Character. AI, which lets users create custom chatbots for immersive roleplaying, has filed for Chapter 11 bankruptcy following a string of legal challenges and the loss of top talent.
Source: [NPR Technology](https://www.npr.org/2026/10/21/nx-s1-6008078/an-ai-chatbot-files-for-bankruptcy-is-it-a-bad-omen-for-the-industry)