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What Tailwind teaches us about open source in the age of AI

The rise of AI coding tools is a stress test on open source software business models.
February 03, 2026

Estimated reading time: 5 minutes

Open-source frameworks are facing a reckoning as AI shakes an already fragile area of the software development industry.

Last month, Adam Wathan, co-founder of Tailwind Labs, which maintains the popular open source Tailwind CSS framework project, revealed it had laid off 75% of its team as a result of a near 80% drop in revenue. The culprit? AI tools were driving developers away from its documentation, a key source of revenue for the company.

“Tailwind is growing faster than it ever has and is bigger than it ever has been,” said Wathan in a Github pull request asking for further LLM documentation optimization.

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