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Comment by tsunamifury

1 year ago

And screw investors

per The Information -- investors don't get screwed, the board repurchased all shares at $88/share ($2.5B valuation).

  • The money to repurchase shares must be coming from an external source?

    I assumed Character.AI wasn’t profitable, like most AI startups.

  • These two stories are hard to rectify unless the Google licensing deal is a lump sum of several billion dollars. Which feels borderline impossible. Even Microsoft didn’t do that with open AI and the AI trade is cooking very fast.

    • They raised ~$200M total, and $150M at the series A. So if they're just paying back investors, they'd "only" need $500M.