Is this the start? I believe so
RomOct 14, 2026
"Character.ai’s bankruptcy is the one of the first dominos to fall in the long-foreseen AI bubble. The circumstances of its bankruptcy are exactly what critics of AI have been saying would happen: Character.ai lit a huge amount of money on fire running its product, did not bring in a lot of revenue, and faced enormous legal fees after causing harm to its users. Enshittifying its product to try to make its expenses cheaper did not work, according to a narrative filed in bankruptcy court Tuesday."
"Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work" - https://www.404media.co/character-ais-bankruptcy-documents-show-the-economics-of-ai-dont-work/
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