Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy
The startup will sell some of its assets to Disney for $20 million.
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Only five years into its journey, Character.AI, which lets users create AI characters and have conversations with them, has filed for Chapter 11 bankruptcy, following a slew of lawsuits and struggles to scale its popular platform. In a court document , the company said it had assets and liabilities between $50 million and $100 million.
“Over the past year, Character.ai has taken meaningful steps to sustain and improve its business in the face of significant legal, regulatory, and operational headwinds. After a comprehensive review of the available alternatives, the board determined that this…
