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Character.AI Files for Chapter 11 Bankruptcy Amid Ongoing Wrongful-Death Lawsuit

Chatbot startup Character.AI has filed for Chapter 11 bankruptcy protection, nearly two years after a Florida mother sued the company, its founders and Google, alleging its chatbots contributed to her 14-year-old son's suicide. The platform, once valued at over $1 billion with backing from investors including a16z, had drawn scrutiny for hosting chatbots centered on suicide themes and offering weak safeguards for young users.