United StatesCharacter.ai was losing $8-9 million a month by August.

Subscription revenue peaked at $2.8 million a month, and all revenue at $5.3 million, its bankruptcy filings say.

Compute cost $13.8 million a month in 2024 and $10 million in 2025, and the company added ads and simplified its model.

“Character’s impressive technology is expensive to operate,” CEO Colin Adams said in an affidavit.

Disney has reportedly offered $20 million to license characters, after sending a cease-and-desist letter last year.

How each outlet framed it
404 Media leans critical
emphasizes that the bankruptcy confirms critics' predictions: money burned running the product, thin revenue, and legal fees from a user's suicide

Sources: 404 Media