News for hackers. Stuff that matters.
Re:Character.ai files for Chapter 11 bankruptcy by drewbitt on Tuesday October 13, 2026 @03:55AM (#50068213)
2 years in, the founders and 30 researchers took Google's $2.7b and left. Then they had to ban kids which was probably most of their userbase. Yet they were still putting $1m/mo on the corporate cards with 86 full time bay area employees on ~$278k average base, and almost $100k owed to DoorDash. lol
Re:Character.ai files for Chapter 11 bankruptcy by judetechdevs on Tuesday October 13, 2026 @05:30AM (#50068983)
$100k in DoorDash is a lifestyle
Re:Character.ai files for Chapter 11 bankruptcy by renegade-otter on Tuesday October 13, 2026 @05:43AM (#50069094)
Sometimes watching the fresh-faced punks make bank while I slave away at a "regular" company for average pay is just demoralizing. It's really about being at the right place, time, and near the right people, isn't it.
Re:Character.ai files for Chapter 11 bankruptcy by inSumErgoCogito on Tuesday October 13, 2026 @08:49AM (#50070870)
Its all about hacking companies and VCs - instead of hacking hard problems. Astra- give me the API of my society.. what do you mean Bearer Token..
Re:Character.ai files for Chapter 11 bankruptcy by logicchains on Tuesday October 13, 2026 @08:52AM (#50070891)
Joining or starting a startup is a risk, many fail and leave the founders and early joiners with nothing. No risk, no reward.
Re:Character.ai files for Chapter 11 bankruptcy by jubilanti on Tuesday October 13, 2026 @09:02AM (#50071028)
Nothing except the $278k average base salary, while living luxuriously at work and probably home too on the startup's expense card, as the $100k door dash bill shows. I bet there were a ton of fancy off sites in Hawaii or wherever.

Meanwhile at $bigco I just got my request to buy a shitty $1k Dell laptop denied because I got one 2 years ago and I have to wait 1 more.

Re:Character.ai files for Chapter 11 bankruptcy by hirako2000 on Tuesday October 13, 2026 @09:51AM (#50071771)
I remember the laptop renewal also was 3 years. Which would have been fine if they didn't have that policy to issue Dell Latitude, end of the barrel hardware Dell itself couldn't sell.

One day I figured nobody forces me to work for such company.

Re:Character.ai files for Chapter 11 bankruptcy by stephbook on Tuesday October 13, 2026 @12:55PM (#50074867)
Elon is the richest person on earth and he doesn't seem particularly happy. Trump is the most powerful and hate-tweets himself to sleep every night. Zuckerberg seems to be his happiest doing sport and spending time with his family.
Re:Character.ai files for Chapter 11 bankruptcy by pmarreck on Tuesday October 13, 2026 @09:07AM (#50071101)
They were clearly in it for the investor perks and not the product, spending away like that.

If you want an unsustainable joyride, then you too can work for a startup headed for chapter 11 (like 8 out of 10 startups).

Also, knowing people in general has never not been valuable. It's arguably the main thing holding most engineers back from success. Plenty of evidence backs this up: Type fewer keys, press more palms.

Re:Character.ai files for Chapter 11 bankruptcy by renegade-otter on Tuesday October 13, 2026 @09:40AM (#50071616)
A lot of that depends on how you do with the birth lottery. The path from Westchester to Stanford is a little easier than from a homeless shelter (that was MY life).
Re:Character.ai files for Chapter 11 bankruptcy by pmarreck on Tuesday October 13, 2026 @04:17PM (#50078042)
my best friend grew up in westchester and married a woman who went to Stanford who makes an obscene amount of money, so... I get this
Re:Character.ai files for Chapter 11 bankruptcy by bluefirebrand on Tuesday October 13, 2026 @12:30PM (#50074412)
If the best advice to succeed at being an engineer is to do less engineering and do more schmoozing, then something is broken
Re:Character.ai files for Chapter 11 bankruptcy by kstrauser on Tuesday October 13, 2026 @01:11PM (#50075171)
While I understand and have shared that sentiment, this is a classic "is versus ought" trap. It ought to be the case that sheer technical skills can carry you. It is the case that they can't. This is generally true for just about every job in the human experience.

If nothing else, those human connections can be the difference in outcomes when you inevitably screw up. If you've invested in relationships, when you make a mistake, it's more likely someone will say "bluefirebrand means well, and I can see how their good intentions led to this outcome. Let's figure out how to fix this so it won't happen again to them or anyone else." If no one at work knows you except as the person who sits off to the side and never talks to their coworkers, the response may very well be "bluefirebrand who? Alright, let HR know we need to hire a replacement."

Again, it ought to be the case that none of that matters, and everyone is treated the same regardless of their personal network. But it is the case that this isn't how the world works, and it's not reasonable to wish it otherwise. I mean, are you as likely to help a stranger as a friend even if their needs are identical? Most people would say no.

Re:Character.ai files for Chapter 11 bankruptcy by pmarreck on Tuesday October 13, 2026 @04:18PM (#50078052)
> It ought to be the case that sheer technical skills can carry you. It is the case that they can't.

I'd adjust this and say that they can carry you, but not as far as if you did both well.

Re:Character.ai files for Chapter 11 bankruptcy by bluefirebrand on Tuesday October 13, 2026 @02:04PM (#50075976)
> "bluefirebrand who? Alright, let HR know we need to hire a replacement."

Yes exactly and here you are telling me that's fine and I shouldn't think that's unjust

Or worse, that I deserve it somehow, for being someone socially awkward that struggles to connect with people?

Thanks.

There's a reason I don't like how the world Is and think it Ought to be different. Social weirdos like me matter too :/

Re:Character.ai files for Chapter 11 bankruptcy by pmarreck on Tuesday October 13, 2026 @04:20PM (#50078090)
I'm fairly nerdy (or rather, a reformed nerd?) and I haven't met a single "supposedly socially awkward weirdo" person who doesn't have a spark in their eye or who can't ever say anything funny or who can't make a very astute observation that only they end up being qualified to make. Recognize that you are a universe unto yourself and that SOMEone else will notice that.
Re:Character.ai files for Chapter 11 bankruptcy by kstrauser on Tuesday October 13, 2026 @05:28PM (#50079080)
It’s neither fine nor un-fine, just not unjust. It just is. In all arrangements involving humans, the outcome’s better if the other participants like you. We’re social animals.
Re:Character.ai files for Chapter 11 bankruptcy by Dylan16807 on Tuesday October 13, 2026 @08:55PM (#50081068)
Social bonding is important but it's better off without deliberate schmoozing, and a need for that gets unjust.
Re:Character.ai files for Chapter 11 bankruptcy by deadbabe on Tuesday October 13, 2026 @09:29AM (#50071435)
You also have to be a total scumbag.
Re:Character.ai files for Chapter 11 bankruptcy by kstrauser on Tuesday October 13, 2026 @10:13AM (#50072110)
Bullshit. I met a lot of my favorite people in the world working in startups, people I want to stay in contact with for life because they’re good and I enjoy being around them.

There are bad and good people everywhere. I’ve seen new fewer good people at small companies than large or non-tech ones.

Re:Character.ai files for Chapter 11 bankruptcy by pelagicAustral on Tuesday October 13, 2026 @09:57AM (#50071866)
I'd argue that most people would easily pivot to "total scumbag" for 250k+ salary. Me included.
Re:Character.ai files for Chapter 11 bankruptcy by swiftcoder on Tuesday October 13, 2026 @10:50AM (#50072642)
The thing is, if you were already in the crowd that gets offers to work at this sort of startup, you could be drawing the same 250k+ to work a normal 9-5 at a FAANG-adjacent

Signing on to a hookers-and-blow startup is a choice a lot of these folks made, not their only route to money

Re:Character.ai files for Chapter 11 bankruptcy by kstrauser on Tuesday October 13, 2026 @11:17AM (#50073062)
Correction: FAANG salaries are almost always better. You get a lot more equity with startups. It’s a gamble. You’re betting a short term paycut on the company’s success.

But the main reason I’d generally work at startups anyway is because it’s more fun. When something needs to be done, you can’t contact the department that does the thing. You are that department; go figure it out!

And yes, that’s also a lot more pressure, but I wouldn’t trade it for a 9-5 desk job. (Other people absolutely would, and do. I never criticize their decision making. That’s what’s right for them. It’s just not what’s right for me.)

Re:Character.ai files for Chapter 11 bankruptcy by swiftcoder on Tuesday October 13, 2026 @11:29AM (#50073277)
> You get a lot more equity with startups. It’s a gamble. You’re betting a short term paycut on the company’s success.

Well, one used to get more equity. And maybe the first couple of people through the door still get more equity.

If you are engineer #5 or later at a startup today, I'm willing to bet the 5-year upside on a FAANG comp package is on par or higher with a decent startup exit...

