Character.ai Bankruptcy Highlights AI’s Ludicrous Cash Burn Problem

Photo Credit: Towfiqu Barbhuiya
Character.ai files for bankruptcy, illustrating the sheer amount of money and resources burned with little gain and numerous lawsuits to show for it.
The extreme financial pressures and upside-down economics of artificial intelligence, involving expensive upkeep and equally expensive lawsuits, should make the news of Character.ai’s bankruptcy easily predictable. The circumstances of the company’s failure illustrate precisely what AI critics have been w