Character.ai's bankruptcy demonstrates that the economics of AI are unsustainable.

"The circumstances of its bankruptcy are exactly what critics of AI have been saying would happen: Character.ai lit a huge amount of money on fire running its product, did not bring in a lot of revenue, and faced enormous legal fees after causing harm to its users." https://www.404media.co/character-ais-bankruptcy-documents-show-the-economics-of-ai-dont-work/

Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work Character.ai enshittified its product but was still burning tons of cash, its bankruptcy documents say. https://www.404media.co/character-ais-bankruptcy-documents-show-the-economics-of-ai-dont-work/ Here is my shocked face 🙄 #NoAi #AI #Enshittification

Character.ai’s Bankruptcy Documents Show the Economics of AI Don’t Work No real surprise to anyone who has been paying attention to the real world (as opposed to the stuff being shoveled by the AI superfans). "It’s not clear whether AI giants like OpenAI and Anthropic, or the AI industry in general have gotten too big or too important to fail, but Character’s bankruptcy shows that the runway for second-tier players is over." https://www.404media.co/character-ais-bankruptcy-documents-show-the-economics-of-ai-dont-work/