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Other AI Companies Should Be Very Afraid of What Just Happened to Character.AI, According to Its Own Bankruptcy Documents: Be afraid. (futurism.com)
submitted 12 hours ago by to c/technology@lemmy.world
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[–] 6 points 5 hours ago (1 child)

They are (maybe, allegedly) "profitable on inference" i.e. the API pricing is higher than the actual compute they use just for the input/output tokens for the query. That excludes, though, training, capex, staff, etc., which... is by far the vast majority of their actual expenses.

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  • [–] 6 points 5 hours ago

    At least according to Ed Zitron, they only appeared profitable due to creative bookkeeping. They timed the announcement of their shitty "annualized revenue" to coincide with the few months of vastly reduced rent at the datacenter Musk rented to them as well as the shift to token based billing for enterprise customers. Their inference is likely not profitable.

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