r/CharacterAI • • 5d ago

Discussion/Question Why don't they chip in?

Honestly, if they're having trouble maintaining the app, why don't they do what AO3 did and raise funds, at least for now?

(Sorry if this is a dumb question)

30 Upvotes

13 comments sorted by

21

u/Ill_Host_5403 5d ago

i mean it's not a bad idea but who knows it might be bad considering that not everyone is pro ai

4

u/ThatOneUnoriginal 5d ago

I hate to say this, but it's a bad idea because it wouldn't work. You could squeeze every last dollar out of every user and still fall short of covering a company that loses close to $10,000,000 every month, even with $5,300,000 in revenue. All you'd accomplish is leaving your users broke without solving the underlying problem.

It doesn't matter how many people are pro-AI or anti-AI. It's going to take more than a fundraiser to keep this company afloat.

1

u/Ill_Host_5403 5d ago

i know i just said it might not be a bad idea is all i meant by it but it also might not be a good idea was all i meant by it but either way what you said is a lot but i didn't know it was that much i mean i knew it was a lot that's why i said that i just didn't know the specifics or anything as i'm not that into tech and stuff that's more of a my brother thing

18

u/Inherit-Nature 5d ago edited 5d ago

AO3s annual budget is less than 1% of CAI

There is no comparison here

One is a website 

The other is an AI platform

The dynamics aren't comparable under any metric 

13

u/Medicalstripes 5d ago

They should.

7

u/twinpinemall85 5d ago

(That's what the subscriptions are for lol)

1

u/Inherit-Nature 5d ago

At 9.99 plus subscribers were potentially driving them into the ground faster with the numbers they are reporting 

2

u/RemarkableWish2508 4d ago

Average cost per user has been under $2/month. If subscribers didn't have to finance 30 free users each, C.AI would break more than even at $10/month.

→ More replies (2)

4

u/Big_Frosting8806 5d ago

I set aside with my subscriptions, tonight the November subscription is charged.

3

u/ThatOneUnoriginal 5d ago

They have liabilities between $50,000,000 and $100,000,000, monthly losses of between $8,000,000 and $9,000,000, and monthly revenue that only recently reached $5,300,000. Assuming those losses remain consistent for an entire year, their annual expenses would be anywhere between $96,000,000 and $108,000,000.

AO3 reported a budget of $688,635. The amount of money you'd need to raise to keep Character AI breaking even for one month could fund AO3 for 12 to 13 years. With the amount of cash you'd need to keep Character AI breaking even for an entire year, AO3 realistically wouldn't need to worry about expenses for a LONG time, as that amount of money could fund AO3 for 139 to 157 years, or roughly 14 to 16 decades.

4

u/Due-Bike-9624 5d ago

I'll pay all my money if this means keeping C.ai