Matt Mullenweg on WordPress, Open Source, and the WP Engine Dispute

Matt Mullenweg on WordPress, Open Source, and the WP Engine Dispute

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Matt Mullenweg on WordPress, Open Source, and the WP Engine Dispute

Source: Lenny’s Podcast Speaker: Matt Mullenweg Date: ~2024 Link: https://www.lennysnewsletter.com

Key ideas

  • WordPress powers 40% of the internet through the GPL four freedoms. The General Public Licence grants any user the right to use, study, modify, and distribute the software. This is not a business model quirk — it is a structural commitment that made adoption self-replicating. Mullenweg argues the viral nature of the licence is the primary reason WordPress could displace commercial CMS incumbents without a sales force.
  • Llama is not genuinely open source. Meta’s Llama model includes a clause restricting commercial use beyond a user threshold, which violates the Open Source Initiative’s definition. Mullenweg calls this “fake open source” — it appropriates the social credibility of the label while retaining the commercial leverage of a proprietary licence. Genuinely open AI models are rare.
  • The WP Engine dispute is about trademark, not code. WP Engine — backed by private equity firm Silver Lake — does not materially contribute to WordPress core, does not pay the standard 8% community contribution, and actively discourages use of WordPress.com. Mullenweg’s objection is that Silver Lake controls an entity that exploits the WordPress trademark without funding the ecosystem that makes the trademark valuable. 45,000 sites left WP Engine following public awareness of the dispute.
  • Tumblr acquisition: free like a puppy, not free like beer. Automattic bought Tumblr from Verizon for a reported $3 million in 2019, taking on all liabilities including an FTC investigation and lawsuits, and inheriting 185 staff. The product has a uniquely young and LGBTQ+ skewing user base that still attracts 15–20 million monthly active users. Migration to a WordPress backend is ongoing.
  • Distributed companies can pay global-equivalent salaries. Automattic has approximately 1,900 staff across 90+ countries with no headquarters and pays the same salary scale regardless of geography — whether you’re in California, Italy, or Nigeria. Mullenweg credits this with enabling global talent density and sees it as a structural advantage that remote-first companies can build that office-centric companies cannot.

Overview

Matt Mullenweg co-created WordPress in 2003 as a place to share his photography, and Automattic — the company he leads — now generates approximately $500 million in annual recurring revenue through WordPress.com, WooCommerce, Tumblr, and other acquired products. The episode covers the founding of WordPress and its relationship with Automattic, the GPL licence and why it produced self-reinforcing adoption, Mullenweg’s critique of Meta’s Llama licensing, the trademark and financial dispute with WP Engine, the Tumblr acquisition and its complex history (from Yahoo to Verizon to Automattic), the philosophy behind Automattic’s acquisition strategy, and the new Beeper messaging product in beta.