Character.AI Blog company blog

Character.ai has initiated voluntary Chapter 11 bankruptcy

by The Character.AI Team blog.character.ai published 2026-10-132 min read

Today, we’re sharing that Character.ai has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company. Over the past year, we’ve taken meaningful steps to sustain and improve our business amid significant legal, regulatory, and operational headwinds. After a comprehensive…

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