Juliana’s case is a tragedy, but the details are if anything exonerating.
I think you perhaps didn’t dig into this and didn’t see the part in the complaint where Character.ai bots engage in pretty graphic descriptions of sex with Juliana, who was a child of 13.
In the worst example I saw, she told the bot to stop its description of a sexual act against her and it refused. Screenshot from the complaint below (it is graphic):
Screenshot
We can’t know if this had a lasting effect on her mental health, or contributed at all to her suicide, but I think saying “the details are if anything exonerating” is wrong.
I would bet on the second one being the primary motivator. They lost $13.5 billion in H1 2025 and are seeking $30 billion in the next round of funding.
The platform is big and flashy, so even if it’s ultimately a bust it might look good for that round. If it does well then even better.
Interesting wrinkle is they are making themselves a competitor of infrastructure partner Oracle, given its upcoming purchase of TikTok.