Lucas and Luna explore how Duolingo turned language learning into a habit-forming, publicly traded business. They break down the company's use of gamification mechanics—streaks, leaderboards, and in-app currency—to drive daily active users. They discuss the freemium model with ads and the $7 per month Super Duolingo subscription, and how the company uses A/B testing to optimize engagement. They also look at the role of AI in personalizing lessons and the controversial switch to a fully AI-generated content pipeline that reduced reliance on human translators. The episode covers Duolingo's path from a Carnegie Mellon research project to a $7 billion market cap company, and the tension between educational outcomes and engagement metrics.

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