From AI Insider · James Dargan · · 1m 10s
Character AI Files Chapter 11 Bankruptcy
Character AI files Chapter 11 bankruptcy and sells $20m assets to Disney.
In brief
Character AI files Chapter 11 bankruptcy and sells $20m assets to Disney. Character AI filed Chapter 11 bankruptcy and agreed to sell $20 million assets to Disney. Originally reported by AI Insider.
Character AI Files Chapter 11 Bankruptcy
Character AI, the platform that lets users create and chat with AI characters, has filed for Chapter 11 bankruptcy after five years of operation.
Agrees $20M Asset Sale to Disney
The company has agreed to sell some assets to Disney for $20 million, along with a non-exclusive perpetual license to its technology.
Disney Transition Services
Disney will provide transition services through former Character AI staff who joined it last month with former CEO Karandeep Singh Anand.
CEO Colin Adams Statement
CEO Colin Adams said the board concluded that a court-supervised sale offered the best route to maximize value following significant legal, regulatory and operational headwinds.
Expected Closing Date
The platform will keep running during the process, expected to close in late November or early December, but noted no buyer has emerged.
Service Wound Down
The service will be wound down if no viable bid arrives.
Here's the gist
Character AI filed Chapter 11 bankruptcy and agreed to sell $20 million assets to Disney.
