AI·2025 saw multiple AI companionship app closures including Woebot (150M users, clinical tool shut down due to unsustainable economics) and Dot AI (vision divergence, funds exhausted), with global closures in at least five products and domestic in eight; survivors like Replika (post-data deletion), Character.AI (Google talent acquisition), and China's Xin Bing (ice) lost users amid regulatory scrutiny and high inference costs, revealing unsustainable business models lacking self-reinforcing revenue.
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