Character.AI files for Chapter 11 bankruptcy, selling assets to Disney
The Verge AI · rss · 2026-10-13
Per The Verge, Character.AI — one of the first breakout startups of the generative AI boom — has filed for Chapter 11 bankruptcy protection in the US to facilitate a sale of the company and its assets to Disney. The company builds chatbots for conversation and roleplay, and had faced mounting scrutiny and lawsuits over chatbot safety while continuing to ship updates in recent months.
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