Chatbot startup Character.AI files for bankruptcy, and Disney is first in line for key assets
Source: Business Insider ·
Character.AI filed for Chapter 11 to pursue a sale, while Disney offered $20 million for a licence to certain assets.
From the source
Character.AI filed for bankruptcy and is putting its chatbot platform up for sale.Jakub Porzycki/NurPhoto via Getty ImagesCharacter.AI has filed for Chapter 11 bankruptcy as it pursues a court-supervised sale.Disney has offered $20 million for a license to certain assets, though other bids could prevail.The chatbot platform, which has faced lawsuits over child safety, could be wound down if a sale fails.Character.AI, the chatbot startup founded by former Google researchers, has filed for bankruptcy.The California-based company said it had initiated a voluntary Chapter 11 process in Delaware to pursue a court-supervised sale of all or substantially all of its assets.Character.AI, which lets users create personalized AI bots, said its platform would remain online during the sale process, which it expects to finish by late November or early December.The company has agreed to let Disney Worldwide Services, an affiliate of the Walt Disney Company, act as the opening bidder for a…