Character.AI, one of the earliest breakout successes of the generative AI boom, has filed for Chapter 11 bankruptcy protection in the United States. The filing, reported Tuesday by Reuters, TechCrunch and CNN, lists estimated assets and liabilities for its owner, Character Technologies, at between $50 million and $100 million each.

The company plans to keep its platform running while it pursues a court-supervised sale, which it expects to complete in late November or early December. If no buyer emerges who is willing to keep the service operating, the platform will be wound down.

For years, Nvidia's grip on China's data center AI chip market looked unshakeable. New figures from research firm IDC, reported by Reuters on October 13, show how quickly that position is eroding. Nvidia's share of the market fell to 34% in the first half of 2026, while Huawei climbed to 28% — close enough that the race for China's AI hardware business now looks genuinely competitive.

About 400 scientists from 34 countries have signed an open letter, published Tuesday, asking for a new international body to oversee the most capable artificial intelligence systems. The signatories include Geoffrey Hinton and Yoshua Bengio, two of the researchers who shared the 2018 Turing Award and helped shape modern deep learning. Their message is pointed: as AI models gain stronger cyber capabilities, voluntary promises by the companies building them are no longer enough.

Quantum computing company IonQ announced on Monday, October 12 that it has signed a definitive agreement to acquire Elisity, a Zero Trust cybersecurity firm, in an all-stock transaction valued at up to $1.3 billion. The deal includes up to $150 million in earnouts tied to how the Elisity business performs after closing, and it is expected to close in the fourth quarter of 2026, subject to regulatory approval and other customary conditions.

Microsoft has made its biggest move yet to run its artificial intelligence services on hardware of its own design. On Monday the company unveiled Maia 300, the third generation of its custom AI chip, and said it plans to deploy potentially more than a million of them starting next year in multi-gigawatt installations. Chief Executive Satya Nadella described the rollout as the company's biggest bet yet on its own silicon, and Azure executive Scott Guthrie said Maia is intended to become the primary system for running AI inference across Microsoft's products and services.

Broadcom chief executive Hock Tan thinks the AI boom's new limiting factor is not silicon. Speaking at a panel in Singapore on Monday, Tan said capital — not wafer or memory shortages — will be the biggest constraint on AI development as the industry pushes forward. The company, he said, is working through its wafer and memory shortages. The harder problem, increasingly, is paying for what comes next.

China's AI labs are heading for public markets — and Moonshot AI just became the biggest test case.

Moonshot AI, the Beijing company behind the Kimi chatbot, has completed its final private funding round at a valuation of about $50 billion, according to Bloomberg, up from $31.5 billion this summer and roughly $4.8 billion at the start of the year. The company is now preparing an initial public offering in Hong Kong targeting the first quarter of 2027, which could raise up to $5 billion.

Who pays for the electricity that AI eats? Three senators just published their answer: you do — and Big Tech likes it that way.

On October 9, Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal released a 27-page report, Power and Profits: How the AI Data Center Boom Costs Households and Communities, the product of a nearly yearlong investigation into AI data centers' impact on communities. The inquiry began with information requests sent December 15, 2025, to seven companies: Amazon, Google, Meta, Microsoft, CoreWeave, Digital Realty, and Equinix.

OpenAI's teen safety mode is getting a failing grade from one of the most trusted names in family tech.

Common Sense Media's Youth AI Safety Institute published an assessment on October 7 rating ChatGPT for Teens an "Unacceptable Risk" for children under 18. Researchers tested more than 4,000 prompts — covering suicidal ideation, self-harm, eating disorders, and other crisis scenarios — on accounts registered to 13- to 17-year-olds, both before and after the product's August 18 launch. The accounts were linked to parent accounts, as the product requires.

Jeff Bezos thinks AI could hand workers something no union has ever secured: a three-day workweek.