Other AI Companies Should Be Very Afraid of What Just Happened to Character.AI, According to Its Own Bankruptcy Documents: Be afraid.

When I first heard about this bankruptcy, one of my first thoughts was, here it goes. This is only the very beginning of the landslide though, so it’s going to take a while before it reaches the bottom, and it’s going to pick up a lot more debris on the way.

Or, as the article optimisitically puts it:

The fate of Character.AI, the controversial AI companion platform, may come to stand as a warning.

Wrong. Character.AI may come to be seen as the first car in the train to derail.