Character.AI, the GenAI site that convinced some children to kill themselves, has gone bankrupt after parents sued them.
we found hordes of chatbots explicitly dedicated to themes of pedophilia, suicide, self-harm, and eating disorder coaching, as well as a thriving community of users creating chatbots designed to simulate school shootings, romanticize real mass shooters, and even impersonate the real child victims of mass shootings.
It’s insane that losing a billion dollars didn’t matter to anyone, it was the lawsuits that did them in.
If losing money mattered, they would all be under already.
Right now investors still hope that somewhat, all these companies will manage to break even and they can recover some of their losses.