this post was submitted on 15 Oct 2026
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When I first heard about this bankruptcy, one of my first thoughts was, here it goes. This is only the very beginning of the landslide though, so it's going to take a while before it reaches the bottom, and it's going to pick up a lot more debris on the way.
Or, as the article optimisitically puts it:
Wrong. Character.AI may come to be seen as the first car in the train to derail.
It's the "Pets.com" of AI.
I don’t know. Pets.com failed because they weren’t adequately prepared for their success. AI seems to fail because they overprepared for success that was never coming.
I'm not sure that's an accurate or defensible perspective on why they failed. From Wikipedia:
Huh. That’s what I get for only having learned of the matter from engineering textbooks.
That was the nature of the dotcom bubble. Bandwidth costs back then were exponential, whereas revenue was linear. The chatbot bubble instead has the problem of needing to manufacture demand. Different mechanisms to the same results.
A trillion or two will put that train right back on its tracks
Yes. We could still try blindly throwing money at the problem. /s
Thanks for the laugh.