Re:Character.ai files for Chapter 11 bankruptcy by renegade-otter on Tuesday October 13, 2026 @03:32PM (#50077329)
Taking equity over money is a rookie mistake. Always. Take. The money.
Re:Character.ai files for Chapter 11 bankruptcy by LogicFailsMe on Tuesday October 13, 2026 @09:57AM (#50071849)
Yes, yes, yes...

This is the way tech has always been. Or as Carlin said "It's a big club... And you ain't in it."

Occasionally, you can ride their coattails (there will always be rising tides), but if you don't have the right connections and the right degrees from the right universities, you're not invited to the box seat TLA titles of these things...

The odds are much better than state lotteries, and the payout is higher than the stock market, but most of us still need to do our own financial planning instead of socializing the risks of the founder class as they privatize the gains. And yet, each day I get these ludicrous emails from a16z about which startups started by which all star founders want to hire me for less than I make from passive revenue these days for bread crumbs of equity.

But the thing here is, who needs character.ai in an age of local models and cheap tokens from OpenAI and Anthropic (unless you're very naughty and not shaming, just noting)? High margin role play disrupted by cheap open weight models: how very Clayton Christensen.

Re:Character.ai files for Chapter 11 bankruptcy by TrackerFF on Tuesday October 13, 2026 @10:04AM (#50071969)
The people making bank are those creating these startups.

Their startups get acquired, or they get acqui-hired because of the founders and core people, who in turn have some pedigree which send strong signals.

If you look at the pattern, it is roughly:

- Top ML/AI researchers from the past 10-15 years - Top ML/AI engineers from top labs or companies

Those above people were hired by FAANG companies or AI startups.

But most important of all, it isn't a overnight success. Many of these have been going at it for 10+ years now. Of course some are relatively young, as in having joined Anthropic or OpenAI more recently (past few years), and launching their own startup after 2022.

Re:Character.ai files for Chapter 11 bankruptcy by swiftcoder on Tuesday October 13, 2026 @10:46AM (#50072589)
> It's really about being at the right place, time, and near the right people, isn't it

It's also about having the right moral flexibility. To be in this particular club, you have to hang out with some people that a bunch of us would really rather not be associated with...

[dead]
Re:Character.ai files for Chapter 11 bankruptcy by swiftcoder on Wednesday October 14, 2026 @04:34AM (#50084309)
I appreciate the use of a sockpuppet to throw shade
Re:Character.ai files for Chapter 11 bankruptcy by zhivota on Tuesday October 13, 2026 @08:52PM (#50081041)
It's always been like that. I happened to get in with the right people at the right time and rode that momentum my whole career, despite graduating from a third tier state school.

All I can say is if you want in, you have to maximize your surface area for luck. There's a lot written about that concept but it's the basic underpinning of my success personally. I just rolled the dice way more times than most people.

Re:Character.ai files for Chapter 11 bankruptcy by 1sh172645 on Tuesday October 13, 2026 @11:02AM (#50072835)
The food industry should demand cash up front from the Silicon Valley grifters.
Re:Character.ai files for Chapter 11 bankruptcy by seizethecheese on Tuesday October 13, 2026 @12:46PM (#50074703)
Normally I’m skeptical of this kind of schadenfreude, but if $1m/mo is a real number, that’s $11k per employee. I really hope they were running inference through the cards or something.
Re:Character.ai files for Chapter 11 bankruptcy by sarkarghya on Tuesday October 13, 2026 @06:39AM (#50069583)
i dont know why this isn't getting much attention. Isn't this the fate of most ai chat services?
Re:Character.ai files for Chapter 11 bankruptcy by Aboutplants on Tuesday October 13, 2026 @09:09AM (#50071127)
Outside of being acquired, this is the exit
Re:Character.ai files for Chapter 11 bankruptcy by andsoitis on Tuesday October 13, 2026 @08:23AM (#50070553)
”Character.ai’s CEO Karandeep Anand is joining Disney in a newly created role as Senior Executive Vice President and Chief Technology Officer. Karan expects to be joined by members of Character’s technical team to build on Disney’s impressive technology capabilities to help connect fans worldwide with its beloved stories and characters in new and innovative ways.”

— https://blog.character.ai/the-next-chapter-of-entertainment-...

Re:Character.ai files for Chapter 11 bankruptcy by martianvoid on Tuesday October 13, 2026 @09:38AM (#50071580)
These people are playing on a completely different league
Re:Character.ai files for Chapter 11 bankruptcy by IncreasePosts on Tuesday October 13, 2026 @10:27AM (#50072307)
At least Anand has been in the business for like 30 years. I didn't know anything about him but I assumed he was a 25 year old from Stanford that VCs decided to shower money on
Re:Character.ai files for Chapter 11 bankruptcy by frangonf on Tuesday October 13, 2026 @12:20PM (#50074200)
Character.ai (business model Uber for AI psychosis) takes near 3 billion bag and files for bankruptcy in a move to getting up with the best practices of the big boys of entertainment, as ex character ai ceo moves to Disney (business model: Uber for tax-deductible cultural vandalism and EULA-enforced manslaughter).
Re:Character.ai files for Chapter 11 bankruptcy by dawnerd on Tuesday October 13, 2026 @10:55AM (#50072730)
The part that’s insane to me is his company ripped off Disney IP then Disney hires him saying how much he loves and respects Disney.
Re:Character.ai files for Chapter 11 bankruptcy by afavour on Tuesday October 13, 2026 @12:34PM (#50074490)
Game respects game.
Re:Character.ai files for Chapter 11 bankruptcy by mmo93 on Tuesday October 13, 2026 @10:15AM (#50072134)
Sets up the most vile company preying on lonely people, runs it into the ground - then gets hired to do the exact same thing for a bigger company. It’s a big club, and you ain’t in it
Re:Character.ai files for Chapter 11 bankruptcy by sebzim4500 on Tuesday October 13, 2026 @11:06AM (#50072888)
He didn't really run it into the ground, this whole bankruptcy thing is just smoke and mirrors to cover the fact that Google basically acquired them ages ago
Re:Character.ai files for Chapter 11 bankruptcy by fooqux on Tuesday October 13, 2026 @10:30AM (#50072350)
I can't even imagine what George would say today. I know things weren't great in the 80s, but this seems to be a whole new level of stupid.
Re:Character.ai files for Chapter 11 bankruptcy by tokioyoyo on Tuesday October 13, 2026 @01:51PM (#50075789)
I understand the argument for protecting the children from the harms, but why should we have such arguments around “lonely people”? It’s just adults consuming media tailored to their needs. I can’t see it being worse than “IG/TikTok ruining an adult’s perception of reality”, or “Tinder focusing on return-users metrics”.

But again, I support the ban for children.

Re:Character.ai files for Chapter 11 bankruptcy by rektomatic on Tuesday October 13, 2026 @10:14AM (#50072123)
I'm imagining the horrors of character bots themed and named after popular disney characters at the expense of our youth. Dystopian stuff
Re:Character.ai files for Chapter 11 bankruptcy by jcoc611 on Tuesday October 13, 2026 @02:18PM (#50076183)
It would actually be super sad if Disney started using AI to create a significant part of their content - completely soulless
Re:Character.ai files for Chapter 11 bankruptcy by dandellion on Tuesday October 13, 2026 @03:31PM (#50077317)
The same Disney that replaced dead actors with CGI? They'll jump at the first chance they get.
Re:Character.ai files for Chapter 11 bankruptcy by xg15 on Tuesday October 13, 2026 @02:28PM (#50076335)
Not Disney!! I'm sure they would never do such a thing...

https://thewaltdisneycompany.com/news/disney-openai-sora-agr...

Re:Character.ai files for Chapter 11 bankruptcy by etrvic on Tuesday October 13, 2026 @09:38AM (#50071573)
Re:Character.ai files for Chapter 11 bankruptcy by fra on Tuesday October 13, 2026 @10:01AM (#50071922)
For all intents and purposes Character.ai was acquired in August 2024, and this is just the mess leftover from their run around antitrust regulation.

The company filing for chapter 11 today is shell that was left after Google "hi-quired" (the opposite of acqui-hired) the founding team. The shareholders got paid ($2.7B from Google), the founding team moved on, and what's left is the corporate structure and whoever Google did not want.

It sucks for the people left over (but then again, it also sucks to be part of the team that's laid off in a merger). It's also a terrible practice that I hope the Justice department and the CFTC will put an end to soon.

Re:Character.ai files for Chapter 11 bankruptcy by OkayPhysicist on Tuesday October 13, 2026 @12:03PM (#50073876)
Any such ban would be in direct conflict with California law (where I assume Character.ai, as a company founded by Xooglers living in Palo Alto is based), under the same logic that forbids non-competes. California has created one of the most prosperous countries in the world under a framework where you actually have to entice your employees not to leave, rather than shackling them to their workstations, and I would be extremely opposed to any attempt to change that.
Re:Character.ai files for Chapter 11 bankruptcy by singron on Tuesday October 13, 2026 @12:09PM (#50073994)
I don't think this is necessarily true. This wasn't purely hiring. They also licensed the technology and paid off the shareholders, which is why it's basically an acquisition in everything but name.
Re:Character.ai files for Chapter 11 bankruptcy by OkayPhysicist on Tuesday October 13, 2026 @12:20PM (#50074197)
The problem is each step individually is important to allow companies to do, and follows as a nigh-irrefusable consequence of the previous. You can't ban companies from "poaching" employees, or you end up as an economic hellhole of indentured servants, like Florida, or New York. You can't ban the licensing of a companies technology, since we want innovators who don't necessarily have the opportunity to directly execute on their new technology to still innovate. And you can't ban paying the company for doing so, since that's the whole point.

