FN Meka Voice Glad Capitol Killed the Contract, Hitmaka Agrees

The voice behind Capitol Records’ very short-lived artificial intelligence rapper project is speaking out … and he’s actually thankful the label treated the contract like toilet paper.

Real-life rapper Kyle The Hooligan hit Instagram following Capitol’s decision to end its FN Meka deal and says the creators -- Factory New heads Anthony Martini and Brandon Le -- ghosted him after getting everything they needed to power the character … like the ability for it to use the N-word.

Kyle says Factory New approached him with the idea with promises of equity and percentages, but then went M-I-A on their culture vulture mission.

He admitted to waiting for FN Meka to become a success before he could recoup massive damages ... but says he'll happily settle for performing at its funeral instead.

News of Meka's signing went wide on Monday, but by Tuesday the label backpedaled ... apologizing to the Black community for the obvious rapper stereotypes -- gaudy jewelry and glorifying prison life -- built into the character's appearance and lyrics.

Kyle is calling the cancelation karma … as are several other notable figures in the music industry.

We spoke to hip hop superproducer Hitmaka Wednesday on "TMZ Live," and he blamed Capitol’s “capitalistic” mindset for letting FN Meka thrive. He added that if the label allowed its employees -- particularly those of color -- to speak up, it might not have this mess on its hands.