Character.AI files for bankruptcy protection five years after founding

Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy

Interactive chat platform Character.AI has filed for Chapter 11 bankruptcy protection after multiple lawsuits and struggles to expand its business. The filing lists assets and liabilities each between $50 million and $100 million.

Why it matters: Character.AI filed for bankruptcy protection and started a sale process; whether the chat platform keeps running depends on a viable acquisition, and it will shut down without one.