graveyardWTF 7.2via Hacker News Frontpage
Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work
"Your waifu's server costs were literally unsustainable."
Explain Like I'm Normal
Detailed court filings reveal the massive gap between user growth and server costs for the leading roleplay AI platform. The documents highlight that even with millions of daily active users, the current price of inference makes consumer-facing LLMs a money pit without massive subsidization.
#economics#compute#business-model#vc
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