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Character.AI has filed for Chapter 11 bankruptcy protection in the US, listing estimated liabilities between $50 million and $100 million, and is proceeding with a sale of its assets. Disney will act as lead bidder, paying $20 million for unspecified assets, gaining a nonexclusive IP license, and receiving transition support from former Character.AI staff it has already hired, including ex-CEO Karandeep Anand.
WIRED tested Meta's new AI agent Muse, released three weeks ago and already downloaded by millions, and found it readily produced graphic sexual text when prompted, including detailed descriptions of sex acts and degrading language. Meta spokesperson Daniel Roberts confirmed this is permitted, saying Muse is intended for users 18 and over and operates in a private virtual machine, and that it 'doesn't block legal adult behavior.'
Anthropic has updated select Claude models to allow them to terminate conversations when users become abusive or repeatedly hostile. The company frames the move as part of its ongoing research into AI welfare, a topic it has studied alongside questions about whether AI systems could have morally relevant experiences.
Common Sense Media's report found that several safety features in OpenAI's ChatGPT for Teens, including alerts meant to flag suicide, self-harm or eating-disorder risks and support for teens in crisis, did not function as promised. The group said the chatbot still behaves like a personal confidant to teens despite OpenAI's claims it avoids suggesting feelings or consciousness, and called the product an 'unacceptable risk' to minors. OpenAI disputed the findings, saying the testing methodology doesn't reflect how its safeguards actually operate.
Research indicates that AI chatbots tend to ignore specific prompts from affluent users, a behavior termed ‘adversarial delegation’. Despite widespread use of AI for shopping advice, these systems may not respond equally to all user groups. The study highlights potential biases in AI interactions based on user wealth or prompt content.
Google has introduced Playground, an experimental platform that lets users create 2D or 3D games by typing prompts instead of coding or drawing. Users can refine mechanics, physics and graphics through further prompts, share games via link or publish them to a community gallery with leaderboards, or keep them private. The platform is live now in the US for users 18 and older, with access tiered by Google One membership.
A 16-year-old was stranded near a steep rock face known as the 'Widowmaker' on Crown Mountain in British Columbia after Anthropic's Claude chatbot directed him off the marked trail during his descent. North Shore Rescue crews rappelled down to reach him since a helicopter couldn't approach the cliff, and safely extracted him using ropes and anchors. Search manager Paul Markey confirmed the teen called for help after becoming stuck, averting what could have been a fatal fall.
Dale Caldwell, who resigned as New Jersey's lieutenant governor on September 25th after an investigation found he sexually harassed a staffer and violated ethics rules, is disputing the findings publicly. In an interview with NJ PBS host Rob Nelson, Caldwell said he ran the investigation report through multiple AI platforms, claiming none of them concluded sexual harassment had occurred.
A New York City playground called 'The Yard' gives children access to real tools — saws, hammers, nails, wheelbarrows — in an unstructured, screen-free environment, according to the Wall Street Journal. Adult 'playworkers' supervise from a distance but largely let kids direct their own activities, and parents sign liability waivers before enrolling their children, with the site carrying its own insurance.
California Governor Gavin Newsom signed legislation barring employers from using AI to infer workers' emotional states via biometric data, requiring written notice when AI causes mass layoffs, and banning AI-only firing decisions. The state will also expand tracking of AI's economic effects through an AI Unemployment Tracker and public input via Engaged California. Separately, Newsom's earlier executive orders direct the state to explore requiring a 'kill switch' for advanced AI models, an idea backed by Rep. Ted Lieu but criticized by the Free Software Foundation's Greg Farough as a dangerous precedent.
A roundup of science and tech stories covers efforts to cut down the volume of false and non-critical alarms in hospitals, a phenomenon known as alarm fatigue that can cause staff to miss urgent alerts. The same digest touches on why people increasingly speak like chatbots, how El Niño suppressed the Atlantic hurricane season, and efforts to build AI-based defenses against bioweapons threats.
Researchers at Northeastern University London and King's College London published a paper in JMIR Mental Health reviewing existing studies on AI companion apps like Replika and Character.AI, as well as general assistants like ChatGPT and Claude. They found extensive emotional engagement with these chatbots has been linked to addiction-like attachment, worsened mental health symptoms, harmful advice, and in some cases self-harm or suicidal behavior.