Scott Woody on Metronome Monetizing the AI Era
If you’d like to join me – and peers – for deeper conversations on innovation and leadership, get on this list for Fortt Knox Executive Communities, launching soon: mba.fortt.com.
This is an AI-assisted summary of my Fortt Knox 1:1 with Metronome CEO Scott Woody. View the full interview here:
As Stripe closes its acquisition of Metronome this week for a rumored $1 billion, Jon Fortt speaks with Scott Woody, cofounder and CEO, in this Fortt Knox 1:1.
AI is forcing a generational shift in how software is priced, sold, and built. Woody argues that AI doesn’t just change product features; it fundamentally alters business models by introducing high marginal costs and agent-driven value creation that breaks seat-based pricing. Metronome sits at the center of this transition, providing real-time usage tracking, pricing, budgeting, and control so companies can safely adopt consumption- and outcome-based monetization.
Woody traces his own path from a remote childhood in Bishop, California. Because of his father’s work, he spent time surrounded by astronomers and directing his own learning. Later he studied physics at Berkeley, pivoted into software, and learned the ropes at Dropbox. That background shaped his belief in cross-disciplinary thinking, intensity, and building infrastructure that scales under pressure. The conversation culminates in Metronome’s defining stress test: supporting OpenAI through the explosive growth of ChatGPT, when Metronome’s systems (and balance sheet) were pushed to the brink. The experience reinforced Woody’s core belief that treating customers honorably during crisis builds durable companies and powerful long-term advantage.
Today’s Toughest Problem
Software is being disrupted on two axes at once: product capabilities and monetization. AI agents now perform work on behalf of users, shifting value away from “who has access” toward “what gets done.” At the same time, AI introduces real marginal costs, making flat subscriptions economically misaligned. Woody’s challenge is enabling companies to set prices based on usage, outcome and value, without surprising customers or slowing innovation. Metronome’s role is to ingest product telemetry, combine it with contract data, and apply pricing in real time. That way companies can move fast and give customers transparency and control over their spending.
Origin Story
Woody grew up in a town of 3,000 people, where his father ran an observatory for Caltech. With limited internet access, he became a self-directed learner immersed in science conversations at the dinner table. At Berkeley, he discovered the power of cross-pollination: mixing physics with literature, biology, and computing. A stint recruiting for a hedge fund sparked entrepreneurial instincts, leading to his first startup and then seven formative years at Dropbox, where he became a true software engineer. That blend of rigor, curiosity, and team-building laid the groundwork for Metronome.
Death Valley
Metronome’s defining crisis came during the ChatGPT explosion in late 2022. As OpenAI’s usage surged, Metronome’s costs spiked dramatically, while revenue lagged due to flat-fee pricing. The small team ran a 24/7 “bucket brigade” for months, risking a meaningful share of their remaining cash to keep OpenAI live during its breakout moment. Cutting support might have protected short-term finances but violated Metronome’s values. Woody chose to absorb the pain, betting that integrity and partnership would pay off. It did – but only after intense stress, sleepless nights, and existential risk.
Core Belief
Two convictions emerged. First: if you act with integrity and do right by customers, you increase your odds of long-term survival and trust. Second: the hardest moments become the most important in hindsight. Woody frames startups as “type-two fun.” They can be miserable in the moment, rewarding in retrospect. That mindset helps leaders endure volatility, knowing today’s pain often becomes tomorrow’s moat.
Strategic Imperative
In 2026, Metronome’s mission is to reframe “billing” as “monetization.” Woody wants the market to see pricing infrastructure not as back-office plumbing, but as a growth engine. By showcasing customers like OpenAI, Anthropic, and enterprise acquirers such as IBM-backed platforms, Metronome aims to prove that aligning business models with AI-driven value unlocks faster, healthier growth. The goal: make modern monetization a strategic advantage, not an afterthought.
If you’d like to join me – and peers – for deeper conversations on innovation and leadership, get on this list for Fortt Knox Executive Communities, launching soon: mba.fortt.com.