According to Matthew Hughes on Substack's What We Lost, AI coding platforms like Replit and Cursor are employing tactics resembling multi-level marketing schemes. Hughes argues these companies target economically vulnerable young people on TikTok with ads promising that anyone can build profitable apps using AI—while obscuring the real costs and challenges. He compares the current AI hype cycle to past bubbles like cryptocurrency, arguing both exploit economic anxiety. Hughes raises specific concerns: unpredictable token costs, potential GDPR liability for amateur developers, and the extremely low success rate for new software ventures even among experienced founders with funding.

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