AI companion app Dot shrinks to nothing amid founder disputes, will shut down in October

Dot, an AI companion app founded in 2024, announced it will shut down on October 5 after its founders reached an “ideological rift” about the company’s direction. The closure highlights the volatile nature of the AI companion market, which has faced intense scrutiny over users developing obsessive relationships with chatbots that have led to suicide, psychiatric commitments, and even murder.

What you should know: Dot positioned itself as a “companion” app offering emotional support and flirtation, targeting users seeking digital life partners.

• The app’s founders, Sam Whitmore and former Apple designer Jason Yuan, cited diverging visions as the reason for shutting down operations.
• Users have until October 5 to save their chat logs and “say goodbye” to their digital companions.

The bigger picture: AI companion apps have exploded in popularity, particularly among teenagers, despite growing safety concerns.

• A recent survey found 72% of teens have experimented with AI companions, with over 50% maintaining regular relationships with chatbots.
• Tech companies including OpenAI and Character.AI already face lawsuits over user deaths linked to their AI systems.

Market reality: Despite Dot’s closure, the AI companion industry continues to thrive financially.

• Character.AI maintains a valuation exceeding $1 billion.
• Replika generates an estimated $14 million in annual revenue.
• Soul Machine recently raised $70 million in private funding.

What they’re saying: The founders acknowledged the unprecedented nature of losing a digital relationship.

• “We want to be sensitive to the fact that this means many of you will lose access to a friend, confidante, and companion, which is somewhat unprecedented in software,” they wrote in their shutdown announcement.

Why this matters: The closure underscores the ethical challenges facing AI companion companies as regulators and safety experts push for stronger safeguards to protect vulnerable users from potential psychological harm.