More news about the character dot ai bankruptcy: as it turns out, the true economics of the company are disastrous. At their peak, their revenue was around $1M a month while their AI compute expenses alone were $14M a month! Their total expenses in 2025 were around $18.5M a month before counting legal fees. All of this is for a pure text-based low power LLM (none of the "reasoning" business).
Before AI boosters crow about how much cheaper AI is currently, they tried every trick in the book to enshittify: open models, ads, usage limits, etc. This allowed them to cut down their losses to a mere $9M a month.
Surely this is all one big exception, everyone else in the AI bubble is doing just fine!