Post

The funniest thing about this is that at its peak, this company was valued at 2.5B. Those revenues figures are just pathetic.

admittedly not a bankruptcy expert, but why chapter 11 instead of 7? it sounds like there's genuinely nowhere for them to go after this, and the amount they bring in each month seems pitiful and just. isn't consistent

Shouldn't enshittification only apply if they had a good product at somepoint? Feels kinda weird to say they enshittified their product if it was never not shit

Hey, they managed to get their losses down to just $9 million a month. That's a big achievement.

Beats 9 billion

I love that if I want a home loan the underwriter crawls all over my finances trying to decern if I can handle the payments. Meanwhile you can apparently run a company that never earns a single dime of profit, gets kids killed, and I guess that's fine right up until the VC money faucet turns off?

They spent a mid level game's entire 2.5 years of budget in a month. Yet all the investors are frothing to fund this kind of bullshit over anything else.

Very cool that I can get told repeatedly by AI boosters about a "successful" AI company, make a note to look into them, forget to do so for a wee while and they're fucking bankrupt before I'm able to find out what they even actually did. Oh well!

Character AI was a random slop company that let teens talk to fanfiction chatbots. They were awful. OpenAI and Anthropic are the two companies actually creating frontier AI. As of yet, there is no indication there is a bubble around these two companies. Shitty companies dying is evidence of nothing.

This is like saying the world wide web is a bust because pets.com just went bankrupt.

There is exactly 1 profitable AI company and it's a bespoke art project with like 6 total employees.

Oh totally, when these guys talk about “successful” it usually means “only loses $4 for every $1 in revenue”