Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work
2026-10-13 · 404 Media
Character.ai's bankruptcy filings reveal what everyone suspected: making AI chatbots that teenagers get emotionally attached to isn't actually a viable business model. The company managed to both ruin its product AND hemorrhage cash simultaneously — a truly impressive double failure. Turns out 'move fast and break things' hits different when the thing that breaks is your entire company.