TLDR Tech / News
AI chatbot startup Character.AI files for bankruptcy
Character.AI, which provided a platform for users to interact with AI personas, has declared bankruptcy due to operational costs and legal issues. The company reported $23.6 million in revenue for 2025 but spent approximately $211 million, primarily on computing power. Character.AI was concurrently facing legal actions from families concerning child welfare, inquiries from 46 state attorneys general, and demands from Disney related to its intellectual property.
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