I think it's more nuanced than that. Yes, it's true that the economics are horrible. But it's also true that consumer startups are hard. And then when you tack on legal fees and product changes due to policy concerns, it becomes impossible. Maybe the lesson is that the world isn't ready for a product that targeted minors with fake friends based on existing IP. Maybe it never will be.

That seems even less nuanced: bad economics AND they had a potentially illegal product.

Perhaps it's more that "consumer startups that want to become a unicorn" are hard.

> I think it's more nuanced than that.

So did they, they just left it for the conclusion

> It’s not clear whether AI giants like OpenAI and Anthropic, or the AI industry in general have gotten too big or too important to fail, but Character’s bankruptcy shows that the runway for second-tier players is over.

But the current title definitely baits more people into the article

People made the exact same argument for years where Facebook stock stayed around 20 bucks post ipo. I did too and sold like an idiot!