Character.AI Files for Bankruptcy, Disney Bids $20M for Assets
Character.AI, a pioneer of the generative AI boom, has filed for Chapter 11 bankruptcy and plans to sell its assets to Disney for $20 million. The company, which faces lawsuits over chatbot safety, listed liabilities between $50 million and $100 million. Disney, which recently hired Character.AI's former CEO as CTO, would become the lead bidder. Character.AI warns its platform will be wound down if no better offer emerges.
Over the past year, we've taken meaningful steps to sustain and improve our business amid significant legal, regulatory, and operational headwinds.