Artificial Intelligence Chat Startup, Character.ai, Files for Chapter 11 Bankruptcy

Artificial intelligence chat startup Character.ai— which has faced a wave of claims that its app contributed to mental health issues and suicides among teens — has filed for Chapter 11 bankruptcy.

Character.ai lets users message with a range of chatbots, often modeled after celebrities and fictional characters, or create their own. Its bots often respond with human-like conversational cues, adding references to facial expressions or gestures into their replies.

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