[RE]

404MEDIA.CO 2026-10-13

Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work

Character.ai’s collapse highlights the vulnerability of overfunded AI companies that prioritize speculative growth over viable revenue models. Despite massive investment and high valuation, it exhausted capital, grappled with legal challenges, and never established sustainable operations. Its failure signals a turning point in the erosion of unchecked AI hype.

I wonder how big the CDS Market is on the AI Hyperscalers?  There's gotta be some Michael Burry type out there who has bet big on somebody major going Tits Up before this clusterfuck is finished.  Wouldn't it be nice if it was Google or the Big Gorilla? 😀  Then there's the question of which TBTF bank would write the CDS?    Goldman?  JP Morgan?

Somebody's gonna make a killing.  Somebody else is going to the Morgue.

RE