Character.AI files for bankruptcy. Disney bids $20 million for a licence, not the app.
The chatbot company filed for Chapter 11 on October 12; if no buyer keeps the app running, it says the platform will be wound down.
The chatbot company filed for Chapter 11 on October 12; if no buyer keeps the app running, it says the platform will be wound down.
· Captions, from Reuters (via U.S. News), CNBC, TechCrunch
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Character.AI files for bankruptcy. The app where people chat with AI characters filed in Delaware on October 12. The app keeps running while a court supervises a sale of the company's assets.
Disney offers $20 million for a license to some of its technology — not the app itself. No buyer, no app: if nobody agrees to keep it running, the company says the platform will be wound down. In 2024 Google paid about $2.7 billion in a licensing deal that brought its founders back.
The filing cites high costs, possible litigation liabilities and regulatory engagement. Assets and liabilities are each $50 to 100 million, Reuters reports. The sale is expected to close in late November or early December. Do you use AI companions?
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