Background: Peloton is the fitness company famous for its high-end bikes and treadmills. It launched in 2012 through a $250,000 Kickstarter campaign but really took off during COVID, when demand sent its market valuation soaring to more than $60 billion USD. The brand even became a favorite of celebs like Lizzo, Roger Federer, and Pitbull (aka Mr Worldwide).

What happened: Since its peak, Peloton has seen its value collapse by nearly 90% and recently laid off more than 6% of its workforce. Now, Peloton has unveiled five new products, including updated bikes, treadmills and a rowing machine.

What else: Alongside the new hardware, Peloton launched Peloton IQ, an AI-assisted training tool that tracks form, counts reps and even tweaks your workouts. Next minute: Peloton's shares jumped 5% on the news. Although, it's unclear whether this AI is a true innovation or just another case of “AI-washing.”

What's the key learning?

💡In 2025, every company is talking about AI. Just like greenwashing exaggerated eco-claims, “AI-washing” is now everywhere, with companies dropping the buzzword to gain attention.

💡 It makes sense why - because investors are rewarding the hype. AI talk boosts stock prices. Companies that mentioned “AI” in earnings calls saw shares rise an average of 4.6% in the three days after, compared to 2.4% for those that didn’t.

💡Nearly 65% of Fortune 500 companies in the US mentioned AI in their most recent annual reports, even when actual integration is limited, so clearly Peloton is banking on the same play.