Turbo AI, an AI-powered note-taking and learning assistant, has reported reaching five million users and an eight-figure annual recurring revenue (ARR) since its launch in early 2024. The platform, co-founded by Rudy Arora and Sarthak Dhawan, has seen significant expansion, adding 20,000 new users daily, according to statements made by the founders to TechCrunch. This growth trajectory includes an increase from one million to five million users within the past six months, with the company maintaining profitability throughout its operation.
The initial concept for Turbo AI, originally named Turbolearn, emerged from a common challenge faced by college students in simultaneously attending lectures and taking notes. The application enables users to record lectures or upload various content formats, including PDFs, YouTube videos, and readings, which the AI then processes to generate notes, flashcards, and quizzes. It also integrates a chat assistant to clarify concepts. Dhawan stated that the ability for students to engage with features like extensive quiz questions following a 30-page lecture indicates the product's effectiveness in time-saving and information retention.
While initially adopted by students across universities such as Duke, Northwestern, Harvard, and MIT, the platform has expanded its user base beyond academic circles. The company rebranded from \"Turbolearn\" to \"Turbo AI\" to reflect its broader utility, with professionals in fields like consulting, law, medicine, and finance, including analysts at Goldman Sachs and McKinsey, reportedly utilizing the tool. These professionals leverage Turbo AI to summarize reports or convert documents into audio formats for consumption during commutes, the founders indicated.
Arora and Dhawan, who have collaborated on previous projects, have adopted a strategy cautious of early over-funding. The company secured $750,000 in funding last year prior to its current growth phase. Arora stated that while there has been significant inbound interest for further investment, the company is prioritizing its cash-flow positive and profitable status. Turbo AI, which operates with a 15-person team based in Los Angeles, currently charges approximately $20 per month for its service, with exploration into alternative pricing models underway to address student price sensitivity while scaling for a wider audience. The platform positions itself as an intermediate solution between fully manual and fully automated note-taking tools, allowing for hybrid user engagement.
