THE WEEK AI BLINKED ? - THE AMERICAN PROSPECT

What happened: Character.AI filed for bankruptcy and is selling remaining assets to Disney, after lawsuits and investigations over its chatbots. The article says its costs outpaced its 12 million active users. Key numbers: 12 million active users; monthly losses of $8 million to $9 million; Anthropic third-quarter revenue up 45 percent to $16.8 Why it matters: The article argues AI economics worsen as users grow, unlike traditional software. It cites Anthropic's adjusted-profit claim, OpenAI's revised figure, and open-source pricing pressure as signs the sector's revenue basis is unsettled. Coverage: 3 outlets in 24h

Character.AI filed for bankruptcy and is selling remaining assets to Disney, after lawsuits and investigations over its chatbots. The article says its costs outpaced its 12 million active users.

The article argues AI economics worsen as users grow, unlike traditional software. It cites Anthropic's adjusted-profit claim, OpenAI's revised figure, and open-source pricing pressure as signs the sector's revenue basis is unsettled.