Duolingo has been the top education app in Apple’s App Store for most of the past decade, making the company a revenue of around $500 million annually. But most people who use the language lesson app do not pay. So how does a free educational app manage to have a valuation of $7.7 billion?

WSJ explains how Duolingo is using AIenhanced experiments to subsets of its user base, tailoring its offering to hook users like an addictive video game.

Chapters:
0:00 Top education app
0:48 Growth and gamification
2:41 How the app works
5:47 Why the app is free

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