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Can someone please summarize in plain English what is the story (or “drama”) here? I had a hard time making sense of this article full of weird lingo and screenshots of some social media exchanges - about what exactly? A chat AI that gets tricked into perverted exchanges? Some startup without a viable business model?
I think I lost brain cells trying to read the post (the font doesn't help). In my post lobotimzed state, I would summarize as:

There's a site called Character AI that allows users to customize a large language models output to be like a specific character. Some people start using this pornographically by, well, you know. The creators don't like it (maybe because of monetization issues), add a censorship filter, there's a cat and mouse game and the filter gets stronger at the cost of the LLM's output, the people using it for pornography are mad, the end.

Very interesting post, thanks for sharing!