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Character.ai filings expose AI companion economics
Key Takeaways
- Character.ai reported spending $56.1 million on compute from January through August 2026.
- The company said subscription revenue peaked at $2.8 million monthly, while total revenue peaked at $5.3 million.
- Cost-cutting measures included simplifying its AI model, layoffs and advertising in chats.
- Bankruptcy filings say legal costs contributed to the collapse, but the company was unsustainable even without them.
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DT Editorial Team··via 404media.co