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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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So all the rats abandoned ship when they saw that it was sinking. All the AI ships are sinking because there is no way to make it profitable. The operational costs are just too high. I imagine there are a lot of AI company CEOs watching this and deciding whether or not they too should be jumping ship now. Because it's not a matter of if, it's a matter of when.