On Tuesday morning, while I was working I was looking for my phone and saw the news that Character AI said that it had filed for bankruptcy on Monday, and during the bankruptcy process, the platform was fully operational when I had last checked.

I know it was upsetting and disappointing for users who had found on why C.ai was going bankrupt due to legal issues, lawsuit, and their lack of money for human and automated moderation was indeed precisely what triggered the bankruptcy.

And the concern from my end, the bots I made on c.ai, I had joined the platform for over 2 years at the same time I had created my plush channel knowing that I was getting the experience of making characters on the platform and making roleplays chatting with the characters, everything was good until Disney had sent the cease and desist letter towards them back in October 2025, and a couple of Disney bots have been removed on the platform, and even from what I had heard some Warner Bros and Universal bots got moderated on the platform due to takedown requests from them, I know some of those bots were still up during the bankruptcy, it's just that I would be afraid to lose them but Just like with the non-Disney fictional IPs, the Delaware bankruptcy court has absolutely no interest in policing the platform's content (considering I was explaining about the celebrity bots that were posted on that platform). The court is strictly managing the financial sale. Unless a celebrity's legal team goes out of their way to file a claim in the ongoing bankruptcy case, they would stay on the platform until the future for Character AI is decided between November and December, and the company did expressed that if no buyer buys the platform, then unfortunately it would be shutting down. (Considering that we might be prepared for that possibility!)