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May 5, 2026

Why SaaS Freemium Doesn't Work for AI — and What Cursor's Enterprise Controls Tell Us

AI PM Research

Tuesday, May 5, 2026

Why SaaS Freemium Doesn't Work for AI — and What Cursor's Enterprise Controls Tell Us

Two threads today: Lenny's new piece on AI monetization breaks down why the SaaS freemium playbook fails for AI products and what to build instead — and Cursor's enterprise update shows exactly what "governance for AI tools at scale" looks like in practice. Both are decision inputs for PMs managing AI products right now.

Also today

  • Lenny Rachitsky / Teresa Torres
  • OpenAI
  • Vercel
  • Microsoft
  • Notion
Read the full update →

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