variety of AI chatbots, including those from ChatGPT maker OpenAI, Anthropic, Google, and others. The idea is to give consumers an easy way to toy with new AI technologies all in one place while also giving Quora a potential source of new content.

The company’s revenue models offer a new twist on the creator economy by rewarding AI enthusiasts who generate “prompt bots,” as well as developer-built server bots that integrate with Poe’s AI.

Last fall, Quora announced it would begin a revenue-sharing program with bot creators and said it would “soon” open up the option for creators to set a per-message fee on their bots. Although it’s been nearly 5 months since that announcement — hardly “soon” — the latter is now going live.

Quora CEO Adam D’Angelo explained on Monday that Poe users will only see message points for each bot, which encompasses the same points they have as either a free user or Poe subscriber. However, creators will be paid in dollars, he said.

“This pricing mechanism is important for developers with substantial model inference or API costs,” D’Angelo noted in a post on X. “Our goal is to enable a thriving ecosystem of model developers and bot creators who build on top of models, and covering these operational costs is a key part of that,” he added.

The new revenue model could spur the development of new kinds of bots, including in areas like tutoring, knowledge, assistants, analysis, storytelling, and image generation, D’Angelo believes.

The offering is currently available to U.S. bot creators only but will expand globally in the future. It joins the creator monetization program that pays up to $20 per user who subscribes to Poe thanks to a creator’s bots.

Alongside the per-message revenue model, Poe also launched an enhanced analytics dashboard that displays average earnings for creators’ bots across paywalls, subscriptions, and messages. Its insights are updated daily and will allow creators to get a better handle on how their pricing drives bot usage and revenue.

Quora’s Poe introduces an AI chatbot creator economy