// THE VERGE — INTELLIGENZA ARTIFICIALE
Character.AI files for bankruptcy
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The chatbot startup is looking to sell its assets to Disney after years of legal challenges and safety concerns.
The chatbot startup is looking to sell its assets to Disney after years of legal challenges and safety concerns.
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Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney. The company, which builds various online bots for users to chat or roleplay with, has faced mounting scrutiny and lawsuits over the safety of its chatbots, but has continued releasing updates and products in recent months.
In a press release and blog post published Monday, Character said it had filed for Chapter 11 bankruptcy protection in the US to facilitate the sale of the company and its assets. “Over the past year, we’ve taken meaningful steps to sustain and improve our business amid significant legal, regulatory, and operational headwinds,” the company said.
In its bankruptcy filing, Character listed estimated liabilities between $50 million and $100 million. As part of the proposed sale, Disney would serve as the lead bidder for Character.AI’s assets, setting a baseline for competing offers. Disney would pay $20 million for certain undisclosed assets, and provide transition support “using former Company employees it has hired.” It would also receive a nonexclusive license to unspecified intellectual property.