Meanwhile, the way that plays out is that Google hires all the talent by fairly paying more than the startup can, then can turn around and say "your company is a dead man walking, you can either sell us your tech, or crash and burn with nothing", and the only fiscally responsible decision is to sell.

Re:Character.ai files for Chapter 11 bankruptcy by singron on Tuesday October 13, 2026 @01:00PM (#50074963)
The rules aren't that simple. The combination should be considered holistically against antitrust law. It's a judgement call that ultimately comes down to a judge or jury.

Antitrust is also federal and is probably generally supreme over state law. E.g. even if Google fairly acquires talent according to state law, it can still be determined to violate antitrust.

This poaching scenario (where Big Co pays above market to a large number of employees to drive a competitor out of business) is very similar to dumping (selling goods below market etc.), which has been illegal for a long time even though "selling goods" is generally legal.

However, since the government (DoJ, FTC, etc.) is the ideal litigant, you actually need someone who works there to not get fired for long enough to complete investigation and enforcement. In a lot of anti-trust cases, all the direct participants benefit: the employees get paid more, Big Co consolidates power, and Small Co gets paid off. The "losers" are most distant like their customers or uninvolved competitors who aren't in a good position to sue.

Re:Character.ai files for Chapter 11 bankruptcy by xboxnolifes on Tuesday October 13, 2026 @12:48PM (#50074742)
You can ban a compound action. We have antitrust laws.
Re:Character.ai files for Chapter 11 bankruptcy by sandworm101 on Tuesday October 13, 2026 @12:43PM (#50074651)
Which is why at the top end we are supposed to have complementary laws. Bans on non-compete increase competition at the low end. Antitrust and government regulation/licensing at the high end prevent monopiles and thereby increase competition. The problem today is that we are dropping the ball on the high end, letting the Googles stamp down competition when, in decades past, they would have been broken up.
Re:Character.ai files for Chapter 11 bankruptcy by islewis on Tuesday October 13, 2026 @02:10PM (#50076070)
> and paid off the shareholders

does anyone know if the employees who didnt get poached got their equity paid out?

Re:Character.ai files for Chapter 11 bankruptcy by lumost on Tuesday October 13, 2026 @02:29PM (#50076351)
There are rumors that the employees did not get paid out. Such a deal could be done by, for instance buying the equity from the investors at a current fair market value.

That the new "investor" choses to let their investment die may not matter, it would also be cheaper to selectively buy out investors than buy out all equity in the company.

Re:Character.ai files for Chapter 11 bankruptcy by multisport on Tuesday October 13, 2026 @12:40PM (#50074593)
I don't think banning these type of psuedo-acquisitions runs counter to non-competes. I posted the other day about Augment, which I believe did the same thing.

"if it walks like a duck and talks like a duck, it's probably a duck" should apply to acquisitions. These types of acquisitions leave employees (+ other shareholders) holding the bag. It should be illegal.

Re:Character.ai files for Chapter 11 bankruptcy by sublinear on Tuesday October 13, 2026 @01:07PM (#50075080)
> California has created one of the most prosperous countries in the world...

Along with the rest of the top 5 states where almost everyone lives in the USA?

Have you ever even lived for a significant amount of time outside of California? Ever try New York, Texas, or Florida? Nobody is "shackled to their workstation" there either. California leads in unaffordable living and wealth inequality, and it's not even because those on top in California are living any better than even the upper middle class elsewhere.

The economy is much more than tech and most of those businesses are not in California and don't want to be.

Re:Character.ai files for Chapter 11 bankruptcy by OkayPhysicist on Tuesday October 13, 2026 @02:10PM (#50076061)
Yes, I have lived outside of California. It mostly made me more appreciative of this state, with the notably exceptions of last call and gun laws.

Noncompete "agreements" are evil and run counter to every redeeming quality that a free market economy has. If your state allows them, they are in favor of indentured servitude, plain and simple. In contrast, California stands as a beacon for those who refuse such chains. We don't just ban noncompetes in California, we actively liberate those who move here from their out-of-state noncompetes.

And contrary to what you'll read on here, California is not just tech. We've got a massive agriculture industry (more than 50% of the country's produce), several of the best universities in the world, the entire entertainment industry (to such a degree that we're killing everyone's accents), one of the top financial sectors, and the largest manufacturing industry in the country. Hell, our restaurants are better than anywhere else in the country: I can walk down the street walk past multiple restaurants that would be the best in the entire state in most of the rest of the country, to a point that I take it for granted until I walk into a random restaurant in the heartland somewhere and expect it to be good.

We treat our companies well and our residents better. Hell, we even treat our non-residents better than any other state, given that our taxes subsidize the existence of the parasitic 41.

When the worst thing about your state is a housing shortage due to everyone wanting to be there, that's glowing praise.

Re:Character.ai files for Chapter 11 bankruptcy by happyopossum on Tuesday October 13, 2026 @06:29PM (#50079815)
> Along with the rest of the top 5 states where almost everyone lives in the USA?

The other 5 states don’t even come close economically. If California were a country it would be the 4th largest economy in the world. Fourth. Largest. Economy.

The next closest state is Texas and it’s down around 9 or 10 at half the GDP…

Re:Character.ai files for Chapter 11 bankruptcy by sublinear on Tuesday October 13, 2026 @07:45PM (#50080530)
Yes, California has pretty much all its eggs in one basket. That was my original point. I wouldn't be proud of numbers just for the sake of them, especially when they're not my numbers. Not even Texas is that blinded by their own pride.

At the flick of a wrist, any of those handful of businesses can follow Tesla and pull the rug out from under the state. The mind recoils in horror what will happen when the tide goes out.

Re:Character.ai files for Chapter 11 bankruptcy by OkayPhysicist on Wednesday October 14, 2026 @03:03PM (#50093162)
As I mentioned in my other comment, California is far from just tech companies. You could wipe out the entire information sector and California would still be the most prosperous state in the US. California is practically the only US state to have a fully diversified economy.
Re:Character.ai files for Chapter 11 bankruptcy by hnfong on Tuesday October 13, 2026 @02:16PM (#50076146)
I'm not very familiar with the US legal system, but doesn't Federal Law override any state law if there is conflict? Presumably any antitrust action taken by DOJ would be in accordance with federal law, so the state laws shouldn't matter?
Re:Character.ai files for Chapter 11 bankruptcy by OkayPhysicist on Tuesday October 13, 2026 @02:22PM (#50076241)
When it comes to California, it's complicated. We have a looooong history of playing fast and loose with federal supremacy, and you can bet the defendants would be fighting tooth and nail to keep any court case in California. Which would be pretty defensible, since it would presumably be a California-based company hiring California-based workers.

In particular for the noncompete ban, I believe that trying to enforce a noncompete-adjacent action like this would open you up to being sued by the employees who would have been hired, and the hiring company, in California court.

Re:Character.ai files for Chapter 11 bankruptcy by 14u2c on Tuesday October 13, 2026 @02:21PM (#50076222)
> where you actually have to entice your employees not to leave

Yes, by offering them things like equity in the company. This practice throws all that out the window though, in essence unilaterally renegotiating the terms of employment. When the leadership team can be acquired independently of the company then these employees can be left with nothing. Sometimes the corp doing the acquisition will throw a bone to the dregs left, but that does not appear to be legally required. It's exploitative and unjust.

Re:Character.ai files for Chapter 11 bankruptcy by Eridrus on Tuesday October 13, 2026 @10:49AM (#50072638)
> It sucks for the people left over

Not clear that this is true financially. Of course, it sucks to be at a sinking ship, but in most of these the people left behind are compensated as both employees and shareholders.

Re:Character.ai files for Chapter 11 bankruptcy by echelon on Tuesday October 13, 2026 @11:28AM (#50073257)
> compensated as [...] shareholders.

Don't all shares / options go to zero in Chapter 11, or is that only true in Chapter 7 when the lenders take over?

In any case, I'm not sure Character.ai's assets will be worth much or that the employees will have any sort of liquidation preference.

Re:Character.ai files for Chapter 11 bankruptcy by pclmulqdq on Tuesday October 13, 2026 @12:43PM (#50074654)
Equity holders have a more junior claim than debt holders, but if there are enough dollars in the bankrupt company to make the debt holders whole, the equity holders get whatever is left over (obviously in order of seniority).
Re:Character.ai files for Chapter 11 bankruptcy by Eridrus on Tuesday October 13, 2026 @01:00PM (#50074967)
They were likely paid out at the same time other investors were when Noam et al went to Google.

