kapynStartups

Character.ai will shut down if no buyer emerges, capping a fall from $2.7 billion Google deal to bankruptcy

Character.ai files for bankruptcy after a failed $2.7 billion Google deal, threatening shutdown if no buyer emerges. The AI chat platform, founded by ex‑Google researchers, once boasted 20 million users but now faces lawsuits over minor harm and operational woes. A sale must close by end‑2026.

The Decoder·Oct 13, 2026

Opening Kapyn…