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Mmastodon first seen 19 h ago, last 9 min ago, peak #3

Character.ai Bankruptcy Documents Reveal AI's Broken Economics

Original: Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work

Character.ai has filed for bankruptcy, and court documents show the company was burning through large amounts of cash despite degrading its product for users. The filing suggests that even popular AI chatbot services struggle to cover the heavy compute and infrastructure costs behind generative AI, raising questions about whether consumer AI businesses can ever be profitable at scale.

Why now: People are discussing it because the bankruptcy filing offers rare hard numbers suggesting generative AI companies cannot cover their costs.

Character.ai

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