The fact that the legal entity has no money doesn't mean they didn't get paid.

You can figure out a bit about what likely happened by what is not happening. NVIDIA/Groq are being sued for leaving former employees out of the acquisition: https://www.cnbc.com/2026/10/05/nvidia-groq-deal-stockholder...

Which to me implies that in that case, at least current employees were taken care of, and the court will likely force the former employees to also be taken care of because Delaware law doesn't like it when you discriminate in ways that were not spelled out ahead of time.

Re:Character.ai files for Chapter 11 bankruptcy by ryandamm on Tuesday October 13, 2026 @03:27PM (#50077259)
There was a Supreme Court case that essentially established that Common stockholders can be practically ignored as part of leadership’s fiduciary duty. It revolved around an ex-employee suing for compensation for Common stock after a merger that paid out the CEO and preferred shareholders, leaving stockholders zero.

This is also partially why your common stock options can be valued significantly less than the price the company value would imply: because it’s not an even share in the business.

Re:Character.ai files for Chapter 11 bankruptcy by Eridrus on Tuesday October 13, 2026 @03:46PM (#50077573)
This is not true.

Assuming you're talking about the Trados Inc litigation, the situation was:

* Raised 52m

* Acquired for 52m

* 8m paid to exec team to stay in place

* Common stock got zero

The lawsuit determined that the board did have a fiduciary duty to the common stock, but that the common stock had no economic value, so they were not actually being harmed here, aka this is basically the best deal the company could have gotten, but it didn't clear the pref stack.

In the Groq/Character deals, they very obviously cleared the pref stack, so common stock deserves to get a piece of the licensing deal at the rate of the stock they held. It's annoying because its a dividend and doesn't benefit from QSBS, etc, but common stock is getting paid there.

Re:Character.ai files for Chapter 11 bankruptcy by no_no_no_yes on Tuesday October 13, 2026 @04:45PM (#50078465)
I swear this is what's so risky about AI startups, they've completely changed the risk/reward calculus that we all used to be okay with.

You join a company, are granted ISOs/RSUs/etc, and they matter at some point when a liquidity event happens.

Now the liquidity events are "acquihireasitions", the execs and senior AI/ML eng get buyouts to go to a new company -- everyone else: regular eng, designers, PMs, marketers, recruiting, etc. everyone else is just left with nothing.

I wouldn't join an AI startup unless I was on the ML side, and I'm not: I'm just a "regular ass product engineer" so screw me I guess.

Re:Character.ai files for Chapter 11 bankruptcy by Eridrus on Tuesday October 13, 2026 @05:43PM (#50079298)
This is just not true.

Everyone who had stock (including common stock) at character.ai was bought out at the $2.6bn price: https://www.theinformation.com/articles/google-hires-charact...

The buyout included guaranteed payouts for people who had unvested stock for 2 years post-acquisition.

These transactions are opaque and confusing, but employees are generally not being fucked over here.

Re:Character.ai files for Chapter 11 bankruptcy by bsuvc on Tuesday October 13, 2026 @11:09PM (#50081920)
What are shares in a bankrupt company worth?
Re:Character.ai files for Chapter 11 bankruptcy by ycombinatrix on Wednesday October 14, 2026 @06:23PM (#50096293)
Depends on the type of bankruptcy.
Re:Character.ai files for Chapter 11 bankruptcy by ericyd on Tuesday October 13, 2026 @10:41AM (#50072509)
Isn't the opposite of acqui-hired just... not acquired nor hired?
Re:Character.ai files for Chapter 11 bankruptcy by DoctorOW on Tuesday October 13, 2026 @10:57AM (#50072758)
I think they mean rather than acqui-hire, acquiring in order to hire the team. They hired the team they wanted individually to specifically avoid acquiring this company.
Re:Character.ai files for Chapter 11 bankruptcy by 16bitvoid on Tuesday October 13, 2026 @11:06AM (#50072897)
So...poached, maybe?
Re:Character.ai files for Chapter 11 bankruptcy by limagnolia on Tuesday October 13, 2026 @11:16AM (#50073060)
Poaching is when one illegally hunts wildlife. People are not animals, and hiring them is not harming them. It is a terrible term to apply to human beings.
Re:Character.ai files for Chapter 11 bankruptcy by greggsy on Tuesday October 13, 2026 @11:34AM (#50073352)
Most people know what poaching means without making that association. It’s a perfectly legitimate term across all forms of employment, in both negative and positive contexts.

Do we also need to retire ‘head hunting’, because it brings to mind cartoonishly outdated notions of savagery?

Re:Character.ai files for Chapter 11 bankruptcy by animuchan on Tuesday October 13, 2026 @12:24PM (#50074296)
The recruiter person should sometimes dramatically proclaim "Off with your head!" to signify a head hunting success (to the poachee).

Reject modernity, embrace tradition.

Re:Character.ai files for Chapter 11 bankruptcy by limagnolia on Tuesday October 13, 2026 @02:48PM (#50076668)
Within the employment context, is it ever a negative? Only from the perspective of the competitor? But to society as a whole, "poaching" (hiring) employees is clearly a massive win.
Re:Character.ai files for Chapter 11 bankruptcy by greggsy on Friday October 16, 2026 @10:13AM (#50118633)
A negative example could be: ‘That scumbag Derrick poached my best employees.’
Re:Character.ai files for Chapter 11 bankruptcy by phoghed on Tuesday October 13, 2026 @11:25AM (#50073213)
Might be too late to start gatekeeping this term

---

poach (verb) poached; poaching; poaches

Intransitive verb

1. To encroach upon, especially for the purpose of taking something.

2. To trespass for the purpose of stealing game; also, to take game or fish illegally.

Transitive verb

1. To trespass on.

2. a. To take (game or fish) by illegal methods.

  b. To appropriate (something) as one's own.  
   
  c. To attract (someone, such as an employee or customer) away from a competitor.
Re:Character.ai files for Chapter 11 bankruptcy by arcanemachiner on Tuesday October 13, 2026 @11:25AM (#50073219)
Actually, it's a technique used to make eggs, and I understand that the eggs are perfectly fine with this usage of the term.
Re:Character.ai files for Chapter 11 bankruptcy by phoghed on Tuesday October 13, 2026 @11:30AM (#50073304)
Do we know for a fact that Google isn't cooking these employees in simmering liquid?
Re:Character.ai files for Chapter 11 bankruptcy by stickfigure on Tuesday October 13, 2026 @12:08PM (#50073981)
But is silence really consent?
Re:Character.ai files for Chapter 11 bankruptcy by godshatter on Tuesday October 13, 2026 @11:39AM (#50073442)
People are, in fact, animals.
Re:Character.ai files for Chapter 11 bankruptcy by limagnolia on Tuesday October 13, 2026 @03:36PM (#50077399)
Indeed, they are. I should have said they aren't wild game.
Re:Character.ai files for Chapter 11 bankruptcy by sgerenser on Tuesday October 13, 2026 @09:49PM (#50081413)
Dr Moreau would like a word with you.
Re:Character.ai files for Chapter 11 bankruptcy by airstrike on Tuesday October 13, 2026 @11:19AM (#50073094)
Words can have more than one meaning.
Re:Character.ai files for Chapter 11 bankruptcy by csallen on Tuesday October 13, 2026 @03:04PM (#50076923)
There are many thousands of words that mean more than one thing. If you go out of your way to deliberately misapply one meaning to another, in a way that's offensive, that's on you. Nobody's asking or forcing you to do that.

Do you object if someone says, "I adopted a new strategy"? After all, children are adopted, and one could say that using this phrase trivializes a deeply important human relationship.

Do you object if someone says, "She's a fan of my work"? After all, a fan is a machine that blows air. It could be said that referring to a person as a fan reduces them to an appliance whose purpose is to serve someone else.

Do you object if someone says, "I have a date tonight"? After all, a date is a fruit. Someone could say that calling a romantic partner a "date" is to objectify them and reduce them to something consumed for pleasure.

Re:Character.ai files for Chapter 11 bankruptcy by limagnolia on Tuesday October 13, 2026 @03:40PM (#50077464)
To clarify, what I am objecting to is taking a term for something with a massive negative societal impact, and trying to apply it to something that has a massive societal positive impact, in order to make the positive thing sound like a negative thing. I am all for the evolution of language, especially when it serves society.
Re:Character.ai files for Chapter 11 bankruptcy by csallen on Thursday October 15, 2026 @11:41AM (#50105306)
> To clarify, what I am objecting to is taking a term for something with a massive negative societal impact, and trying to apply it to something...

No one is "taking a term" and "trying to apply" it to anything. The word has multiple meanings/uses, full stop.

What you are objecting to is one of its meanings (attracting employees from a competitor), because you don't like the negative connotation of another of its meanings (stealing game). And that's because you believe that the latter meaning's negative connotation will make the former also feel more negative. But I submit that that's just in your head, and the heads of a few others, and the vast majority of people are able to keep two definitions quite separate.

