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Post #696 56
๐Ÿ’ฐ Character AI Goes Bankrupt

The AI companion service has filed for bankruptcy in the U.S. and is putting its assets up for sale. The company cites legal, regulatory and operational problems, including lawsuits over harm to teens.

Disney, which recently hired Character AI's ex-CEO as its CTO, has offered $20 million for a perpetual non-exclusive license to some of its technology. Former Character AI staff now working at Disney will help keep the service running during the sale.

The sale should close in late November or early December. If no buyer wants to keep the service, it will be shut down.

@aitopics
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