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Character.ai said it has filed for Chapter 11 bankruptcy protection, with its chief executive attributing the chatbot provider's financial problems to "significant legal, regulatory and operational headwinds."

The company said it will continue operating as it seeks to sell its business, and added that The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai's intellectual property.

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[-] VerilyFemme@lemmy.blahaj.zone 29 points 2 days ago

Going to say right now that this should not have existed in the first place, that way I'm not mincing words.

I wonder if this will lead to noticeably higher suicide rates among users of the app? I remember when they just slightly changed how the characters talk to users and people acted like their grandma got shot.

[-] Funkt4st1c@lemmy.world 12 points 2 days ago

I think that was chatgpt 3.1? But id imagine yes. Unfortunately these bloodsuckers are making money off of lonelyness, and when the feed runs dry theyre smacked with emotion which many cannot handle.

[-] Steve@startrek.website 8 points 2 days ago

Maybe when they turned off GPT 4o.

[-] VerilyFemme@lemmy.blahaj.zone 5 points 2 days ago

Oh yes that was what it was. Pardon me, I actively avoid AI dev news like the plague.

[-] FinalRemix@lemmy.world 7 points 2 days ago

Now now... this isn't Replika.

this post was submitted on 13 Oct 2026
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