The Uncomfortable Truth About Open Source in the AI Era

The Paradox

The most popular CSS framework just fired 75% of their engineers. And AI is to blame.

If you've ever vibe coded anything with Cursor, v0, or Claude Artifacts, you're probably using Tailwind right now without knowing it. It's the CSS framework that powers basically everything AI builds.

Key insight: Tailwind's npm downloads went from 6 million to 32 million this year. That's 5x more popular. But their revenue is down 80%.

Why This Happened

Tailwind CSS is free. Always has been. The way they pay their team is through Tailwind Plus: beautifully designed templates and UI kits. You buy them once, use them forever.

The ONLY way people discover these paid products is through the documentation. That's their entire funnel.

But here's the problem:

AI doesn't visit docs. You don't visit docs anymore either. And now shadcn UI offers similar components for free.

The Confession

Then Adam Wathan did something most founders never do: he told the truth.

He posted a 33-minute voice recording while walking through the snow in Ontario. Just talking to his phone. He called it a "boiling frog" situation. Revenue had been declining so slowly for so long that he didn't even notice until he finally ran the numbers over the holidays.

See Adam's full post: https://x.com/adamwathan/status/2008909129591443925

The forecast showed that in about six months, they wouldn't be able to make payroll. So he made the call: lay off three of his four engineers NOW so he could give them proper severance instead of waiting until the money ran out completely.

The Bigger Picture

This isn't just about Tailwind.

Vjeux, the creator behind React Native, Prettier, and Excalidraw, said he has the exact same problem. Prettier is used by basically everyone in the industry, but funding proper maintenance has been a constant struggle.

Vjeux's response: https://x.com/vjeux/status/2009052644317479016

badlogicgames tweeted something that got over a million views: "Everything is going to be f**ked real soon."

The doom tweet: https://x.com/badlogicgames/status/2008957430441373811

Here's the pattern:

• AI companies are making billions

• The open source projects they trained on are dying

• Not because they're failing

• Because they're TOO successful

What You Can Do

Since this news broke, donations have been pouring in. Adam posted a thank you tweet that got over 100K views. The community is rallying.

Community response: https://x.com/adamwathan/status/2009017727592353959

If you use Tailwind (and statistically, you probably do):

1. Go to their website

2. Buy the Refactoring UI book if you haven't

3. Check Tailwind Plus if your team needs templates

4. Look at your other dependencies

5. See who else is struggling to keep the lights on

Conclusion

• AI success can kill the projects it depends on

• Documentation-based funnels are dying

• Open source needs sustainable funding models

• The tools you rely on are built by people who need to eat

Frequently Asked Questions

Why did Tailwind fire 75% of their engineers?

Despite 5x growth in usage, revenue dropped 80% because AI eliminated the need for developers to visit documentation, which was their only sales funnel.

Is this just a Tailwind problem?

No. Other major projects like Prettier and Excalidraw are experiencing the same pattern where AI-driven success doesn't translate to sustainable funding.

How can I help open source projects I use?

Buy their paid products, become a sponsor, or contribute to their funding programs. Check your dependencies and see which projects need support.