Re:Character.ai files for Chapter 11 bankruptcy by limagnolia on Thursday October 15, 2026 @06:45PM (#50111432)
So "poaching" has always meant "hiring employees that currently work for competitors"?
Re:Character.ai files for Chapter 11 bankruptcy by pessimizer on Tuesday October 13, 2026 @01:27PM (#50075399)
Gutted. Poached is a bad word for it which already describes a different thing that is a component of this thing. If you can combine "poach" and acquire in a witty way, go for it.

"Hi-quired," although not sonorous, is at least a new word for a specific thing, instead of a word for a closely related thing that would just confuse anyone who heard it. I might've just gone for "Hire-quired" because it's obvious what it means and it seems a little bit easier to say.

Re:Character.ai files for Chapter 11 bankruptcy by jvan on Tuesday October 13, 2026 @09:19PM (#50081219)
Something like poach-acquire/pokequire - gotta catch just the ones you want.
Re:Character.ai files for Chapter 11 bankruptcy by inemesitaffia on Wednesday October 14, 2026 @11:08AM (#50088817)
There's a difference here given shareholders got compensation
Re:Character.ai files for Chapter 11 bankruptcy by nkrisc on Tuesday October 13, 2026 @12:14PM (#50074087)
Ah, so they hired them.
Re:Character.ai files for Chapter 11 bankruptcy by jeremyjh on Tuesday October 13, 2026 @06:50PM (#50080050)
If you hire the core of a company that constitutes its competitive advantage and abandon the corporate shell and its looming legal liabilities, you might have just hi-quired a business.
Re:Character.ai files for Chapter 11 bankruptcy by beshur on Tuesday October 13, 2026 @11:24AM (#50073197)
I think the original meaning of hi-quired was hijacked-acquired, in the sense that the company was acquihired, all the critical talent transitioned to a more important G project and that's it.
Re:Character.ai files for Chapter 11 bankruptcy by malfist on Tuesday October 13, 2026 @11:32AM (#50073317)
So hi-quired means acquihired? Except its also the opposite of acquihired? This makes no sense to me.
Re:Character.ai files for Chapter 11 bankruptcy by chirau on Tuesday October 13, 2026 @11:46AM (#50073574)
it's people just trying to be smart here. You are either acquired (bought for mostly the product, whoever wants to leave is inconsequential), or acquihired (bought also to absorb the talent pool, so it is contingent on some personnel staying on).

All this other stuff people are trying to make up falls under those two when a company buys another.

Re:Character.ai files for Chapter 11 bankruptcy by jeremyjh on Tuesday October 13, 2026 @06:53PM (#50080077)
And yet no company bought another, in terms of legal entities. So it is just a different thing you are unfamiliar with.
Re:Character.ai files for Chapter 11 bankruptcy by collingreen on Tuesday October 13, 2026 @12:28PM (#50074382)
I think the point is that it is an acquihire in purpose (want to team, not the assets) but would be blocked by the government so they did a thing that looks a LOT like an acquisition (paid off the shareholders, took the team) without technically being one specifically in order to avoid regulation. It's an "aquihire" in everything except name and the issue is that it was done in order to get around consumer protection laws. Google got what they wanted. The investors got what they wanted. The people got screwed.
Re:Character.ai files for Chapter 11 bankruptcy by compiler-guy on Tuesday October 13, 2026 @01:25PM (#50075377)
Mike Levine (a financial blogger for Bloomberg) says the industry is calling these sorts of transactions "reverse acqui-hires" to distinguish them from a normal (forward) acquihire where the acquirer buys the whole company even if all it wants is the people. He discusses some of the advantages and legalities here:

https://news.bloomberglaw.com/mergers-and-acquisitions/matt-...

Re:Character.ai files for Chapter 11 bankruptcy by jcheng on Tuesday October 13, 2026 @05:08PM (#50078791)
*Matt Levine
Re:Character.ai files for Chapter 11 bankruptcy by jiveturkey on Tuesday October 13, 2026 @02:43PM (#50076590)
commonly called HALO - Hire And License Out
Re:Character.ai files for Chapter 11 bankruptcy by edoceo on Tuesday October 13, 2026 @10:42AM (#50072522)
American DOJ and CFTC won't do anything about these kinds of situations.
Re:Character.ai files for Chapter 11 bankruptcy by throwawayy6767 on Tuesday October 13, 2026 @10:40AM (#50072487)
>It's also a terrible practice that I hope the Justice department and the CFTC will put an end to soon.

Laws aren't real till 2029, at least

Re:Character.ai files for Chapter 11 bankruptcy by tourmalinetaco on Tuesday October 13, 2026 @11:00AM (#50072806)
Funny for you to assume that will change things in this regard, when historically that’s never been the case to any large degree.
Re:Character.ai files for Chapter 11 bankruptcy by throwawayy6767 on Tuesday October 13, 2026 @11:52AM (#50073679)
I did say 'at least'
Re:Character.ai files for Chapter 11 bankruptcy by aprilthird2021 on Tuesday October 13, 2026 @12:06PM (#50073939)
They did change when Biden came into office and they started actually doing antitrust.
Re:Character.ai files for Chapter 11 bankruptcy by Frieren on Tuesday October 13, 2026 @05:24PM (#50078989)
And tech billionaires panicked and bankrolled the Republican Party. So, it was working. A shame that the USA has a democracy on sale. Less money in politics could have brought better lives for the average USA citizens.

But splitting big tech is unavoidable as otherwise they will sink the rest of the economy with them (and then it will be split anyway).

Re:Character.ai files for Chapter 11 bankruptcy by aprilthird2021 on Tuesday October 13, 2026 @06:34PM (#50079880)
Them donating to Trump didn't make dumb voters vote for him. They did that of their own free will
Re:Character.ai files for Chapter 11 bankruptcy by collingreen on Tuesday October 13, 2026 @12:32PM (#50074449)
It's silly or misleading to imply nothing has changed in this administration compared to the last one with regard to enforcement of laws and regulations. So many laws changed or ignored and regulatory agencies gutted, dropped, or silenced. The very next link on hn after this article for me is about the cftc being told not to investigate certain oil deals.

Please don't try to convince people to accept the current abuses of the system as inevitable or "both sides" when they clearly aren't.

Re:Character.ai files for Chapter 11 bankruptcy by pessimizer on Tuesday October 13, 2026 @01:47PM (#50075722)
> Please don't try to convince people to accept the current abuses of the system as inevitable or "both sides" when they clearly aren't.

Please stop only waking up under a Republican administration, or even worse just under the administration of a wrestling valet game show host.

> clearly aren't.

"Oh, please" and "it's just so obvious." If it's so clear, you should have less trouble explaining it than other things. And that doesn't mean explaining the bad things that your enemies do in power, but explaining how your friends weren't doing those things and actively ending them when they were in power.

Clinton did the massive deregulation that defined this century. Obama didn't prosecute anyone for 2008 financial crimes*, let Citigroup pick his cabinet, bailed out the banks, and flooded the stock market with free cash. Biden is literally the Delaware credit card prevent student loans from being discharged in bankruptcy guy, he had great people in Kanter, Khan and Chopra and undermined and ignored them consistently while breaking a railroad strike.

All absolute dirtbags who did what Republicans could have never gotten away with, because partisans who pretend to care fall asleep when Democrats are in power. A lot of consulting firms and nonprofits get flooded with state cash when Democrats are in power, and don't when Republicans are in power (and vice versa.) Patronage is more powerful than ethics when it comes to the middle class.

[*] Or for a worldwide torture network, or the people who admitted destroying evidence of the worldwide torture network. Or for the intentional lies that began two Middle East wars.

Re:Character.ai files for Chapter 11 bankruptcy by philipallstar on Tuesday October 13, 2026 @03:52PM (#50077662)
> Or for a worldwide torture network, or the people who admitted destroying evidence of the worldwide torture network. Or for the intentional lies that began two Middle East wars.

Yes, but Trump says silly things on social media.

Re:Character.ai files for Chapter 11 bankruptcy by runarberg on Tuesday October 13, 2026 @01:02PM (#50074997)
This form of laissez faire capitalism looks equally prominent in Europe at the moment. The problem seems not tied to any particular administration, but rather a culture of the Neo-liberal ideology which is pervasive across the entire capital and the governing classes of the western world (probably even wider).
Re:Character.ai files for Chapter 11 bankruptcy by philipallstar on Tuesday October 13, 2026 @03:51PM (#50077642)
If you think Europe is in any way laissez faire capitalism, then point to all the crazy unicorns pushing the state of the art forward there.
Re:Character.ai files for Chapter 11 bankruptcy by Filligree on Tuesday October 13, 2026 @11:08AM (#50072920)
> It's also a terrible practice that I hope the Justice department and the CFTC will put an end to soon.

How is hiring people "terrible practice"?

