Character.AI just filed for bankruptcy, and former foe Disney may buy it for parts
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Character.AI, a controversial generative AI startup that lets users create their own chatbot characters, has filed for Chapter 11 bankruptcy . The company, which lost key talent to Google and had its former CEO hired by Disney , allowed Disney to make the first offer on its assets for $20 million, pending higher offers. Character expects the sale to be completed by early December.
In its blog post , Character said it filed for Chapter 11 protection to facilitate the sale of the company and its assets, listing liabilities of between $50 million and $100 million. As the lead "stalking horse"…
