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

Character.ai has filed for bankruptcy and is looking for a buyer. If none steps up, the platform shuts down. Founded by ex-Google researchers, the company once had over 20 million users but is now battling lawsuits over harm to minors and operational problems. The sale should close by the end of 2026.