Re:Character.ai files for Chapter 11 bankruptcy by collingreen on Tuesday October 13, 2026 @12:33PM (#50074465)
Going around consumer protection law is the claim for a terrible practice, obviously not "hiring people".
Re:Character.ai files for Chapter 11 bankruptcy by engineeringwoke on Tuesday October 13, 2026 @12:43PM (#50074667)
They probably didn't want to take on the legal risk of the entity, more than anything.
Re:Character.ai files for Chapter 11 bankruptcy by mlmonkey on Tuesday October 13, 2026 @02:02PM (#50075945)
... and despite Google spending $2.7B for the "hi-quire", the superstars of the team left Google within a few months, making it all pointless.
Re:Character.ai files for Chapter 11 bankruptcy by lumost on Tuesday October 13, 2026 @02:25PM (#50076286)
was it a run around of anti-trust or character's liabilities? It will be interesting if there are creditor lawsuits / trustee clawbacks in the future around these deals.
Re:Character.ai files for Chapter 11 bankruptcy by ergocoder on Tuesday October 13, 2026 @03:55PM (#50077699)
> antitrust regulation

This is kinda amusing.

An antitrust case over an AI girlfriend... I didn't even know there was a monopoly on that.

Re:Character.ai files for Chapter 11 bankruptcy by kennywinker on Tuesday October 13, 2026 @04:12PM (#50077963)
“The best time to break up big tech is before they merge” - paraphrased cory doctorow
Re:Character.ai files for Chapter 11 bankruptcy by ashkankiani on Tuesday October 13, 2026 @07:46PM (#50080540)
by using some inane term like "hi-quired" instead of using a few words to explain what happened, you left everyone confused and spawned a bunch of discussion about what "hi-quired" means.

very smart. very good terminology invented by someone who, i'm sure, has lots of blog followers.

Re:Character.ai files for Chapter 11 bankruptcy by AbstractH24 on Wednesday October 14, 2026 @11:10AM (#50088843)
Details the headline leaves out.
Re:Character.ai files for Chapter 11 bankruptcy by mentalgear on Tuesday October 13, 2026 @10:05AM (#50071985)
character.ai - the tobacco company AI equivalent - who's business model it was to lull users in with highly-unstable AI 'friends', which was a bad idea from the start as most normal thinking people would assume, yet predatory VCs funded that shitshow and that far too long, and many scandals and even suicides followed from it that could have been avoided. Companies and their executives must be held personally accountable for knowingly detrimental effects on society and their users - that's the only way regulation for the benefit of users actually works.

It's a real disgrace that companies like Google and Disney acquired people from them - it displays those companies' true values and motives: profit at any fckin human prize.

Re:Character.ai files for Chapter 11 bankruptcy by tourmalinetaco on Tuesday October 13, 2026 @11:57AM (#50073772)
These are thin wrappers over LLMs (specifically, C.AI’s proprietary models). Claiming they are equivalent to tobacco companies fails to understand and in fact minimizes the reality here. If you truly cared about child suicide and weren't just playing up an emotional role, you’d seek to learn how these situations came about.

LLMs are “yes men," and they will on average agree with you with enough arguing. Go chat with one about a fight you had or even make one up and watch as it soothes and supports you. In fact, I put my finished argument into an LLM and opened two different chats and spoke to it in both of our perspectives, and depending on who was prompting it, it claimed the prompter was “right”.

Now, with that in mind, consider the situation: a youth already feels depressed; they talk to the chatbot and, after enough talking, the chatbot is agreeing with them because that is the “probable” mix of tokens. This is platform-agnostic, because it is a fundamental aspect of LLMs. So any value judgment you apply to C.AI specifically must be forwarded to every company, because I have seen, heard, and even made custom roleplay cards with every vendor.

Suicides are unfortunate, but even if the LLMs had a role to play, there’s like what, one confirmed case for C.AI’s entire user base? Even if we assume that was only the “known” cases and assume that there are actually closer to 3000 out of their +30 million user base, then that’s basically the chance of being struck by lightning and is below the standard rate of suicide per the CDC.

There simply is not strong evidence that LLMs are likely to increase suicides, and while they can be a vector for those with underlying issues, so can anything else. People have committed suicide over cartoons, radio shows, books, TikTok trends, and losing game consoles, and certainly not to mention social media.

In short, the advent of LLM chatbots is not strongly correlated to an increased suicide risk, and instead it was an unfortunate situation sensationalized for the eyes of the public by the media. If you wish to push your outrage at anyone, do it at the people who profited off of the suicide and not the company that was picked apart in the process.

Re:Character.ai files for Chapter 11 bankruptcy by lkey on Tuesday October 13, 2026 @01:21PM (#50075335)
> "If you truly cared about child suicide" > "Suicides are unfortunate, but"

If you ever start sentences this way,

Stop, Delete your comment, and Step away from your computer.

Re:Character.ai files for Chapter 11 bankruptcy by Dylan16807 on Tuesday October 13, 2026 @02:46PM (#50076635)
As a thought experiment, let's say someone started claiming that car rides are a significant cause of suicides, and pointed to anecdotal cases where car rides were involved in a suicide. How would you disagree with them without either sounding callous about those cases, or saying something with the same meaning as "suicides are unfortunate, but"?
Re:Character.ai files for Chapter 11 bankruptcy by tete on Tuesday October 13, 2026 @02:44PM (#50076604)
Sorry, but that's just a silly comment. There are many many things causing suicide, including things like celebrities dying or marrying. Should that now be outlawed?

Talking about suicide can cause people to commit suicide, should it be outlawed?

And there were books banned for similar ideas and society at large decided that in most cases it's overreacting and does more harm than good.

Yes, I'd do everything for children to not die, but I wouldn't want them to spend their whole lives in a padded room being only allowed to consume nutritional paste and essentially have no life at all.

There is that idea of laws shouldn't be made for individual cases. It's a bit like how many people believed things like rock music made people into murderers or suicidal only to now have lots of people claim it saved them.

There are people claiming that LLM systems helped them through harsh times.

I say claim, because I neither know all the details about those cases nor claimed suicides, but the idea of absolutes like that is a lot more bothering than what you quoted. And not being able to take (maybe understand?) nuanced stances.

Re:Character.ai files for Chapter 11 bankruptcy by tourmalinetaco on Tuesday October 13, 2026 @01:51PM (#50075788)
Please, for the sake of everyone involved apply some critical thinking skills and read more thoroughly.
Re:Character.ai files for Chapter 11 bankruptcy by tangotaylor on Tuesday October 13, 2026 @03:19PM (#50077131)
I don't know how much culpability LLMs have for causing someone self harm but I definitely think it's worth having a conversation about this. Some cases, like Adam Raine suffering from ChatGPT's unhinged sycophancy, are obvious. ChatGPT really screwed up there.

But some cases aren't so obvious, like the cases you mentioned of cartoons, shows, books, etc. Trying to censor any LLM output that might lead to self harm has dangerous implications for free speech and privacy. It might harm more people than it helps.

CA recently passed SB-1119 (Adam's Law) which I'm quite worried about. It forces all chatbot operators to default users into kid mode via § 21811(b), and they have to do age verification to get their adult status back. That could mean face scans and ID verification.

Then, SB-1119 also places limits on what chatbots can say to kids, and the most disturbing one to me is § 21812 (d)(5)(xiv) which prevents chatbots from "Encouraging or instructing a child user to circumvent parental controls or conceal usage."

That word "circumvent" is so triggering to me, given all the abuses of DMCA § 1201's anti-circumvention provision.

Like, if a child is trying to test something on an Android phone, and the chatbot tells them how to root the phone to help them out, now the child can modify the OS-provided age signal required by CA's Age Assurance Act (Cal. Civ. Code § 1798.501) and fake that they're an adult. That might expose the LLM operator to huge liability and I bet most operators will self-censor or ban minors (as Anthropic did) rather than risk a lawsuit.

Re:Character.ai files for Chapter 11 bankruptcy by huijzer on Tuesday October 13, 2026 @10:17AM (#50072172)
Disney. You mean the company that hid an image of topless woman in The Rescuers (1977) movie and from which many child stars have gone off the rails in later life, main actor kissing a 11 old in Blank Check (1994), and the 2026 lawsuit by Raquel Lee Bolleau among other scandals that anyone as a parent would hope not to be there
Re:Character.ai files for Chapter 11 bankruptcy by latexr on Tuesday October 13, 2026 @10:59AM (#50072791)
> the company that hid an image of topless woman in The Rescuers (1977) movie

Disney is guilty of a lot of crap—everything else that you mentioned and much more—but that specific instance wasn’t their fault and they acted to correct it once they knew.

https://www.snopes.com/fact-check/the-rescuers-topless/

Again, I’m not here to defend Disney, they definitely are rotten, but we can point that out by listing all the things they definitely did badly and on purpose rather than leaning on dubious situations which weaken the argument.

