Character.ai Files for Bankruptcy

Character.AI has filed for Chapter 11 bankruptcy and is selling assets to Disney for $20 million after facing years of legal challenges and safety concerns over its chatbots. The company, which listed liabilities between $50 million and $100 million, will have Disney serve as the lead bidder while also hiring several of Character.AI's employees, including former CEO Karandeep Anand who recently joined Disney as chief technology officer.