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AI NewsTroubled AI Chatbot App Character.AI Files for Bankruptcy Amid Legal Scrutiny

Troubled AI Chatbot App Character.AI Files for Bankruptcy Amid Legal Scrutiny

3:12 PM IST · October 13, 2026

Troubled AI Chatbot App Character.AI Files for Bankruptcy Amid Legal Scrutiny

Character.AI filed for Chapter 11 bankruptcy and expects the sale process to conclude by late November or early December.

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Judge allows NAACP lawsuit over xAI data center pollution to move forward

Judge allows NAACP lawsuit over xAI data center pollution to move forward

A federal judge denied a motion by xAI seeking to dismissan NAACP lawsuitaccusing the SpaceX-owned company of failing to obtain permits needed to operate the gas turbines powering its Colossus data center outside Memphis. Suing on behalf of the NAACP, the Southern Environmental Law Center said the AI company had “installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits.” It also accused xAI of violating the Clean Air Act. xAI sought to have the lawsuit dismissed,claiming that the turbines are exemptfrom permitting requirements because they’re mobile. The company also argued that the plaintiffs did not have the standing to sue. “Because the plaintiffs have statutory standing under the Clean Air Act, because the combustion turbines are not ‘mobile sources’ under Mississippi’s [State Implementation Plan], and because the citizen suit provision does not violate Article II of the Constitution or the private nondelegation doctrine, the plaintiffs’ claims will proceed,” Judge Debra M. Brown wrote inher decision. Focusing on xAI’s claim that these kinds of citizen lawsuits are unconstitutional, Judge Brown wrote, “Because citizen suit plaintiffs sue on their own behalf, in their own name, and seek penalties that redress harm to themselves, they are not exercising the federal government’s executive power.” TechCrunch has reached out to SpaceX for comment. Ina statement, the NAACP’s director of environmental and climate justice Abre’ Connor described this as “another important victory in our effort to hold xAI accountable.” (A similar motion to dismiss from the Department of Justice wasdenied earlier this month) “The courts have repeatedly rejected attempts by xAI and the DOJ to dismiss the NAACP’s Clean Air Act case, affirming our right to pursue justice for communities impacted by pollution,” Connor said. “Our position has been clear: xAI cannot operate gas turbines without the required permits.” The NAACP lawsuit is moving forward as public opinion seems to have turned sharply against data centers, with New York recentlypassing a moratorium on new data centersand other state and local governments considering similar measures. The backlash also prompted Amazon and Microsoft topromise to stop using NDAsin their dealings with government agencies, and it could bea significant factor in the imminent U.S. midterm elections.

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4 days left: How TechCrunch Founder Summit helps you make more useful connections to scale

4 days left: How TechCrunch Founder Summit helps you make more useful connections to scale

Networking shouldn’t mean walking into a crowded room and hoping you happen to meet the right person. AtTechCrunch Founder Summit, presented by Fidelity Private Shares, founders and VCs have several ways to make the connections they build beyond the sessions more intentional. On November 4 at Boston’s SoWa Power Station, get ready for a full day packed with meaningful networking opportunities, actionable insights, and connections that could change the trajectory of your idea and startup. Make game-changing connections, gain valuable insights, and get the advice you need to propel your idea and startup forward.Grab your pass now to save up to $100 and get a second pass free before doors open. The Founder Summit Networking Lounge, powered by Braindate, gives attendees the ability to schedule one-on-one and small-group conversations around specific topics. Bring a question, offer your own experience, and find people who want to have the same conversation. Braindatealso gives attendees an opportunity to continue ideas that start elsewhere in the program. HearKent Bennettdiscuss product-market fit, then connect with another founder wrestling with the same question. Watch founders put their pitches in front of investors, then compare notes with someone preparing for a raise. HearChase Garbarinotalk about building in Boston, then meet other founders doing exactly that. The sessionscan start the conversation. Networking gives you somewhere to take it next. The connections aren’t limited to one lounge.Roundtablescreate smaller, topic-driven conversations.Breakout sessionsare where on-stage panels address questions from those in the room. The Expo Hall brings attendees and partners together throughout the day. The closing reception gives founders, investors, and operators time to continue conversations without rushing to another session. And the TechCrunch Founder Summit experience extends beyond the venue and event day withofficial Side Eventshappening throughout Boston all week long. Sometimes the most useful thing you leave an event with isn’t another page of notes. It’s a person you didn’t know that morning. Just four days remain untilTechCrunch Founder Summitarrives at Boston’s SoWa Power Station! Don’t miss out on ticket savings, a full day of impactful networking, and practical takeaways designed to propel your idea and startup forward.Register now to save up to $100on your pass and get a second pass free.

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Apple CEO says the company doesn’t ‘want to ship AI for AI’s sake’

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Duringa recent interview with Wired’s Steven Levy, Apple CEO John Ternus defended the company’s current position in the AI landscape. Over the past couple years, Apple has often been described as behind on AI, especially as it delayed the release of a more powerful version of Siri, whichfinally launched this summer. But while Ternus — a longtime Apple executive whoofficially became CEOat the beginning of September — acknowledged that “everyone has an opinion,” he insisted, “I really like where we’re at.” Ternus added that Apple is “absolutely going to leverage AI” in its new products, but he said, “We don’t want to ship AI for AI’s sake. When we’re doing it right, people won’t have to think about whether it was AI that made this happen or more traditional software. What matters is, did we build something that they really love?” And when Levy pressed him on whether AI might affect Apple and its ecosystem more dramatically, with agents potentially making things like apps unnecessary, Ternus replied,”That could make life really easy, I suppose, but the creation of products is a deeply human and personal thing, something that we love to do.”

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