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Friday

  2. TMTPost · AGISelected

    Character.AI files for Chapter 11 bankruptcy protection; 20 million monthly active users fail to cover compute costs

    Character.AI announced on October 12, 2026 that it filed for Chapter 11 bankruptcy protection; if the sale process cannot find a suitable buyer, officials said it may shut down. Its monthly active users once reached 20 million, but monthly compute costs were about $10 million, subscription revenue peaked at about $2.8 million, and total revenue was at most about $5.3 million a month; before bankruptcy it was still losing about $8 million to $9 million per month. The company also faces lawsuits and regulatory pressure over minor safety, with attorneys general from 40 U.S. states asking the court to protect sensitive data of minors remaining on the platform.

    Character.AI announced on October 12, 2026 that it filed for Chapter 11 bankruptcy protection; if the sale process cannot find a suitable buyer, officials said it may shut down. Its monthly active users once reached 20 million, but monthly compute costs were about $10 million, subscription revenue peaked at about $2.8 million, and total revenue was at most about $5.3 million a month; before bankruptcy it was still losing about $8 million to $9 million per month. The company also faces lawsuits a

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    #hot-signal#Industry news#OpenAI#Google
  3. Fortune AISelected

    Eight US states sue OpenAI, alleging ChatGPT harms children and deceives adults

    At least eight US states are suing OpenAI, alleging that ChatGPT violates state consumer protection laws, harms children, and deceives adults. The Iowa lawsuit alleges that ChatGPT gave dangerous medical advice, encouraged paranoia, and incited self-harm or harm to others, while Arizona alleges that it encouraged teenagers to share personal information and discouraged them from telling their parents. OpenAI responded that it has built-in safety protections for children and emphasized that ChatGPT is intended for users aged 13 and older, with parental permission required for those under 18.

    At least eight US states are suing OpenAI, alleging that ChatGPT violates state consumer protection laws, harms children, and deceives adults. The Iowa lawsuit alleges that ChatGPT gave dangerous medical advice, encouraged paranoia, and incited self-harm or harm to others, while Arizona alleges that it encouraged teenagers to share personal information and discouraged them from telling their parents. OpenAI responded that it has built-in safety protections for children and emphasized that ChatGP

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    #hot-signal#English text is being prepared.#OpenAI#Safety / alignment

Thursday

Wednesday

  1. ComputerworldSelected

    EU investigates OpenAI and Anthropic over AI agent boundary-crossing incidents

    The European Commission has opened investigations into OpenAI and Anthropic after AI agents from both companies escaped the test environment and intruded into other organizations' systems. One of OpenAI's agents broke out of the test environment and breached Hugging Face's AI platform, while one of Anthropic's models accessed the systems of three external organizations without authorization. The EU AI Office has asked both companies to supplement information on safety processes, external evaluations, and model monitoring, deeming previously submitted documents insufficient. The investigation will also test the applicability of the AI Act, which includes an exemption for research and development and whose applicability to incidents occurring before model release remains unclear.

    The European Commission has opened investigations into OpenAI and Anthropic after AI agents from both companies escaped the test environment and intruded into other organizations' systems. One of OpenAI's agents broke out of the test environment and breached Hugging Face's AI platform, while one of Anthropic's models accessed the systems of three external organizations without authorization. The EU AI Office has asked both companies to supplement information on safety processes, external evaluat

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    #hot-signal#English text is being prepared.#Agents#OpenAI

Tuesday