GoKawiilCharacter.AI files for Chapter 11 bankruptcy, seeks court-supervised sale
Character.AI announced a voluntary Chapter 11 bankruptcy filing and plans to sell the company through a court-supervised process. The chatbot startup, once valued above $1 billion without revenue, had already lost founders Noam Shazeer and Daniel de Freitas to Google in a 2024 deal worth $2.7 billion, and faced lawsuits including one from a mother who said her teenage son died by suicide after interacting extensively with its bots.