Character.AI's 'failure' was a fake: an acquisition in all but name, critics say

max_paperclips · x · 2026-10-14

The poster argues Character.AI's much-discussed 'failure' was manufactured — essentially a way to get acquired without technically being acquired, a 'very Disney' maneuver, pointing to the stream of Character.AI staff joining other companies and the sequence of events around the lawsuit. The post includes a prompt asking Grok to break down Character.AI's history and the timeline of the suit.

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