The story so far · 3 days, October 12 to 22, 2026
One Turn followed this story across 3 editions, from Menlo Park, California, United States on October 12, 2026. Newest first.
Meta, owner of Facebook, Instagram and WhatsApp, has committed very large sums to AI data centers. Other AI infrastructure firms such as CoreWeave have also seen credit spreads widen this month.
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Meta shares fell about 6% after third-quarter results showed spending on artificial intelligence pushed free cash flow negative. Prices of Meta's five-year credit default swaps reached record highs, CNBC reported, a sign of investor concern about its credit.
Why it matters: Meta's results add to investor questions about how large technology companies finance AI infrastructure.
Sources: CNBC · See it on the globe
Chatbot company Character.ai filed for Chapter 11 bankruptcy. It cited its costs and litigation, including lawsuits linked to teen suicides.
Why it matters: The collapse shows the financial and legal risks facing consumer AI companies over harm to young users.
Sources: The Wall Street Journal · See it on the globe
AI chatbot company Character.ai filed for Chapter 11 bankruptcy. It cited high costs and litigation, including lawsuits linked to teen suicides.
Why it matters: The collapse shows how legal liability over chatbot safety, especially for minors, can threaten AI businesses.
Sources: The Wall Street Journal · See it on the globe