Character.AI faces backlash after model downgrade

character.ai is facing significant user revolt on reddit following the deployment of a new base model, pipsqueak 2, which critics claim damages dialogue quality by prioritizing narration over interaction. alongside this model downgrade, the platform imposed usage caps, increased ad load, and added invasive age verification. ceo karandeep anand acknowledged the difficulty of maintaining free access, citing rising costs and legal pressure, and stated that user churn is an acceptable trade-off for new experiences.