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 warning about for the past few years: that AI is expensive, resource-intensive, and ripe for legal challenge. The crash-and-burn could offer a preview for the music industry.
Source: Character.ai Bankruptcy Highlights AI’s Ludicrous Cash Burn Problem.