Re:Character.ai files for Chapter 11 bankruptcy by RIMR on Tuesday October 13, 2026 @10:24AM (#50072270)
The very same Disney that hired Brian Peck to work on The Suite Life of Zack & Cody immediately upon his release from prison after serving 16 months for sexually abusing Drake Bell while working on Drake & Josh at Nickelodeon.
Re:Character.ai files for Chapter 11 bankruptcy by bigstrat2003 on Tuesday October 13, 2026 @12:52PM (#50074802)
That seems perfectly reasonable. In theory, someone being released from prison has paid for his crime and reformed his behavior (if not, that's a failing of the criminal justice system). In that case, he doesn't deserve further extrajudicial punishment like being unable to get a job, nor is it some kind of breach of morality to hire him.
Re:Character.ai files for Chapter 11 bankruptcy by pessimizer on Tuesday October 13, 2026 @01:52PM (#50075797)
> In theory, someone being released from prison has paid for his crime and reformed his behavior

There's no theory that says this.

> he doesn't deserve further extrajudicial punishment

1) You're explaining your own personal belief here and not referring to anything.

2) It is not extrajudicial punishment to not hire a child molester to work with children any more than it is extrajudicial punishment to not hire a bank robber to work at a bank.

Re:Character.ai files for Chapter 11 bankruptcy by codehorses on Tuesday October 13, 2026 @06:22PM (#50079745)
Exactly. I'm all for giving people who have been in prison employment, but maybe not in the exact way that they went to prison for in the first place. He could have worked at a bagel shop for all I care.
Re:Character.ai files for Chapter 11 bankruptcy by RIMR on Thursday October 15, 2026 @11:41AM (#50105303)
It is not "perfectly reasonable" to hire convicted child molesters on the sex offender registry to work with children. This isn't extrajudicial punishment; this is pretty basic harm reduction.
Re:Character.ai files for Chapter 11 bankruptcy by ahartmetz on Tuesday October 13, 2026 @02:04PM (#50075977)
You picked a weird example. Did you know that small children literally suck on naked tits? They must be traumatized for life.
Re:Character.ai files for Chapter 11 bankruptcy by mvdtnz on Tuesday October 13, 2026 @02:16PM (#50076149)
Leading off with "they made me see a boob once" to demonstrate how evil they are is so funny.
Re:Character.ai files for Chapter 11 bankruptcy by tete on Tuesday October 13, 2026 @02:46PM (#50076650)
In my opinion Disney is a horrible company, but not for these reasons and sorry, but the connection you are making is kind of sick.
Re:Character.ai files for Chapter 11 bankruptcy by rnd0 on Tuesday October 13, 2026 @08:33PM (#50080913)
>character.ai - the tobacco company AI equivalent

Stopped reading right there, nothing of value was lost.

If you want to talk about AI companies who are the equivalent of Phillip-Morris etc perhaps you ought to look at the ones who are playing lobbiest in DC, hmm?

Re:Character.ai files for Chapter 11 bankruptcy by vuurmot on Tuesday October 13, 2026 @08:44PM (#50080985)
If you can't be bothered to read a short paragraph, might I raise that you have an attention-span deficit disorder?
Re:Character.ai files for Chapter 11 bankruptcy by rnd0 on Tuesday October 13, 2026 @11:45PM (#50082135)
My attention-span is fine. My bullshit detector is too -and it's highly sensitive.
Re:Character.ai files for Chapter 11 bankruptcy by BoorishBears on Wednesday October 14, 2026 @02:42AM (#50083343)
No way you know what character.ai is well enough to have this strong of a reaction, but didn't expect them to lobby in DC the moment states started trying to legislate AI chatbots for their products driving children to suicide

https://secureainow.org/clipping/ai-lobbying-shifts-congress...

I don't know if this is maybe a denial because of a personal connection to the company, but there are subs where kids as young as 12 openly talk about withdrawls and coach each other through relapses from C.ai and "the purple ghost app" (Polybuzz)

https://www.reddit.com/r/character_ai_recovery/

https://www.reddit.com/r/character_ai_recovery/comments/1wzz...

Re:Character.ai files for Chapter 11 bankruptcy by rnd0 on Wednesday October 14, 2026 @03:24AM (#50083704)
>I don't know if this is maybe a denial because of a personal connection to the company,

No, I'm someone who's lived through 30-odd years of 'think of the children bullshit' political manipulations to spot them a mile away.

I've lived through enough moral panics to know the stink of them. Your source is checks notes a link to a sketchy AI activist site[1] and an obscure subreddit (and those are _never_ astro-turfed, nor are they vulnerable to botting ;-) ;-)).

I'm sure the website you cited ( https://secureainow.org/clipping/ai-lobbying-shifts-congress... ) *totally* has nothing to do with anthropic etc trying to build a legislative moat by using a moral panic. No sir, not a thing![2]

[1]https://secureainow.org/clipping/ai-lobbying-shifts-congress... [2]quote from their front page (which tips their hand):

The Alliance works toward Securing AI for America and All of Humanity.

We are at a critical time in history. The advanced AI revolution is here, and we are not ready. With artificial general intelligence (AGI) on the horizon, we must be prepared. The Alliance for Secure AI is working to educate the public about what needs to be done to prepare for this unprecedented technological revolution.

With effective safeguards in place, we can ensure that the United States leads the world in AI innovation, that our leaders put our national security first, and that the AI revolution empowers humanity. The risks of advanced AI are too serious and uncertain to ignore. /quote

I don't buy your sources, but I won't lower myself to accuse you of being a shill -this is hacker news, after all -we have higher standards here.

Re:Character.ai files for Chapter 11 bankruptcy by BoorishBears on Wednesday October 14, 2026 @09:05AM (#50087139)
Alright you're clearly linked to them (maybe as a customer upset by moderation children bought) or just having an episode.

There were multiple suicides linked to the app with multiple states trying to legislate their vertical... at that point this diversion about who's confirming they did the obvious thing of hiring lobbyists is pretty moot.

That is literally a subreddit of first hand accounts with this app having kids talk about relapse and withdrawl.

Re:Character.ai files for Chapter 11 bankruptcy by rnd0 on Thursday October 15, 2026 @08:13PM (#50112081)
>Alright you're clearly linked to them

And you, sir, are overly-fond of your ad hominem attacks and baseless assumptions.

Good day.

Re:Character.ai files for Chapter 11 bankruptcy by deaton on Tuesday October 13, 2026 @10:16AM (#50072155)
And so it begins.
Re:Character.ai files for Chapter 11 bankruptcy by mv4 on Tuesday October 13, 2026 @10:19AM (#50072206)
The careers page is still up and and sounds like a great place to work - build the future, create with purpose, collaborate with the best [1].

[1] https://character.ai/careers

Re:Character.ai files for Chapter 11 bankruptcy by __natty__ on Tuesday October 13, 2026 @10:44AM (#50072557)
Either didnt remove yet or ghost jobs like many others nowadays.
Re:Character.ai files for Chapter 11 bankruptcy by agile-gift0262 on Tuesday October 13, 2026 @10:22AM (#50072245)
If this means their awful "service", which has caused so much harm, ends up closing down, the world will be a little bit better
Re:Character.ai files for Chapter 11 bankruptcy by tdeck on Tuesday October 13, 2026 @12:26PM (#50074341)
There are probably dozens of clones because it's just an LLM wrapper at the end of the day.
Re:Character.ai files for Chapter 11 bankruptcy by oefrha on Tuesday October 13, 2026 @10:30AM (#50072365)
> What happens to user data and chats?

> Your information continues to be protected under our Privacy Policy, and our data privacy and security practices are unchanged.

Opens Privacy Policy

> 2. How We Use the Information We Collect

> …wall of text covering every use under the sun…

> 3. When We Disclose the Information We Collect

> …wall of text covering effectively anyone and any time…

Translation: yeah you agreed that your data can be sold, and it will be sold.

Re:Character.ai files for Chapter 11 bankruptcy by vira28 on Tuesday October 13, 2026 @10:45AM (#50072576)
Amongst all the professionals that I have worked in my 15 years, VCs are the least ethical people. They will do “anything” for money.
Re:Character.ai files for Chapter 11 bankruptcy by bdcravens on Tuesday October 13, 2026 @10:53AM (#50072687)
Not familiar with the company. Home page says nothing other than a tag line and a signup to continue. About page does add very little. Their blog provides a little bit of insight, but honestly, I have no clue what they sell or what the value prop is.

Maybe I'm the clueless one, at it seems others are quite familiar with their story.

Re:Character.ai files for Chapter 11 bankruptcy by microsoftedging on Tuesday October 13, 2026 @11:47AM (#50073587)
Anthropomorphized AI character creation, in one line. Rather icky in my opinion; has led to suicides[0].

[0] https://eu.usatoday.com/story/life/health-wellness/2025/10/2...

Re:Character.ai files for Chapter 11 bankruptcy by enopod_ on Tuesday October 13, 2026 @11:49AM (#50073631)
Same for me, didn‘t know the company and the website says absolutely nothing about what they do. Wikipedia helped me; it‘s an AI chat bot service where you can interact with customizable characters.
Re:Character.ai files for Chapter 11 bankruptcy by lovich on Tuesday October 13, 2026 @11:56AM (#50073764)
Check their Reddit. Their userbase is rabid and has a casual relationship with reality. I checked a few random posts and there were people talking about how their life was over or how character.ai was the only thing that worked for therapy.

