On top of that SQLite is now viable in the browser with WASM and the "origin privet file system" api. And so people are increasing looking at moving more state and persistence to the browser with an eventually consistent sync. This is what the "Local First" movement, myself included, are excited about.
Probably not something you want to run a multi tenant SaaS database with, but it is useful if you are going the one tenant per database route.
It was not designed for "AI usage" or as a "AI database"
SQlite is from 2000 and is more comparable to a single file postgres/mysql database.
It's also on literally billions of devices including whatever you're reading this on.
Of course, CoreData sucks, but that's for unrelated reasons.
Depending on the use case it can scale incredibly well, and is tiny and battle hardened.
It's the most deployed database, it's on every smartphone, "smart device", computer, it's inside of many of your apps, powers many of the websites you use, etc.
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tl;dr - If you're following "use the simplest, but reliable tool for the job" then sqlite is a valid option for a crapload of use cases, most people aren't aware of what it can actually do because it doesn't "web scale".
Sqlite isn't new, it's old, and it's "used in production" count is in the literal billions.
It was incredibly fast, so much so that I found it more useful than github search. The index is pretty out of date now but I still use it purely based on convenience and speed