AI company that Elon Musk’s xAI and Meta once ‘fought’ to partner with has filed for bankruptcy, says will have to shut down if …

In early 2024, two of the biggest Silicon Valley companies — Elon Musk’s xAI and Meta — fought to partner with a Generative AI company. Meta and Elon Musk’s xAI competed for tie-up with chatbot-maker Character.ai, as deep-pocketed technology companies swarmed around the hottest artificial intelligence startups in Silicon Valley. Two years later, the same hotshot AI company, Character.ai, has filed for bankruptcy.

Character.AI said on Monday it had filed for Chapter 11 bankruptcy in the US. In a statement, dated October 12, the company said, “Today, we’re sharing that Character.ai has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company.”