Character.ai files for bankruptcy, will shut down if no buyer emerges

The Decoder · rss · 2026-10-13

Character.ai has filed for bankruptcy and is seeking a buyer; if none emerges, the platform shuts down, with the sale expected to close by the end of 2026. Founded by ex-Google researchers, it once had over 20 million users and struck a $2.7 billion deal with Google, but is now battling lawsuits over harm to minors and operational problems.

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