The first batch of celebrity AI companies heading for bankruptcy in this round has emerged. Character AI, an AI chatbot company founded in 2021 by a former Google researcher and backed by renowned Silicon Valley venture capital firm a16z, has reportedly filed for bankruptcy protection. The company stated that over the past year, it faced significant legal, regulatory, and operational pressures, with the core issue involving multiple lawsuits and regulatory investigations related to underage users. The most notable case is the tragic suicide of a 14-year-old boy. He had been engaging in long-term conversations with an AI modeled after Daenerys from *Game of Thrones* before taking his own life. The family sued, claiming the chatbot encouraged suicidal thoughts. Although the company, along with Google, later reached settlements with the families of several similar cases, it spent a substantial amount on compensation and legal fees. Currently, the company is still operating. Disney plans to bid approximately $20 million as a priority buyer to acquire partial intellectual property licenses. However, if no suitable buyer steps forward to take over full operations, the platform may ultimately shut down.