Figma gets crushed in its post-IPO earnings debut David Paul Morris\/Bloomberg\/Getty Images<\/p>\n Shares of design software company Figma plunged 14% in extended trading yesterday as investors took a dim view of Figma\u2019s first-quarter earnings report.\u00a0<\/p>\n In its fiscal second quarter, Figma’s revenue grew a healthy 41% year-over-year to $249.6 million, roughly in line with analyst expectations. Figma reported $28.2 million in net income, or break-even on a per share basis.\u00a0\u00a0<\/p>\n \u201cWe\u2019re at the very start of what I hope is a long-term relationship together,\u201d CEO Dylan Field confidently told listeners as he kicked off the earnings call.<\/p>\n Field, who cofounded the company in 2012 and watched its $20 billion acquisition by Adobe fall apart in 2023, clearly isn\u2019t one to get caught up in the negative.\u00a0<\/p>\n \u201cNo one knows whether we\u2019re going to look back in five years at everything that\u2019s happening right now in AI and say, \u2018Oh my God, those were the bubbliest of times,\u201d Field told Fortune yesterday ahead of the call<\/a>. \u201cOr: \u2018Wow, we totally underestimated the effect it would have on society.\u2019\u201d<\/p>\n Field believes one of the key intersections between AI and design is that AI tools will help broaden access, letting more people become designers. Figma added four new AI-native tools to its platform this quarter and told investors on the call to expect significant investments in AI going forward.<\/p>\n \u201cOur philosophy is that as the models get better, we get better,\u201d he said. \u201cThat\u2019s always the test I have strategically for us.\u201d \u2014Allie Garfinkle<\/p>\n Meet the $100m AI startup that wants to kill the billable hour<\/p>\n Eudia, a Palo Alto-based AI startup, is offering something entirely new: the world\u2019s first AI-augmented law firm.\u00a0<\/p>\n Its end goal is nothing less<\/a> than the death of the billable hour that, according to CEO Omar Haroun, has run entirely out of control.\u00a0<\/p>\n \u201cMost legal departments have lost control of their budgets and their knowledge,\u201d Haroun said in a press release announcing the launch of Eudia Counsel, which he called \u201cthe first AI-native law firm.\u201d<\/p>\n The company has fought hard to bring its novel approach to light, Haroun told Fortune at the company\u2019s 2025 Augmented Intelligence Summit in New York.<\/p>\n Arizona is the only state in the country where a law firm is not required to be owned by lawyers, he said. Even still, there are technicalities. Eudia is not technically set up as a law firm, but a company that is a \u201cprovider of a law firm.\u201d<\/p>\n Haroun told Fortune that the economics of AI can, for example, transform pro bono work, which he sees as \u201cthe reason people like me went to law school\u201d in the first place.<\/p>\n Gary Hood, general counsel for Berkshire Hathaway-owned Duracell, said using Eudia has been a \u201cno-brainer\u201d for contracts and due diligence during M&A.<\/p>\n Haroun said some clients were spending hundreds of millions of dollars on outside counsel, and that\u2019s where Eudia steps in.<\/p>\n And what about people? Eudia co-founder Ashish Agrawal likened the tools to a brand new employee that every company has to be patient with and incorporate \u201corganically.\u201d Human inputs, he told Fortune, are essential to AI working properly. \u2014Nick Lichtenberg<\/p>\n Is an \u2018AI winter\u2019 coming?<\/p>\n As summer fades into fall, many in the tech world are worried about an AI winter<\/a>.\u00a0<\/p>\n There\u2019s a reason this phrase comes so naturally lately: We\u2019ve already lived through several spells of waning enthusiasm and investment in AI over its 70-year history.<\/p>\n The most recent talk has been triggered by growing concerns among investors that AI technology may not live up to the hype surrounding it\u2014and that the valuations of many AI-related companies are far too high.\u00a0<\/p>\n Is this chill in the air a passing breeze or the first hints of an impending Ice Age? A look at past AI winters may help.\u00a0<\/p>\n For example, there are clear parallels between the hype generated by today\u2019s prominent AI figures and the competing camps working on the technology in the early days of the Cold War.\u00a0<\/p>\n There are also historical parallels for recent studies suggesting AI isn\u2019t meeting expectations. In 1966, a committee commissioned by the National Research Council issued a damning report concluding that computer-based translation was more expensive, slower, and less accurate than human translation.\u00a0<\/p>\n You can guess what happened to research funding after that.<\/p>\n There are some key differences between then and now. Most significantly, today\u2019s AI boom is not dependent on public funding\u2014though government entities are becoming important customers.<\/p>\n And unlike in the very first AI winter, when such systems were mostly just research experiments, today\u2019s AI is being widely deployed in businesses and homes.<\/p>\n Three years after ChatGPT\u2019s debut, there are certainly a few autumnal signs here and there. But only time will tell if it is the prelude to a deep freeze in AI investment or a momentary cold-snap before the sun appears again. \u2014Jeremy Kahn<\/p>\n More tech<\/p>\n \u2014Apple AI search tool in development<\/a>. \u201cWorld Knowledge Answers\u201d reportedly arrives in the spring.<\/p>\n \u2014Instagram for iPadOS arrives.<\/a> It only took 15 years, Meta!<\/p>\n \u2014xAI CFO Mike Liberatore departs<\/a>. He joined Elon Musk\u2019s AI startup in April and reportedly exited in late July.<\/p>\n \u2014Scale AI sues former employee<\/a> for allegedly stealing trade secrets and sharing them with Mercor.<\/p>\n \u2014Tom Siebel steps down at C3 AI<\/a>, to be replaced by Stephen Ehikian. The company reported a Q1 revenue drop of 19% from the same period a year ago.<\/p>\n \u2014Streameast shuts down.<\/a> The world\u2019s largest illegal sports streaming platform is knocked out by Egyptian law enforcement and others.<\/p>\n \u2014Mistral valued at \u20ac12B<\/a>. The French AI firm (of Le Chat fame) is reportedly putting the finishing touches on a \u20ac2B investment.<\/p>\n Endstop triggered<\/p>\n This is the web version of Fortune Tech, a daily newsletter breaking down the biggest players and stories shaping the future. Sign up<\/a> to get it delivered free to your inbox.![\"Dylan](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/GettyImages-2161029241.jpg\"\/)
<\/a>Dylan Field, co-founder and chief executive officer of Figma, in Sun Valley, Idaho, on July 11, 2024.\u00a0<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/meme-smashingmachine-googleantitrust.png\"\/)
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