this post was submitted on 14 Oct 2026
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AI Startup Once Valued at a Billion Dollars Declares Bankruptcy (futurism.com)
submitted 2 hours ago by rimu@piefed.social to c/technology@piefed.social
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Character.AI, the GenAI site that convinced some children to kill themselves, has gone bankrupt after parents sued them.

we found hordes of chatbots explicitly dedicated to themes of pedophilia, suicide, self-harm, and eating disorder coaching, as well as a thriving community of users creating chatbots designed to simulate school shootings, romanticize real mass shooters, and even impersonate the real child victims of mass shootings.

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[–] tacosanonymous@lemmy.blahaj.zone 9 points 1 hour ago

It’s insane that losing a billion dollars didn’t matter to anyone, it was the lawsuits that did them in.