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Character.ai has initiated voluntary Chapter 11 bankruptcy
(blog.character.ai)
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this post was submitted on 13 Oct 2026
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They're already involved in lawsuits because of suicides caused by their product. That's not new. They settled in this one. And I think the Sewell Setzer one is still ongoing.
Unsure if that's the one where the model was giving the child instructions on how to best commit suicide to leave a "beautiful corpse" behind or not.