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

Character.ai’s bankruptcy is the one of the first dominos to fall in the long-foreseen AI bubble. 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. Enshittifying its product to try to m...