Latest update
Character.AI files for Chapter 11…Disney puts up $20M as lead bidder
First seen on X 7 hours ago@wongmjane ♥ 1,5052 views
Character.AI, the chatbot startup founded by former Google engineers, has filed for voluntary Chapter 11 bankruptcy to sell the company under court supervision.
In a blog post on Oct 12, the company said its board chose a court-supervised sale after a year of "significant legal, regulatory, and operational headwinds." The app is still running and subscriptions remain active for now, but the platform will be wound down if no workable bid emerges. The sale is expected to close by late November or early December.
According to The Hollywood Reporter, a Disney subsidiary committed $20 million as the stalking horse bidder for a non-exclusive perpetual license to some of Character.AI's IP. Disney hired former Character.AI CEO Karandeep Anand as its CTO last month. The filing lists Google as the largest creditor, owed more than $4 million.
Jane Manchun Wong's post on the filing drew more than 1,500 likes on X. Character.AI has faced a string of lawsuits over teen safety.
“Character AI has gone bankrupt. The AI startup announced its Chapter 11 filing through a late-night newswire press release”