Character.AI files for bankruptcy as Disney bids $20M for some assets
Character.AI has filed for Chapter 11 bankruptcy in the US and lined up Disney as the first bidder for some of its assets, the company said on Monday.
The AI chatbot platform, owned by Character Technologies, filed in a federal court in Delaware. It plans to sell all or most of its assets through the court. Founded in 2021, the platform lets users chat with AI characters.
Disney will pay $20 million for a non-exclusive, permanent licence to some of Character.AI’s intellectual property and certain legal claims. It will also lend back former Character.AI staff it has hired to help keep the platform running safely for a while.
The Disney offer acts as a floor, and rival buyers can still bid more. Character.AI has asked the court to approve those bidding rules, and it expects the sale to close in late November or early December.
“Over the past year, Character.AI...
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