this post was submitted on 05 Sep 2025
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That can't be good. But I guess it was inevitable. It never seemed like Arc had a sustainable business model.
It was obvious from the get-go that their ChatGPT integration was a money pit that would eventually need to be monetized, and...I just don't see end users paying money for it. They've been giving it away for free hoping to get people hooked, I guess, but I know what the ChatGPT API costs and it's never going to be viable. If they built a local-only backend then maybe. I mean, at least then they wouldn't have costs that scale with usage.
For Atlassian, though? Maybe. Their enterprise customers are already paying out the nose. Usage-based pricing is a much easier sell. And they're entrenched deeply enough to enshittify successfully.