Ai Companion Apps

Character.ai files for Chapter 11 bankruptcy amid lawsuits and rising costs

AI companion app maker Character.ai filed for Chapter 11 bankruptcy protection in Delaware, saying the platform had become too expensive to develop while facing litigation and regulatory pressure. CEO Colin Adams said a court-supervised sale offers the best chance to maximize value for stakeholders, and Disney has agreed to act as a stalking horse bidder, offering $20 million to license some of the company's intellectual property.

cnbc.com · 2026-10-13

UK ad watchdog bans five Meta ads for AI apps sexualising women

The Advertising Standards Authority has banned five social media adverts, all hosted on Meta platforms, that promoted AI companion and video-generation apps by objectifying and sexualising women. One ad reportedly used sexualised imagery of a girl under 18, while others encouraged users to upload photos of a 'crush' or turn images into explicit videos without consent. Meta had already taken the ads down before the ASA's ruling.

bbc.co.uk · 2026-09-15