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Spotify Execs Bet People Will Pay for AI Music. Stock Price Plunges

Spotify Execs Bet People Will Pay for AI Music. Stock Price Plunges

Spotify hit 777 million total users and 300 million paid premium subscribers in the past quarter, company executives shared in an earnings release on Tuesday, along with an AI-driven increase in expenses.

Spotify has been upping its experimentation with artificial intelligence recently, banking on a slew of new AI-driven product features to continue the rise in paid subscriptions.

“There is plenty of industry debate about AI investment and costs,” Spotify co-CEO Gustav Söderström said on the company’s earnings call. “Our view is that being an AI beneficiary means winning on the cost side too.”

Earlier this summer, the company rolled out a new feature called “Talk to Spotify,” allowing Premium users to…

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