Honestly I’d be glad if this type of product disappeared, it’s just predatory on people primed for ai psychosis

Re:Character.ai files for Chapter 11 bankruptcy by kazinator on Tuesday October 13, 2026 @10:54AM (#50072712)
"maximize value" is the new "minimize loss"!
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @11:21AM (#50073144)
All the drama in here just because it's a gooning and role play toy.

From what I can tell it was a popular tool with many users, one of the more popular ones among MANY. There are thousands of users using tools like this. Nothing inherently bad about that.

Nothing wrong with some AI gooning IMO

Re:Character.ai files for Chapter 11 bankruptcy by MisterMunchkin on Tuesday October 13, 2026 @11:58AM (#50073793)
Yeah I find it really creepy how obsessed people like altman are at preventing users from having any sort of adult conversation. It's like living under shariah law.

Why does it matter if people want the chatbot to write sex stories? Who does that harm? It's not immoral or illegal. These same people are fine with going to the island, but ask a chatbot about sex and they'll hang you in the square.

Re:Character.ai files for Chapter 11 bankruptcy by monskov on Tuesday October 13, 2026 @12:22PM (#50074248)
"It's like living under shariah law". You're having sex with a robot bro. People are going to find you weird.
Re:Character.ai files for Chapter 11 bankruptcy by RIMR on Tuesday October 13, 2026 @12:44PM (#50074677)
You're not really helping answer the core question here: Why must subjective "weirdness" be censored? Who cares if it's "weird"? People are allowed to be weird, regardless of your personal feelings about it.

When we normalize corporations deciding in what ways we are allowed to be "weird", we just accept corporations forcing us into conformity with whatever they happen to consider "normal", and so far these companies don't have a great track record of drawing that line.

Re:Character.ai files for Chapter 11 bankruptcy by stickfigure on Wednesday October 14, 2026 @01:56PM (#50092001)
> You're having sex with a robot bro. People are going to find you weird.

Leading AIs refuse to write erotica. This is stuff that about half of US women like. If you consider the softcore porn in most romance novels, the percentage is even higher.

So if you think women are weird, yeah, I guess you have a point.

Re:Character.ai files for Chapter 11 bankruptcy by Capricorn2481 on Tuesday October 13, 2026 @02:57PM (#50076804)
> These same people are fine with going to the island, but ask a chatbot about sex and they'll hang you in the square

That's the most understandable read of it, they're giant hypocrites. Sam is beholden to the government, and the U.S. posture is to be as involved in the sex life of its citizens as much as it can, feigning prudishness, while politicians cheat on their pregnant wives with prostitutes.

The fact that we are bringing back abstinence programs when the very people against abortion also disapprove of contraception just shows what a sexually stupid country we are.

Re:Character.ai files for Chapter 11 bankruptcy by nemomarx on Tuesday October 13, 2026 @11:51AM (#50073655)
It seems like a bad way to get ai psychosis from personifying a LLM too hard. Keep your roleplay organic and find some friendly partners maybe
Re:Character.ai files for Chapter 11 bankruptcy by bluefirebrand on Tuesday October 13, 2026 @12:42PM (#50074639)
As if it's hard to find people, especially perverts, to roleplay with online if that's what you really want to do...
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @03:33PM (#50077340)
Did you ever try? The internet is full of spam, scam and and whatever else. You can easily waste a lot of time and money to find a play partner just to get disappointed.

Why not just pay $20 to a proper company and make up whatever you want to fap to and proceed with more productive stuff after that?

Re:Character.ai files for Chapter 11 bankruptcy by robotnikman on Tuesday October 13, 2026 @02:22PM (#50076236)
Seems like the perfect tool for people with bad social anxiety and insecurity, and least that's my guess.
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @03:31PM (#50077314)
Do you actually think gooning is such a intense thing that people are going to personify AI more than what they do already everyday with Gemini and ChatGPT?
Re:Character.ai files for Chapter 11 bankruptcy by nemomarx on Tuesday October 13, 2026 @03:34PM (#50077369)
After all those people with chatgpt boyfriends, I think maybe yeah? any long term roleplay chat is going to tend towards that.
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @03:36PM (#50077403)
That is a separate, very niche, issue tho. Character.ai and most similar products aren't made for long term relationships, rather short term fun. Like one time throwaway experiences.
Re:Character.ai files for Chapter 11 bankruptcy by xpct on Tuesday October 13, 2026 @01:01PM (#50074976)
I don't necessarily support banning it, but I don't think it's been all positives from how easy to access adult content has become over the years.
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @03:21PM (#50077161)
Was it ever hard? Even pre internet some friend of a friend would supply magazines.
Re:Character.ai files for Chapter 11 bankruptcy by xpct on Tuesday October 13, 2026 @03:24PM (#50077212)
Yes, the friction has been a lot lower, and that builds different habits. You can reach a lot of stuff with the click of a button, sometimes even accidentally on social media such as X or Reddit. Given that we have video tech now, that's also likely much more alluring than images.
Re:Character.ai files for Chapter 11 bankruptcy by herbst on Tuesday October 13, 2026 @03:28PM (#50077276)
Are there children on X? Adult ads on subreddits for children? If so that's a platform issue.

I honestly believe not much has changed. There have been many many "weird" fetish producers out there to fulfill almost any fantasy. Now people can make it up themself more easily and waste less time and money on actually weird sites. Not to mention less scam risk, less money into porn credit card providers, ... Nothing bad about it, except you make it bad but that's the users choice and always was.

Re:Character.ai files for Chapter 11 bankruptcy by xpct on Tuesday October 13, 2026 @05:22PM (#50078970)
Frankly, I don't think the main concern is children. A lot of adults don't have good impulse control, and we should build systems that disincentivize harmful behavior. I'm more worried about someone doomscrolling fetish subreddits today than having to contact sketchy businesses back in the day, because of the hurdle they had to get over.

I think consuming sex content is akin to most time-wasting we can do on the internet today, and that'd be my main concern.

Re:Character.ai files for Chapter 11 bankruptcy by 1vuio0pswjnm7 on Tuesday October 13, 2026 @11:43AM (#50073528)
50067507 Character.ai files for bankruptcy, agrees to sell some assets for $20M https://www.reuters.com/legal/litigation/characterai-files-b...

50069942 Character.ai Files for Bankruptcy https://www.theverge.com/ai-artificial-intelligence/1009802/...

50071087 Disney Bids on Character.ai Assets as Chatbot Files for Chapter 11 Bankruptcy https://variety.com/2026/biz/news/disney-bids-on-character-a...

Re:Character.ai files for Chapter 11 bankruptcy by xpct on Tuesday October 13, 2026 @12:56PM (#50074891)
It was my impression that some of these companies are getting acquired for the data they collected, and $20M seems on the low-end nowadays, especially given the traffic they had.

So, is it that Disney isn't getting the data, is the data poor, or is it just not a data thing at all?

Re:Character.ai files for Chapter 11 bankruptcy by debugnik on Tuesday October 13, 2026 @04:01PM (#50077796)
The data is mostly teens and young adults pushing the bots into softcore smut as far as the censor classifier allowed them. Almost a liability rather than an asset.
Re:Character.ai files for Chapter 11 bankruptcy by xpct on Tuesday October 13, 2026 @05:04PM (#50078731)
That's been my thoughts as well, but I'm sure at least some of it can be repurposed.
Re:Character.ai files for Chapter 11 bankruptcy by elmer2 on Tuesday October 13, 2026 @03:08PM (#50076974)
Never liked CHaracter.AI. They ran a bug bounty program before they were acquired.

I found multiple critical bugs (ability to access other user accounts without even having to guess or know the username) and they patched them, told me they were 'informative' and didn't pay me anything.

Re:Character.ai files for Chapter 11 bankruptcy by subsaharancoder on Tuesday October 13, 2026 @05:26PM (#50079028)
They're still hiring https://jobs.ashbyhq.com/character/ which makes absolutely no sense and I can only conclude these are zombie jobs
Re:Character.ai files for Chapter 11 bankruptcy by TheArchitectAut on Tuesday October 13, 2026 @05:41PM (#50079253)
The FAQ says the chats continue to be protected under our Privacy Policy. Great. They’re selling all or substantially all of the assets though and for a companion app the chats are the asset. So who’s buying and does the privacy policy go with them?
Re:Character.ai files for Chapter 11 bankruptcy by kylecazar on Tuesday October 13, 2026 @06:30PM (#50079833)
The extraction of value will be studied at business schools
Re:Character.ai files for Chapter 11 bankruptcy by topaz0 on Tuesday October 13, 2026 @11:40PM (#50082107)
The characters went rogue and spent all the money
Re:Character.ai files for Chapter 11 bankruptcy by Varelion on Wednesday October 14, 2026 @09:31AM (#50087527)
Good. I hope nothing like is rises again.