Character.AI files for Chapter 11 as platform faces possible shutdown
Image: Primary Character.AI has filed for Chapter 11 bankruptcy after lawsuits and difficulties scaling its chatbot platform, TechCrunch reported. A court document lists assets and liabilities between $50 million and $100 million. The company also agreed to sell some assets to Disney for $20 million and grant a non-exclusive perpetual technology license.
CEO Colin Adams said the platform would continue operating during the court-supervised sale process, expected to close in late November or early December. He said there is no bid that would secure continued platform operations; without one, Character.AI will wind down.
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