Character.AI has 12M MAU spending 120 min/day — and VC logic can't price it
signulll · x · 2026-10-14
signulll argues the Character.AI story breaks a core VC assumption: that a product loved by millions will always find financing. A court filing shows Character.AI has amassed 12 million monthly active users over four years, with active users averaging 120 minutes per day — alongside mounting lawsuits over personal injury and child privacy.
He draws a parallel to YouTube's 2006 acquisition, when Mark Cuban called Google's purchase "extremely dumb," and notes ChatGPT users show similar emotional attachment, suggesting that attachment may be the asset, not the liability.
Related event: Character.ai Bankruptcy Filings Expose AI Companion Economics(2 posts)→
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