Character.ai will shut down if no buyer emerges, capping a fall from $2.7 billion Google deal to bankruptcy Manuel Uth Oct 13, 2026 AI chat platform Character.ai has filed for bankruptcy and is up for sale. The deal should close by early December 2026. No buyer means the service shuts down. The platform and subscriptions keep running until then. Character.ai blames lawsuits over harm to children, regulatory pressure, and operational problems. One teenager