By Mike Swift and Madeline Hughes ( October 14, 2026, 00:44 GMT | Insight) -- In a US Chapter 11 bankruptcy filing that shows the regulatory and business pressure on AI startups that are heavily used by minors, Character.AI told a bankruptcy judge in Delaware that it is losing between $8 and $9 million a month, but that it hopes to use the Chapter 11 case "as a forum to negotiate a consensual resolution" with 46 states and territories that continue to probe the chatbot startup. The company also acknowledged probes by regulators in the UK, Italy, Russia and Australia, as well as by the US Federal Trade Commission, which paused its probe in 2025.Beset by US and other countries' regulatory investigations and litigation, Character.AI asked a US federal bankruptcy judge Tuesday to bless an expedited process to sell some of its assets, potentially to Disney, while protecting the company from creditors....
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